lipstick index

From the popular hemline theory to the lipstick index, fashion has always had some quiet alarms to indicate signs of an impending recession

Growth slowdown? “What’s that,” ask colour cosmetics players. With big brands like Lakme and L’Oreal clocking double-digit growth rates, the colour cosmetics category has bucked the slowdown. In India, while consumers are said to be delaying big ticket purchases like an automobile or a consumer durable, they find disposable income for small indulgences like a lipstick.

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As work-from-office, parties and celebrations resume, the lipstick and other cosmetics have made a comeback inour lives, along with the motto – ’ the more brighter and jhatak, the better!’

Small, affordable 'minis' are reshaping India's beauty market as consumers experiment beyond basic products. Lakme's VP Sunanda Khaitan notes that these minis encourage makeup adoption, especially among Gen Z, and are boosted by quick commerce platforms. Despite inflation impacting spending, beauty remains resilient, driven by aspiration and accessibility.

The "lipstick index", which usually rises during an economic downturn, appears to have lost a bit of its shine with the Covid-led lockdown. With masks becoming a must-have accessory and no occasion for socialising, the consumer’s focus appears to have shifted more towards eye makeup from wearing lipsticks.

Lakme is anticipating a surge in demand for mini beauty products in India, driven by affordability and the desire for experimentation, especially among Gen Z. Sunanda Khaitan highlights the potential of quick commerce platforms like Swiggy and Zepto to boost makeup adoption, noting the resilience of beauty spending despite inflation.

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Some economists try to predict the next downturn by analysing data and devising algorithms. Others count the number of pregnant women or look inside underwear drawers

A beautiful woman with lots of makeup and very little on walks past. Don't just salivate, calculate. For lipstick is the best dipstick and longer hemlines can be a cause for gloom. Yes, in these hard times, there are some simple - and delectable - economic indicators that can tell you just where you and the businesses around you stand. So if you're having trouble figuring out complex things like GDP, look for other signs... like Paris Hilton's top and J Lo's bottom ...

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