Flick through the first few pages of a monthly women's magazine and start counting the dollars. Last year, beauty companies in Australia spent a whopping $54 million on print advertising alone.

L'Oreal, the biggest of the big spenders, shelled out $14 million of that. The multinational beauty companies know that advertising buys truckloads of exposure - and with that comes sales.

Yet, beyond the glossy advertisements, there is a group of smaller players in the beauty market who have captured our imagination without spending a cent on advertising. Brands such as Aesop, Bloom, Kiehl's, Diptyque and Dr Hauschka, to name a few, have carved out important - and prosperous - niches in the beauty market. And they prove that money alone does not always guarantee success in the fickle world of cosmetics.

"We have never advertised and we don't ever intend to," says Dennis Paphitis, the man behind Aesop, a local brand that is consistently one of the three bestselling ranges in prestige international department stores such as Colette in Paris, Barney's in Tokyo and Jeffrey in New York. "Our customers are not the kinds of people who are seduced by glitzy images."

There are two main reasons brands decide not to advertise. In some cases it's because the companies simply can't afford it. And in others it's because the concept of advertising doesn't sit comfortably with the brand's philosophy. "I'd be lying if I said I wasn't tempted," says Natalie Bloom, the founder of Bloom, a Melbourne cosmetic company that sells to department stores in the United States, Britain, Japan and Europe as well as Australia. "But in the end I want the customer to experience my products at the counter, not on the page of an advertisement." Her strategy has obviously worked. Bloom celebrates 10 years in the beauty industry this month and her business has estimated annual retail sales of $20 million.

Adman Siimon Reynolds was once famous for being the youngest and brashest creative director in Australia. Now he's done an about-face, recognising there's more to a successful marketing campaign than a whizz-bang TV commercial.

Three years ago Reynolds founded Love Communications, a boutique agency that specialises in low-key forms of advertising such as packaging, branding and PR. He has come to believe that smaller, cult cosmetic brands have picked up momentum because customers crave a sense of authenticity and integrity when they buy products. "Many people feel there is more to life than materialism," he says. "And as a result there is a worldwide search for meaning beyond what's available via the wallet."

It's no coincidence many of the niche brands that don't advertise are based on natural ingredients and promote holistic ideals. Brands such as Aesop, Dr Hauschka and Kiehl's advertise their authenticity through their minimal packaging and apothecary-style branding. "These brands offer a shorthand for ideas we want to promote ourselves such as anti-globalisation, anti-materialism, wellness and save the environment," says Reynolds.

It might seem a bit rich to suggest you can find enlightenment just by flicking the cap of your favourite moisturiser, but that notion is not as weird as it sounds for some companies. Dr Hauschka, the 60-year-old German skincare brand, is based on the principles of Rudolf Steiner, the man who invented biodynamic farming. The company founders believed you only "found" Dr Hauschka if it was "your destiny" to do so. "The products were born out of the idea that plant essences have the power to heal and balance the body and remove blocks to physical, emotional and spiritual progress," says Lars Brander, the Australian distributor for the range. "People buy our products because they aim to do more than treat the skin; they also represent personal and planetary health and wellbeing."

Savvy fashion retailer Belinda Seper, who sells Diptyque, L'Artisan Parfumeur and Acqua di Parma in her eponymous boutiques, believes the growing desire for cult brands is due largely to the trend towards more "customisation" in the marketplace. "There's a huge amount of cachet in finding products that slip under the radar of the middle market," she says. "It's like being part of an exclusive club." Seper is also quick to point out that one of the reasons the boutique beauty brands have taken off is the celebrity endorsement factor.

"When Jennifer Lopez says she won't do a press conference unless the room is filled with Diptyque candles, the brand is suddenly much more covetable and accessible." These day, it seems, it's impossible to separate the relationship between celebrities, the products they endorse and the magazines and newspapers that promote them.

And word of mouth will always be the most successful sales tool. "Never underestimate the power of your best friend's personal recommendation," says Jo Horgan, who sells a swag of boutique brands through her Mecca Cosmetica stores. "You can't always rely on editorial coverage but you can be sure that if a woman likes a particular product she'll tell her pals about it."

The brands that don't need to advertise

Acqua di Parma A fragrance line established in Parma, Italy, in 1916. Made famous by '40s screen idols such as Cary Grant, it remains a cult hit today. Available from Belinda, 9380 8725.

Aesop Created by Melbourne hairdresser Dennis Paphitis, Aesop promotes environmental awareness and holistic health principles. Available from Mecca Cosmetica and selected department stores. Details: (03) 9347 3422.

Bloom Natalie Bloom's Australian company markets cute and quirky make-up products and gifts. Available at major department stores.

Diptyque Started in 1961 in Paris, this fragrance brand produces scented candles and room fragrances. It eschews advertising and hype and promotes the natural origins of its scents. Available from Belinda, 9380 8725, and Fresh, 9973 1211.

Dr Hauschka Based on the teachings of Rudolf Steiner, this natural skincare brand is made from biodynamic and organic ingredients. Details: Helios Health and Beauty, 9818 6119.

Kiehl's Founded in 1851, this US apothecary brand promotes natural ingredients. Available from Mecca Cosmetica, Chatswood, Paddington and city stores. Details: (03) 9827 3844.

L'Artisan Parfumeur A French fragrance line created in 1976 by Jean Laporte that has become famous for its room scents, exquisite amber balls and perfumes. Available from Belinda, 9380 8725.

Philosophy Created by American Cristina Carlino, it's a no-fuss skincare line that markets whimsical ideas and products in basic packaging. Details: Mecca Cosmetica, (03) 9827 3844.