The 'lipstick effect' has proved to be the saviour for the film exhibition business in 2019, with box office collections registering a whopping 27 per cent growth amid an economic slowdown, a report has said.
The 'lipstick effect' is a phenomenon where consumers prefer to spend on small indulgences in an economic slowdown, rather than blowing their money on big-ticket luxury items, Care Ratings said in the report.
India's GDP growth is set to slide to a decadal low of 5 per cent in FY20, as per official estimates.
Box office collections grew 27 per cent to Rs 5,613 crore in 2019, and have notched a compounded annual growth rate of 13.4 per cent in the last five years that have seen a slide in economic growth, the domestic ratings agency said.
Apart from the shift in spends towards small-ticket items, improved content and a dip in goods and services tax (GST) on movie tickets also helped the industry, it said.
The average earning of a movie increased 15 per cent to Rs 23 crore, while ..
