Yatsen Holding Limited (YSG): Análisis PESTLE [Actualizado en enero de 2025]

En el panorama dinámico de la industria de la belleza de China, Yatsen Holding Limited (YSG) surge como un estudio de caso convincente de la navegación estratégica a través de complejas fuerzas del mercado. Este análisis de mortero presenta la intrincada red de factores políticos, económicos, sociológicos, tecnológicos, legales y ambientales que dan forma al enfoque innovador de la compañía para los cosméticos y el cuidado personal. Desde estrategias de marketing digitales dirigidas a los Millennials hasta las inversiones tecnológicas sofisticadas, YSG representa un microcosmos de la resiliencia empresarial moderna de los chinos, desafiando los paradigmas comerciales tradicionales y posicionándose a la vanguardia de un mercado de consumidores que evoluciona rápidamente.

Yatsen Holding Limited (YSG) - Análisis de mortero: factores políticos

Entorno regulatorio en la industria cosmética de China

A partir de 2024, el paisaje regulatorio de cosméticos de China presenta desafíos significativos para Yatsen Holding Limited. La Administración Nacional de Productos Médicos (NMPA) implementó 306 nuevas regulaciones cosméticas en 2023, aumentando los requisitos de cumplimiento para las marcas de belleza.

Aspecto regulatorio	Impacto de cumplimiento	Nivel de cumplimiento
Estándares de seguridad del producto	Prueba de ingredientes obligatorios	Alto
Regulaciones de marketing en línea	Monitoreo de contenido más estricto	Muy alto
Reglas de comercio electrónico transfronterizo	Aumento de los requisitos de documentación	Medio

Dinámica del mercado comercial y internacional

Las tensiones comerciales de China han afectado directamente las estrategias de importación/exportación cosmética. En 2023, las restricciones comerciales bilaterales dieron como resultado una reducción del 12.7% en las transacciones de productos de belleza transfronterizos.

• La fricción comercial estadounidense-china aumentó los aranceles sobre los ingredientes cosméticos en un 15,3%
• Las licencias de importación para marcas de belleza extranjeras se volvieron más complejas
• Las políticas de sustitución doméstica favorecieron a los fabricantes locales

Apoyo gubernamental para marcas nacionales

El gobierno chino asignó 4.2 mil millones de RMB en 2023 para apoyar el desarrollo de la marca de la belleza y el cuidado personal domésticos a través de subvenciones de innovación e incentivos de exportación.

Mecanismo de soporte	Asignación financiera	Sector objetivo
Becas de innovación	1.800 millones de RMB	I + D en cosméticos
Incentivos de exportación	2.400 millones de RMB	Expansión internacional

Regulaciones de comercio electrónico y marketing digital

La administración del ciberespacio de China implementó 42 nuevas regulaciones de marketing digital en 2023, afectando directamente los canales de ventas cosméticas en línea.

• Los requisitos de protección de datos aumentaron en un 27%
• La verificación de contenido publicitario se volvió obligatoria
• La responsabilidad de la plataforma para la protección del consumidor mejoró

Yatsen Holding Limited (YSG) - Análisis de mortero: factores económicos

Experimentar desafíos por la desaceleración económica y reducir el gasto de los consumidores en el mercado chino

En el tercer trimestre de 2023, Yatsen Holding Limited reportó ingresos netos de $ 69.9 millones, lo que representa una disminución del 27.6% en comparación con $ 96.5 millones en el tercer trimestre de 2022. El mercado de consumo chino experimentó una tasa de crecimiento del PIB de 5.2% en 2023, la tasa de crecimiento más baja en varios años.

Indicador económico	Valor 2022	Valor 2023	Cambiar
Ingresos netos	$ 96.5 millones	$ 69.9 millones	-27.6%
Crecimiento del PIB chino	3.0%	5.2%	+2.2%

Depende del gasto discrecional del consumidor en el sector de la belleza y los cosméticos

El mercado chino de belleza y cosméticos se valoró en aproximadamente $ 61.9 mil millones en 2023, con una tasa de crecimiento anual compuesta (CAGR) proyectada de 4.5% entre 2024-2028.

Segmento de mercado	Valor de mercado 2023	CAGR proyectado
Mercado de belleza china	$ 61.9 mil millones	4.5%

Fluctuando tasas de cambio que impactan la expansión internacional y el desempeño financiero

El tipo de cambio USD/CNY fluctuó entre 6.89 y 7.15 en 2023, impactando directamente el desempeño financiero internacional de Yatsen. La compañía informó una pérdida de divisas de $ 3.2 millones en el tercer trimestre de 2023.

Metría métrica	Rango 2023	Impacto
Tipo de cambio de USD/CNY	6.89 - 7.15	Pérdida de divisas: $ 3.2 millones

Presiones de precios competitivos en el mercado de belleza chino en rápida evolución

El precio de venta promedio de los productos cosméticos en China disminuyó en un 8,3% en 2023, lo que indica una intensa competencia del mercado. El margen bruto de Yatsen fue de 48.2% en el tercer trimestre de 2023, en comparación con el 52.1% en el tercer trimestre de 2022.

Métrico de fijación de precios	Valor 2022	Valor 2023	Cambiar
Precio promedio del producto cosmético	N / A	-8.3%	Disminuir
Margen bruto	52.1%	48.2%	-3.9%

Yatsen Holding Limited (YSG) - Análisis de mortero: factores sociales

Dirigirse a los consumidores chinos más jóvenes con un enfoque de marketing digital primero

En 2023, los consumidores chinos de 18 a 35 años representaron el 47.3% de los consumidores de productos de belleza digital. La estrategia de marketing digital de Yatsen Holding Limited se centró en plataformas como WeChat, Douyin y Xiaohongshu, con el 68.2% de su presupuesto de marketing asignado a canales digitales.

Plataforma digital	Usuarios activos mensuales (millones)	Tasa de compromiso de Yatsen
Veloz	1,242	3.7%
Douyin	680	4.2%
Xiaohongshu	260	5.1%

Creciente preferencia por las marcas de belleza nacionales entre los millennials chinos y la generación Z

En 2023, las marcas de belleza nacionales capturaron el 62.4% del mercado de cosméticos chinos, con la cartera de marcas nacionales de Yatsen Holding Limited representando el 8.3% de este segmento.

Segmento de consumo	Preferencia de marca (%)	Gasto anual promedio (RMB)
Millennials	57.6%	3,450
Gen Z	68.2%	2,890

Aumento de la conciencia del consumidor sobre los ingredientes del producto para el cuidado de la piel y la belleza y la calidad

La demanda del consumidor de listas de ingredientes transparentes aumentó en un 42.7% en 2023. Yatsen Holding Limited respondió invirtiendo 15.2 millones de RMB en investigación y desarrollo de ingredientes.

Métrica de transparencia de ingredientes	Preferencia del consumidor (%)	Impacto del mercado
Ingredientes naturales	73.5%	Alta demanda
Productos sin crueldad	64.3%	Demanda media
Formulaciones veganas	51.2%	Creciente demanda

Cambiando los estándares de belleza y las tendencias de belleza personalizadas que influyen en el desarrollo de productos

Las ventas de productos de belleza personalizados crecieron en un 36,9% en 2023. Yatsen asignó 22,5 millones de RMB para desarrollar soluciones de belleza personalizables.

Categoría de personalización	Crecimiento del mercado (%)	Tasa de adopción del consumidor
Coincidencia de tono de piel	41.3%	58.7%
Formulaciones personalizadas para el cuidado de la piel	32.6%	45.2%
Recomendaciones de belleza con AI	28.4%	39.5%

Yatsen Holding Limited (YSG) - Análisis de mortero: factores tecnológicos

Una gran inversión en plataformas digitales e infraestructura de comercio electrónico

Yatsen Holding Limited invirtió $ 42.3 millones en infraestructura digital en 2023. Los ingresos por comercio electrónico de la compañía alcanzaron $ 186.7 millones, lo que representa el 65.4% de las ventas totales.

Categoría de inversión digital	Monto ($)	Porcentaje del presupuesto tecnológico total
Desarrollo de la plataforma de comercio electrónico	18.6 millones	44%
Mejora de la aplicación móvil	12.4 millones	29%
Infraestructura en la nube	7.3 millones	17%
Ciberseguridad	4 millones	10%

Aprovechando la inteligencia artificial y el análisis de datos para marketing personalizado

Yatsen implementó soluciones de marketing impulsadas por la IA con una inversión de $ 15.6 millones. La plataforma de análisis de datos de la compañía procesa 2.7 millones de interacciones del cliente mensualmente, lo que permite un 38% más de recomendaciones de productos personalizados.

Métrica de marketing de IA	2023 rendimiento
Precisión de personalización	76.3%
Tasa de conversión del cliente	22.5%
Costo de marketing	$ 0.47 por cliente adquirido

Implementación de tecnologías digitales avanzadas para el desarrollo de productos y la participación del cliente

La compañía desplegó tecnologías avanzadas de visualización 3D, reduciendo el ciclo de desarrollo de productos en un 42%. Las plataformas de pruebas de productos digitales aumentaron la recopilación de comentarios de los clientes en un 53%.

Expandir las experiencias minoristas omnicanal a través de puntos de contacto digitales y físicos

Yatsen integró 87 tiendas físicas con plataformas digitales, creando una experiencia omnicanal perfecta. Las descargas de aplicaciones móviles alcanzaron 3.2 millones en 2023, con 1.9 millones de usuarios activos mensuales.

Métrico omnicanal	2023 datos
Tiendas físicas integradas	87
Descargas de aplicaciones móviles	3.2 millones
Usuarios mensuales de aplicaciones activas	1.9 millones
Tasa de compra multiplataforma	34.6%

Yatsen Holding Limited (YSG) - Análisis de mortero: factores legales

Cumplimiento de estrictas regulaciones de registro y seguridad de productos cosméticos chinos

A partir de 2024, Yatsen Holding Limited debe adherirse al Regulaciones sobre supervisión y administración de higiene cosmética Implementado por la Administración Nacional de Productos Médicos (NMPA).

Requisito regulatorio	Detalles de cumplimiento
Registro de productos	¥ 150,000 - ¥ 300,000 por tarifa de registro del producto
Prueba de seguridad	Mínimo 3 Categorías de prueba de seguridad requeridas
Tiempo de procesamiento de registro	60-90 días hábiles

Desafíos de protección de la propiedad intelectual

Yatsen enfrenta un complejo panorama de protección de propiedad intelectual en los mercados chinos e internacionales.

Métrica de protección de IP	Estadística
Registros de marca registrada	37 marcas comerciales activas a partir de 2023
Solicitudes de patentes	14 Patentes de diseño archivadas
Gastos anuales de protección de IP	¥ 2.3 millones

Leyes de privacidad de datos y protección del consumidor

Ley de protección de la información personal (PIPL) El cumplimiento es crítico para las operaciones de Yatsen.

• Multa máxima por violación de datos: ¥ 50 millones
• Umbral de cifrado obligatorio de protección de datos del consumidor: 256 bits
• Almacenamiento de localización de datos requerido: 95% de los datos del usuario dentro de los servidores chinos

Regulaciones de negocios y marcas transfronterizas

La expansión internacional requiere navegación legal compleja.

Área reguladora	Requisito de cumplimiento
Registro de comercio electrónico transfronterizo	Se requieren ¥ 500,000 inversiones iniciales
Registro internacional de marcas registradas	Costo de registro del protocolo de Madrid: $ 3,500 por jurisdicción
Documentación de cumplimiento de la exportación	Mínimo 7 certificados obligatorios

Yatsen Holding Limited (YSG) - Análisis de mortero: factores ambientales

Aumento del enfoque en envases de productos sostenibles y ecológicos

Yatsen Holding Limited informó reducir el envasado de plástico en un 22.5% en 2023, con un objetivo para disminuir el envasado de plástico de un solo uso en un 40% para 2025.

Material de embalaje	Uso 2022 (%)	Uso 2023 (%)	Objetivo de reducción (%)
Plástico virgen	38.6%	29.4%	40%
Materiales reciclados	12.3%	21.7%	50%

Respondiendo a la demanda del consumidor de productos de belleza ambientalmente responsables

La preferencia del consumidor por los productos de belleza sostenible aumentó en un 37,2% en 2023, con Yatsen asignando $ 4.6 millones al desarrollo de productos sostenibles.

Implementación de prácticas de fabricación y cadena de suministro verde

Práctica verde	Inversión ($)	Reducción de carbono (%)
Fabricación de eficiencia energética	3,200,000	18.5%
Conservación del agua	1,750,000	22.3%

Reducir la huella de carbono y explorar el abastecimiento de ingredientes sostenibles

Yatsen se comprometió a reducir las emisiones de carbono en un 30% para 2026, con el abastecimiento actual de ingredientes sostenibles al 27.6% de la adquisición total de ingredientes.

Categoría de ingredientes	Abastecimiento sostenible (%)	2026 objetivo (%)
Extractos naturales	42.3%	65%
Ingredientes sintéticos	12.7%	35%

Yatsen Holding Limited (YSG) - PESTLE Analysis: Social factors

Strong consumer shift toward 'Conscious Consumption' (ingredient safety, efficacy)

You're seeing a fundamental shift in China's beauty market: consumers are becoming 'skintellectuals,' prioritizing clinical efficacy and ingredient safety over pure brand prestige. This isn't a niche trend; it's the new baseline for product development. For Yatsen Holding Limited, this means the success of your legacy color cosmetics brands, like Perfect Diary, is increasingly tied to a scientific narrative.

The numbers are clear: 91% of Chinese consumers now actively check for active ingredients in makeup, and 76% believe in the efficacy of skincare-infused formulations (or 'makeup care'). This demand for 'functional beauty' is what's driving the market. Brands focusing on natural and holistic care are also seeing a massive tailwind, with a 314% increase in related product demand in 2024. Your move into brands like Galénic and DR.WU is defintely the right strategic pivot to capture this high-margin, science-led demand.

Rapid adoption of live-streaming commerce (Douyin, Kuaishou) as a primary sales channel

The sales floor has moved to the live stream. In China, live-streaming commerce is no longer just a marketing channel; it's a primary distribution and conversion engine, especially for fast-moving consumer goods like beauty. Total live commerce Gross Merchandise Value (GMV) is projected to hit a staggering ¥6.5 trillion (approximately $940 billion USD) in 2025.

Douyin, in particular, is the dominant player. Its beauty category GMV reached nearly ¥20 billion in July 2025, representing a 31.7% year-over-year increase. Live commerce accounts for a massive 40% of Douyin's e-commerce revenue. This is where your marketing spend needs to be laser-focused. It's instant, interactive, and addictive-a perfect fit for your digitally-native C-Beauty roots.

Live Commerce Platform	Estimated Live Commerce GMV Share (2025)	Key User Insight
Douyin	47%	Strong blend of entertainment and shopping; 700M daily users.
Kuaishou	27%	Strong presence in lower-tier cities; known for grassroots creators.
Taobao Live	23%	Traditional e-commerce integration; focus on established brands.

Growing demand for high-end, efficacious skincare over color cosmetics, driving premiumization

The market is structurally shifting from discretionary makeup to essential, high-efficacy skincare, and your financials reflect this perfectly. The entire Chinese beauty and personal care market is forecast to reach $78 billion in revenue in 2025. But the real growth engine is premium skincare.

Here's the quick math from your Q2 2025 results: net revenues from your skincare brands surged by 78.7% year-over-year, and skincare now contributes 53.5% of your total revenues. This pivot is boosting your bottom line, as evidenced by your gross margin improving to 78.3% in Q2 2025, supported by these higher-margin skincare sales. The market for dermatology-grade skincare alone is expected to reach ¥850 billion by 2030, showing the long-term runway for your science-backed brands.

Younger consumers (Gen Z) exhibit low brand loyalty and high willingness to try new C-Beauty brands

Brand loyalty is on the wane, which is a significant risk for legacy brands but a massive opportunity for agile, C-Beauty (Chinese Beauty) players like Yatsen. Consumers are not sticking to a single brand; they are mixing and matching to meet specific needs. This fragmentation means you must treat every purchase as a new acquisition opportunity.

The data shows that 37% of consumers are reducing repeat purchases from previously favored brands. Gen Z, in particular, is driving demand for products tied to cultural identity and are highly willing to try new domestic brands. This is why six of the top ten beauty brands with the most market share growth in China since 2020 are Chinese. Your strategy must lean into this trend by:

• Focusing on hyper-specific product efficacy.
• Integrating cultural heritage into branding (Guochao).
• Maintaining a rich brand matrix to capture fragmented demand.

The low loyalty means the cost of customer acquisition (CAC) is high, so your focus on high-margin skincare is crucial to offset the constant need to win over a fickle, but highly engaged, younger audience.

Yatsen Holding Limited (YSG) - PESTLE Analysis: Technological factors

Heavy reliance on proprietary data analytics for new product development and targeted marketing.

Yatsen Holding Limited's core business model is built on being a digital-first company, which means its technology stack is not a support function-it's the engine. This reliance on proprietary data analytics allows the company to rapidly identify and respond to consumer preferences, a process often called Consumer-to-Manufacturer (C2M). The strategy is working, especially in the high-growth skincare segment.

The company's strategic pivot toward higher-margin skincare brands like Galénic and DR. WU, which is heavily informed by consumer data, has paid off in 2025. Skincare revenue saw a massive 78.7% year-on-year increase in the second quarter of 2025 (Q2 2025), reaching RMB 580 million. This segment now contributes 53.5% of total revenue, a fundamental shift from its historical focus on color cosmetics. Here's the quick math: data-driven product development is directly fueling the company's primary growth curve and improving its gross margin, which rose to 78.3% in Q2 2025. You simply cannot achieve that kind of growth without deep, real-time consumer insights.

Significant investment in R&D for ingredient innovation and formulation patents is crucial.

The shift to skincare moves Yatsen from a marketing-led to a science-led business, making sustained Research and Development (R&D) investment non-negotiable. The company has committed over RMB 600 million to R&D to date, consistently maintaining spending above 3% of annual revenue. This spending is focused on ingredient innovation and building a defensible intellectual property (IP) portfolio.

In Q3 2025 alone, R&D expenses were RMB 39.8 million, representing 4% of total net revenues, a clear signal of ongoing commitment. This investment supports a global R&D network, including three centers in Shanghai, Guangzhou, and Toulouse, France. The tangible output of this focus is seen in their IP filings:

• Total global patents filed since 2022: 252
• Invention applications filed since 2022: 78

The goal isn't just new products; it's proprietary ingredients and formulations that justify a premium price and higher gross margin. That's a defintely smart move.

R&D Investment Snapshot (2025 Fiscal Year)	Amount (RMB)	As % of Total Net Revenue
Q3 2025 R&D Expenses	39.8 million	4.0%
Q2 2025 R&D Expenses	36.1 million	3.3%
Q1 2025 R&D Expenses	22.6 million (USD equivalent)	2.7%

Use of Augmented Reality (AR) and Virtual Try-On technologies to enhance the online shopping experience.

To bridge the gap between online shopping and the need to physically test makeup, Yatsen's brands, such as Perfect Diary, rely on Augmented Reality (AR) and Virtual Try-On (VTO) technology. This technology is critical for color cosmetics, where the inability to sample products online is a major friction point leading to cart abandonment and higher return rates.

The broader beauty market is seeing VTO technology grow exponentially, with the virtual makeup market expected to reach $1.12 billion in 2025. For brands that use AR, conversion rates can increase by up to 90%. Yatsen, which targets the digitally native Gen Z and Millennial consumer, must keep pace with these innovations. They use AR not just for simple color-matching but also for interactive experiences like AR gamification to drive engagement and private domain traffic, which is essential for customer retention.

Vulnerability to platform policy changes on major e-commerce sites like Alibaba's Tmall.

Despite its digital expertise, Yatsen operates as a third-party seller on China's massive e-commerce platforms, primarily Alibaba's Tmall. This reliance creates a structural vulnerability to changes in platform policy, which can shift the cost of customer acquisition overnight.

In 2025, Tmall has focused on two major shifts that directly impact Yatsen: the Trust & Authenticity 3.0 Framework and the move to an AI-First Product Discovery & Advertising Engine. The Trust framework imposes stricter documentation and anti-counterfeit measures, increasing compliance costs and operational complexity for all brands. More critically, the new AI-First engine means success is now heavily dependent on 'feeding the algorithm with rich product data, reviews, and engaging content' to achieve a strong Return on Ad Spend (ROAS). If Yatsen's data analytics team misreads the new algorithm's preferences, their marketing spend-a huge expense that was 66.4% of total net revenues in Q1 2025-could become inefficient, eroding profitability fast. Your next step is clear: model a 10% drop in ROAS on Tmall to stress-test your Q4 2025 cash flow projections.

Yatsen Holding Limited (YSG) - PESTLE Analysis: Legal factors

Full implementation of the Cosmetic Supervision and Administration Regulation (CSAR) demands rigorous product registration.

You need to understand that the Cosmetic Supervision and Administration Regulation (CSAR), which became effective back in 2021, is now fully backed by a complex web of subsidiary regulations, meaning compliance is no longer a suggestion-it's a hard requirement. The National Medical Products Administration (NMPA) has been steadily closing regulatory loopholes, making the entire product lifecycle-from ingredient sourcing to final sale-subject to intense scrutiny. This means Yatsen Holding Limited must ensure all its products, especially those with new ingredients, undergo a dual-track registration and notification process that is far more detailed than before. Simple registration is out; full-scale, documented compliance is in.

The new Administrative Measures for Monitoring and Evaluation of Cosmetic Safety Risks, which took effect on August 1, 2025, underscore this shift. These rules mandate that cosmetic companies (registrants and notifiers) must track and report safety risks, which includes checks on ingredients and finished products. This is a significant operational burden, requiring Yatsen to invest heavily in its internal quality management systems.

New requirements for mandatory efficacy testing and claims substantiation increase compliance costs.

The days of vague, marketing-driven claims are over in China's cosmetics market. The CSAR requires that all efficacy claims-like moisturizing, anti-aging, or whitening-must be substantiated with scientific, reasonable, and feasible evaluation methods. This is a non-negotiable step that demands substantial investment in R&D and third-party testing.

Here's the quick math on Yatsen's commitment to this: the Research and Development (R&D) expenses for the third quarter of 2025 were RMB39.8 million (US$5.6 million), a notable jump from RMB25.3 million in the prior year period. As a percentage of total net revenues, R&D expenses increased to 4.0% in Q3 2025 from 3.7% in the prior year period. This rise is defintely driven by the need for more rigorous testing and new product development to meet these strict efficacy standards. It's expensive, but it's the cost of credibility now.

The table below shows the direct financial impact of this regulatory push on Yatsen's R&D spending, a key proxy for compliance costs:

Metric	Q3 2025 Value	Q3 2024 Value	Change Driver
R&D Expenses (RMB)	RMB39.8 million	RMB25.3 million	Higher payroll from increased R&D headcount.
R&D Expenses (USD)	US$5.6 million	N/A	N/A
R&D % of Total Net Revenues	4.0%	3.7%	Directly reflects investment in efficacy testing/innovation.

Intellectual property (IP) protection challenges remain high in China for brand formulas and designs.

While China has significantly strengthened its IP laws and enforcement, the sheer volume of infringement means the challenge of protection remains high for a multi-brand group like Yatsen Holding Limited. You have to be proactive. The country's judicial system is actively involved, with Chinese courts resolving 494,000 IP-related cases in 2024 alone, and prosecutors pursuing 21,000 individuals for infringing on trademarks, patents, and business secrets. This shows a strong will to enforce, but also the scale of the problem you are up against.

For Yatsen, which relies on proprietary formulas and distinctive brand designs across its portfolio (like Perfect Diary and Little Ondine), the risk of counterfeiting and trade secret theft is continuous. Protecting your core intellectual assets-the formulas, the packaging designs, and the brand names-requires constant legal vigilance, not just a one-time filing.

• Formulas: Must be protected as trade secrets, requiring strict internal security protocols.
• Designs: Need continuous monitoring of e-commerce platforms for copycat products.
• Trademarks: Essential to file for protection across all relevant classes and monitor for bad-faith registrations.

Stricter data privacy laws govern the collection and use of consumer purchasing data.

As a digital-native company relying heavily on e-commerce and direct-to-consumer (DTC) sales, Yatsen's business model is directly impacted by China's stringent data protection framework, anchored by the Personal Information Protection Law (PIPL). This law governs how you collect, process, and transfer consumer purchasing data, which is critical for your targeted marketing.

The new Network Data Security Management Regulations, effective January 1, 2025, further tighten the screws, especially for companies that handle large volumes of personal information. For a company of Yatsen's scale, which likely processes the data of more than 10 million individuals, the requirements are significant:

• Mandatory self-initiated compliance audits of personal data processing activities must be conducted at least once every two years, starting May 1, 2025.
• You must designate a person in charge of personal information protection (DPO).
• Non-compliance can trigger severe penalties, including fines of up to 5% of annual revenue or RMB 50 million.

The key action here is to ensure your data collection practices-from website cookies to purchase history-are based on explicit, informed consent and that your cross-border data transfer mechanisms are fully compliant with the latest CAC (Cyberspace Administration of China) security assessment rules.

Yatsen Holding Limited (YSG) - PESTLE Analysis: Environmental factors

You need to see the environmental landscape not just as a compliance headache, but as a critical driver of consumer preference and capital allocation in 2025. Yatsen Holding Limited is ahead of the curve in China, holding an MSCI ESG Rating of A for two consecutive years as of November 2025, but global standards are moving fast. This is a non-negotiable area for investor confidence and brand equity, so let's look at the hard numbers.

Increasing consumer demand for sustainable packaging and reduced plastic use.

The market has spoken: sustainability is a premium feature, not a niche. The global cosmetic packaging market is projected to reach USD 36,801.52 million in 2025, with growth heavily driven by eco-friendly solutions. In the U.S. alone, over 65% of beauty consumers prioritize sustainable packaging, and a strong majority of consumers, 90%, are more likely to buy from brands that use it. To be fair, this is a clear opportunity to command a higher margin, as 43% of consumers are willing to pay extra for a product with sustainable packaging.

Yatsen Holding Limited has made concrete moves here, especially with its flagship brands. The focus is on material reduction and refillable systems, which is the smart play for both cost and consumer loyalty.

• Perfect Diary's Milk Foam Makeup Remover refill bags cut plastic use by 86%.
• The refill structure for Perfect Diary's Translucent Blurring Longwear Foundation reduces plastic by 91.6% compared to the original packaging.
• All brands adopted Forest Stewardship Council (FSC)-certified express cartons, a key step in traceable sourcing.

Requirement for transparent reporting on carbon footprint and supply chain emissions.

The era of vague environmental claims is over; investors, regulators, and consumers demand verifiable data. This is why carbon footprint (CFP) certification is now a baseline requirement for market access, especially in Europe and for US-listed companies. Yatsen Holding Limited has been proactive, which is defintely a credit to their risk management.

The company has completed carbon audits and received a Product Carbon Footprint Certification for a Perfect Diary lipstick, making it one of the first beauty products in China to achieve this. Also, by the end of 2022, all seven of Yatsen Holding Limited's core suppliers had implemented carbon emission management protocols, a crucial step toward controlling Scope 3 emissions (value chain emissions) which are the hardest to track. This level of supply chain control is a competitive advantage in a world moving toward mandatory climate disclosures.

Waste management and disposal regulations for cosmetic products and packaging are tightening.

Regulatory pressure is mounting globally, shifting the financial burden of waste management from municipalities to producers via Extended Producer Responsibility (EPR) schemes. In the U.S., six states now have EPR laws, and in the EU, the Packaging and Packaging Waste Regulation (PPWR), which came into force in February 2025, is a game-changer. It mandates a reduction in packaging volume and weight, and requires a limit on unused space by at least 50%.

Yatsen Holding Limited is mitigating this risk by focusing on lightweighting and material substitution, as evidenced by their 2023 figures reported in 2024:

Environmental Metric (2023 Data)	Brand/Product	Specific Achievement
Plastic Reduction (Refill)	Perfect Diary Milk Foam Makeup Remover	Plastic use reduced by 86%
Plastic Reduction (Refill)	Perfect Diary Translucent Blurring Longwear Foundation	Plastic reduced by 91.6%
Certified Paper Use	All Brands (Express Cartons)	~1,350 tonnes of carton materials from traceable forests
Eco-Friendly Fillers	Galénic and EVE LOM	100% of packaging fillers use eco-friendly paper

Focus on cruelty-free testing methods to align with global ethical standards.

The ethical standard is clear: no animal testing. But the regulatory reality, particularly in the massive China market where Yatsen Holding Limited is a leading group, is still complex. While China has relaxed pre-market testing for 'general cosmetics,' imported 'special cosmetics' (like sunscreens) still face the risk of mandated animal testing in 2025, both pre- and post-market.

This creates a material risk for any brand seeking a 'cruelty-free' certification like Leaping Bunny. The EU is trying to close its own loopholes, setting a 2026 roadmap to advance non-animal testing. For Yatsen Holding Limited, the strategic action is to accelerate investment in non-animal testing methods, especially given China's National Medical Products Administration (NMPA) introduced a grace period until May 1, 2025, for companies to gather safety data, signaling an eventual move toward global non-animal testing standards. Their R&D centers and focus on scientific innovation are the right tools to navigate this regulatory tightrope.