The ‘Lipstick Index’ and New Realities: Why Cosmetics Are No Longer a Crisis Savior
There is a charming marketing myth: when things go wrong, women buy lipstick. The economy is in turmoil, vacations are canceled, there’s no mood or money for a new dress—but there’s a fresh gloss on the lips. And suddenly, life feels worth living again.
This phenomenon is captured by the famous “Lipstick Index,” coined by Leonard Lauder of Estée Lauder: in hard times, women turn to affordable but symbolically meaningful purchases. It makes sense—a cheap way to feel beautiful without emptying your pockets.
However, the metric seems outdated. In 2024, instead of “little joys,” there are big sales and declining revenues for cosmetic giants. Coty’s sales have slipped, L’Oréal is stagnant, and Estée Lauder is downhearted. The culprit: the economy and a new consumption philosophy. Instead of impulsive, impractical lipsticks for happiness, the focus has shifted to practical hair color. Even blondes now prefer cheaper, simpler options—often DIY home coloring to save on salon costs.
Consumers have become much more selective. Sephora isn’t empty, but shopping increasingly ends with promo codes or TikTok Shop, where the same Chloé bottle costs half the department store price. Even women earning $100–150k prefer discount stores—it’s no longer about luxury, but rationality.
Meanwhile, in Russia, there’s a paradox: while global giants slow down, the local market grows. Over two years, sales rose by 16%, and the share of Russian manufacturers jumped from 20% to 40%. Imports are also growing—from China, Turkey, India. Apparently, while Western women are feeling down and saving, Russian women are styling their hair and even strutting through supermarkets “on eyelashes.”
ANNA LEBSAK-KLEIMANS
CO-FOUNDER AND CEO OF FASHION CONSULTING GROUP