À̹ÌÁö È®´ë Color cosmetics sales at the South Korea¡¯s largest health and beauty retailer Olive Young jumped 35 percent in 2018 from a year earlier as consumers treated themselves with small luxury items amid an economic downturn, indicating a return of the so-called lipstick effect.
CJ Olive Networks said Sunday that the color cosmetics sales at its beauty and health store chain Olive Young surged 35 percent in 2018 from a year ago period while those of health functional food and hair products grew 32 percent and 22 percent, respectively, over the cited period. The findings were based on its analysis of 100 million purchase data of Olive Young stores.
It is the first time ever for the color cosmetics to top the best-selling product category at Olive Young, said the company. Traditionally, its top seller items were skincare products. Color cosmetics refer to facial makeup products such as lipstick, foundation, and mascara.
Industry experts attribute the jump in color cosmetics sales to the so-called lipstick effect when consumers indulge on small-ticket luxury items during an economic downturn to forget their tight budgets. Lipstick sales have been often used as one of economic indicators, especially among cosmetics industry. The idea was first introduced by Leonard Lauder, the chairman of international cosmetics giant Estée Lauder who noted a jump in lipstick sales following the terrorist attacks of September 2001. It was found that lipstick sales also soared after the 2007-2008 global financial crisis.
Korea last year grappled with bleak job market, contraction in corporate investment and weak consumer spending. This year does not look bright, either. The government cut back its estimate for the 2019 economy from earlier 2.8-3.0 percent, predicting the economy will perform more or less at last year¡¯s estimated 2.7 percent.
By Lee Yoon-jae and Cho Jeehyun
[¨Ï Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]