“The company’s mission is to create a new journey beauty, beauty David Huang, founder, chairman and chief executive officer of Yatsen said. The Chinese corporation’s goal is also to build a next generation beauty, beauty communication.
Yatsen – now ChinaThe largest homegrown beauty company – was founded in 2016 in Guangzhou, after Huang, a Harvard MBA and Procter & Gamble practitioner, entered China’s burgeoning beauty industry. country and in it, the opportunity to create a new brand – mainly based on color cosmetics.
At the time, Generation Zer was driving trends online, and a number of beauty brands were leveraging influential key opinion leaders or KOLs.
“The third change we see is pent-up demand for homegrown brands, explaining at that time the Chinese cosmetics market was dominated by global players,” says Huang.
He also noted the opportunity to capitalize on a world-class, mature supply chain. “Those are the basic driving forces that help us [get] where we were when we built Perfect Diary,” he said, referring to Yatsen’s flagship makeup brand.
Cut to this day, and Yatsen has added seven brands to its portfolio. The company launched Little Ondine and Pink Bear, also in makeup, then starting in 2020, Yatsen ventured into skin care.
“We hatched Abby’s Choice and acquired Galénic, Eve Lom and Eantim,” says Huang, explaining that Yatsen had never considered having just one brand, because that made it “quite difficult for us” reduce risks in the life cycle and also rapidly changing consumer needs. ”
Yatsen’s strategy includes building a large-scale omnichannel direct-to-consumer model and using highly social digital native sales and marketing. Yatsen works with 13,000 to 20,000 KOLs, whose performance is carefully monitored and who have helped build a social media following for the brands of the group of more than 67 million people.
Yatsen also uses a data-driven product development approach to shorten cycles and often lead to high product success rates due to its scientific and quantitative approach to KOL selection and customer behavior. consumers.
Of Yatsen’s 1,500 employees, more than 200 are in-house technical engineers who help build the corporation’s database. The company also partners with e-commerce giants, such as Tencent and Alibaba.
Yatsen was listed on the New York Stock Exchange in November 2020 and raised $616.9 million. Last year, the group posted net sales of $802 million.
Yatsen also operates about 270 brick-and-mortar stores in about 150 first- to third-tier cities in China. It’s still a very important channel, says Huang, and calls stores ‘places to improve consumer engagement’, especially when it comes to educating newcomers about knowledge. Basic of makeup application.
As part of the “YSG 2.0 Growth Model”, Yatsen is focusing on creating iconic brands and enhancing research and development capabilities. “We are setting up our open lab architecture, explaining that that requires some outside collaboration,” said Huang. One is for joint venture factory, large capacity in China will be operational in the first quarter of 2023.
Another focus of attention is Yatsen’s multi-brand strategy, which includes skincare and luxury cosmetics. Huang emphasized that live streaming plays an important role in improving e-commerce reach, as well as boosting the penetration of color cosmetics and beauty regimens for consumers in low-income cities. third and fourth grade.
“R&D partnerships are crucial to helping us grow the brand,” he said. “We’re seeing a very rapid shift in consumer behavior.”
The CEO explains that today people are looking for better products backed by science. “We believe that M&A is also a very important strategy for us to build our brand composition,” he added.
For more, see:
https://wwd.com/beauty-industry-news/beauty-features/yatsens-ceo-aims-to-create-a-new-journey-of-beauty-discovery-1235005763/ Yatsen CEO Starts ‘Creating New Beauty Journey’ – WWD