Lipstick consumption and sales have plummeted worldwide over the last quarter, and many attribute this decline to new post-Covid-19 habits: lockdown and the wearing of face masks.
Just as face masks and hand sanitisers have seen a huge surge in sales since last March, other pharmacy products, such as lipsticks, are suffering significant losses in the face of the new social reality.
Lipstick consumption and sales – Since 14 March, when the Spanish Government decreed the entry into force of a State of Emergency throughout the country -initially for 15 days– virtually the entire Spanish population has had to readjust their social, work and consumer habits.
The population as a whole, under the state of emergency -and, to be clear: on the basis of public health criteria, and largely in line with WHO recommendations—the population has been subjected to a very prolonged period of lockdown in their own homes. Even today, when it seems that the crisis is beginning to ease – on a region-by-region basis through a phased approach – the mobility of the general public remains severely restricted. And the situation is not expected to return to complete normality in the short term.
In fact, there is an increasingly widespread tendency to believe that nothing about the way we interact with one another will be the same once the Covid-19 pandemic is over. It is not the intention of this article to speculate or hypothesise about what will happen, how governments around the world and their healthcare systems will cope in the coming months, or how this will affect interpersonal relationships.
Temporary changes that are here to stay
Whilst we recognise that this situation is temporary, there have been some changes in people’s lives. At the same time – and although the two are entirely intertwined – businesses are undergoing major transformations, both in the way they interact with their customers and in terms of their internal communications and processes.
There are certain changes that most companies are experiencing, although the impact varies depending on the business sector. And many of these changes are evident: customers’ consumption habits have changed with regard to business products and services.
And other changes that are internal, and therefore not so visible. But which organisations must undertake to ensure their own survival:
- Accelerating the digitalisation of tasks and processes
- To establish and develop channels of communication with customers and amongst staff
- Ensure a remote connection to the office
- Review the occupational health and safety protocols relating to the risks of viral infections.
What are the new habits of individuals and businesses?
In order to prepare ourselves to combat the SARS-CoV-2 virus, and to comply with the recommendations – and restrictions – imposed by the Government to control the pandemic, We, as citizens, have had to go through a process of adaptation:
- We have learnt to to maintain, on an ongoing basis, a physical distancing alongside the rest of the population in public spaces.
- We have adapted to living in lockdown. In other words, we’ve got used to not leaving the house unless there’s a very good reason. And to not seeing our friends, family and neighbours, unless it’s through a screen.
- And also, as consumers, we have increased our use of – and our knowledge of – the prevention tools of transmission, such as surgical face masks and the hydroalcoholic gels.
For businesses, these changes are leading to the following adjustments:
- Immediate need for to learn and train – intensively – in new technologies, tools and apps online and the digital environment
- Acceptance of the ‘remote working’ as a valid alternative on a par with working on-site (even in the case of doctors, who have traditionally been one of the professional groups most critical of remote working, due to the difficulties involved in making a diagnosis from a distance)
- Redefining and accelerating the automation of processes and tasks which, until now, were not carried out digitally.
- For Human Resources teams, a greater need for to assess candidates’ qualifications and skills in the digital world and to prioritise digital skills over others when recruiting staff.
Lipstick consumption and sales: the Lipstick Index and the cosmetics sector in the face of the Covid-19 pandemic
Following the 9/11 attacks, the American billionaire Leonard Alan Lauder, the company’s director Estée Lauder he formulated a well-known theory Lipstick Index (Lip Bar Index). This theory suggests that when there is a major global economic crisis, sales of lipstick rise. It goes on to say that, in response to such crises, women tend to stop spending money on high-value luxury items – such as dresses, shoes and jewellery. However, in order to maintain a certain sense of luxury, they continue to use – and even increase – their consumption and use of lipstick, particularly in shades of red and pink.
In addition, the Lipstick Index It is thought that this could help prevent crises arising from the increase in consumption of this cosmetic product. Or, to put it another way: The deeper the economic crisis, the more red lips. Despite having been scientifically refuted by economists, the theory of Lipstick Index This was the case in the United States during two of its most recent major economic and financial crises: in the The Great Depression -the years following the 1929 stock market crash, the greatest crisis of the 20th century. And also in the The Great Recession from 2007 to 2009, triggered by the collapse of the US bank Lehman Brothers.
The cosmetics sector in the face of Covid-19
With the crisis caused by Covid-19, we are seeing that the prediction of Leonard Alan Lauder has been overtaken. These days, lipsticks – most likely due to the widespread use of face masks – sales are down. Or at least that’s what the sector’s employers’ organisation says STANPA in their sector reports for the first quarter of 2020.
However, this shift in consumption should not be seen merely as a problem for the sector. It also presents opportunities: in fact, there are other cosmetic products, such as mascara – which has given rise to a new theory, that of the Eyeliner Index– or hair dyes, which have seen a 400% increase in sales.
Some very difficult months lie ahead for businesses, and particularly for marketing teams – who have recently been at a loss, unable to accurately identify the spending habits of new consumers. Let’s not lose our patience: we’ll soon be finding out the new rules of the game.
And at Gabinete Técnico Farmacéutico M. Camps, we are certain that eThe cosmetics sector will be able to adapt to the changes.