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

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.

“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.

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Featured photo : © Coty

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Hélène Cougot

Passionnée depuis son plus jeune âge par l’art et la mode, Hélène s’oriente vers une école de stylisme, l’Atelier Chardon-Savard à Paris, avec une option Communication. Afin d’ajouter des cordes à son arc, elle décide de compléter sa formation par un MBA en Management du Luxe et Marketing Expérientiel à l’Institut Supérieur de Gestion à Paris dont elle sort diplômée en 2020. Elle a notamment écrit des articles lifestyle et beauté pour le magazine Do it in Paris et se spécialise en rédaction d’articles concernant le luxe, l’art et la mode au sein du magazine Luxus Plus.********** [EN] Passionate about art and fashion from a young age, Hélène went to a fashion design school, Atelier Chardon-Savard in Paris, with a Communication option. In order to add more strings to her bow, she decided to complete her education with an MBA in Luxury Management and Experiential Marketing at the Institut Supérieur de Gestion in Paris from which she graduated in 2020. She has written lifestyle and beauty articles for Do it in Paris magazine and specializes in writing articles about luxury, art and fashion for Luxus Plus magazine.