Sales of expensive perfumes increase in uncertain times economically: perfume Index is the new Lipstick Index

When there is crisis, and the future seems uncertain and you have less money to spend, it is normal to limit the large expenses deriving from a luxury lifestyle: stays in 5 -star hotel, supercars, designer bags.

This does not always apply to small luxury goods, those that everyone can afford, that during the moments of economic uncertainty, they would even know A boom of purchases.

Is there a crisis? We buy more lipsticks … or perfumes

We refer in particular to the Lipstick Index: These are the early 2000s, and the European and American economy are in full recession. Leonard Lauder – the then president of the giant of the Cosmetics Estée Lauder -, known as, Despite the crisis, Rossetti’s sales are increasingand thus coins the concept of Lipstick Index To indicate that phenomenon that consumers, and in particular women, tend to increase the purchase of accessible luxury goods, such as branded lipsticks, in moments of economic uncertainty.

Allow us a small luxury good deludes us that everything goes well

Very nice in this regard an article of New York Times of a few years ago: “Hard Times, But Your Lips Look Great»(Translated,” hard times, but your lips are a fairy tale “).

The psychological explanation of Lipstick Indexan unofficial economic index, is that small luxurious concessions can give the consumer a sense of control and satisfaction even when larger aspirational assets are unreachable. Buying the little luxury good gives us if we want, The illusion that everything is fine.

The sale of perfumes, especially luxury, is increased

And if until yesterday we were talking about lipstick, it seems that the new indicator of the economic crisis is the boom in perfume sales, better if exclusive and niche. Then forget the Lipstick Indexbecause it’s time for the Perfume Index.

The data speak: according to Euromonitor, in 2023 the market segment of perfumes that was already worth 64.4 billion dollars, recorded a global growth of 12.2 percent in luxury fragrances, and 10.8 percent in mass fragrances. And the trend does not seem to stop.

According to the Financial Times, the perfume is the new lipstick

In front of economic uncertainty, inflation, wars, high interest rates, What consumers do, if not to remove small luxurious whims, such as perfumes, indeed, expensive perfumes?

And that’s how a recent Financial Times article has coined the new concept of Perfume Effect or Fragrance Indextaking up that of Lipstick Index Of the early 2000s. In response to economic uncertainty, the aspirational consumer does not give up the good luxury good, and turns on something small and (almost) accessible, as, in fact, the perfume.

SMELL Rich, smells of rich: the trend tik tok

To make themselves like perfumes, and above all the most expensive and niche ones, they have become real objects of desire, just open tik tok and shake through i viral videos Themed “How to perfume of rich”, or “perfumes that know of wealth”.

If you can’t be rich, at least smell of rich. Among more popular perfumes, Baccarat Rouge 540 by Maison Francis Kurkdjian’s, Santal 33 of Le Labo and Tobacco Vanille of Tom Ford. All fragrances of over 200 euros for a 50ml.

Buy a scent of niche and convinci yourself (and the others) that your economic situation is optimal?

Resuming the psychological explanation of Lipstick Indexbuy niche perfumes then, not only does it give the illusion of being richer, or economically less uncertain: that we will also wear them in others the belief that we are rich? This is all to be verified, but in the meantime Fake it, Until You Make It (Perhaps).

Moreover, according to the recent market study Bain & Company Luxury Goods Worldwide Market Studyin addition to perfumery, the other small luxury whim whose consumption is also increasing are makeup and glasses. Pleasure, without sin, aka Get luxury, without having to make a mortgage.

Large groups buy niche perfume brands

And the success of niche perfumes also throat to the great luxury groups: from Estée Lauder Chaa acquired the Labo, to Puig who incorporated Byredo, up to Kering who acquired Creed.

Perfume Index or not, the increase in the sales of perfumes is undoubtedly also the reflection of other factors, economic and not – as the self-carethe tendency to take care of himself – and the evolution of the way of conceiving fragrances.

The trend? Possess more expensive fragrances, and more fragrances

If in fact, once it generally preferred to use a single perfume, which would characterize the individual, today, especially the gen Z (born from 1997 onwards), prefers to have more fragrances, used alternately or even together, according to the technique of layering.