When economic hardships prevail, what do consumers turn to? Well, cosmetics of course.  During the recession in 2001, Leonard Lauder, of Estee Lauder has observed in times of economic hardships, the demand for cosmetics drastically rises. Consumers find joy through simple pleasures.  Economist David Rosenberg believed these purchases reflect the “era of frugality,” as people are more willing to save. Spending patterns have shifted to sporting goods and hobbies rather than purchasing foreign cars or extravagant toys. The use of shopping coupons is up 27% from 2008. People need to save. It will always be more cost-effective to purchase sporting goods or hobbies or “homemade fun,” as it will lead to happiness. To achieve Maslow’s self- actualization, a consumer would benefit from pursuing a hobby as it is not artificial happiness created by materialism. However, it is hard to differentiate what really creates happiness, owning luxury goods or pursuing a hobby.  It is evident that in times of economic hardship, one cannot purchase luxury goods, therefore must turn to the alternative. It leads to self- actualization rather than self-esteem.  Can one achieve self-actualization materialistically?

Lipstick Index up as American Seek Small Luxuries

Maslow’s Hierarchy of Needs