_ Have YOU fallen prey to the 'lipstick effect'? Expert reveals the fascinating truth about how a huge surge in MAKEUP purchases could signal major trouble for the economy

Amid soaring living costs and rising prices, there is no shortage of financial experts pointing to warning signs that we are heading for a grave economic slump - but one fascinating theory is now linking the possibility of a recession with women's makeup-buying habits in a concept known as 'the lipstick effect'. 

The idea stems from the theory that during any kind of economic downturn, more and more women begin purchasing makeup items, like lipsticks, in a bid to reward or treat themselves without breaking the bank. 

Now, with inflation on the rise, the lipstick effect seems to have taken hold yet again - with Sephora reporting record growth in 2023 in a clear indication that the beauty industry could well be benefiting from people's increasingly-restricted budgets. 

The theory has sparked a flurry of debate on Reddit, where beauty fans flocked to share their take on the concept, while opening up about why they tend to turn to makeup or skincare whenever they feel like they're in need of a treat that won't break the bank.  

'I think that's what's happening right now. Every time a higher end lip product releases it's sold out within a short time,' one Reddit user wrote, while another cited the soaring popularity of lip products from brands like Summer Fridays and Hailey Bieber's Rhode. 

However, others thought the recent love of lipstick could be because people wore masks for so many years during the COVID-19 pandemic. 

'I think right now there's even more of a push on lip products because people weren't really wearing them when they had to mask all the time,' a commenter mused. 

Some thought that inflation made it difficult to purchase makeup at all. 

'Lipsticks became $50 CAD per tube, beauty has been hit crazy hard by inflation. I'm back to using budget brands and dupes because I'm priced out of items I've bought for a decade,' one commenter complained.

'Hah I was gonna say I remember hearing about this effect over 10 years ago and it made a bit more sense when Mac lipsticks were $14.50 USD instead of $25 now,' another person commented.

'I also feel like lip products are very easy to use and thus justifiable to buy,' one beauty lover wrote, referencing splurging on the Laniege products and adding, 'I feel so fancy when I wear them. It's like a little treat, but they're also practical. Just a small little thing that makes you feel good and boosts your confidence.' 

According to Forbes, the lipstick effect was first put forward by Boston College economics and sociology professor Juliet Schor in her 1999 book The Overspent American: Why We Want What We Don't Need.  

However, in the years since, 'little treat culture' has become a massive trend on social media, as millennials and Gen Z treat themselves to a small special something to get through the day, whether it's a dessert, an overpriced latte, or makeup they've seen all over TikTok.

And it might just be little treat culture that's making a splash, because beauty buyers aren't just picking up gloss.  

California-based Brinn Garner, chief revenue officer (CRO) at Orveon - the collective behind beauty brands Laura Mercier, bareMinerals, and BUXOM, told FEMAIL: 'We've observed that the lipstick effect is not limited to lipstick or even makeup anymore and has extended to other affordable luxuries such as fragrance and skincare.'

'This demonstrates that consumers continue to want small luxuries that make them look and feel good,' she confirmed. 

Brinn has also seen a shift in how women are shopping for beauty products. 

'Historically, women's purchasing habits in beauty were influenced by their mothers, grandmothers and other women within their family as well as their circle of friends,' the CRO explained. 

It's confirmed that Gen Z and Gen Alpha are also indulging in the lipstick effect, despite not being part of the workforce. 

'Now purchasing habits alongside product and brand exploration are being influenced by creators, influencers and celebrities online across generations, notably within the Gen Z and Gen Alpha cohorts,' Brinn explained.

She said that a survey from the research center at Piper Sandler shows that while overall spending for teens was down six per cent, annual spending on beauty was up eight, proving that Gen Z and Gen Alpha were invested in their beauty routines.

Brinn called the craze 'the epitome of the lipstick effect, showing that while consumers may have less to spend, small luxuries like makeup and fragrance are still important to them.' 

The CRO also credited the lipstick effect with the popularity of bold lip colors, whether it's Taylor Swift with her signature red hue or the burgundy color seen all over the runway during New York Fashion Week. 

Not only is lipstick all the rage, it's a relatively inexpensive way to give yourself a little treat.

(Fluierul)