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View Winners → Business Sep 18, 2020
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Chinwe Onyeagoro is the CEO of PocketSuite where she is responsible for strategy, customer success and growth. getty When the time comes to take our first cautious steps in a post-Covid-19 world, anyone in the $532 billion beauty and personal care industry might want to consider the theory of the lipstick effect on the future of the business of making people feel and look good. What does lipstick have to do with looking good during the pandemic? Evolutionary psychology suggests a Darwinian basis for the lipstick effect. We strive to look good to make us more attractive to potential mates. A contemporary interpretation, however, is that during periods of economic uncertainty, consumers forgo luxuries but remain committed to what they consider “essential” needs. Data confirms this postmodern telling of the lipstick effect. When the economy tanked after September 11, 2001, sales of cosmetics, skin treatments and massages surged (registration required), but high-ticket items (think expensive vacations and luxury cars) slowed to a crawl. While there are parallels between 2001 and this year’s pandemic-caused economic shutdown, there are important differences. I am reminded of a maxim attributed to Mark Twain: “History doesn’t repeat itself, but it often rhymes.” What rhymes […]
