You have probably heard of ‘The Lipstick Effect’ before. It’s not a beauty phenomenon, but a term that gets thrown around during times of recession. The theory goes that in an economic downturn, consumers are more likely to spend on small luxuries rather than budget blowing big-ticket items.
In other words, those Gucci shoes are out of the question, but you might justify spending $84 on the Gucci lipstick.
The term was first coined a hundred years ago during the Great Depression, when commentators noticed women were buying lipstick to cheer themselves up from their life of canned soup and potatoes. Decades later, Leonard Lauder, the former head of Estée Lauder referred to the ‘lipstick index’ to describe the uptick in cosmetics sales during the GFC.
We still use makeup sales as an economic indicator. Speaking to Stuff’s Imogen Wells in March, Retail New Zealand’s Carolyn Young said the lipstick effect was in full swing - people are still visiting stores for retail therapy, but if they buy, they’re paying “significantly less” - around 15-20% of what they would have previously.
I’m no economist, but between the closure of many local businesses, our shrinking media industry, and the amount of goths I’ve seen lately, it sure feels gloomy. But the number of brands inviting me to “celebrate the launch” of a new lip soufflé, peptide glaze, wet lip oil or jelly shine balm tells a different story.
Beauty companies have clocked our need for a mood-boosting little treat, and they’re serving it to us, thick like gravy - or a Laneige Lip Sleeping Mask.
Earlier this year, Vogue declared a ‘Lip gloss Revolution,’ citing a 73% jump in searches for the product on UK-based Cult Beauty’s website. The company forecasted 2024 to be another huge year for gloss, the hype largely driven by TikTok trends (videos of people ‘Testing Out Lip Glosses’ have amassed over 43 million views). In another article, Business of Fashion reported that in the US, lip products are the fastest-growing category in prestige makeup overall.
So is it time we rename this the Lip Gloss effect?
Not quite. You may have noticed the word “lip gloss” has seemingly been banned by marketers. Gone are the days of Lancôme’s Juicy Tubes that promised nothing more than sticky shine and Hot Girl status. The nostalgic category has been rebranded as Lip Care - with the biggest hitters coming from “clean” skincare brands rather than traditional makeup companies.
“Lumping lip gloss in with skincare, rather than makeup, appeals to our pathological quest for self-care and betterment. The inclusion of skincare ingredients could, for some shoppers, justify higher prices.” - Rachel Strugatz, Business of Beauty.
The queen behind the categorical boom is, of course, Hailey Bieber. Back in August 2023, Glossy reported that over one million Rhode Peptide Lip Treatments had been sold - about NZ$27 million. Since then, the newly minted beauty mogul has continued to capitalise on her best-seller, launching four coloured tints, a Strawberry Glaze collaboration with Krispy Kreme, and even an iPhone case with a built-in lip gloss holder, encouraging her 51 million followers to turn their selfies into Rhode #ads.
A similar trend is happening in New Zealand to a smaller degree. Local skincare brand Maryse launched its Lychee Lip Shine in December 2023, with founder Maryse O’Donnell wanting a nature-powered version of Juicy Tubes. Her pots of pink-tinted gloss quickly became a bestseller. “I think what resonates is its nostalgic appeal while delivering a modern, natural beauty product,” O’Donnell says.
Lip care is also stealing the show at Henné Organics, a newcomer in the skincare space. The brand (based in the US and marketed here), offers an entire skincare routine for your lips: exfoliants, serums, balms and masks. According to Holistic Aesthetics (the brand’s NZ distributors), around 90% of sales stem from their lip products, with the hero being their Luxury Lip Tint in ‘Bare’ - a glossy nude. Managing Director Kay Roby has seen a 40% surge in Henné sales over the past 1-2 years, crediting this to a rising demand for natural and organic products in Aotearoa, and more people pampering themselves at home.
Over at beauty retail giant Mecca, there has been a noticeable uptick in lip product sales in NZ, with “a lot more innovation” in lip care. “This builds into the trend we have seen with the skinification of makeup products where there is a focus on our colour products that also include skincare benefits,” says Carly Emery, Mecca’s head of makeup merchandise. “Products like Kosas Wet Lip Oil, Summer Friday’s Dream Lip Oil, and the new Too Faced Kissing Jelly Oil Gloss play in the space of hybrid lip gloss and condition.”
Emery also points out that traditional lipsticks are experiencing innovation and sales growth, too. “There is always a space for an amazing power-red lipstick that stays on all day.” She lists customer favourites like NARS, Charlotte Tilbury, and the next generation cult-classic, the Violette_Fr Bisou Balm.
The core of the lipstick effect - allowing people small affordable luxuries in hard times of recession - still holds up. What’s different about this lipstick effect is that it comes after two years of mandatory face masks. Naturally, we got over-excited to put shiny, colourful things on our mouth zone again - whether that’s a mum swiping on her trusty red, or a high schooler applying a $54 Gissou lip oil on TikTok that she bought on Afterpay.
