The recession has affected everyone. From the barber down the street to multinational companies and banks that have to be bailed out by the government, every single sector of society has felt the repercussions of the failing economy. But life goes on. New businesses still come up, and older ones either die out or tenaciously persist even if it just a threadbare existence.
As I was buying a new shade of lipstick this week, I wondered how the cosmetic companies have been faring. Is this industry one of the so-called recession-proof ones? Or are they affected just like any other business? From everything I read up about it since that day, the jury is still out.
Does an Economy Crisis Upset Cosmetic Companies Profits?
Here’s the gist of it. There are two things that happen during an economic downturn. One, people will cut down on non-essentials to adapt to a shrinking budget. And two, people come to realize that money is not everything and it will not save them and are willing to spend on things they really want just so they can find some happiness.
From this, we can glean that although cosmetics companies will noticed a drop in their sales, it will not be significant enough to cause a panic among the head honchos.
When you are pinching pennies out of compulsion, not choice, you feel like hell every day. Always worried about money and what will happen and when things will get better. Most people will find that if they feel good about themselves, they can somehow make it through one more week on a minimal wage paycheck.
Dressing up and looking good are the most obvious ways to boost self confidence. So women will tend to perhaps use more makeup during a recession than at any other time. The lift in their spirits keeps them motivated and somehow helps them stay sane through all the madness. You may not read this in some economic report however. I speak here from personal experience. That new shade of lipstick I was buying still keeps me happy!
The cosmetic industry is resourceful and innovative. If you have been keeping a watch on the new products introduced by some companies, you will note that the prices are ever so slightly lower and they are targeted at those looking to save money. The fashion industry that works in cahoots with the cosmetics industry is also propagating trends that are easier for the general populace to follow and the tools required are not that expensive either.
So come what may, women will still wear makeup. I know that I will skip my morning coffee for a week or sacrifice a hair appointment if it means that I can buy new makeup. And I know that most of my girl friends will do the same and have, in fact.
Plus, as long as the media keeps conditioning us to believe that beauty is what matters most, the cosmetic companies have absolutely nothing to worry about.