While regulations stunted the growth of many cosmetic brands, Yatsen managed to pull through.
Yatsen Holding Limited, parent company of beauty brand Perfect Diary, released its 2021 financial report. According to its release, Yatsen's revenue in 2021 reached CNY 5.84 billion, a year-on-year increase of 11.6%. The gross profit margin reached 66.8%, a 2.5% increase from the previous year.
The Regulation on the Supervision and Administration of Cosmetics policy took its effect in January of 2021. The policy put forward new requirements to highlight product safety and marketing and publicity compliance, which will promote more standardized and scientific operation of beauty brands. It also raised the cost of product testing and the cost of new products for beauty brands.
Despite the tightened policies in the beauty industry, Yatsen managed to increase its revenue through utilizing the data collected from Perfect Diary to predict consumer behavior. Yatsen also invested heavily in its R&D department, which saw a year-on-year increase of 113.5% to over CNY142 million.
As said by Co-Founder and CEO Huang Jinfeng, "Time is a brand's friend." Yatsen's determination to adhere to long-term strategies and its accumulated R&D effort combined helped boost the brand in a competitive business environment.