What is the 'lipstick effect' telling us in 2025?
In 2025, the lipstick effect, where consumers buy small luxuries during economic stress is making a strong comeback. As real estate and auto sales decline, purchases of lipsticks, quirky toys, and artisanal treats are rising. In India, even Tier-II cities show this shift. It signals emotional coping, changing aspirations, and deeper caution in spending, an early warning of economic unease.