Lipstick index

The lipstick index (English Lipstick index) was coined as a term for a type of economic indicator by the former chairman Leonard Lauder of the U.S. cosmetics company Estée Lauder Companies. He coined the term at the time of recession after the events of September 11, 2001. The Lipstick Index is the official indicators, a complementary serve as a "soft " index. Official indicators are based on economics evaluation and data analysis. The lipstick index, however, is based on the observation of the sales of lipsticks. The Index is intended as the official indicators identify economic trends and forecasting.

Lauder claimed that sales of lipstick would be representative of the total sales of cosmetics, could serve as an index of the purchasing power and to reflect the general mood of consumers. Lauder pointed to increased sales of " lipstick " as a surrogate activity ( inferior good ) for the purchase of more expensive products such as fashion, jewelery and shoes, as customers would significantly adjust their purchasing behavior in a recessionary period. The significance of Lauder's assumption was, for example, therefore doubted because this used as a basis for comparison, only the turnover of the Group's own products and brands. Critics also pointed out that, for example, the recession in 2008, not as impact on the sales of cosmetics, as it should be according to Lauder's hypothesis.