Mar 4, 2008 6:41 pm US/Eastern
Lipstick Index: When Times Are Tough, Buy Makeup
Study: Women Shop Like Crazy For Beauty Products During Slow Economy
By Alexis Christoforous, CBS 2 HD News
NEW YORK (CBS) ―
With inflation rising and credit getting tighter most people are tightening their belts and eliminating unnecessary expenses.
But as CBS 2 HD recently found out there are some things consumers buy even when the economy is sagging.
Call it the "Lipstick Index."
When the going gets tough, the tough get going to the makeup counter. The theory goes like this: During uncertain economic times, women tend to splurge on affordable luxuries like lipstick and eye shadow.
"It's not so hard to go out and buy a lipstick for $12 as opposed to buying a shirt for $100," shopper Elizabeth Ginder told CBS 2 HD.
Sarah Robbins of Bobbi Brown Cosmetics says the reason is more than monetary.
"Makeup is an affordable luxury for women but it's also a great pick-me-up," Robbins said.
It's a pick-me-up that won't break the bank, but still makes us feel good about ourselves.
"It is discretionary spending that does not feel like discretionary spending," said Nancy Berger-Cardone, vice president and publisher of Allure magazine.
Overall, spending in the United States has stalled. Consumers are being tight-fisted as they combat soaring food and gas prices and a deepening housing recession.
But makeup is one of the bright spots, with sales up 4 percent last year.
"They may not buy the dress, they might buy the shoes, they might not buy either, but they're going to buy the new mascara," Berger-Cardone said.
You won't find "the makeup index" in business school textbooks, but it's been quite a reliable indicator of consumer attitudes.
During the last recession in 2001, makeup sales jumped 23 percent and during the recession of 1990, sales climbed 10 percent.
"I think when things get a little dicey, it's nice to treat yourself," shopper Gail Belsky said.
The catwalk can also provide some clues to the economic trends.
"When the economy is a little unstable, hemlines go down," Berger-Cardone said.
And judging from a sneak peek at fashions for fall the economy may soon be looking up.
This is also a good time to get a deal on beauty products. History shows that when the economy slows, makeup companies tend to lower prices or offer two-for-one deals to keep sales strong.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
Celebrity Real Names Revealed
Click to enlarge
Massive Stroller Recall Expected Tuesday 47 mins ago 
Stumble It!
