Kenapa Kosmetik Laris Saat Ekonomi Lesu?

Summary

In this video, the concept of the 'lipstick effect' is explored, where people, particularly women, continue to buy affordable luxury items like lipstick, perfume, and skincare even during economic downturns. Despite financial struggles, these purchases provide an emotional boost and a sense of self-reward. The video highlights how this phenomenon has been observed during various economic crises, from the Great Depression to the COVID-19 pandemic. The trend persists, with e-commerce and social media influencing consumer behavior, and the video also touches on the broader implications of these buying patterns.

Takeaways

• 😀 Lipstick Effect refers to a phenomenon where people, especially women, spend on affordable luxury items like lipstick or skincare during economic downturns, even when finances are tight.
• 😀 The Lipstick Effect is driven by the need for emotional satisfaction and self-reward, even in times of financial stress or crisis.
• 😀 This behavior was first discussed in the 1998 book 'The Overpan American,' where Professor Juliet Shor observed that during financial crises, women prioritize small luxuries over more expensive items like luxury cars or designer handbags.
• 😀 Research by McDonald and Dildar in 2020 found that during the 2008-2009 Great Recession, women were more likely to buy lipstick than high-end fashion as a way to treat themselves.
• 😀 The Lipstick Effect can be traced back to the Great Depression of the 1930s, where despite the economic collapse, cosmetic sales, particularly lipstick, increased.
• 😀 Other instances of the Lipstick Effect were observed after the 9/11 terrorist attacks, where cosmetic sales, including lipstick, spiked, indicating that small indulgences can act as a psychological coping mechanism during times of crisis.
• 😀 During the COVID-19 pandemic, while lipstick sales initially dropped due to mask-wearing, other cosmetic products like perfume and skincare saw a rise in sales, showing the adaptability of the Lipstick Effect.
• 😀 E-commerce growth during the COVID-19 period made it easier for people to impulsively purchase luxury items like cosmetics, despite the financial uncertainty around them.
• 😀 In 2021, the beauty industry grew by 40.1% in Indonesia, outperforming other sectors like fashion and electronics, showing the resilience of affordable luxury products during economic hardships.
• 😀 The Lipstick Effect is not just about physical appearance but also about mental well-being, as many people use beauty products as a form of self-care or emotional self-reward during challenging times.

Q & A

What is the 'lipstick effect' as explained in the video?

The 'lipstick effect' refers to the phenomenon where people, especially women, continue to spend on luxury goods like lipstick or skincare, even during economic downturns, when they can't afford more expensive luxury items like cars or branded bags. It’s a form of emotional self-reward during tough financial times.

Why do people continue to buy luxury beauty products during a crisis?

People buy these affordable luxury items to experience an emotional boost and a sense of self-reward, even when their financial situation is strained. It offers a way to pamper themselves without breaking the bank.

What does Professor Juliet Shor’s research suggest about purchasing behaviors during economic hardship?

Professor Juliet Shor’s research suggests that during economic downturns, women tend to purchase affordable luxury products like high-end lipsticks that they can use in public, rather than expensive products typically used at home, such as eyeshadows. This behavior helps them maintain social validation and self-esteem.

Can the 'lipstick effect' be traced back to past economic crises?

Yes, the 'lipstick effect' can be traced to earlier crises, including the Great Depression of 1929 and the Great Recession of 2008-2009. In both cases, people continued buying cosmetics, even when the economy was struggling.

How did the COVID-19 pandemic affect cosmetic sales?

Despite the global recession caused by the COVID-19 pandemic, the beauty market saw a significant rebound. Sales in cosmetics, skincare, and fragrance products surged, especially through e-commerce, even as traditional retail outlets saw a decline.

How did the beauty industry adapt during the pandemic, especially with the mask-wearing trend?

The beauty industry adapted to the mask-wearing trend by shifting focus to products like kiss-proof lip glosses and other makeup that would not smudge under masks. This shift in product preferences highlighted how the industry was responsive to consumer needs during the pandemic.

What does the 'lipstick index' refer to, and how is it related to the lipstick effect?

The 'lipstick index' is a concept introduced by economists to measure consumer spending on non-essential luxury goods, like cosmetics, during times of economic downturn. It’s based on the idea that, even in a crisis, people will continue to buy affordable indulgences like lipstick as a coping mechanism.

What factors contribute to the growth of the beauty industry, even during a financial crisis?

The growth of the beauty industry during financial crises can be attributed to the rise of e-commerce, social media influencers, and consumer behavior that favors affordable self-reward purchases. Additionally, beauty products often provide emotional comfort and a sense of normalcy during tough times.

Why do beauty products often outperform other luxury goods during a recession?

Beauty products, as part of the 'affordable luxury' category, offer a way for people to treat themselves without overspending. During a recession, while people may cut back on larger luxury items, they often continue purchasing beauty products, which are seen as a more accessible indulgence.

Does the lipstick effect also apply to men, and if so, how?

The lipstick effect is traditionally associated with women, but similar behaviors can be seen in men. The video humorously mentions items like Calvin Klein underwear or other fashion items as examples of products that men might buy to flex or boost their social status, akin to the lipstick effect in women.