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Seen as modern-day adoptions of the ‘‘lipstick effect,” two newer trends — “little treat culture” and “treatonomics” — are driving an uptick in splurging on indulgences.
First coined by Estée Lauder’s chair, Leonard Lauder, in the downturn in 2001, the lipstick effect, or “lipstick index,” is an economic theory that when times are tough, people tend to choose affordable luxuries — like cosmetics — to treat themselves. The purchases are said to be driven by their relative affordability and the consumer’s desire for escapism.
Little treat culture encourages consumers to treat themselves to small indulgences such as a $7 latte or another somewhat-cheap beverage, snack, or beauty product as a reward for completing a task — or as a coping mechanism. Those treat-buying occasions are then celebrated on social media. The TikTok tag, “sweet little treat meme,” has seen more than 23 million videos using it.
'Little Treat Culture' Not Necessarily a Luxury, But a Grounding Mechanism for Consumers in Tough Times
“'Little treat culture' is not just describing a buying behavior — it’s almost more like a philosophy,” Julia Peterson, director of consumer marketing at youth culture agency Archrival, told Advertising Age. “Young people see ‘treating’ themselves not as a luxury, but as a necessity for staying grounded and finding joy in the wake of tough cultural and economic times.”
With treatonomics, on the other hand, an individual cuts back on everyday expenses by buying cheaper supermarket brands or giving up takeaway coffees to save up for “significantly larger indulgences and experiences,” such as attending a live concert, according to CNBC.com.
Meredith Smith, senior director at retail analysis firm Kantar, told CNBC that consumers are looking to reward themselves with “inch-stones” because life’s traditional milestones are harder to achieve.
“For example — for those who can’t afford a home before 40, treating has been a welcome respite and a way to express themselves in their environment when a milestone passes them by,” Smith said. “For those without a partner or children, instead of celebrating weddings and baby showers, they are throwing their energy into breakup parties, dog birthdays, high-effort wellbeing-driven treating routines and more.”
The trends are often grouped under the “treat culture” moniker given their similarities. They promise an opportunity for retailers to offer products or marketing approaches celebrating that address those moments of escapism.
However, the self-treating trend has some downsides.
As noted in a New York Times article, treat culture represents a departure from conventional savings behaviors and can lead to overspending.
U.K. psychologist and wellbeing specialist Lee Chambers told the Huffington Post said while small treats can reinforce healthy habits, they may cause “too much focus on short-term gratification” and lead to a dependency on external rewards.
He said, “It can also have the potential to become normalized, taking the edge off the benefits as it becomes the standard way of operating.”