Yatsen Holding's CEO outlines vision for beauty tech leader

Yatsen Holding, a Chinese beauty tech company, is evolving from a trend-savvy startup to a global innovation leader. Founded in 2016, the company has expanded to 11 brands, spanning mass, masstige, and premium tiers. Yatsen's lineup includes France's Galenic, British skincare brand EVE LOM, and dermatologist-backed Dr.Wu. The company is investing in science and R&D to redefine the beauty industry and position itself as a leader in the next era of beauty innovation.

Title: Yatsen Holding: From Trend-Savvy Startup to Global Beauty Innovation Leader

Yatsen Holding, a Chinese beauty tech company, is undergoing a significant transformation, evolving from a trend-focused startup to a global innovation leader. Founded in 2016, the company has expanded its portfolio to include 11 brands, spanning mass, masstige, and premium tiers. Notable acquisitions such as France's Galenic and British skincare brand EVE LOM, along with dermatologist-backed Dr. Wu, reflect Yatsen's deliberate strategy to address varied consumer needs with credible, differentiated propositions.

David (Jingfeng) Huang, Founder, Chairman, and CEO of Yatsen Holding, shared insights on the company's vision to build a next-generation beauty tech company. Initially capturing attention through its mainstream brand Perfect Diary, Yatsen has since shifted its focus from trend-driven to science-backed beauty products. Huang emphasized that innovation is the unifying factor across all major segments of the company's offerings.

The domestic beauty market in China, valued at over RMB 400 billion, remains fragmented, with even top players commanding single-digit market shares. This fragmentation provides ample opportunities for agile innovators like Yatsen. Despite recent macro challenges, Huang remains confident in the willingness of Chinese consumers to pay for products that truly deliver. This belief is exemplified by the success of Yatsen's Biolip Essence Lipstick, which combines high-performance color with skincare benefits, including patented ingredients that stimulate collagen and reduce lip wrinkles.

In 2021, Yatsen initiated a strategic shift towards skincare, R&D, and innovation-led premiumization. This move involved significant restructuring and capital reallocation. Huang noted that the company invested over $80 million in R&D, filed 240+ patents, and published in top-tier journals like Nature Medicine and Science Bulletin. With 3% of revenue allocated to R&D, Yatsen ranks among global leaders in innovation spending within the beauty category.

The transformation has led to resumed profitable growth, with investor feedback increasingly positive. Huang emphasized that the company's focus is on value creation, rather than just sentiment. Yatsen's resilience in the face of global trade and supply chain disruptions is also notable, with most components and ingredients sourced domestically and a primary market in mainland China. While the company acknowledges potential risks, it remains well-positioned to navigate these challenges.

Huang believes that Yatsen's unique blend of local insight and global scientific ambition sets it apart from competitors. The company is exploring new frontiers in neuroscience applications for skincare, indicating a long-term strategic vision. Yatsen's capital strategy includes a disciplined, transparent approach, with a $200 million share buyback completed to reinforce confidence and alignment with shareholders.

Yatsen Holding represents a rare blend of scale, agility, and innovation depth. With proven market traction, a science-led product pipeline, and a profitable operating model, the company is positioned to capture long-term share in a fragmented, fast-evolving industry. Huang concluded that Yatsen is not just making beauty products; it is inventing the future of beauty and is just getting started.

References:
[1] https://www.prnewswire.com/news-releases/yatsen-ceo-on-science-backed-beauty-turnaround-strategy-and-global-positioning-302438317.html
[2] https://www.stocktitan.net/news/YSG/yatsen-ceo-on-science-backed-beauty-turnaround-strategy-and-global-mr8sejhwlni2.html