What has a lifetime of experience in the cosmetics industry taught us? When the economy goes down, cosmetic sales go up. Way up. When higher priced items become harder to get, sales of smaller luxuries go through the roof. This is the Law of Lipstick. Leonard Lauder, Chairman of Estee Lauder, coined a theory called, The Leading Lipstick Indicator, which simply states the economy can be read by the rise and fall of lipstick sales. Some of the darkest moments in the history of the United States, financial and otherwise, are followed by a hefty increase in lipstick sales. That is not to say women throw discretion to the wind. Quite the contrary. Women are smart consumers. They will buy one thing while sacrificing another, . . . it is the perfect order of things. Big value will be switched up for a better value. Feel good purchases will prevail.
Make no mistake, female consumers are a force to be reckoned with. After all, women comprise just over 50% of the population, make over 80% of the purchasing decisions, own 40% of all businesses, employ more people than the Fortune 500 companies worldwide, start 70% of all new businesses for the past decade and control over half the private wealth. That, friends, is what we call the Female Factor.
Hold on to your lipsticks, ladies, while we continue to drive the marketplace forward and meet the expectations of those financial wizards who predict the beauty industry will become the fastest growing retail sector despite the financial downturn. More sales, more money, more employment, more growth. Never underestimate the power of lipstick.
Quote of the Week:
"Not even the threat of a recession comes between a woman and her lipstick." Jen Melocco, Fashion Editor
