Indonesia's sold-out concerts, higher 6.6 sales amid market uncertainty: Is 'lipstick effect' at play?
Indonesian consumers are increasingly spending on small luxuries like concert tickets despite economic uncertainty, a phenomenon economists call the 'lipstick effect.' The high demand for K-pop concerts, such as BTS, highlights how individuals prioritize entertainment experiences over long-term financial goals.
Why it matters
This behavior provides insight into consumer psychology and economic resilience during periods of market instability.
An economist says there are signs of the "lipstick effect", whereby consumers continue spending on small luxuries while forgoing bigger-ticket purchases like homes in challenging economic times.
The article uses economic theory to explain consumer behavior without taking a political stance.
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