Your Money Minute Lipstick Indicator Is Back 6/11/25
Jun 11, 2025
Discover the intriguing concept of the Lipstick Indicator, a quirky measure of consumer confidence where luxury purchases surge during economic downturns. Explore how recent impressive earnings from Ulta Beauty fit into this trend, showcasing the resilience of small luxury items. The discussion dives into the origins of this term, tracing back to a keen observation by a former Estee Lauder chairman. It's a fascinating look at how consumer behavior reveals deeper economic insights.
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Lipstick Indicator Reveals Consumer Behavior
- The
lipstick indicatorshows that even in economic uncertainty, consumers buy affordable luxuries like lipstick. - This indicator reflects a coping mechanism where consumers seek small indulgences during downturns.
Origin of Lipstick Index Term
- Leonard Lauder coined the term lipstick index in the early 2000s based on an observation during an economic downturn.
- Women substituted expensive luxury beauty items with affordable ones like lipstick to indulge practically.