The so-called lipstick index, coined by Estée Lauder’s Leonard Lauder, is the theory that sales of affordable luxuries rise in economic downturns.
Consumer psychologist Dr Cathrine Jansson-Boyd said there was evidence people attempt to boost their mood with small treats in difficult times.
But she said a bigger factor in what we buy is a subconscious decision about how we want other people to see us.
“Being short of money is psychologically daunting for people and the way to make yourself feel better, even if it’s ever so little, is to purchase something that you think will cheer you up,” said Dr Jansson-Boyd, an associate professor in consumer psychology at Anglia Ruskin University.
Do you think this index is an accurate proxy for an upcoming recession? Do you feel that you buy more affordable luxuries when you have less money?
Plus, there’s that subconscious desire to present ourselves a certain way