Yatsen Group shifts to skincare, boosts R&D spending
Chinese beauty firm Yatsen Group will slow overseas brand acquisitions, focusing on its existing skincare portfolio and increasing R&D investment.
Strategic Reorientation
Yatsen Group, the Chinese beauty company known for Perfect Diary cosmetics, is strategically reorienting its business after a multi-year overhaul. Founder and CEO David Huang announced the Guangzhou-based firm will now prioritise expanding its existing skincare product lines.
This represents a shift from its earlier strategy, which involved acquiring a series of international beauty brands, Huang stated at a company event this week.
R&D Commitment
Mr Huang emphasised the company's sustained commitment to research and development. Yatsen Group currently allocates 3 to 4 per cent of its annual revenue to R&D efforts. The company intends to maintain, and potentially increase, this spending. This investment aims to support its growth in skincare and facilitate the development of new products, according to Mr Huang.
Acquisition Strategy
While slowing its pace of overseas brand acquisitions, Mr Huang did not entirely rule out future purchases. He indicated that Yatsen Group might still pursue businesses possessing strong brand equity and product offerings.
However, the immediate focus remains on strengthening and growing its current portfolio, Huang confirmed during a media event at the company’s Guangzhou facility earlier this week.
Yatsen Group's strategic pivot to internal growth within its skincare portfolio shows a recalibration among Chinese beauty firms. This approach could lead to increased competition within the domestic skincare segment, as companies invest more in product innovation and marketing for established brands.
Investors will monitor Yatsen Group's Q4 2026 financial results, anticipated in late January 2027, for indications of revenue growth driven by this concentrated strategy.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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