Is the Lipstick Index Still Valid?

From Investing.com: 2025-06-22 03:04:00

Leonard Lauder, creator of the “Lipstick Index,” passed away on 14 June 2025, sparking reflection on his legacy. The theory suggests that during tough times, consumers turn to affordable luxuries like cosmetics for emotional comfort. While historically validated, recent quarterly earnings show a deviation from the theory. However, the beauty industry is projected to generate $677 billion in revenue in 2025, with skincare dominating market share. Despite industry challenges, Korean beauty and e.l.f. Beauty are defying the trend, showcasing growth through innovation and authenticity. The key to success in the beauty market lies in offering clear value propositions to consumers.



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