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NEW YORK — In its latest paper, “For Consumers, Splurges Aren’t Just Lipstick,” based on the ongoing Global State of the Consumer Index, Deloitte asked consumers in 23 countries if they were making purchases to treat themselves, then created a database with nearly 150,000 consumer descriptions of their splurge purchases, including what they bought, how much they spent, and why they bought it.
The consensus? Consumers are treating themselves much more than expected. And while the “lipstick index” offers a catchy name, the image it conjures may not be entirely comprehensive of consumer splurge spending.
Key findings include:
- Most of us are splurging. Deloitte found over 3 in 4 consumers globally (77%) say they made a splurge purchase in the last month. In the US, that jumps to 81%.
- The “lipstick index” image may be misleading. While the term lends itself to an image of a female consumer buying cosmetics, Deloitte found that when men splurge, they spend 40% more than women globally and in the US on various items.
- We eat and drink our treats. The most popular category for splurging is food and beverage. US consumers are four times more likely to have said their latest splurge purchase was food and beverage (42%) vs. personal care (11%).
- Still, splurges must be practical. Though it’s often described as an escape or simple luxury, many consumers prefer their splurges be practical and long-lasting, particular when splurging on apparel or personal care.
