Sunday, May 3, 2009

Lipstick Theory

I recalled reading about the Lipstick Theory - an economic theory that says: during times of economic instability consumers will turn to less expensive indulgences, such as lipstick, to make themselves feel better. Leonard Lauder, chairman of Estee Lauder made this comment when he noticed that his cosmetic sales increased during times of uncertainty. While many people agree or disagree with the Lipstick Theory, let me give you my two cents worth about what I think about it.

Shopping in the United States (especially in NYC or LA) has never been a relaxing experience for me. I used to constantly get an "athletic-high"; a sense of competitiveness induced by a gazillion bargain hunters surrounding me, and the abundant proximity of so many pretty things (and hidden bargains) all in one big shopping paradise. Recently, I have found that shopping for clothes is no longer a competitive sport for me and there are also less competitors out there that want the same deal I want. Even shopping at discount stores doesn't seem as exciting compared to the past where I find myself competing with other shoppers for that one Marc Jacobs dress in a size 4. Because of the economic instability, I am also more cautious in my spending; meaning no more compulsive purchases of the latest "It" bag or shoes or contemporary fashions from Saks or Neiman Marcus. The only pair of shoes I got this year (which are not even SS09 shoes) were these brown Coach Signature Jodey Clogs I got at a deal for $80 (Retail $198).

Instead, I find myself leaning more towards cosmetics - like Lipgloss (which is equivalent to lipstick) and eyeshadow - which are considered as less expensive luxury items. All my shopping hauls so far have been COSMETICS! I looked at my recent credit card statements and most of my purchases were makeup from Mac, Urban Decay, Sephora, Ulta and even grocery store brands like Loreal and Revlon. I used to rack up four-figure purchases every month, but now my monthly shopping hauls are only three-figures! In fact, it is in the low three-figures. So theoretically, I am still shopping and spending, but I am actually saving more money! Yes you heard me right. With that being said, I think this Lipstick Theory is so true!

What do you think of the Lipstick Theory?
Leave me your comments below. XOXO.