The recent global meltdown has seen an upswing in what is known the “lipstick effect”, as sales of cosmetics are rising with more women trying to cheer themselves up by spending in make-up rather than cars, holidays and kitchens.
Economists have said that due to the financial crisis, people are steering away from making extravagant purchases like cars, holidays and kitchens and are instead spending their money on small luxuries like make-up.
And the sales figures from some of the world’s big cosmetic companies – LOreal, Beiersdorf and Shiseido-reflect the theory.
