The lipstick effect is the Beauty industry’s key indicator of a recession, by pushing the sales on certain beauty products, Beauty and Fashion brands are giving us an insider’s look into the current state of the industry and a leading indicator of an upcoming recession.
The “lipstick effect” is a term used to describe a phenomenon in which consumers continue to purchase small luxury items, such as lipstick, during times of economic recession or uncertainty.
The concept is that in times of a recession and other economic stresses, women tend to indulge in discretionary purchases that provide an emotional uplift without breaking budgets.
According to the global market tracking firm NPD Group, sales of lipstick and other lip makeup grew 48% in the first-quarter 2023 over the previous year, more than twice as fast as other products in the beauty category.
‘Luxury represents a way to escape,’
Benjamin Voyer, Behavioural Scientist.
‘Affordable luxuries allow us to treat ourselves and serve as a form of psychological motivation,’
Dion Terrelonge, Chartered Psychologist.
Chromatherapy – or color therapy – could also promote happiness. Relying on Neuromarketing principles and the idea that the perception of certain colors increases the release of dopamine in the brain, this trend is being used by some of the largest beauty brands, like Valentino’s Dopamine Dream Pop-Up to boost sales. The pop-up included MBTI test results (indicating personality preferences) to show which fragrance best suits the shopper.
In our modern day and age, TikTok personalities and Instagram influencers have turned the lipstick effect phenomenon into a trendy hashtag: #dopaminebeauty.
@jasminepennamma Skincare has gotten so serious latley. Let’s lighten it up with mood boosting trends like dopamine beauty. #dopaminebeauty#consumertrends#beautytrends#beautyandimpact#youthforia#osea♬ original sound – JasminePennamma
The trend can give leading industry creatives an upper hand to understand what is happening in the beauty and fashion industry: we are facing a recession, and surviving brands should consider the role that influencers play as advertisers.
Dopamine beauty is the rainbow counterpart to all the shades of gray our society has been enveloped in since the Covid-19 pandemic, news of conflicts globally, and other bleak headlines about the economy. Escapism can be worn in the form of fashion or makeup to make your day a little brighter.
If we are to learn anything from the lipstick effect, it is that consumers still value feeling uplifted by ready-to-wear fashion and make-up they wear. Dopamine beauty relies on the impact of colors on the brain, and DTC (direct-to-consumer) brands should consider aligning their interests with the trendy hashtag and relying on colorful influencers to stand out. Psst… It is also the secret backdoor into the state of affairs inside the Beauty industry.
At Hylink, we can help you uncover actionable insights through data, by combining media and an integrative creative team who will ensure that campaigns to boost your brand like #dopaminebeauty are ingrained in your campaign to help you reach your clients.