Are You Familiar with the “Lipstick Effect”?”

Consumers have been known to spend money on small indulgences during recessions, economic downturns, or personal financial hardship. When they don’t have the cash to spend on a vacation or costly designer goods, they invest in little luxuries, like premium lipstick. The lipstick effect is an established economic indicator for consumer confidence in the markets. However recent earnings report calls this metric into question or more importantly additional niches within the beauty and cosmetics offerings:

In 2024 US prestige beauty industry saw revenue grow 9% in the first quarter, compared to the same period in 2023, while mass-market beauty sales increased just 2% year over year.

The prestige category is a bright spot in an otherwise decelerating market. The "premiumization" trend in beauty and fragrance is expected to be a buoy for the beauty industry in the coming years A report from McKinsey & Company anticipates the prestige beauty category will grow 8% per year between 2022 and 2027, versus a 5% growth rate for mass beauty.

 

At Tijon we are in a rarified niche concerning the fragrance industry. Internally we consider our concept i.e.hands-on perfume classes and our overall brand to be considered “aspirational luxury”. For those outside our industry, aspirational luxury refers to a customer segment within the luxury market who desire high-end goods and services but typically have a lower income level than ultra-luxury consumers. 

 

At Tijon we have 24+ branded fragrances, what we consider “cash and carry” as the bottled fragrances are only available at Tijon. In addition, each of our bricks and mortar locations offers an additional line of four (4) fragrances that represent their locale and are only available at the specific location.

 

However, we are best known for our perfume classes which are truly an immersive experience. Our clients in our classes develop their own truly unique fragrance using our proprietary selection of over 300 oils and blends to compose a one-of-a-kind fragrance. With up to 4 class offerings the experience can be as quick as 20 minutes with our “Fragrance in a Flash”, 45 minutes for our Express to as long as 3 hours with our Fragrance 101. Our most popular class is our 1.5 hours “Mix and Match” option where participants blend three (3) fragrances eventually choosing one, subsequently branding and bottling their creation. While their formulation is unique to them, Tijon retains the formulation for refill as well as having their bespoke scent including in other vessels including a body crème and a linen/room mist.

 

In our stores our price-point starts at the single-digits for our lip balms and soaps. Our cash & carry Tijon branded fragrances begin at $35 and our immersive experiences allowing one to develop their own custom scent starts at $79. Of note if you cannot visit one of our retail location, Tijon offers a DIY Tijon Perfume Kit.

 

As our national economy seems to be at a crossroads Tijon is bucking the trend and seems to be embracing the Lipstick Effect. Our retail locations continue to experience annual sales growth and profitability. Our franchise model continues to be successful with 9 out of 10 Tijon locations being franchisee owned and operated.

 

Retail historians usually suggest Coco Chanel as the foundation concerning branded and mass-marketed fragrances. While no one can dispute the success of Chanel No. 5 and the 1000’s of branded fragrances that have been developed and marketed since.

 

Tijon has a niche few can compete with bringing together branded fragrances, ancillary products and the option for clients to develop their own unique to themselves fragrance blend that can be re-ordered at will. When life gives you lemons, make lemonade; of note at Tijon we usually suggest going with orange, lime, bergamot and similar oils as a top-note for a burst of energy and freshness.

 

Full disclosure: the author has composed three (3) bespoke fragrances at Tijon including Forest Road, a winter-oriented cologne reminiscent of a home in the Poconos Mountains of Pennsylvania, Dune Road, a light and breezy summer scent inspired by the beach houses along the namesake road in Westhampton Beach and Leather Chaps in honor ot my trusted and protective motorcycle chaps. It is a masculine scent including mid-notes of leather and tobacco. The cologne is reserved for formal evening events year-round. My bespoke scent envelopes me in fragrant protection as my chaps do when riding.