Kiss off recession talk

REBECCA TAY
Special to The Globe and Mail

No matter what George W. Bush says, we - or, ahem, our neighbours to the south - have entered a recession. And yet, as Leonard Lauder, chairman of the Estée Lauder Companies Inc., knows well, this foul economic environment may have a positive effect on cosmetics companies. At least when it comes to their lipstick sales.

After the events of Sept. 11, 2001, Lauder stated that when a country faces fiscal stress, lipstick sales increase as women purchase small, comforting items rather than splurging on larger luxury goods. Dubbed the Leading Lipstick Indicator (or less formally, the lipstick index), it makes sense: After all, the cost of a high-end lipstick averages $30, while a designer skirt or pair of shoes can easily set a woman back $300 or more.

Sharon Collier, president and chief executive officer of Laura Mercier Cosmetics, agrees. "Lipstick is an affordable indulgence for women," she says. "A tube of lipstick is a small luxury that can be bought to fill the void of the more expensive purchases."

Also significant is the fact that lipstick is a symbolic icon, representing the dynamism of the female mystique: bolder colours represent sex, power and confidence, while lighter pinks and nudes show off a woman's softer, gentler side. "The vast array of colours acts as a quick and easy way to change a woman's look and mood," Collier notes. And in a volatile economic environment, perhaps this flexibility is another key way in which women can showcase their strength and adaptability.

Lauder showed that, historically, the lipstick index could reliably explain spikes in lipstick sales during major world events such as the Depression and the Second World War. But what about now?

"Lipstick is recession-proof," says Poppy King, who spent three years at Estée Lauder before launching Lipstick Queen in January, 2007. (Her products are now sold at select Holt Renfrew stores nationwide.) King attributes the success of her company in part to a "renewed interest in lipstick - it's a great way for women to perk themselves up, especially when many other cosmetics products are getting so expensive."

The question is, who - or what - is behind the trend? "Cosmetics companies have definitely been pushing lipstick for at least two seasons," says Marc Brunet, owner of Vancouver's Beauty Mark boutique.

Coincidence? All Brunet knows is that "lipstick sales now are the strongest they've been since we opened the store in 2000."

Despite the numbers, Anny Kazanjian, executive director of public relations and fashion promotion at Chanel, disagrees with the lipstick index. "We're not using the R word here in Canada, and we're not seeing a particular spike in sales because of the state of the economy. Our strong sales are simply part of a regular, seasonal change as consumers are excited about our spring collection and it flies out the door.

"Lipstick isn't such a splurge any more," she continues. "There's a stronger sense of entitlement these days - women work hard, so spending 25 to 30 dollars on a lipstick is not prohibitive like it was maybe 20 years ago. I think women would spend money on lipstick regardless of the economy."

However, over at Giorgio Armani Cosmetics, marketing assistant Joëlle Barakat reveals that lipstick sales alone increased a whopping 14.8 per cent in January year-over-year, 0.3 per cent in February (reflecting a common dip in the retail industry) and 9.1 per cent in March. She attributes the strong numbers to both the company's increasing profile in the cosmetics industry and, like Collier, King and Brunet, a movement toward lipstick in general over the past few seasons.

What does this all mean? Clearly, that lipstick is having another heyday - whether we believe in the recession or not.

Worth the splurge

Sisley in L30 $48

A lively orange, perfect with this year's painterly florals.

Yves Saint Laurent's Rouge Pur #138 $35

Also called Pink Orchid, this shade is cute and playful, but not so junior it belongs in high school.

Giorgio Armani Cosmetics' Armani Silk 001 $34

The highest-end lipstick from the company, Armani Silk offers rich colour and a creamy, luxurious texture.

Laura Mercier's Crème Lip Colour in Roman Moon $26

The ultimate colour for spring: peachy, pink and pretty.Bobbi Brown's Sandwash Pink Lipstick $27

"A neutral pink tone that's perfect on all skin tones," says Krista Hynes, Holt Renfrew's associate buyer of cosmetics.

Lipstick Queen's Red Sinner $23

Choose this rich carmine shade for special night out.