Richard's Eye Connection between miniskirts and the economy? SPA Magazine, Aug. 3 issue, on sale 7/27 issue -- translation of the Japanese original article. For the full text and photo spread, see the vernacular side of our site where SPA Magazine has kindly given us permission to post the article on our website. Click "here" and then click again on the "Topics"  (トピックス) tab. Are mini-skirts and the economy on the rise? A tentative "yes" to both, say JMR researchers Ryuzo Funaki and Richard May. They were recently interviewed by SPA Magazine, a very popular Japanese language weekly. The topic of the day was indicators of an improving economy. JMR's finely tuned economist and lifestyle consultant zeroed in on hemlines, aspirin, and other indicators thought to presage better times. As the magazine is a popular commute time read with working men and women in their late-20's to late 30's, the magazine frequently focuses on issues related to the economy, popular culture, and entertainment issues. Have some fun reading this economic hemline primer. "Many believe that there is a definite correlation between the length of skirts and the economy. In the United States, a study has shown that when the S&P 500 stock index, a benchmark of the overall U.S. stock market, rises so do the skirts on mannequins in department stores. When stock prices drop, so do the length of skirts. When the Dow-Jones average rose in '93, skirts became shorter." So says Richard F. May, consultant for the Japan Consumer Marketing Research Institute (JMR). According to May, the U.S. has several unique economic indexes like the length of skirts. "Other less-than-scientific examples are the lipstick index and the aspirin index. When sales of these products drop, it is indicative of an economy on the rise. When people are depressed, consumption of aspirin increases. If sales are low, it indicates fewer people are distressed. Also, when the economy is down, women buy cheaper cosmetics, so lipstick sells well," says May. There is also the golf ball index, indicating the state of the economy by the number of balls left at the driving range. Supposedly, when the economy is doing well, more people don't bother to retrieve their golf balls. When the economy is depressed, people pick up their equipment before going home. Hmm….interesting. So….back to miniskirts. Ryuzo Funaki, JMR Group Manager, points out the connection between the economy and miniskirts from an economist's perspective. "Economic fluctuations have numerous cycles, but it appears that the Kuznets cycle, which arrives once every 20-30 years, and the miniskirt boom just about coincide. " The miniskirt boom, sparked by the super model Twiggy, was in the late '60s. This boom arrived with the high economic growth and died down with the oil shock. Approximately 30 years hence…indeed, they do coincide. "I believe psychological factors play a large role in the miniskirt trend. When the economy is strong, women become more active and assert themselves with bold fashions. People go out more often and spend money on their bodies and on fashion. Men interested in these women increase their social expenses. There is a tendency in the male mentality to seek fancy women when the cash flow is good; so, perhaps, women wear miniskirts even more in an attempt to match them," opines Funaki. Women, with the economy on the rise, have more money, become more active, and enjoy wearing miniskirts. Therefore, "when the economy is good, miniskirts become popular" is not just a wild rumor or a myth, but a fact! We know this is a reckless attempt but we'll have a go at it, anyway. First, let us start with sales of the miniskirts themselves. The nationwide population of women in their late teens to age 29 is 11,720,000. If 1% of these women were to buy a miniskirt, and assuming that the unit price for a brand item would be about 15,000 yen, the total would be 1,758,000,000 yen. If 30% of the people who bought a miniskirt spend 10,000 yen this summer for jewelry, beauty salons or nail salons, that would come to 351,600,000 yen. The population of men in their 20's to 30's, likely to open their wallets to attract these girls in miniskirts, amounts to 13,550,000. If 10% of them had more opportunities to go out to eat and disperse an extra 10,000 yen, then that would come to 13,540,000,000 yen. That's 15,649,600,000 yen! It may not match the 50,000,000,000 yen spending spree that fans of the Giants baseball team indulge in when the Giants' win in a championship, but the miniskirt effect is not too bad!! Perhaps… Profiles: Richard F. May, Consultant, Japan Consumer Marketing Research Institute (JMR). MBA, Seattle University. Active in the fields of marketing and finance. Current research themes include consumption recovery in Japan and consumer psychology. Ryuzo Funaki, Group Manager, Japan Consumer Marketing Research Institute (JMR). BS, Economics, Kwansei Gakuin University. In addition to market research, Funaki is a consultant for corporate business strategy planning and conducts sales innovation seminars. <2004.07.28> copyright©2007 Japan Consumer Marketing Research Institute. All rights reserved.