In 2001, as the US economy slowed, Estée Lauder noticed a significant increase in lipstick sales. While many luxury product lines experienced contraction, lipstick sales increased. This observation eventually became known as the "Lipstick Index" and became a prime example of understanding the impact of economic fluctuations on consumption habits.
During times of crisis, consumers not only tend to save; they also adjust their spending patterns to reflect new circumstances. Large-scale spending gives way to smaller, symbolic choices. This trend demonstrates that economic decisions are shaped not only by rational expectations but also by emotional regulatory needs. Rather than loss of income, the effort to maintain psychological balance in the face of uncertainty becomes paramount. Consumers purchase products not only for function but also for morale. In this context, lipstick becomes a preferred consumer item not so much for its monetary value as for the sense of control and well-being it provides.
The Lipstick Index reveals the direction and meaning of consumption, rather than its price levels. As consumers feel constrained in times of crisis, they turn to small but symbolically meaningful expenditures to overcome these limitations. These small choices create a sense of normalcy and continuity amidst economic turmoil. The abandonment of luxury handbags and the subsequent preference for relatively affordable personal care products reflect not only a shift in shopping behavior but also a way in which individuals rebuild their sense of self. This shift to symbolically maintaining quality of life despite budget constraints reveals the hidden aspects of consumer behavior.
Over time, the index has become a field of observation that has garnered both support and criticism. Criticism emphasizes that the increase in lipstick sales is insufficient to explain economic crises and that the observation lacks a systematic measurement method. Furthermore, the fact that individuals continued to avoid high-cost expenses during the pandemic and turned to personal care products supports the index's fundamental assumption. The widespread use of masks during the pandemic, coupled with the rise of eye makeup and skincare products over lipstick, demonstrates that these consumption patterns are sensitive not only to economic but also to social conditions. Amidst increasing stress, lockdowns, and uncertainty, the tendency to maintain subjective well-being through small, symbolic expenditures has persisted. The shift toward products that serve similar functions, even if not lipstick, demonstrates that the index retains its validity, if not formally, then in a behavioral sense.
Similar examples can be discussed within the Turkish context. The persistent demand for personal care products or symbolic expenditures at coffee chains during periods of high inflation, exchange rate fluctuations, and income inequality demonstrates that consumers are driven not only by accessibility but also by psychological and social needs. Such choices can be interpreted as individual responses not only to the current economic climate but also to the emotional pressures it creates.
The Lipstick Index is not a technical ratio or measure of productivity. However, it does provide a small but striking indication of how the economic tensions of the time are reflected in daily life. Sometimes, a lipstick sold or a coffee purchased can reveal the mood of the period.
