The lipstick effect: how luxury thrives during economic slowdowns

When the economy slows, consumers cut major purchases but maintain small luxury indulgences, a phenomenon known as the 'lipstick effect'.

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The fact

L'Oréal and other cosmetics brands benefit from this behavioral trend during periods of economic contraction.

This mechanism reveals how accessible luxury repositions itself as a safe haven amid macroeconomic uncertainty.

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Auto-synthesis from 1 media source · identified on June 5, 2026