The Pencil Effect and the Hemline Index as an Economic Theory

Abstract

This study analyzed the relationship between fashion and the economy using theories such as the Lipstick Effect and the Hemline Index. These theories attempt to explain how consumer behavior changes according to the economic situation of individuals and a country's society. This research focused on understanding how economic, social, and emotional factors influence purchasing decisions within the fashion industry, especially for products like clothing and cosmetics.

For this study, data analytics was used with tools such as Power BI, allowing for the organization, interpretation, and visualization of information related to age, gender, purchase frequency, spending on makeup, and consumer behavior during periods of economic stability or crisis. Through interactive charts and dashboards, consumption patterns and trends present in the market were identified.

These results showed that a large portion of purchases are concentrated among people aged 18 to 45, and that makeup consumption is higher among women. Furthermore, it was evident that even during times of economic crisis, consumers continue to purchase small items considered affordable or emotionally comforting, such as cosmetics. The study also found that emotional and economic factors influence purchasing decisions and consumption preferences.

Finally, this work allows us to conclude that fashion not only represents an aesthetic or cultural expression but also reflects a country's economic and social context. Additionally, it demonstrated that data analytics is a useful tool for understanding consumer behavior and supporting strategic decision-making within the fashion sector.