Are you concerned about the future of the cosmetic industry? Take a moment to learn about the Lipstick Effect.
Okay, I know you’re all tired of hearing about COVID-19, but seriously, what just happened to our industry? As of midnight Wednesday 25th March, Prime Minister Scott Morrison made to the call to close all beauty clinics and related services. Does this include cosmetic medicine? What if I work in a dermatology clinic? What about cosmetic treatments performed in GP/cosmetic clinics? The questions have been flooding in! And to add to the confusion, the answers to these questions may differ depending on the State you’re practicing in.
To put it simply, all cosmetic treatments are deemed non-essential services and should not be performed in any medical or non-medical setting. There may be some exceptions such as botulinum toxin for migraines and skin checks performed by a medical doctor. As hard as it is to accept you cannot practice dermal therapies and/or cosmetic injectables at this point in time, it’s for good reason and the sooner we close our doors and flatten the curve, the sooner we’ll be able to reopen.
My heart goes out to all those who’ve had to temporarily close their clinic, had their hours reduced or been stood down from their position. Looking forward, and historically, the cosmetic industry is always fast to bounce back from an economic downturn – it’s called the Lipstick Effect. The Lipstick Effect is a well-known phenomenon in behaviour economics. According to Investopedia Economics, it occurs when consumers still spend money on small indulgences during recessions, economic downturns, or when they personally have little cash. They do not have enough to spend on big-ticket luxury items; however, most still find the cash to small luxury items, such as premium lipstick (or treatments to keep their skin looking young). For this reason, companies that benefit from the lipstick effect tend to be resilient even during economic downturns.
If you have the time (no pun intended), please take some time to investigate the Lipstick Effect – you may find it will ease any uncertainty you might have about the future of our industry.
Standing strong together,
Director of Niche Education Group / AACDS