Blemish of uncertainty
Economics: the lipstick effect
Women tend to buy more beauty products during a recession, but that may not apply in these difficult times
Consumers go into lockdown mode during periods of economic hardship, slashing their spending on big-ticket items, apparel and even food. But they draw the line when it comes to cutting spending on cosmetics and personal care. "People may cut back on other things such as clothing, but not on cosmetics," says Clicks Group CEO David Kneale. "Beauty products remain an affordable luxury." That fact is showing in retail sales figures for the three months to May. Measured in constant 2012 prices, overall retail sales for the period came in 1.5% up compared with the same period in 2016. Bucking the trend, cosmetics, toiletries and pharmaceutical sales were up by a healthy 5%. The general dealer sector, comprising mainly supermarkets, took heavy strain, limping in with sales up 1.4%. Clothing and footwear retailers’ sales contracted by 1.7%. The "lipstick effect" seems to be working in the beauty sector’s favour. Proponents of the theory assert that in tough times women buy more, not fewer, ...
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