The Lipstick Index Is Getting Smeared Due To The Pandemic

CBx Vibe:Red Lipstick” Rihanna

By CultureBanx Team

  • U.S. sales of lip makeup fell 15% this spring
  • The global beauty industry generated $500B in sales last year

We’re living in a time when wearing a mask and lipstick just don’t mix. In fact, a recent McKinsey report found that in the U.S. sales of lip makeup fell 15% this spring from last year. The logic goes, when lipstick sales are up, it means the economy is in trouble because people are restricting themselves to inexpensive pick-me-ups rather than pricey consumer goods. Has the necessity for face masks turned the lipstick index on its head?

Why This Matters: Red lipstick has been a sign of defiance for centuries, even though the lipstick effect itself is somewhat controversial. The global beauty industry generated $500 billion in sales last year, before taking a major nosedive. Not to mention that 2020 is expected to be one of the worst years for the beauty industry as a whole. While cosmetics are expected to rebound quickly, the pandemic has shifted our relationship with makeup, at least for the time being.

If there is a second coronavirus wave later this year, global sales of beauty products could fall by 20%-30%

It’s not just in the U.S., lipstick sales in Japan fell close to 70% in mid-May compared to the previous year, according to data from Intage Holdings. McKinsey estimates that about 30% of the beauty industry was shut down by COVID-19. However, if there is a second coronavirus wave later this year, global sales of beauty products could fall by 20%-30%.

What’s Next: In times of economic uncertainty, affordable luxuries like a striking lipstick shade could help prop up select retailers and the economy, even through downturns. This still seems like a tough index theory to prove, because after all, why wear lipstick when no one can see your smile anyway?

CBx Vibe:Red Lipstick” Rihanna

CONTRIBUTOR

CultureBanx Team

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