‘Lipstick Index’ Is Out, Moisturizer is In – Says Estee Lauder
“With a global health crisis keeping mouths hidden behind masks, the “Lipstick Index” just doesn’t make much sense these days. That doesn’t mean the idea itself is dead.” — reports Bloomberg
Fabrizio Freda – Chief Executive Officer, Estee Lauder Cos. has reportedly said that the Lipstick Index has been substituted by the Moisturizer Index, but the concept of the index is still there. The term was coined by Estee Lauder’s former Chairman Leonard Lauder during the recession in the early 2000s. It refers to the resiliency of cosmetics during economic crises, as women are expected to continue using makeup as an affordable indulgence. Last year, in China, despite a government crackdown on high-end goods and a decline in luxury spending, cosmetics sales were found to stay strong — which proves the trend.
“But the index didn’t account for Covid-19. Lipstick — and makeup broadly — is falling out of favour as consumers wear masks and don’t go out as much to meet friends. Instead, shoppers are immersing themselves in skin-care routines while hunkered down at home,” reports Kim Bhasin for Bloomberg
Estee Lauder’s skin-care sales were said to be already outpacing makeup before the pandemic outbreak. Freda, speaking on a conference call to discuss quarterly earnings, said he expects this to continue at least until an economic recovery takes hold.