The Lipstick Index๐Ÿ’„๐Ÿ’‹

Another interesting term for the current times๐Ÿ˜€. Not once, but I read this in the papers twice…hence thought worth a mention.

Sadly, it’s not a listing of the most popular lipsticks in the world; though it does seem like a good idea to have one !! The term was coined by Leonard Lauder, former chairman of Estee Lauder; to describe the company’s increased sales during the economic trough of 2000. I don’t think this is true in its entirety, but part of it makes sense.

Lipstick Index - true or false?
Lipstick Index – true or false?

An early harbinger of a slowdown in an economy is the reduction in auto sales and this has been visible enough. The leading stock market indices – the Nifty and Sensex had risen to record highs in Apr 2019 and now keep zigzagging, ready to go with either the bulls or the bears. And moving past the indices, the stocks esp the midcaps and small caps which were at record highs in 2017 are seeing new lows. Investors riding on the euphoria have lost money since and are now waiting cautiously. Overall, everyone is waiting and watching….

And this leads to postponement in big ticket purchases;ย with a slow down in consumption and lack of demand, the industry is affected. But people do spend, on small ticket purchases and this is where the lipstick leads. Small pleasures….Taking a cue from this we see headlines like “Parle (a biscuit brand) offers smaller cookie as slowdown, input costs bite”ย 

People were optimistic that a second year in office by the same government at the center would pave way for continuity in reforms and stability. Hoping things will improve…

Till next post, take care

 

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