Research Tests Lipstick Theory

Posted: June 5, 2008

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Supportive historical data
Kline has instead looked backward through 50 years of sales data to find out whether lipstick sales really do rise as the economy sinks.

The market research asked its statistician, Noel Lim, to plough through the data and study the relationship between lipstick sales and various economic indicators. Strikingly, Lim found that when unemployment rises and consumer sentiment drops, lipstick sales soar.

"If the unemployment rate rises, one would expect demand for all goods and services to decrease, but in fact, the opposite is true for lipstick," said Lim.

Burrowing into the data shows, for instance, that for every 1% increase in the unemployment rate, women buy $25 million worth more of lipstick, according to Kline.

Although lipstick sales have been sluggish in recent years, Kline is confident that with declining consumer confidence the category is now poised for a comeback.