The Lipstick Effect

SMALL LUXURIES, BIG FEELINGS

- BY LUGHADARINI YOGARAJA

Your favourite Sri Lankan creator has just posted a reel from her tuk ride through Colombo, the camera pans to her glossy red lipstick catching the morning light, matched perfectly with a thrifted linen kurta. Tempting, right?

We've all paused mid-scroll, hovering over the add to cart button, convincing ourselves that a new lipstick shade, a coffee, or a brunch at the new café is self-care, not spending. If you've ever justified that little indulgence when everything else felt heavy, congratulations, you've just lived the Lipstick Effect.

Before you dismiss it as vanity, let's pause for a reality check. Is it really about the lipstick or about survival in uncertain times?

What Is the Lipstick Effect?

The term "Lipstick Effect" first appeared in Western economic studies, but its essence feels deeply Sri Lankan. It refers to a rise in small luxury spending, like cosmetics, during economic downturns. Leonard Lauder of Estée Lauder coined it in the early 2000s when he noticed lipstick sales rising even as global markets crashed. It captured a simple but powerful truth when people can't afford big luxuries, they turn to small ones to lift their spirits.