The Economy's Impact on Fashion and Beauty Trends

A Return to Glamour: Maximalism in a Downturn

As economic uncertainty grips the United States, intriguing trends are emerging in the fashion and beauty sectors, reshaping consumer behavior and the style landscape. Facing rising living costs and job insecurity, consumers are seeking solace and a sense of luxury in their outward appearance.

This shift manifests in the resurgence of maximalist styling, seen both on the runways of high-end designers and in offerings from mainstream retailers. It's a fascinating parallel to historical patterns observed during previous economic downturns.

The High-Heel Theory Revisited

The "high-heel theory," initially proposed by economist George Taylor in 1926, suggests that during economic decline, consumers gravitate towards traditionally glamorous fashion. Originally focused on hemlines, the concept now applies to a broader range of styles, including the recent embrace of maximalist design and the return of the off-center hair part.

After years of minimalist aesthetics dominating the fashion scene, this sudden shift signifies a nostalgic yearning for the styles of more prosperous times.

Iowa-based fashion historian and content creator Nick Johnson () notes, "Obviously, this is a multifaceted topic... but the parallels between economic shifts and fashion trends are hard to ignore.”

Nostalgia and Social Media's Influence

Johnson further explains the allure of nostalgic fashion: “Economic turbulence has a way of pulling people toward nostalgic fashion... When the economy is booming, fashion tends to embrace the future... But in uncertain times, people look backward, finding comfort in heritage and archival styles that feel familiar, reliable and enduring.”

He adds, "Social media has amplified the effect... Platforms like TikTok and Instagram... have led to the rise of secondhand shopping, as there is usually a palpable difference in the quality of mass-produced garments of the 80s and 90s compared to now. The rise of secondhand shopping has also made archival fashion more accessible, pulling older styles back into the mainstream.”

The Lipstick Effect: Small Luxuries in Tough Times

Another relevant concept is the "lipstick effect," which describes the tendency to purchase small luxuries like lipstick and perfume as a form of affordable indulgence during economic hardship. These purchases are often impulsive, providing a quick emotional boost.

Circana's 2023 makeup consumer report supports this, showing that lipstick and lip gloss are the most impulsively purchased makeup products.

Johnson offers his perspective: "At our core, we crave novelty and quality, even when money is tight. The lipstick effect explains this perfectly... A $5,000 Chanel bag might be out of reach, but a $50 Chanel lipstick still gives that aspirational dopamine hit.”

The recent surge in innovative lip product releases, from Rhode's viral peptide lip treatment to Glossier's Balm Dotcom, testifies to the enduring power of the lipstick effect.

Looking Ahead: A Resurgence of Past Styles

As consumers seek comfort in familiar styles and find gratification in smaller luxuries, their changing buying habits are significantly impacting the fashion and beauty industries. The once-outdated is becoming new again, infused with an emotional resonance that resonates deeply in these uncertain economic times.