'Lipstick effect' in full swing, economists say
....Economists believe that during hard times people forego extravagant purchases like cars, holidays and kitchens and instead spend their money on small luxuries like make-up.
Recent sales figures from some of the world's big cosmetic companies - L'Oréal, Beiersdorf and Shiseido - bear out the theory. In the first half of the year L'Oréal sales were up 5.3 per cent.
The theory was first identified in the Great Depression. Between 1929 and 1933 industrial production in the US halved but sales of cosmetics rose.
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