Lipstick is having its moment.Â
Rhode, a brand that built its reputation on dewy skin, now considers its Peptide Lip Treatment a bestseller. Louis Vuitton, a name historically tied to five-figure bags and silk scarves, has entered the cosmetics game for the first time in its history, selling lipstick. But they are not alone. Across the board, luxury and celebrity brands are pivoting to lip products, not just for beauty’s sake, but because lipstick sells. Especially now.
Economists have long tracked this with something called the Lipstick Index, the theory that when wallets tighten, we exchange big luxuries for smaller ones, like lipstick.Â
When we feel the pressures of economic stress, we don’t stop spending altogether; we just spend differently. It may be impossible to spend $200 on a bag, but just $12 or even $40 on lipstick can bring at least some consumer joy. It’s cheaper, quicker, and still makes us feel something.
It sounds made up, but it’s not. The Lipstick Index has been referenced for decades, and it’s making a comeback because, once again, we’re living in a time when tiny indulgences feel enormous.
Lipstick isn’t the only clue.
The Hemline Index suggests that when the economy is strong, skirts get shorter. When it’s weak, they get longer. For those who aren’t into fashion, maxi skirts are currently back in. Floor-length. The kind of skirt that can be worn to work and to drink with friends, because buying a separate one for each is simply too expensive.
These choices — lipstick and long skirts — might seem small, but together, they tell a story.Â
We’re not not spending. We’re just spending smarter, smaller, and with more emotional calculation.
So, the next time someone pulls a shiny new lipstick out of their tote while wearing a floor-sweeping skirt, look closer. You’re not just seeing a vibe. You’re seeing the economy holding its breath.Â
We’re wearing the recession.
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