The "Lipstick Effect" is a term that was coined after the Great Depression when sales of products across the board plummeted, but sales of affordable luxuries like lipstick skyrocketed. History shows that when our country is faced with an economic or emotional crisis, people switch their shopping habits from costly extravagances to inexpensive luxuries that make them feel better about themselves and brighten their day like a new shade of lipstick.
Major corporations are suffered from long shipping times and scarcity of staple items, so now more than ever small town and rural businesses are in a unique position to provide for their neighbors and perhaps even grow their business during these uncertain times.
One of the major differences today is that people have become much more conscious of who they are supporting with their money. The #ShopLocal movement is a great example of this shift. Through the social networks, people are connected with the people behind the businesses they love and they want to keep the local businesses open. They are purchasing gift cards from salons, ordering takeout and delivery from restaurants several times a week, and shopping at small town grocery stores.
If you are an artisan maker, a market farmer, or small town rural retail business, now is the time to ramp up your marketing efforts. People are looking for affordable luxuries like handmade jams, delicious snacks, fresh produce, farm fresh eggs, hard ciders, and wine to lift their spirits.
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