While regulations have held back the growth of many cosmetic brands, Yatsen has managed to pull through.
Yatsen Holding Limited, parent company of beauty brand Perfect Diary, released its 2021 financial report. According to its statement, Yatsen’s revenue in 2021 reached 5.84 billion yuan, an 11.6% year-on-year increase. annual. The gross profit margin reached 66.8%, an increase of 2.5% over the previous year.
The Cosmetics Oversight and Administration Regulatory Policy came into effect in January 2021. The policy proposed new requirements to highlight product safety and marketing and advertising compliance, which will promote a more standardized and scientific operation of beauty marks. It has also increased the cost of product testing and the cost of new products for beauty brands.
Despite tight policies in the beauty industry, Yatsen has managed to increase her revenue by using data collected by Perfect Diary to predict consumer behavior. Yatsen also invested heavily in its R&D department, which saw a 113.5% year-on-year increase to more than 142 million yuan.
As co-founder and CEO Huang Jinfeng said, “Time is a brand’s friend.” Yatsen’s determination to adhere to long-term strategies and accumulated R&D efforts have helped energize the brand in a competitive business environment.