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Now increasing sales of lipsticks indicates economic slowdown!

Friday - August 30, 2019 11:26 am , Category : WTN SPECIAL
Lipstick sales increase during the economic downturn!
Lipstick sales increase during the economic downturn!

Increased sales of lipstick alarm! 

AUG 30 (WTN) - As you must have read and heard that these days the whole world is slowly falling into the grip of economic recession. The entire world is facing economic recession due to the ongoing trade war between the US and China. Economists around the world are expressing their views on the economic slowdown. At the same time, some index related to the economic recession is also discussed in all over the world. From declining sales of men's undergarments to growing subscribers to dating sites, these are indexes that suggest the economic slowdown is slowly beginning to make an impact.

These days the ‘Lipstick Index’ is being discussed a lot in the index of economic recession. Indeed, the 'Lipstick Index' is an indicator of recession in markets in Western countries. That is, if lipstick sales are high, it means that the economic recession is going on. While the sales of lipsticks have been seen high in Western countries, India's color cosmetics market is also showing a similar situation.

In fact, while the automobile sector and the real estate sector in the country are facing recession, the color lipstick cosmetics market in India is growing at a double-digit pace. That is, the lipstick index is indicating economic slowdown in India. According to the information received from the media, lipstick sales of brands like Lakme and L'oreal have increased in double digit in India.

It is clear that according to the ‘Lipstick Index’ in India too, there is a slowdown. Actually, according to the formula of 'Lipstick Index', lipstick sales increase during the economic downturn. Researchers of this index argue that during the recession, women spend more money on lipstick than on clothing and other expensive fashion. This is why, because lipstick is a much cheaper option for women in a recession compared to cloths and expensive fashion to show them beautiful and up-to-date.

For your information, let you know that 'Lipstick Index' was first used by Leonard Lauder, former chairman of 'Estée Lauder', to explain the increase in cosmetic sales of the company during the economic downturn of 2000. According to economists, many color cosmetic brands showed similar trends in the recession of 2001 and 2008. That is, lipstick sales increase during the recession.

On the reasons behind the increase in lipstick sales during the recession, economists say that the decline in income due to recession increases both sales and consumption of cheap goods. Although, big brands of lipsticks are not cheap items, lipstick is still a cheaper option to keep up-to-date compared to clothes, jewelry and expensive fashionable items.

It is clear that during the recession, the income of the people decreases, due to which people spend money only on the services of need and not buying expensive and indulgence items. At the same time, people spend more on indulgence and expensive items due to increase in income at no time of recession.

It is clear that double digit growth in lipstick sales in India is a clear indication that the economic slowdown has knocked in the country. Some rating agencies had speculated that if the Indian Government takes some precautionary measures, the global economic slowdown will not have much impact on India. However, the Modi Government seems to be taking the necessary decisions to deal with the economic downturn. But according to economists, until there is no conclusion of the ongoing trade war between the US and China, some or more recession will be seen all over the world.