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It’s a Stretch
Underwear are often pretty revealing items of clothing, but did you know that they also reveal how the economy is doing? If you haven’t heard about it, Alan Greenspan, former head of US Federal Reserve, has been using the sales of men’s underwear as an economic indicator for decades. Here’s how: 👇👇
The Brief: 🩲
The rule goes that men will cut back on buying new underwear when they’re worried about their finances.
When things are looking up again, underwear would be one of the first discretionary purchase that guys will make.
So, higher men’s underwear sales = better economy.
Covid Coverage: 🦠
However, in a post-covid world, the Underpants Index may not be as reflective.
Underwear sales from Hanes’ and Big W has steadily increased from 2020 to 2021, despite some lockdowns and variants in 2021.
In the Covid era, consumer spending has veered away from travel & dining, and toward home improvement, pets and self-care.
This spending trend favouring the domestic sphere could be the reason for increased spending on underpants.
Besides, the key to WFH apparel is comfort, right?
Maybe it’s time to retire Greenspan’s Underpants Index.
Pucker Up: 💄
Interestingly, there’s a female counterpart to this called the Lipstick Index, coined by Leonard Lauder, from Estee Lauder.
But inversely, higher lipstick sales = worse economy.
That’s because women still buy lipstick as a little pick-me-up during economic downturn, sorta like a relatively inexpensive treat for themselves.
But again, the pandemic has disrupted this index as well because – Masks.
Why bother with lipstick when we’re all masked up?
But people still look for inexpensive ways to treat themselves, this time in nail and skin care.
Perhaps, the Lipstick Index will become the Nail Polish Index. 💅🏻
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