Economics applies to everything, even beauty markets and what becomes trendy. Does that seem like a stretch? I can explain it with the next three basic principles of economics which outline how people interact with each other.
First, there are certain principles that people use to interact with each other. In short order, these are: benefits through trade, utilization of market economies, and government institutions and policies. Let’s run through a scenario in which all of these would affect a person who’s buying … let’s say, makeup. Since there were so many odd makeup trends in 2017!
In 2017 we saw the rise of highlighter especially, it started out as a trend and has finally made its way into our daily makeup routines, right? At least for those who put on makeup everyday, as for me, I’m still working on contouring (sad, really). Even though the internet makes it seem like everything happens overnight, in reality, this is probably something that happened gradually and only started with a few people. The main advantage of trade in this situation is that people all over the world got to experiment outside of their comfort zone and add a step to their daily makeup routine. So, they benefited from trade.
Adam Smith talks about an invisible hand that guides the market, and this invisible hand isn’t just for Wall Street, it’s for any type of market economy and that includes makeup. Something that starts as a weird trend might turn into something natural because of this invisible hand. Everybody is acting in their own self-interest and in this case, everyone wants to increase the efficiency of their beauty routines. The invisible hand, believe it or not, may be a reason to drive forward even crazy trends.
Finally, how does the government fit into your makeup routine? As for me I say the government should stay out of my bathroom and out of my bedroom, but it does have an effect on what I bring into my bathroom. When companies create new products, these products do have to pass some sort of regulation or policies that are put in place. These policies help protect consumers from products that may damage their skin and if a product does damage multiple people’s skin then the company may have to take responsibility for that. Remember recently the lawsuit over the tester samples at Ulta? That affects the market economy for makeup stores because people who interact with these stores now feel more cautious when they go to test that amazing new highlighter.
So see? I can connect anything to economics 😉
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