Prada first entered the beauty category on its own terms, breaking the industry status quo in September 2000. Rather then the typical fragrance launch, Prada launched skincare and makeup in three main divisions: “multidose” items, mainly for basic skincare; “monodose” products, for specific treatments; and “minidose” units for color. The visionary launch broke industry conventions, but proved too complicated and, perhaps, simply too soon for consumers, and was eventually discontinued. Since then the brand has taken a traditional approach, focusing on fragrance.

Prada has had a relationship with Puig that dates back to May 2003, when Prada Holding NV and Puig inked a 50-50 joint venture for the management of the Italian fashion company’s beauty business globally. Last week the rumors swirling around the Prada x Puig relationship played with an announcement that L’Oréal signed a long-term license agreement for the creation, development and distribution of luxury beauty products for the Prada brand. The agreement will go into effect in 2021.

This agreement has L’Oréal delving deeper into the designer fragrance category, where it vies with Coty Inc. to be first. L’Oréal recently signed an agreement to acquire the Mugler brands and Azzaro fragrances from Groupe Clarins. L’Oréal also took over the Valentino beauty license from Puig in 2018, along with renewing its Giorgio Armani fragrance and beauty license until 2025.

Patrizio Bertelli, CEO of Prada S.p.A., said in a statement, “L’Oréal is the leading global beauty company. Its position and experience makes it the ideal partner for Prada to develop its full potential across a variety of new projects, leverage Prada’s well-established fragrance identity and reach even more audiences around the world.”

According to WWD, industry estimates are that Prada’s fragrances generate revenues of 100 million euros annually.