Sales of prestige skincare brands at high-end department stores rose 2% to $1 billion in the first half, according to NPD Group. Products costing more than $70 were up 8%; those above $150 gained 21%. Similar increases were seen in fragrances and makeup.
The article goes on to mention that the product development lifecycle of most makeup and skincare lines is about 2 years, so there's always a disconnect between the manufacturer's launch calendar and current economic conditions. (In other words, don't kill the messenger.)
The Lipstick Effect has been around since there was lipstick to buy -- something pretty for your mouth is relatively cheap compared to, say, a massage or spa treatment. But what I found interesting in this article was that people are still buying stuff that I'd put in the very expensive category (over $200), with an almost 20% increase in spending over just last year. And that a $600 Botox injection is seen as an economizing move compared to getting plastic surgery!
I'm sure there's a moral here somewhere -- but I'm guilty as charged (at least on lipstick purchases), so I'll just sit quiet here in my glass house....