Now Reading
Coty and Estée Lauder maintain quarterly sales thanks to the “lipstick effect”

Coty and Estée Lauder maintain quarterly sales thanks to the “lipstick effect”

View Gallery

Americans are turning to cosmetics and fragrances to beat the inflation blues, in a trend called the “lipstick effect” that could sustain the post-pandemic rebound in the beauty market and help Estée Lauder and Coty’s quarterly sales.


The “lipstick effect” is a phenomenon whereby consumers buy more beauty products instead of expensive items during economic downturns and is expected to cushion the blow of closures in China‘s major beauty markets, analysts say.


“The general idea is that consumers will invest in small luxuries that increase their confidence and perceived attractiveness during times of uncertainty,” said Jennie Liu, senior lecturer and executive director of the Yale Center for Customer Insights.

See Also


“Lipstick effect” keeps Estée Lauder and Coty selling


Cosmetics maker Coty, meanwhile, is expected to report fourth-quarter sales of $1.14bn, up 7.4% from 2021, according to analysts surveyed by Refinitiv. While Estée Lauder just announced sales of $3.56 billion in the fourth quarter, down 10% from $3.94 billion in the previous period.



This article is reserved for subscribers.

Subscribe now !

Get unlimited access to all articles and live a new reading experience, preview contents, exclusive newsletters…

Already have an account ? Please log in.

Featured photo : © Coty

What's Your Reaction?
In Love
Not Sure
Scroll To Top