Fromthewomen'slovetotheworldeconomysituation.Wecanseethatwomenhasinfluencedtheworld.Whentheeconomyinthedownturn,butthesalesoflipsticksgoup.Thenpeoplefindthisinsterestingruleandcalleditlipstickeffect.Itmeansthatpeoplegoesafterthecheapbutusefulgoods.Andthisevenmakesanothereconomicbandwagon.Whypeopledothis?Andwhatitexpressesineachcountryandtime?Todaywewanttodiscussitfromtheviewofessentialsofeconomics.FromthenextpartwecanlearnmoreTHEHISTORYOFLIPSTICKEFFECTTHEOPPORTUNITYOFMARKETINFLUENCEPREDICTIONTHEAPPLICABLECONDITIONSAsfarbackas1930s,LipstickEffect,thewayofsayingathinghasappeared.Inoneday,afemaletypistofanoffice,becauseoftheeconomicgreatdepressing,wasfired.Thedayshewasfired,shecametotheshopandboughttwolipstickwhichshelikedforalongtime(thatdidn'tmakeherlifeworse),andsaid,whenIspreadthemorstlipstickonmylip,ifeltmorepeaceful.Whentheeconomyisbad,thestressoflifewillincrease.Theheavylifeneedsomethingeasytorelax.Sothethingslikelipstickwhichwon'tcostmuch,willbebetter.WHENWEMETITTheworldlipstickeffectcamefromthe30sAmerican.InthetimeofTheGreatDepression(from1929to1939),everythinggotashock.Butexcepttheindustryofmaquillages.Itroseinanamazingspeed.Eachwomenalsowanttobealittlebitbeautifulundertherecession.Theydidn'thavemuchmoney,andthelipstickscostlittle,butuseful.1929~1933theunemploymentrateinAmericanTheglobalfinancicalcrisisin2008hasbroughtmarkettothe‘lipstick’.TheAmericanmediasaidthatthesalesofthelipsticksandthefacialmaskshasbeenrising.However,therelaxcomsuption,suchasdoinghairandmassage,isverypopular.Itpresentsasharpcontrastwithothercommoditiesandthedownturninsalesofluxurygoods.Severalmajorglobalsalesofcosmeticsgiantconfirmedthisview,includingl'orealofFrance,Germany,byersdole,corporationandJapanshiseidocompany,etc.L'orealhadafallingmarketgrowthof5.3%inthefirsthalfof2008.Lipstickeffectbegantoemerge,andthelipstickeffecttheoryputforwardinthe1930’salsoappearanceintheoverseasmediaunceasingly.Fromthosecases,wecanseethatduringtherecession,people'sincomeandexpectationsofthefuturewillbereduced,atthistime,thefirstcutistheConsumptionofCommodities.Suchasbuyingahouse,acar,travelabroadandsoon.Inthisway,theremaybemoremoneythannormaltimes,justgotobuysomecheapbutunnecessarythings,tostimulatetheconsumptionofthesecheapcommoditiesrise.peoplechoosegoodslikelipstickstoenrichtheirconsumptionpsychology.Andinthebookofessentialsofeconomics(p64),weknowthemarketdemandforagoodissimplythesumofallindividualconsumerdemand.Hencethemarketdemandforaspecificproductisdeterminedby•Taste•Income•Expectations•Othergoods(theiravilabilityandprice)•ThenumberofconsumersinthemarketAsinjapan,thebeautymentalityisverypopular.Makingupthemselvesisveryimportantforthejapanesewomen.Makingupcannotonlyimproveone'sappearance,butalsocanreflectone'sself-cultivationandrespectforothers.Sothecosmeticsplayanimportantroleininterpersonalcommunication.However,Japanesewomenwithmeltingandlovelystylethinkbrightlipstickcolorcaninstantlymakethemlookbetterandvivid.Evencanletthemoodbecomeclear.TASTEThedeterminantsofdemanddochange,ofcourse,particularlyovertime.accordingly,thedemandscheduleandcurveremainunchangedonlysolongastheunderlyingdeterminantsofdemandremainconstant.Andtheentirdemandcurveshiftstotherightwhentasteincrease.OpportunityLipstickeffectisakindofmentalityofconsumption,whichcreatedcultureproduction.Totheconsumersofenjoymentofculture,asidefromlipstickeffectandthelawthatcontentiskingandserviceisimportant,wheneconomicsituationbecomesbad,peoplewillbestress.Theyneedsomethingtorelaxtorelievepressure.Sotheenjoymentplaceswhicharenotsoexpensiveplaceareverypopular.Itisatypicalexampleoflipstickeffectinmoderntimes.Wheneconomicdownturniscoming,clothingsalesinJapanarenotverypopular.Buttheshopsofmendingclothesareveryhot.Nowadays,thesenewpatternsofsalesandshoppingareverypopular.OriginatinginJapan,thesebecamepopularinHongkong,Chinainland.Thatislipstickeffect.Accordingtotheopportunity,wecangettheseconclusions.•Themarketdemandforaspecificproductisdetermindedbyincome.Whenpeoplegetlowincome,thelipstickeffectbecomeshot.•Consumersarewillingtobuylargerquantitiesofagoodonlyatlowerprices.Withgivenincome,taste,expectations,andpricesofothergoodsandservices,peoplearewillingtobuyadditionalquantitiesofagoodonlyifitspricefalls.MarketDuringthedepression,thedemandofluxuryandhigh-gradeproductsmustdecrease,butnecessitiesdon’tdecrease.Marketdemandisdeterminedbythenumberofpotentialbuyersandtheirrespectivetastes,incomes,othergoods,andexpectations.Tradingoffandtakingturns,sotextileindustryandlightindustrywillgetprogressbecauseoflipstickeffect.Theincomeofworkersaredecreasing,theyhavenomoneytobuyhousesandcars,sotheyhaveextramoneytobuycheapthingslikeapplications,newclothesandleathershoes.Ofcourse,textileindustryandlightindustryarereviving.Whenthemoneyislimited,theopinionbecomesmoreobvious.In2008,thebigthreeoftheUSA'sautoindustry-gm,fordandChryslersalesfellsharply,especiallygmandChryslerlackfundsseriously,facingbankruptcythreat.TheChineseautomarkethasacoldwinter,orevenbeabadluckaffectingbyit.Manypeoplewhowanttobuy