CASHMERE MIST’S GROWTH PATTERN.(fragrance)(Brief Article)(Statistical Data Included)

NEW YORK — Donna Karan’s Cashmere Mist fragrance is getting ready to take the next step in its development.

In April, the division of The Estee Lauder Cos. Inc. will introduce three ancilliary products with treatment properties. They are a hand cream, a body exfoliator and a body oil spray.

“We have a major opportunity on our hands with Cashmere Mist,” said Jane Hertzmark, senior vice president and general manager of Donna Karan Cosmetics. “It’s up 20 percent year-to-date over last year’s figures, and it’s six years old. Not only that, it’s seen consecutive growth in the last 2 1/2 years of 25 to 30 percent. We’re planning to continue our focus on growing that.”

While Hertzmark declined to comment on Cashmere Mist’s sales, industry sources estimated that the brand would do $40 million at retail by yearend.

When the The Estee Lauder Cos. took over the business in 1998, Cashmere Mist was 30th in NPD fragrance numbers, said Hertzmark. “We were number 10 last year, and we’re number seven this year to date,” she said.

The products will be available in about 1,400 U.S. department and specialty stores. “We chose to focus on this area because 28 percent of our total business is already done in ancillaries, and we know that we can do significant plus business in this category,” said Hertzmark.

Catherine Walsh, vice president of marketing and product development for Donna Karan Cosmetics, noted that the previous line consisted of eight ancillaries, plus the fragrance. In fact, Cashmere Mist ancillaries first launched before the fragrance did, she said. While it’s common for ancillaries to do 11 to 18 percent of a fragrance line’s business, she said, the percentage for Cashmere Mist is already 28 percent and growing.

All of the new products have a treatment focus. Cashmere Mist Hand Conditioning Creme, which retails for $28 for 4.2 oz. is designed to be “like a cashmere glove,” said Walsh. The lightweight, nongreasy hand cream includes SPF 15, as well as vitamin E and macadamia nut oil.

Cashmere Mist Body Polishing Creme, which retails for $30 for 5 oz., is an exfoliator that uses diatomaceous earth, a naturally sourced exfoliant.

Cashmere Mist Body Oil Spray, which retails for $38 for 2.5 oz., is a lightweight, nongreasy body oil spray.

Each product was formulated with extensive input from Karan, said Hertzmark. “Donna is a product person, and she is intimately involved with the creation of everything,” she said. “She’ll get on the speaker phone and tell us exactly what she likes and doesn’t like — and she’s very savvy about what will sell.”