The 'lipstick effect': Consumers splurging on cosmetics despite tighter budgets
Online transactions for lipsticks shot up 37.1% between January and May
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Cost-conscious consumers are trading down when it comes to everyday necessities like groceries as well as in other categories like electronics and apparel.
But one thing they're not pulling back on: cosmetics.
Adobe released new online shopping data on Wednesday that showed how consumers are in fact splurging on cosmetics, namely fragrances and lipsticks. Economists refer to this trend as the "lipstick effect."
MORE RETIREES CONSIDER RETURNING TO WORK AS HIGH INFLATION SQUEEZES
This term refers to when people still spend money on small luxury items during an economic downturn or other times when they are cash-strapped for personal reasons.
Women try out the testers at a L'Oreal SA cosmetics counter at a shopping mall in Beijing, China, on Saturday, April 21, 2007. (Raul Vasquez/Bloomberg via Getty Images / Getty Images)
While they don't have enough to spend on big ticket items, people were shown to still indulge in small luxuries like premium lipstick.
According to Adobe's most recent data, online transactions for fragrances rose by 19.4% from January 2024 to May 2024. On an annual basis, the number of transactions rose 9.9%.
INFLATION IS UP 20% SINCE BIDEN TOOK OFFICE
Daily sales of fragrances are up 53% from April to May 2024 compared with January 2024. On an annual basis, daily sales are up 27%.
With lipsticks, online transactions shot up 37.1% between January and May. Meanwhile, transactions rose by 18.1% on an annual basis, the data showed.
With lipsticks, online transactions shot up 37.1% between January and May. Meanwhile, transactions rose by 18.1% on an annual basis, the data showed. (Thomas Lohnes/Getty Images for Prada Beauty / Getty Images)
In fact, higher-end lipstick was a big driver behind spending online, with daily sales up 49% from April to May 2024 compared with daily sales at the beginning of the year.
The anticipated top sellers of lipsticks in 2024:
- Clinique Almost Lipstick – in Black Honey and Pink Honey
- Glossier Ultralip Lipstick
- Saie Lip Blur Lipstick
- MAC Lipstick
- Anastasia Beverly Hills Satin Lipstick
- Makeup By SuperSatin Lipstick
The top lip-related products:
- Dior Lip Oil
- Rare Beauty Lip Oil
- Charlotte Tilbury Pillow Talk Plumping Lip Gloss
- e.l.f. Cosmetics Pout Clout Lip Plumping Pen
- Merit Shade Slick Tinted Lip Oil
- Rhode Peptide Lip Tint