Cosmetics is one of the most influential categories in the world. In the 1930s, during the Great Depression, cosmetics still managed to keep constant, even while unemployment in America was at its highest, with 25 percent of the country unemployed. Cosmetics has withstood several wars, political crises, and particularly the Great Recession of 2008.
As a recession lurks over the heads of the global economy, everyone from economists to politicians is playing “are we in a recession, or is it on the way?” Meanwhile, individual businesses are trying to gird themselves for another economic crisis after they previously escaped the worst of COVID-19. There is one big player that might not have to worry at all, and that’s the beauty business.
Historically, beauty has been recession-proof. In 2001, when there was a recession, the talk of the “lipstick index” began. The lipstick index is characterised as a phenomena that indicated that whatever the status of the economy, the beauty business is resistant to domestic and global economic troubles. A Money magazine study once indicated women spend an average of 15,000 dollars on beauty items over their lives. The average transaction at a cosmetic counter is 43 dollars.
Why can’t most consumers live without their makeup? Most consumers claim they feel gloomy when they aren’t wearing makeup. Also, during times of economic depression, people are seeking work, and they want to make sure they look presentable for job interviews. Something as basic as a few dabs of concealer is known to increase confidence.
The affordability of cosmetics is both its saviour and its curse. Consumers had historically been able to afford smaller expenditures, such as lipstick and mascara, even when money was limited for more significant purchases, such as a new home or vehicle. Even if there are those who are on the fence regarding whether or not the economy is in recession and whether or not the beauty industry is recession-proof, there are aspects of beauty that are a blazing light in an otherwise cloudy economic situation.
At the moment, the beauty items with the best sales are tinted moisturisers, eyebrow cosmetics, and lip glosses. In addition to makeup, skincare should be the next area of focus for investments made by beauty brands. The market segment has seen significant expansion, and it is projected to bring in 136 billion dollars in revenue in 2021.
In spite of the fact that some people may regard the field of beauty to be a luxury, many people believe it to be a requirement. Because of the social constraints imposed by beauty standards and the need to look good for social media, many people consider beauty to be a crucial component of their mental health and overall well-being.
People can save a significant amount of money by pampering themselves with beauty products rather than going to spas, taking expensive vacations, or undergoing extensive anti-aging treatments, each of which can cost hundreds of dollars. Beauty products are one of the most affordable ways to treat oneself.
The fact that beauty services such as facialists, manicurists, and others have a natural capacity for self-renewal is excellent news for businesses that provide beauty-related services. It will be only a matter of weeks before things like an acrylic manicure will need to have its reservoir refilled, or eyebrow stubble will need to be removed.
A profession in beauty is also considered to be one of the few careers that are recession-proof. Many people who are looking for careers that won’t be affected by economic turmoil find that working in this industry is a safe bet because of the industry’s ability to weather economic storms.
Even while businesses are taking precautions due to the current situation of the economy, the beauty industry seems to be continuing its tradition of weathering even the most severe economic downturns. That is the secret to the power of makeup.
