Yatsen’s $100 Million R&D Investment Wins Consumer Trust and Market Share

SHANGHAI, May 7, 2026 /PRNewswire/ — In a significant shift reshaping the global beauty industry, Chinese domestic cosmetics brands have captured nearly 60% of the world’s second-largest beauty market. This shift is being driven by unprecedented investments in scientific innovation, as well as rapidly evolving consumer expectations. Yatsen Group, one of China’s leading beauty companies, today highlighted how its approximately $100 million (RMB 700 million) in R&D investment since 2020 exemplifies the industry’s transformation from price-based competition to technology-driven excellence.

Over the past decade, Chinese beauty companies have fundamentally strengthened their competitive position, with market share surging from 43% in 2015, according to Frost & Sullivan, to 57% in 2024, according to Xinhua News. This growth reflects a broader consumer evolution: Chinese beauty shoppers are increasingly prioritizing proven efficacy, scientific credibility, and innovation, a shift that domestic brands have actively capitalized on by ramping up investment in R&D and innovation to respond quickly to changing preferences.

As a result, Chinese cosmetics brands are moving away from reliance on cost competition toward building a long-term technological and brand advantage on the global stage.

“This growth is primarily driven by continuous advancements in innovation, brand equity, and product use experience,” said Cheng Jing, Chief Scientific Officer of Yatsen Group. “Chinese consumers have become more sophisticated. Their focus has shifted from price to proven efficacy, safety, scientific credibility, and cultural identity.”

Yatsen Global Innovation R&D Center

Importantly, this transformation extends far beyond marketing. Leading Chinese beauty companies are constructing world-class innovation ecosystems.

Yatsen’s “1-3-4-6-20” global innovation strategy encompasses three research centers across Shanghai, Guangzhou, and Toulouse, France, with over half of its R&D team holding master’s or PhD degrees. The company maintains six joint research laboratories and more than 20 collaborative programs with prestigious institutions including Saint-Louis Hospital in France, as well as Ruijin Hospital, Sun Yat-sen University and Fudan University in China.

“The industry is moving from supply-chain-driven ‘product globalization’ to innovation-led ‘brand globalization,'” added Cheng Jing. “Looking ahead, our goal is to be a world-class beauty innovation pioneer, utilizing a resilient supply chain and ‘Glocal’ agility to meet the needs of sophisticated consumers worldwide.”

This scientific infrastructure addresses what industry analysts identify as the new consumer mandate: products that deliver measurable results backed by rigorous research.

This focus is reflected in Yatsen’s portfolio: Perfect Diary leads the emerging “makeup skinification” trend, DR.WU delivers clinic-grade skin renewal, Galénic focuses on cellular-level anti-aging science and Eve Lom leverages advanced neuroscience for emotional skincare benefits.

Global Ambitions, Local Insights

The domestic market success is proving to be a launchpad for international expansion. Since 2021, Yatsen’s flagship brand Perfect Diary has gained traction in Southeast Asia and Japan. Its loose powder has consistently ranked among the top three in its category on major e-commerce platforms, according to data from Qoo10 Japan, Amazon Japan, Shopee Vietnam, and TikTok Vietnam—demonstrating that Chinese innovation can compete on performance.

According to one full year of continuous tracking data by Frost & Sullivan, Perfect Diary Biolip Essence Lipstick has been officially recognized as the top-selling lipstick SKU by a Chinese brand worldwide. This achievement stands as a significant milestone showcasing the global rise of technological innovation among Chinese brands.

According to CGTN, Chinese beauty companies are well positioned to benefit from the global shift toward a dual emphasis on efficacy and emotional value. With complete innovation capabilities spanning raw materials to finished products, and supply chain agility that enables rapid response to market trends, domestic brands have transformed former weaknesses into competitive advantages.

About Yatsen Group

Yatsen Holding Limited (NYSE: YSG) is a leading China-based beauty group with the vision of becoming a world-class pioneer in beauty innovation. Founded in 2016, the Company has launched and acquired numerous color cosmetics and skincare brands including Perfect Diary, Little Ondine, Pink Bear, Galénic, DR.WU (its mainland China business), and Eve Lom. Our brands are strategically positioned to capture a wide spectrum of consumer demographics and price points, ranging from the mass market to the prestige and clinical segments. Yatsen thrives on the synergy of brand equity, product strength and operational agility, anchored by a strong commitment to R&D and consumer insights.

Email: public.affairs@yatsenglobal.com
Website: www.yatsenglobal.com
LinkedIn: www.linkedin.com/company/yatsen

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/yatsens-100-million-rd-investment-wins-consumer-trust-and-market-share-302765259.html

SOURCE Yatsen Holding Limited

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