What is the lipstick effect?
The lipstick effect states that people tend to buy certain premium quality products even when the economy is undergoing a crisis. This can be reframed as people remaining ‘loyal’ to the brands. It is all about priority. Some brands have been successful in getting connected directly with the customers’ hearts. The products, even though are expensive, will be bought because they are what the customers have become accustomed to. They are what makes the customers happy.
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