It is widely acknowledged that 2023 is another challenging year for households – and therefore less disposable income to spend. It is believed that during these uncertain economic times the lipstick effect comes into play.
What is the lipstick effect psychology?
The lipstick effect is when consumers still spend money on small indulgences during recessions, economic downturns, or when they personally have little cash. They do not have enough to spend on big-ticket luxury items; however, many still find the cash for purchases of small luxury items, such as premium lipstick *
Whatever this year brings, let’s be intentional with our spending and support those small New Zealand businesses - many already struggling after years of pandemic-related pain. Supporting doesn’t necessarily mean purchasing (although that is ideal!) – it doesn’t cost to leave a google review, recommend to friends and family, follow and engage on social media, or give words of encouragement to the owners. Let the team at your favourite retail and hospitality places know they are appreciated.
We know that when we spend with small businesses it benefits the local economy – by being intentional with where you are spending it can also benefit a number of other businesses just by where you choose to shop. If you seek and find those retailers partnering with New Zealand based suppliers, you could be supporting more than one business with your purchase.
We opened the Goody Goodness retail space last July – just in time for recession predictions, and constant talk in the media about the cost of living. The wonderful people who discover our shop, get excited that we are offering something different, and keep coming back, is what keeps us going. We have chosen products for our shop that are artisan, eco-friendly, from NZ businesses – and affordable. We believe you don’t have to spend a lot to find a meaningful gift, or to treat yourself.
While we’re on the topic of intentional spending, here is just one example on how it can make a real difference. I’m focusing on plastics and waste in the following as our business promotes eco-friendly packaging so it is in line with our ethos:
· In NZ alone it’s estimated we discard 295 million single use coffee cups a year! If we reduce that by even just 5% this year by replacing with reusable cups we’ll be saving nearly 15 million cups from entering our landfills and environment. Food for thought?!
As well as helping our environment, this small change can also save money as many cafes will provide discounts for reusable coffee cups. There is also a fantastic initiative called Again Again where they provide you with a reusable mug on loan.
Final thoughts – it would be a very dull New Zealand if we lost those unique, eclectic, awesome small businesses throughout the country. This year your support could be the difference between your favourite shop keeping their doors open – or closing for good.