Turn on any news program, browse a website, or pick up a newspaper lately and the news is very bleak. Recessions. Layoffs. Clearance sales. Housing meltdown. Foreclosures. Bankruptcy. Fiat Money.
As the bad news continues to roll in and the Mancession deepens, many industries are taking a hit already and the pinch will likely be felt all the more in the coming months. However, there is one industry that is doing quite well, even growing, despite the downfall: the cosmetics industry. Yes, all of that lip service about the lipstick index appears to be true.
As Joan Hollaren, director of research for Mintel has recently noted:
“Many women have a deep emotional tie to their appearance, so cosmetics are a non-negotiable. These women may trade down on other purchases or forgo expensive vacations, but they will still treat themselves to small, feel-good luxuries like makeup and beauty products.”
And treat themselves they do! Ulta Cosmetics, a leading retailer of beauty products and services, saw it’s sales jump 16.1% between the fourth quarter of 2008 and fourth quarter 2009. $396 million dollars were spent on beauty aids at Ulta alone. According to a recent press release from Mintel, experts predict the cosmetics industry will continue to stay afloat during the recession, with an estimated 10% growth rate over the next five years.
Welcome to Recession America 2010. Our men are out of work and facing more job losses, all while our women can remain dolled up with their beauty power bank accounts full to the brim. Viva la lipstick!