For years, economists have relied on traditional economic indicators like consumer spending, wages, inflation, and the yield curve to predict an upcoming recession — and economic recovery. They’ve also plumbed all sorts of other weird economic indicators like lipstick sales. Estee Lauder coined the term “the lipstick effect” during the 2000 recession, when sales climbed following the dot-com bust. The reasoning goes that when times get tight, women will ditch big-ticket purchases and opt for small indulgences like a tube of bright lipstick.
Pop business for the intelligent reader. A publication from Medium.