What is the lipstick effect?

The "lipstick effect" is an interesting economic phenomenon, also called the trend of preference for low-priced products.

It is talking about the financial crisis. During the economic downturn, the sales of various consumer goods dropped sharply, but the sales of lipstick increased significantly, which aroused people's curiosity.

Why does the economic depression cause lipstick to sell so well?

This is because people think lipstick is a relatively cheap luxury product. During the economic downturn, their spending power decreases. Give up buying a car or a house, dare not invest easily, and reduce overseas travel, etc., but you will still have a strong desire to consume, and hope to gain the happiness of consumption, so you will spend some small money to buy some cheap but not necessary luxuries. It’s okay to comfort and please yourself, or buy something to make yourself happy.

Examples of the lipstick effect:

During the economic crisis of the 1920s and 1930s, almost all industries were in a downturn, but Hollywood movies took advantage of the situation and took off, bringing joy and hope to people.

Nowadays, the camping craze that is sweeping the country is also a kind of lipstick effect. Compared with traveling out of provinces and abroad, camping tours are a more "cheap" tourism project. Find a piece of grass, set up a tent, and travel by yourself. Bringing facilities and ingredients, you can go on a journey that "soothes" your soul. Therefore, the sales of creative small household appliances such as outdoor hand brewing kettles, gas lamps, tents, and multifunctional pots are booming.

If a product meets the following conditions, it can make full use of the "lipstick effect" to drive sales.

1. In addition to practical value, commodities have additional meanings;

2. Commodity prices are relatively low;

3. Merchants can make full use of situations to guide consumption. , ignite desire.