As we speed towards 2023 and the impending recession looms over individuals and businesses up and down the country, the distinct air of uncertainty and worries about the economy’s future is on the minds of many.
But in such unsettling times, it’s important to think of the beauty industry’s role in society and the ways in which it has weathered the storms of past recessions and global wars. In this post, we will be outlining the concept of the ‘lipstick effect’, the notion that the sales of affordable luxuries rise in economic downturns. If you’re an aesthetics professional concerned about the potential impact inflation and the recession will have on your professional prospects, you may be surprised to read that your chances of enjoying a thriving and lucrative career during this time are still extremely high.
The impending recession
The Bank of England has recently raised its rates to 3% as it warns of the UK’s most prolonged recession in 100 years. The combined effects of the conflict in Ukraine, skyrocketing inflation and the economic changes brought on by Brexit have created the perfect storm for a significant economic downturn. When a recession occurs, many businesses will make efforts to save money and cut costs due to fears that they may have difficulty generating sales as a result of decreased consumer demand. Whilst this might ring true for a lot of sectors, the beauty and cosmetics industry has stood out from the crowd through decades of economic challenges and proven itself to thrive in such situations in countries throughout the world.
What is the ‘lipstick effect’?
The term ‘lipstick effect’ was coined in the aftermath of the 2000 US recession by Leonard Lauder, former chairman of cosmetics company Estée Lauder. The theory behind the term is that consumers will opt to forgo expensive luxuries such as holidays abroad or new vehicles in favour of smaller indulgent items or services; cash-strapped individuals want to treat themselves to goods that bring them pleasure, lift their spirit and ease their worries about the future of the economy.
Prime examples of the lipstick effect include:
- The Great Depression of the 1930s, when industrial production halved, but the sales of cosmetics products increased over four consecutive years.
- The Iran War, when women had enough money to buy lipstick and still considered it a priority, with sales continuing to rise despite the ongoing conflict.
There have been many more instances supporting the theory of the lipstick effect over several decades and spanning multiple continents and types of economic downturns. This concept will likely present itself once again during the upcoming financial crisis; if so, it’s safe to assume that the sales of aesthetic treatments won’t suffer as a result of increased inflation and, if anything, will rise as a result of the recession due to consumers desire to treat themselves to small luxuries.
Health and beauty’s role in boosting morale
With any economic crisis, the doom and gloom of increased redundancies within businesses and regular bleak news reports can leave individuals feeling dejected and in low spirits. At a time like this, it is vital to increase the focus on health, wellness and self-care.
One of the top reasons that patients elect to undergo aesthetic treatments is the boost in confidence that they provide; as such, they play an essential role in mental and physical wellness. A rejuvenating procedure can work wonders for leaving patients feeling refreshed, confident and more youthful. These psychological benefits of aesthetics make them a highly desirable indulgence for consumers during such uncertain times.
The beginnings of a rewarding career in aesthetic medicine
As we have outlined in this blog post, now is an excellent time to forge a career in aesthetic medicine despite the forecasted economic crisis. The industry continues to thrive, and the demand for treatments remains high, with an increased focus on the importance of tight regulations and qualified medical professionals administering injectable procedures.
Our courses vary extensively, and we offer training for medics new to the aesthetics industry and existing practitioners who wish to expand upon their skill sets. With venues located in major cities throughout the UK, Acquisition Aesthetics is proud to make our award-winning facial aesthetics training accessible to doctors, dentists and nurses in all areas of the UK.
You’ll find a host of information on the principles covered in each of our courses on our website, with the option of booking online for your convenience. If you’d like to discuss the types of training that may be best suited to you or require further information about upcoming locations and dates, we’d love to hear from you! You can reach a friendly member of our team by emailing us at contact@acquisitionaesthetics.co.uk or calling 0203 514 8757.
