MILAN, Jun 20, 2002 --- In a fragrance market already saturated by fashion brands (everyone from giants like Calvin Klein to niche names like Comme des Garcons), Prada is one of the few fashion companies today without a signature perfume in its product portfolio.

The company's recent announcement of its intention to form a joint venture partnership with Puig Beauty & Fashion Group promises to change all that.

Though nothing has yet been signed, Prada plans to work with the Barcelona-based firm to create and distribute fragrance and beauty products under the Prada brand name.

Prada's marked absence in the profitable world of fragrance hasn't come from a lack of trying.

The company was first slated for a fragrance launch back in 1990, when it entered into a licensing agreement with French beauty giant Orlane.

The relationship lasted a few years, but ultimately broke down and product never entered the marketplace.

Following that unpleasant licensing experience, CEO Patrizio Bertelli took matters into his own hands for Prada's second beauty venture.

In fall 2000, the company launched a 100 percent Prada-owned skin care line. Although up and running in select distribution, the total success of that business endeavor has yet to be proven.

Some say that Bertelli was a bit too ambitious in single-handedly launching a beauty venture without proven credibility or experience in the skin care market.

None of the specific details of the upcoming JV deal with Puig has been released, but this latest move could strike just the right balance for Prada's beauty development.

It gives the company more power than a licensing agreement, yet less responsibility than a fully-owned division.

The choice of family-owned Puig has a few fragrance experts scratching their heads though. The more obvious move would have been to team up with a big name player like Unilever or L'Oreal.

However, Puig follows in the footsteps of other recent Prada partnerships with mid-sized, second tier outfits.

The joint venture deal with De Rigo for Prada eyewear is a prime example. And Puig, which already owns the trademarks for the fragrances of Nina Ricci, Carolina Herrera, Paco Rabanne and Payout, as well as the license for Hussein Chalayan, has proven itself a well-seasoned player.

Let's hope that for Prada, the third beauty venture is a charm.