The Nail polish index…

Essie Fall 2011 Nail Polish Colors - go get em'

I came across this article in Time Magazine a couple weeks ago – it helped explain why we might gravitate towards that ‘little’ lip gloss purchase, or new bottle of nail polish even when money is tight. I like to spin these purchases as simple pleasures…those, “why not? it’s only $10!’ investments.

Well, this article sheds light on this habit and how it’s a trend of our times…

The premise of the article and The Lipstick Index itself: “When the economy is weak, most consumers cut back on nonessentials and instead spend their money on the little luxuries–for example, lipstick.”
Why?
  • Because: “Makeup is a cheap thrill for penny-pinched shoppers.” it’s a lot easier to justify than a pair of $150 jeans!

Proof:

  • “During the 2001 recession, lipstick sales soared even as the overall economy declined.”
  • The term “Lipstick Index” was coined around this time by Estée Lauder chairman emeritus Leonard Lauder
What does this mean for us now, in 2011? And what does this have to do with nail polish?
  • Well, according to Time: “Lipstick sales are up 14% this year. And nail polish, which more recently has become a bellwether of economic turbulence, has risen an even more disturbing 54%. “Nail polish has become the heir to lipstick in this recession,” says Lauder. “I picked up this signal from my granddaughters. All of a sudden, there was all this nail enamel in crazy colors.”
Proof:
  • Estée Lauder just recorded its best North American sales in a decade. 
Interesting…I guess!
So, buy on my friends…the article said it bestwe may be headed into a double dip, but we’ll go there looking fabulous.”

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