The Lipstick Effect: Economy and Mindset by Ximena Bravo

When the economy dips, lipstick sales often rise. Sounds strange? It's called the Lipstick Effect, and it's backed by real economic and psychological data. The idea is simple: in uncertain times, women shift from big spending to small luxuries, like a bold red lipstick, as a form of emotional self-care.

Leonard Lauder, chairman of Estée Lauder, first coined the term after noticing a spike in lipstick sales following the 2001 recession. More recently, Forbes reported that in 2022, amid inflation, lip product sales rose 48% year over year. Quoting them: “Women are also picking up brighter, more dramatic colors this year, rather than muted, natural looks.” Why? Because investing in how we look gives us a sense of control, resilience, and readiness when everything else feels unstable. 

This isn't just about vanity—it’s about power psychology.

Here's what the Lipstick Effect teaches us:

Beauty routines can be emotional anchors during stress. Small, affordable beauty choices help you feel “in control” when everything else feels chaotic. Looking good—even in subtle ways—restores confidence and communicates resilience to others.

And in business? Confidence is currency.

If you’re a female entrepreneur, your presence is part of your pitch, even if no one says it out loud. When you show up polished, you remind the world (and yourself) that you’re still leading, even through hard times.

This is my take on how to activate your own Lipstick Effect:

Choose one beauty ritual that energizes you in under 5 minutes.

Keep one “confidence product” (like tinted balm or mascara) in your bag.

Use your appearance as a daily affirmation: I am visible. I am valuable. I am ready.

The economy may fluctuate. Challenges may come. But the way you show up—face first—can still say, “I’ve got this.”

So let’s make it fun and do a little challenge:

Wear a Red Lipstick every day for 3 days (If you are feeling a bit shy, try a brighter than usual colour). Send me a note with your takeaway!

Sources:

Social and psychological determinants of consumption: Evidence for the lipstick effect during the Great Recession - ScienceDirect 

With Recession Threatening, The Lipstick Effect Kicks In And Lipstick Sales Rise

What Is the Lipstick Index? Which Stock Market Trends Does It Predict? - TheStreet

Ximena Bravo is a beauty business owner based in Etobicoke, offering permanent makeup and makeup services. She helps women feel confident and ready with natural-looking, long-lasting beauty solutions that save time and feel like “you.” Before starting her business, Ximena worked in marketing for big global brands, managing products and building strategies. Now, she brings that experience into her own business, combining creativity, care, and business know-how. She’s passionate about helping women feel good in their own skin and loves connecting with others who are building meaningful, healthy, and happy lives through their work and passions.