Is nail polish the new lipstick? Market trends have indicated that women who once bought lipstick as an affordable splurge are now spending their dollars on nail polish. It’s an economic indicator known as the “nail polish index.”
Estée Lauder chairman Leonard Lauder first coined the term “lipstick index” in 2001 to describe an increase in lipstick sales, despite a nationwide recession. During financial hardship, research shows that women cut back on high-ticket items such as designer shoes and handbags, but increase their spending on the more affordable luxury of makeup. After all, how else can $10 lift your mood, again and again and again?
The trend that once seemed exclusive to lipstick-sales has spilled over to polish in the last few years, and companies are taking note. The NPD Group, a market research firm, reported that while the sales of lipstick and other lip products increased by 8 percent in 2011, nail polish sales grew by a whopping 59 percent in the same amount of time. Case in point? Companies that haven’t dabbled in polish before have stepped up with their own lines: American Apparel, Calvin Klein, Kate Spade, Oscar de la Renta, to name a few.
And what about companies already invested in polish? You’ve probably noticed nail polish lines bursting with creative colors and new collaborations, such as Nicki Minaj, The Muppets, Shrek, Minnie Mouse and even the TV show “Glee” with a new shade, Slushied. Polish company China Glaze released a line of Hunger Games colors, while previously OPI launched its version of “Alice in Wonderland” and “The Amazing Spider Man” polish sets.
Though you may not be daring enough to wear blue lipstick to work, nail polish manufacturers are pretty certain you’ll wear just about any color on your nails. The proof is in the polish index!