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1、Lipsticks and the World,From the womens love to the world economy situation.We can see that women has influenced the world.,When the economy in the downturn,but the sales of lipsticks go up.Then people find this insteresting rule and called it “lipstick effect“.It means that people goes after the ch
2、eap but useful goods.And this even makes another economic bandwagon.Why people do this ?And what it expresses in each country and time?Today we want to discuss it from the view of essentials of economics.,From the next part we can learn more THE HISTORY OF LIPSTICK EFFECT THE OPPORTUNITY OF MARKET I
3、NFLUENCE PREDICTION THE APPLICABLE CONDITIONS,As far back as 1930s,“Lipstick Effect “,the way of saying a thing has appeared.In one day ,a female typist of an office,because of the economic great depressing ,was fired.The day she was fired ,she came to the shop and bought two lipstick which she like
4、d for a long time(that didnt make her life worse),and said,when I spread the morst lipstick on my lip,i felt more peaceful. When the economy is bad,the stress of life will increase.The heavy life need something easy to relax.So the things like lipstick which wont cost much,will be better.,WHEN WE ME
5、T IT,In American,The world “lipstick effect“ came from the 30s American.In the time of The Great Depression(from 1929 to 1939 ),everything got a shock.But except the industry of maquillages.It rose in an amazing speed.Each women also want to be a little bit beautiful under the recession.They didnt h
6、ave much money ,and the lipsticks cost little,but useful.,19291933 the unemployment rate in American,In American,The global financical crisis in 2008 has brought market to the lipstick.The American media said that the sales of the lipsticks and the facial masks has been rising.However,the relax coms
7、uption , such as doing hair and massage,is very popular.It presents a sharp contrast with other commodities and the downturn in sales of luxury goods .Several major global sales of cosmetics giant confirmed this view, including l oreal of France, Germany, byers dole, corporation and Japan shiseido c
8、ompany, etc.L oreal had a falling market growthof 5.3%in the first half of 2008 .“Lipstick effect“ began to emerge, and the “lipstick effect“ theory put forward in the 1930 s also appearance in the overseas media unceasingly.,From those cases,we can see that during the recession, peoples income and
9、expectations of the future will be reduced, at this time,the first cut is the Consumption of Commodities. Such as buying a house, a car, travel abroad and so on .In this way, there may be more money than normal times ,just go to buy some cheap but unnecessary things, to stimulate the consumption of
10、these cheap commodities rise. people choose goods like lipsticks to enrich their consumption psychology. And in the book of essentials of economics(p64),we know the market demand for a good is simply the sum of all individual consumer demand.Hence the market demand for a specific product is determin
11、ed by Taste Income Expectations Other goods(their avilability and price) The number of consumers in the market,As in japan,the beauty mentality is very popular.Making up themselves is very important for the japanese women.Making up can not only improve ones appearance, but also can reflect ones self
12、-cultivation and respect for others.So the cosmetics play an important role in interpersonal communication. However,Japanese women with melting and lovely style think bright lipstick color can instantly make them look better and vivid .Even can let the mood become clear.,TASTE,The determinants of de
13、mand do change,of course,particularly over time.accordingly,the demand schedule and curve remain unchanged only so long as the underlying determinants of demand remain constant. And the entir demand curve shifts to the right when taste increase.,Opportunity,Lipstick effect is a kind of mentality of
14、consumption,which created culture production. To the consumers of enjoyment of culture,aside from lipstick effect and the law that content is king and service is important，when economic situation becomes bad, people will be stress.They need something to relax to relieve pressure.So the enjoyment pla
15、ces which are not so expensive place are very popular.,It is a typical example of lipstick effect in modern times. When economic downturn is coming,clothing sales in Japan are not very popular.But the shops of mending clothes are very hot.Nowadays,these new patterns of sales and shopping are very po
16、pular.Originating in Japan,these became popular in Hongkong,China in land. That is lipstick effect.,According to the opportunity,we can get these conclusions. The market demand for a specific product is determinded by income.When people get low income ,the lipstick effect becomes hot. Consumers are willing to buy larger quantities of a good only at lower prices.With given income,taste,expectations,and prices of other goods and services,people are willing to buy additional qua
