What the psychological phenomenon of the ‘lipstick effect’ & the current rise of Labubu’s have to do with your yoga class attendance?
Why are we obsessed with little treats?
*Did someone say more recession indicators?
Millennials and Gen Z are deep in their little treat era. A £4 coffee here, a limited edition lip balm there… or another Labubu.
These aren’t just casual spends — they’re coping strategies. Small rewards for functioning in a world that feels increasingly unmanageable.
When people start leaning into small indulgences instead of saving for bigger purchases, it’s not just a trend. It’s a very real reaction to economic uncertainty.
How did we get here?
Owning a home? Feels out of reach for many. A car? Maybe a used one, if you’re lucky. A proper holiday? Only if you count sitting in the car on your drive for ten minutes before you go inside.
So, we’ve adapted.
We’ve reshaped joy into something smaller and more immediate.
We haven’t stopped spending
— we’ve just shifted it.
‘If I can’t afford the lifestyle, I can at least buy the candle that makes my flat smell like the life I imagine. If I can’t get away, l’ll book the yoga class that helps me feel a bit more grounded.’
The Lipstick Effect
This behaviour has a name — economists and marketers call it the “lipstick effect.” It was first flagged in the late ’90s and really took hold after 9/11.
The idea? During times of financial strain, people buy small luxuries — like lipstick — rather than big ones.
Even when spending drops across the board, beauty sales often go up. Why? Because you might not be able to afford the dress or the designer bag, but you can still afford a fresh lipstick and that feeling of a mini glow up amidst the strain of a non stop feed of global uncertainty.
Let’s talk dopamine
The real magic of the little treat doesn’t come from owning it — it comes from anticipating it.
Dopamine spikes not when we have the thing, but when we’re about to get it.
A smoothie and a new handbag might be worlds apart in terms of cost, but your brain reacts in much the same way. You see it, want it, make the purchase, feel great… then it fades, and you start looking for the next little high.
That cycle — see → want → buy → feel good → crash → repeat – is driving the treat economy – it’s also why your yoga class could be someone’s best purchase of the week.
Pilates Girls, Matcha Mornings & the Rise of Wellness as Treat
Let’s look at the recent surge in Pilates popularity. This new wave of wellness lovers, many of them young women, might not be living the full aesthetic lifestyle of green juices and yoga retreats in Bali, but they are showing up for their two classes a week.
Because that one hour? That’s the treat. That’s the “I’m looking after myself” moment. It’s affirming and important.
This same principle applies to your yoga classes, workshops, retreats, and products. If you’re running a yoga business, you’re not just selling a service — you’re offering a sense of identity, a ritual and a bit of respite.
So the question is: how do we use this understanding to shape what we’re offering?
What does this mean for your offerings?
Let’s start with price. You want to sit in that sweet spot of say £10-30 – where people don’t need to double-check their Monzo budgets. It’s the “why not” range. Low-pressure, low-commitment, high reward – but price isn’t the only factor.
Think about the experience:
What kind of energy are you inviting people into?
How does your class make them feel?
Are you giving them a space to breathe, a sense of community, or a stronger connection to themselves?
Then there’s anticipation.
That dopamine hit can be sparked with thoughtful marketing — seasonal classes, limited offers or a new playlist that drops with your Sunday session if thats your thing but finding something to look forward to.
What kind of messaging actually works right now?
Traditional marketing loves to dig into insecurities – the whole “you’re not enough without this product” thing. Not only do we want to smash that in wellness, that’s not what people are looking for right now, especially not Gen Z.
They’re tuning in to what feels genuine and emotionally intelligent.
The little treat mentality is about helping people feel better, not broken. So your messaging should be warm, encouraging, and affirming.
Your offer isn’t a fix — it’s a support.
A chance for someone to breathe, move, and feel more like themselves.
So what’s the takeaway?
If you want your offering to land right now, make it part of someone’s ritual.
It’s not just about booking a class. It’s about creating a feeling:
‘When I get my Monday morning matcha, I feel ready for the week.
When I light this candle, I know I’m clocking off for the day.
When I go to Pilates, I feel like I’ve got it together.
When I write in my journal, I feel like I’m setting myself up for success.
When I go to that Tuesday evening yoga class, I always feel better afterwards.’
That’s what you want to tap into. Not just yoga as a class — but yoga as the little treat that anchors the week. That one consistent thing that feels like self-respect, calm, or care.
Right now people don’t want to be sold a dream.
They want a break from the noise and your offering could be exactly that.
