What is the "Lipstick Effect"?
The hypothesis in sociology known as the Lipstick Effect claims that in conditions of declining income, the population cannot afford expensive purchases, such as houses or cars, but the desire for pleasure from small joys remains. As a result, people start spending money on affordable pleasures, such as cafes, coffee, and inexpensive cosmetics, like lipstick.
According to Forbes, when funds are tight, women choose luxury lipsticks for public use while forgoing expensive cosmetics for home use.
The hypothesis was first described by Juliet Schor in her book "The Overspent American," published in 1998.
From Aristocracy to Social Media: The Formation of Luxury Standards
The main idea of the professor's work is that wealthy people, primarily aristocrats, demonstrated their status through the acquisition of expensive items—palaces, luxury furniture, jewelry, etc.
For example, some Italian aristocrats of the 18th century built magnificent palaces and adorned them with tiles inscribed with Pro Invidia ("To Envy").
Aristocrats even enacted laws prohibiting new wealthy individuals from imitating their style.
"At the turn of the century, the wealthy published the menus of their dinner parties in newspapers, and 50 years ago, social climbers in the U.S. bought fake 'portraits of ancestors' for their libraries," notes Juliet Schor.
The situation changed with the advent of scientific and technological progress and industrialization. According to the scholar, mass production, which began in the 1920s, made many goods accessible to the masses.
New social standards emerged: a good home, modern furniture, household appliances, and cars became necessary attributes of life.
Thus, the wealthy set trends that were copied by less affluent segments of the population, leading to the phenomenon of necessary consumption, where certain purchases began to be perceived not as luxuries but as necessities to meet social standards.
The competitive consumption of the 1980s was driven by the middle class's desire to follow the standards of the wealthy, even if it exceeded their financial means, as Juliet Schor emphasizes.
New Realities and Numbers
The desire to maintain social standards, regardless of income level, is not just an American trait. This phenomenon is also observed in modern society, including Kyrgyzstan.
This year, the consolidated budget of the country exceeded 1 trillion 93 billion soms, as reported by Prime Minister Adylbek Kasymaliev in the Jogorku Kenesh.
Bloomberg characterized Kyrgyzstan as the economic tiger of Central Asia, noting the rapid GDP growth in recent years.
However, the standard of living for most Kyrgyz citizens remains low.
Despite the fact that a large portion of income goes to food and living paycheck to paycheck, it was expected that the import of goods such as coffee, jewelry, cars, and expensive phones would decrease.
However, the import of these goods has not only not decreased but in some cases has even increased.
Restaurant Boom: Growth of the Food Service Industry in Bishkek and Osh
This is another vivid example of the "lipstick effect."
As reported by 24.kg, in 2024, the number of food establishments in Bishkek increased by 53.1 percent—from 2,247 to 3,440. In Osh, the increase is even higher: 57.2 percent (from 563 to 885 establishments).
On one hand, this is related to population growth, but on the other hand, it also confirms that people continue to spend significant amounts on dining out.
The average bill in Bishkek restaurants is 1,300 soms, in cafes—932 soms, and in coffee shops—564 soms, according to data from 24.kg.
Moreover, in December of last year, Kyrgyz citizens actively searched for information about establishments online:
- cafes—465,113 queries;
- restaurants—378,937 queries.
In total, there were over 1.5 million queries on the topic of dining out in a month.
Although this may be related to the pre-New Year holidays, it also indicates people's readiness to spend money on celebrations in cafes and restaurants rather than at home.
Another interesting fact: in the first 10 months of 2024, Kyrgyzstan imported cosmetics worth $32.2 million. Rising food prices are unpleasant, but the desire to look attractive remains important.
The number of fitness clubs in the country, mainly in Bishkek and Osh, is about 130, while there are around 212 coffee shops according to 2GIS.
Loans as a Means of Maintaining Image
Instead of looking at the statistics of imported household electronics and appliances, it is worth paying attention to consumer loans.
As previously reported by 24.kg, the volume of consumer loans in the country increased by 60.8 percent over the nine months of 2025, reaching 159.5 billion soms. These funds are spent on purchasing cars, electronics, including expensive phones, and other necessities.
So, when you see crowded cafes or a colleague acquiring the latest iPhone, don't rush to conclusions.
This does not necessarily indicate an increase in wealth, but rather adherence to social standards known as the "lipstick effect."
Thus, crowded cafes with an average income of 44,000 soms are not a sign of increased wealth, but rather an example of a surrogate for prosperity: when a person cannot afford an apartment, they take out a loan for an iPhone and go out to dinner in expensive restaurants.
