All smiles at L'Oreal and Boots as cosmetics buck recession

London: Foreign holidays, fancy nights out and new cars are among the many things that Britons have sacrificed in the face of the worst recession for decades. But there is one thing that it seems much of the population cannot go without - make-up.

L'Oreal, the French cosmetic company whose brands include Lancome, Garnier and the Body Shop, last Thursday reported higher than expected profits of £1.2 billion (Dh7.2 billion) for the first half of the year. Shares jumped 10 per cent on the news.

At Boots, the UK market leader, sales of beauty products have increased. Peter Bainbridge, commercial director of Boots' beauty business, which includes No 7, the biggest selling brand, said: "Customers are looking for an inexpensive treat to make them feel good and a small thing, like a lipstick, can make a big difference to someone's day."

According to analysts at research firm Mintel, the UK beauty market has continued to grow despite the recession.

"A recession does not change people's insecurities about the way they look," says Alexandra Richmond, a beauty analyst at Mintel. "They may have given up their long-haul holiday this year but the reality is make-up is a small indulgence in the scheme of things."

The link between make-up and recession is not new. When an executive at Estee Lauder noted that sales of expensive lipsticks soared in the wake of the 9/11 terror attacks, he dubbed it the Lipstick Index, an alternative economic indicator which sees make-up sales rise in a downturn.

The consensus in beauty circles is that the Lipstick Index has been replaced by the "Foundation Factor" after L'Oreal noted a 15 per cent sales jump as women sought the perfect skin tone above a glossy pout. "It's not about warpaint anymore," says Grita Loebsack, head of L'Oreal UK. "Today women prefer more of a natural look, what we call the 'make-under', they are putting on a brave face and want to look their best."

The company said women told them they would give up a lot before they sacrificed products in their beauty regime: "They told us: 'I will buy a cheap shower gel for my family but I will not give up my Kerastase shampoo, I will hide it in the bathroom cabinet.'"

The market has not been immune to the downturn with the top end squeezed at the height of the financial crisis.

But L'Oreal sounded a positive note that sales had started to recover. It has just hired Cheryl Cole as a new "face" and new, cheaper products persuaded women they were "worth it".