Lip Gloss and Layoffs: What Today’s Fashion And Beauty Trends Reveal About The Economy
June 23, 2025
Hemlines are rising, nails are shortening, and lips are glossy again, not just for style’s sake, but for survival. In an era where TikTok trends dominate in the blink of an eye, it’s easy to brush off style shifts as aesthetic whims. But zoom out, and the truth becomes clearer: fashion and beauty are economic mirrors. And lately, they’re reflecting signs of trouble. We are officially wearing recession fashion.
The lipstick index gets a Gen Z makeover
First coined by Estée Lauder’s former chairman Leonard Lauder, the “lipstick index” was once a go-to barometer for economic downturns. The theory? When the economy sours, consumers can’t afford luxury handbags or designer coats, but a small indulgence like lipstick? Still manageable. While the index has faced skepticism in recent years, data shows that prestige beauty sales, particularly in categories like lip gloss and fragrance, continue to climb despite inflation.
According to Circana, U.S. prestige beauty sales grew 15% in 2023. Lip products, especially glosses and oils, are thriving. Why? Because they’re affordable escapism. A $22 gloss becomes a little luxury when eggs feel like a splurge.
Quiet luxury isn’t just a trend but a tell
On the fashion front, the rise of “quiet luxury” may look chic, but it screams recession anxiety. Think neutral palettes, logo-less tailoring, and brands like The Row, Loro Piana and Toteme dominating trend reports. In essence, wealth is whispering.
During economic strain, consumers gravitate toward pieces that feel timeless—investment-worthy. Rather than loud logomania, the vibe has shifted to discretion. A well-cut coat signals “old money energy,” even if your paycheck says otherwise. This shift reflects not just taste, but practicality. When every dollar counts, fashion needs to work harder and last longer.
Secondhand is no longer a second choice
Resale platforms like Depop, Poshmark and The RealReal have seen steady user growth, especially among Gen Z. It’s not just about sustainability but affordability. According to thredUP’s 2024 Resale Report, the secondhand market is expected to double by 2027, hitting $70 billion in the U.S. alone.
Thrifting has gone from necessity to norm, blending ethics with economics. In times of financial pressure, wearing someone else’s outfit isn’t just resourceful. It’s cool.
Short nails and DIY beauty routines
In beauty, we’re also witnessing the decline of high-maintenance grooming. Maximalist manicures are taking a back seat to short, natural nails. “Nail polish index” might not be a coined term (yet), but data from market research firm Mintel shows a spike in DIY beauty product sales as consumers cut salon costs.
At-home treatments, from press-on nails to hair glossing kits, are flying off the shelves. Self-sufficiency isn’t just trendy but cost-efficient.
Even fashion escapism has its limits
Sure, fashion has always been part fantasy. But even the fantasy has recession fatigue. The metallics and sequins that marked the post-pandemic era are fading, replaced by minimalism and workwear staples.
According to the Business of Fashion and McKinsey’s 2024 State of Fashion report, brands are recalibrating. They’re cutting inventory, leaning into staple pieces, and shifting marketing toward practicality over aspiration. In other words, they’re listening to wallets more than wish lists.
Final stitch: Our clothes are saying what we won’t
Fashion doesn’t lie. It may exaggerate and it may distract, but it always tells the truth eventually. The return of affordable beauty, pared-down closets and quietly luxe staples speaks volumes. Consumers are adapting. They’re choosing wearability, longevity, and small joys over status symbols.
In the end, maybe the real recession uniform isn’t a hoodie or a pair of worn-out sneakers. Instead, it’s a lip gloss in your pocket and a thrifted blazer that still smells like someone else’s perfume. It’s the proof that even when the economy falters, style finds a way to survive.
For music-related recession indicators, check out this article by The Garnette Report.
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