Recent PostsIconic Photographs That Changed The World The Image That Caused A Storm The Power to Transform The Lipstick Effect Red Winter Why The Personal Touch Matters How Emotions become Magic! What we learned at The Societies of Photographers' London Convention 2022 Producing a Video for Thunder Park Airsoft We are "The Chosen Ones"!
The Lipstick Effect
The Lipstick Effect
Recently we seem to have been hearing a lot about "The Lipstick Effect" - so what is it?
In times of economic uncertainty and downturns, peculiar consumer behaviour often emerges. One such phenomenon, known as the "Lipstick Effect," has gained recognition and intrigue among economists and marketers alike. This well-proven theory suggests that during times of financial crisis, consumers tend to increase their spending on small indulgences like lipstick, cosmetics, and other non-essential items, even when their overall purchasing power is diminished.
The Lipstick Effect finds its roots in the economic hardships faced during the Great Depression of the 1930's. At a time when the economy was in tatters and unemployment rates were soaring, cosmetic sales, particularly lipstick, surprisingly experienced a surge. This phenomenon caught the attention of analysts who observed that consumers sought inexpensive luxuries to uplift their spirits amidst financial adversity. Despite their limited disposable income, individuals continued to invest in small indulgences, such as beauty products, to maintain a sense of normalcy and boost their psychological well-being.
So how does that affect you?
You may be tempted to cut prices, even some well-meaning people have suggested you cut prices because they can't afford you? How can you do this when your own costs are rising? It makes no sense!
Maybe your business can offer something which need not break your bank, but will keep customers loyal to you, and make them feel great as well?
Here are 4 reasons why this is a great idea that really works.
If you can offer a "feel-good" product or service then you can keep customers loyal and feeling good. If they feel good because of YOU then that is the emotional connection that they will associate with your brand and that could be the key to keep them coming back for more.
This will benefit you, and them, and the wider economy of the whole. Business and Economic experts sum it up like this:-
So, next time you are thinking about the rising cost of living, and how your business can respond to these pressure, put on your best "Lipstick", smile - and put these ideas into action!
If you need any help with your business, and getting the "lipstick" working with some great photography that will connect with your clients then please chat to us about what we can do for you!
No comments posted.