“Despite the war and recession, the so-called ‘lipstick effect,’ where sales of inexpensive luxury items like cosmetics increase, is becoming apparent.
Global beauty company L’Oréal announced that its first-quarter sales for this year were 12.2 billion euros, roughly 21 trillion won, a 6.7% increase from last year, surpassing market forecasts.
L’Oréal CEO Nicolas Hieronimus explained this trend as the ‘dopamine effect’ of beauty products, noting that consumers are purchasing cosmetics for a mood boost during stressful times.
This trend contrasts with the slowdown experienced by high-end luxury brands like Louis Vuitton and Hermès due to the war’s impact.
Experts analyzed that L’Oréal became a ‘relative winner’ since it has a larger proportion of mainstream products, which consumers opt for instead of expensive alternatives.
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