What does it mean for the brands and economy?

There are claims that the lipstick effect has helped brands to survive the crisis and the economy to trigger growth when all hopes were lost. Lipstick is said to be a significant economic barometer that can indicate how the customers might behave in a wounded economy.

This phenomenon not only challenges the brands' image but also the marketers on how they succeed in getting cash out of the customer’s hands when they are very low on cash.The more the brands’ products are closer to the customers' hearts, the more loyal the customers will be.