They say that women buy lipstick even in a recession. However, with this particular recession, even the beauty industry felt the economic pinch. Lipstick really did become a "luxury" item and not a necessary psychological pick-me-up that we so often see when times get tough, but are we beginning to see signs of things changing? Hopefully Estee Lauder's recent sales and profit forecast will be reflective of greater things to come across the industry.
The report shows a year of positive profits for Estee Lauder, with most of it coming from Asia (40%). We blogged 2 years ago that Asia will soon be the global leader for personal care growth. It's definitely been interesting to watch that unfold and hear reports of US brands flourishing outside our borders. Will this be the saving grace for beauty powerhouse brands while the US economy gets back on its feet?
