the lipstick index

"The idea is that, during a recession, women substitute small, feel-good items like lipstick for more expensive items like clothing and jewelry."
—Norm Scheiber, "Replacement Killers," The New Republic, January 7, 2002

Estée Lauder Chairman Leonard Lauder reportedly coined the phrase “lipstick index” after observing sales surges during 9/11 downturns. Why? People reach for affordable luxuries to feel better. The New York Times notes that in the last few months, lipstick sales have shot up 40% . Even in Indian markets, lipstick sales are growing steadily at 20% & in the case of luxury brands that have a smaller base, the numbers extend even into the triple digits. “Women always want to look beautiful, and what’s the easiest thing to buy? Lipstick. A tube of lipstick for $14.50 as compared to a shirt for $70,” says Jennifer Barnett of Origins. [trendspotting.com]

[Google Trends]

But I guess the boost in lipstick sales came just a bit too late for Max Factor. The makeup pioneer will begin its fade out of U.S. stores starting early 2010, and according to the New Yorker:

"Max Faktor (he changed the spelling later) was a five-foot tall Polish Jewish fugitive who left Russia in 1904 and arrived in California, breaking into Hollywood via manufacturing cosmetics for the film industry. When film changed — from black and white to Technicolor — Factor changed the chemistry and formula of his makeup, and actresses who wouldn't appear under harsh lights — Bette Davis, Carole Lombard, Joan Crawford, Greta Garbo, Norma Shearer, and Claudette Colbert — had new products, which were more flattering. When the company started selling to the public, it often used actresses in its advertising....Unlike some other make-up artists, he was never painted as an effeminate type. Photographs of Factor show him simultaneously as makeup artist, chemist, and father figure."

As with any cosmetics, you're not just purchasing a new shade, you're purchasing a new image of you.