Feb 22, 2008 6:45 pm US/Eastern
Women Buy Makeup During Economic Uncertain Times
MIAMI (CBS4) ―
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A pick me up that won't break the bank, but still makes us feel good about ourselves.
CBS
It's no secret that consumers are cutting back as they face a credit crunch, a housing slump and a surge inflation. But there's an economic indicator that is a well-kept secret- it's called the makeup index.
There are some things that people will buy even in difficult times and apparently makeup is of them.
When the going gets tough, the tough head to the makeup counter. The theory goes says that during economic uncertain times, women tend to splurge on affordable luxuries like: lipstick and eyeshadow.
"It's no so hard to go out and buy a lipstick for 12 dollars as opposed to buying a shirt for a hundred dollars," said Elizabeth Ginder, a makeup shopper.
Sarah Robbins of Bobby Brown Cosmetic agrees. "Makeup is an affordable luxury for women but it's also a great pick me up."
A pick me up that won't break the bank, but still makes us feel good about ourselves.
"I think it is discretionary spending that does not feel like discretionary spending," explained Allure vice president and publisher Nancy Berger Cardone.
Overall, spending nationwide has stalled, as consumers combat soaring food, gas prices and a deepening housing recession.
But makeup is one of the bright spots with sales up 4 percent over last year.
"They may not buy the dress, they might buy the shoes, they might not buy either, but they're going to buy the new mascara," said Cardone.
The makeup index isn't in any text books, but it's been a reliable indicator of consumer attitudes. During the last recession in 2001, makeup sales jumped 23 percent and during the recession of 1990, sales climbed 10 percent.
"I think when things get a little dicey, it's nice to treat yourself," said Gail Belsky, a makeup shopper.
The catwalk can also provide some clues to the economic trends.
"When the economy is a little unstable, hemlines go down," explained Cardone.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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