Bow Ties And The Lipstick Effect

I was having lunch with an artist today, a very intelligent artist who probably does not receive enough praise for what he does, but who wished to remain anonymous for the fantastic quote which came out of his mouth very much ad lib. He was describing a cocktail party which took place in Sydney recently. He said:

"I decided to wear my purple suit and your bow tie, because I was the 'art dealer' for the evening. You know, bow ties are like lipstick for men. They are our cheap luxury"

The quote, which for me made me fall off my chair in laughter, was something which I immediately needed to start voice recording on my Android which brought a concerned look over my friend's face. "You're not going to quote me are you?" - Well yes, I am going to quote you, but anonymously. 

The reason why his quote resonated, as all great quotes do, is that there was some truth to it. Our bow ties are $155.00 Australian dollars. In order to buy a fancy tie from a top European brand you need $240.00. For a Tom Ford bow tie in Sydney, you need $290.00. A decent quality shirt, you need $280.00. A new suit - anywhere from $499 - $6000.00. For a good quality cashmere scarf you need around $300.00. Our bow ties, which generate all the jazz you need around your neck, draw people's attention away from the fact that your wool is last season or that your shirt needs a new collar soon.... are comparatively a cheap luxury. Or, what they refer to in economics as The Lipstick Effect. Here is an excerpt of a good article recently posted on the phenomenon. Read it here:


"Yes, the economy is tight but that doesn’t mean women are willing to give up what some experts call ‘affordable luxuries’. Even in the current slowdown, sales for makeup, accessories and salon services are holding strong. So if you are someone who loves the world of fashion and beauty, now would be a great time to consider a career in these fields. Certification programs in cosmetology, massage therapy and other salon treatments are a great way to start and many programs can be structured around your current work schedule or family obligations.

As the chief operations officer at one beauty company recently observed, “…our business stays afloat in the best and in the worst times…because skin care and makeup are an affordable luxury. People aren’t taking those big vacations or building their wardrobe for fall. They aren’t buying a Chanel suit or an outfit from the runway, but they can certainly identify and replicate a trend in makeup.“

In the world of advertising and marketing, it’s called the “lipstick effect.” It’s a long-standing theory that holds that shoppers treat themselves to small luxuries when economic times are tough. Today, it extends beyond lipstick — even if a woman can’t afford a trip to a swanky spa, she can enjoy a facial or massage. A manicure and pedicure provides many working moms with a needed pick-me-up. And beauty supply stores and salons report business is brisk.

A recent study from the NPD Group, a NYC based market research firm, confirms this trend. Even during the worst of the recent recession, make-up counters and beauty salons kept their clients, and boutique owners report sales in inexpensive pick-me-ups like costume jewelry and other accessories are on the rise."