When ‘little treat culture’ first emerged on social media, it mainly focused on food and drink indulgences for Gen Z. But the trend has now expanded to include all generations and any kind of ‘pick-me-up’ purchase for stressed and uncertain consumers. For that reason, it’s an important dynamic for home and housewares sellers to lean into, especially because economists are saying ‘treatonomics’ won’t be going away any time soon.
Lipstick…but also Home and Housewares
Little treat culture and treatonomics may be new terms, but the consumer behavior isn’t. The ‘lipstick effect’—a dynamic that sees lipstick sales increase during periods of uncertainty—was first documented during the Great Depression and again in the aftermath of the September 11 terrorist attacks.
“The lipstick effect means basically, buying yourself small treats when you’re under financial pressure,” John Stevenson, retail analyst at Peel Hunt, recently told CNBC. “You can’t afford a new dress or outfit, but you can always get a new lipstick. You can’t afford to get a new sofa, but you can get a throw or some cushions. You can’t redecorate the house, but you can get a new tablecloth,” he said.
This is why, Stevenson pointed out, the home and housewares retail category is “much more resilient than people imagine.”
Rooted in Economics…but also Psychology
As Stevenson notes, a large part of treatonomics is financial. But the phenomenon is also rooted in psychology, indicating consumers’ current attention to mental health and growing recognition of the importance of self-care.
“The rise of treatonomics….is less about ‘guilty pleasures’ and instead about injecting moments of guilt-free joy into life,” Meredith Smith, senior director at retail analysis firm Kantar told CNBC. “It’s like the ‘Lipstick Effect’ on steroids because consumers have this heightened sense of uncertainty coupled with more options and access than ever before to turn life’s everyday decisions into an opportunity for a treat.”
“As a result,” she added, “people are romanticizing their water intake, how they dress and (how they) decorate their homes, buying themselves treats as a mental health boost and more—all to inject joy into fraught times.”
It’s All About Sparking Joy
What’s all this mean for home and housewares sellers? Those who connect with consumers on their search for joy and relief stand to benefit now—and in years to come.
That can mean continually offering new and innovative home items, leaning into treat culture in marketing and merchandising, and looking for other ways to spark joy in shoppers’ lives, whether in-store events, reward programs or other perks.
“There are many vulnerable areas of retail (right now), but in addition to maintaining their spending on food and other essentials in the current high-cost environment, consumers are prioritizing the purchase of products they are passionate about,” Marshal Cohen, Circana chief retail industry advisor recently told Chain Store Age.
Cohen noted that the video game, beauty and toy industries were a few who benefited in July from these types of purchases, thanks in part to new product launches, collectibles and successful links to little treat culture.
Take note and don’t delay: Economists predict volatility and uncertainty in the world today is not likely to disappear any time soon; in early 2025, the Global Economic Policy Uncertainty Index reached its highest level this century.