A few of months ago I started a series on TikTok called Little Luxuries where I highlighted little ways I elevated parts of my life– very simple things, like having my tea in a proper teacup and saucer, or putting on red lipstick to lift my mood – they are what appear to be completely trivial actions but they added value to my day.
The Lipstick Effect
On the point of red lipstick, it is always interesting to me how beauty and fashion, the arts on a whole, act as economic indicators that, unfortunately, the majority don’t take any indication of. While the economy in Guyana is on a trajectory for incredible growth, there are parts of the world that are headed toward recession – in studying little luxuries I came across a concept referred to as The Lipstick Effect.
Coined during the Great Depression, this concept refers to the tendency of consumers to maintain or increase their spending on small indulgences, during times of economic uncertainty – at the time, for women specifically, it was on lipstick. However, its implications extend far beyond just cosmetic pur-chases; and delves into the psychology of consumerism and its impact on economic growth, particularly in emerg-ing markets like Guyana. As disposable incomes rise, consumers are seeking ways to treat themselves without breaking the bank.
Image, Graph showing lipstick sales, via The Economist
Diffusion
Some of the most lucrative businesses understand that luxury is not solely defined by price tags but by the experience they offer to consumers. In the realm of beauty and fashion, this principle is especially pronounced.
In fashion, diffusion lines play a pivotal role in this narrative, offering the aspirational customer access to luxury brands and items at more affordable prices. By strategically positioning these lines, companies can tap into the desire for luxury while ensuring accessibility. This not only fosters brand loyalty but also drives sales, contributing to the overall economic growth of the country.
Treat yourself
The adage of “treating yourself”, paired with the cultural nuance of not showing up anywhere with “ yuh two long hands”, becomes particularly relevant in this context. In Guyana, consumer confidence is on the rise, and the urge to splurge on smaller indul-gences contributes to overall economic resilience.
Locally, the creative industries are witnessing incredible growth, cultural events and social media trends reflect the growing influence of beauty and fashion, and the creative industries at large, and are signaling a shift in buying behaviour. By observing and understanding this behaviour and leveraging the allure of intentional & emotional purchases, businesses can thrive even in a challenging economic environment.
As Guyana continues on its path of development, the creative industries stand poised to play an increasingly vital role in driving economic growth, and fostering entrepreneurship – are you on this path with us?
