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investopedia.com - 11/10/2008

Leading Lipstick Indicator

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What does it Mean? An indicator based on the theory that a consumer turns to less expensive indulgences, such as lipstick, when she (or he) feels less than confident about the future. Therefore, lipstick sales tend to increase during times of economic uncertainty or a recession. Investopedia ...

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Wired Economic Indicators: Lipstick
Wired: Epicenter — ... The theory is that we're likely to avoid making big purchases to save money in uncertain times and treat outselve to smaller pleasures instead. It's far from a foolproof economic prognosticator, but, according to Investopedia, it has been "quite a reliable signal of consumer attitudes over the years." ...

The Leading Lipstick Indicator is up 40%. Uh-oh.
StyleList Blog — ... Beauty industry insiders believe that sales go up when the economy goes down. The theory is that people turn to less extravagant indulgences (like say, lipstick) when they're uncertain about the future. Leonard Lauder coined a name for this phenomenon after lipstick sales doubled after Sept. 11 - the Leading Lipstick Indicator - and while the name is a bit tongue in cheek, the correlation between cosmetics sale and economic woes seems to be strong. ...

Patriarch Partners snaps up Stila Cosmetics
BloggingBuyouts — ... Leonard Lauder once coined the term lipstick Indicator to describe the countercyclical nature of lipstick sales: As people cut back on big ticket items, they turn to affordable pick-me-ups like drugstore cosmetics. Because it operates at the relatively high-end of the cosmetics market, Stila has struggled with tradedown customers who are heading to CVS instead of Sephora to pick up their cosmetics. ...