What is the "lipstick effect", and why is it important?

"I don't know. Seems kinda dubious to me. Like someone is Playing with numbers and stuff.

So LOreal has increase in sales.... compared to???? Same time previous year? Fine, how about the year before, and the year before that and the year before that and so on? Isn't it the goal of all business to have Increased Sales from one year to the next?"

Take the time to read the information provided by clicking the links. It's not just L Oreal.

"It's not like LOreal would have had sales losses for years but now, looky look, sales increase heralding the bad times.

Sorry, without knowing what they compare their sales numbers to, nor the historical sales record, the claim linking the two is dubious. "

Read the information in the links. It says they (L Oreal, Este Lauder) realized an increase in sales during what we in the U.S. call "rough times". 1930's, 1980's, 9/11, etc.

Sales Increase. What's that even mean? Gross revenue increase? Net profit increase? SKUs sold increase?

Sales Increase. That means, plain and simple, they have sold more units during one period of time, than another. If I land two new clients next week, my sales have increased. PERIOD.

They didn't say "Gross Revenue Increased, or Net Profit Increased, so, that must mean UNITS or SKUs (Stock Keeping Units) as you prefer to call them, increased.



Pete