Yatsen Holding Limited (YSG): Analyse du pilon [Jan-2025 MISE À JOUR]

Dans le paysage dynamique de l'industrie de la beauté chinoise, Yatsen Holding Limited (YSG) apparaît comme une étude de cas convaincante de la navigation stratégique à travers des forces du marché complexes. Cette analyse du pilon dévoile le réseau complexe de facteurs politiques, économiques, sociologiques, technologiques, juridiques et environnementaux qui façonnent l'approche innovante de l'entreprise en matière de cosmétiques et de soins personnels. Des stratégies de marketing numérique d'abord ciblant les milléniaux aux investissements technologiques sophistiqués, YSG représente un microcosme de la résilience entrepreneuriale chinoise moderne, remettant en question les paradigmes commerciaux traditionnels et se positionnant à la pointe d'un marché de consommation en évolution rapide.

Yatsen Holding Limited (YSG) - Analyse du pilon: facteurs politiques

Environnement réglementaire dans l'industrie des cosmétiques chinois

En 2024, le paysage réglementaire des cosmétiques chinois présente des défis importants pour Yatsen Holding Limited. La National Medical Products Administration (NMPA) a mis en œuvre 306 nouvelles réglementations cosmétiques en 2023, augmentant les exigences de conformité pour les marques de beauté.

Aspect réglementaire	Impact de la conformité	Niveau d'application
Normes de sécurité des produits	Test d'ingrédient obligatoire	Haut
Règlement sur le marketing en ligne	Surveillance de contenu plus stricte	Très haut
Règles de commerce électronique transfrontalières	Augmentation des exigences de documentation	Moyen

Dynamique du commerce et du marché international

Les tensions commerciales de la Chine ont un impact directement sur les stratégies d'importation / exportation cosmétiques. En 2023, les restrictions commerciales bilatérales ont entraîné une réduction de 12,7% des transactions de produits de beauté transfrontalières.

• La friction commerciale américaine-chinoise a augmenté les tarifs sur les ingrédients cosmétiques de 15,3%
• Les licences d'importation pour les marques de beauté étrangères sont devenues plus complexes
• Les politiques de substitution intérieure ont favorisé les fabricants locaux

Support gouvernemental pour les marques nationales

Le gouvernement chinois a alloué 4,2 milliards de RMB en 2023 pour soutenir le développement de la marque de beauté et de soins personnels à travers des subventions d'innovation et des incitations à l'exportation.

Mécanisme de soutien	Allocation financière	Secteur cible
Subventions d'innovation	1,8 milliard de RMB	R&D en cosmétiques
Incitations à l'exportation	2,4 milliards de RMB	Expansion internationale

Règlement sur le commerce électronique et le marketing numérique

L'administration du cyberespace chinois a mis en œuvre 42 nouvelles réglementations de marketing numérique en 2023, affectant directement les canaux de vente cosmétiques en ligne.

• Les exigences de protection des données ont augmenté de 27%
• La vérification du contenu publicitaire est devenue obligatoire
• Responsabilité de la plate-forme pour la protection des consommateurs améliorée

Yatsen Holding Limited (YSG) - Analyse du pilon: facteurs économiques

Éprouver des défis du ralentissement économique et une réduction des dépenses de consommation sur le marché chinois

Au troisième trimestre 2023, Yatsen Holding Limited a déclaré des revenus nets de 69,9 millions de dollars, ce qui représente une baisse de 27,6% contre 96,5 millions de dollars au troisième trimestre 2022. Le marché de la consommation chinois a connu un taux de croissance du PIB de 5,2% en 2023, le taux de croissance le plus bas en plusieurs années.

Indicateur économique	Valeur 2022	Valeur 2023	Changement
Revenus nets	96,5 millions de dollars	69,9 millions de dollars	-27.6%
Croissance du PIB chinois	3.0%	5.2%	+2.2%

En fonction des dépenses de consommation discrétionnaires dans le secteur de la beauté et des cosmétiques

Le marché chinois de la beauté et des cosmétiques était évalué à environ 61,9 milliards de dollars en 2023, avec un taux de croissance annuel composé projeté (TCAC) de 4,5% entre 2024-2028.

Segment de marché	2023 Valeur marchande	CAGR projeté
Marché de la beauté chinoise	61,9 milliards de dollars	4.5%

Les taux de change fluctuants ont un impact sur l'expansion internationale et les performances financières

Le taux de change USD / CNY a fluctué entre 6,89 et 7,15 en 2023, ce qui a un impact direct sur la performance financière internationale de Yatsen. La société a déclaré une perte de change de 3,2 millions de dollars au troisième trimestre 2023.

Métrique de la devise	Gamme 2023	Impact
Taux de change USD / CNY	6.89 - 7.15	Perte de change: 3,2 millions de dollars

Pressions des prix compétitifs sur le marché de la beauté chinoise en évolution rapide

Le prix de vente moyen des produits cosmétiques en Chine a diminué de 8,3% en 2023, ce qui indique une concurrence intense du marché. La marge brute de Yatsen était de 48,2% au troisième trimestre 2023, contre 52,1% au troisième trimestre 2022.

Tarification métrique	Valeur 2022	Valeur 2023	Changement
Prix ​​moyen des produits cosmétiques	N / A	-8.3%	Diminuer
Marge brute	52.1%	48.2%	-3.9%

Yatsen Holding Limited (YSG) - Analyse du pilon: facteurs sociaux

Cibler des consommateurs chinois plus jeunes avec une approche marketing numérique

En 2023, les consommateurs chinois âgés de 18 à 35 ans représentaient 47,3% des consommateurs de produits de beauté numérique. La stratégie de marketing numérique de Yatsen Hold Holding Limited s'est concentrée sur des plateformes comme WeChat, Douyin et Xiaohongshu, avec 68,2% de leur budget marketing alloué aux canaux numériques.

Plate-forme numérique	Utilisateurs actifs mensuels (millions)	Taux d'engagement de Yatsen
Wechat	1,242	3.7%
Douyin	680	4.2%
Xiaohongshu	260	5.1%

Préférence croissante pour les marques de beauté domestiques parmi les milléniaux chinois et la génération Z

En 2023, les marques de beauté domestiques ont capturé 62,4% du marché chinois des cosmétiques, le portefeuille de marques domestiques de Yatsen Holding Holding, représentant 8,3% de ce segment.

Segment des consommateurs	Préférence de la marque (%)	Dépenses annuelles moyennes (RMB)
Milléniaux	57.6%	3,450
Gen Z	68.2%	2,890

Augmentation des ingrédients et qualité des produits de la peau et de la qualité des produits de la peau et de la qualité

La demande des consommateurs de listes d'ingrédients transparentes a augmenté de 42,7% en 2023. Yatsen Holding Limited a répondu en investissant 15,2 millions de RMB dans la recherche et le développement d'ingrédients.

Métrique de transparence des ingrédients	Préférence des consommateurs (%)	Impact du marché
Ingrédients naturels	73.5%	Forte demande
Produits sans cruauté	64.3%	Demande moyenne
Formulations végétaliennes	51.2%	Demande croissante

Changements de beauté et tendances de beauté personnalisées influençant le développement de produits

Les ventes de produits de beauté personnalisées ont augmenté de 36,9% en 2023. Yatsen a alloué 22,5 millions de RMB pour développer des solutions de beauté personnalisables.

Catégorie de personnalisation	Croissance du marché (%)	Taux d'adoption des consommateurs
Tone de la peau correspondant	41.3%	58.7%
Formulations de soins de la peau personnalisés	32.6%	45.2%
Recommandations de beauté alimentées par l'IA	28.4%	39.5%

Yatsen Holding Limited (YSG) - Analyse du pilon: facteurs technologiques

Investissement lourd dans les plateformes numériques et les infrastructures de commerce électronique

Yatsen Holding Limited a investi 42,3 millions de dollars dans les infrastructures numériques en 2023. Les revenus de commerce électronique de la société ont atteint 186,7 millions de dollars, ce qui représente 65,4% des ventes totales.

Catégorie d'investissement numérique	Montant ($)	Pourcentage du budget technologique total
Développement de la plate-forme de commerce électronique	18,6 millions	44%
Amélioration des applications mobiles	12,4 millions	29%
Infrastructure cloud	7,3 millions	17%
Cybersécurité	4 millions	10%

Tirer parti de l'intelligence artificielle et de l'analyse des données pour le marketing personnalisé

Yatsen a mis en œuvre des solutions de marketing axées sur l'IA avec un investissement de 15,6 millions de dollars. La plate-forme d'analyse de données de l'entreprise traite les interactions de 2,7 millions d'interactions client, permettant 38% de recommandations de produits plus personnalisées.

Métrique marketing de l'IA	Performance de 2023
Précision de la personnalisation	76.3%
Taux de conversion des clients	22.5%
GRANCE DE MARKETING	0,47 $ par client acquis

Mise en œuvre des technologies numériques avancées pour le développement de produits et l'engagement client

La société a déployé des technologies de visualisation 3D avancées, réduisant le cycle de développement de produits de 42%. Les plates-formes de tests de produits numériques ont augmenté la collecte de commentaires des clients de 53%.

Expansion des expériences de vente au détail omnicanal à travers des points de contact numériques et physiques

Yatsen a intégré 87 magasins physiques avec des plates-formes numériques, créant une expérience omnicanal transparente. Les téléchargements d'applications mobiles ont atteint 3,2 millions en 2023, avec 1,9 million d'utilisateurs actifs mensuels.

Métrique omnicanal	2023 données
Magasins physiques intégrés	87
Téléchargements d'applications mobiles	3,2 millions
Utilisateurs mensuels de l'application active	1,9 million
Taux d'achat multiplateforme	34.6%

Yatsen Holding Limited (YSG) - Analyse du pilon: facteurs juridiques

Conformité à l'enregistrement et aux réglementations de la sécurité des produits cosmétiques chinois stricts

Depuis 2024, Yatsen Holding Limited doit adhérer au Règlement sur la supervision et l'administration de l'hygiène cosmétique Mise en œuvre de la National Medical Products Administration (NMPA).

Exigence réglementaire	Détails de la conformité
Enregistrement des produits	150 000 ¥ - 300 000 ¥ par frais d'enregistrement du produit
Tests de sécurité	Minimum 3 catégories de test de sécurité requises
Temps de traitement d'enregistrement	60-90 jours ouvrables

Défis de protection de la propriété intellectuelle

Yatsen fait face à un paysage complexe de protection IP sur les marchés chinois et internationaux.

Métrique de protection IP	Statistique
Inscriptions de la marque	37 marques actives à partir de 2023
Demandes de brevet	14 brevets de conception déposés
Dépenses annuelles de protection IP	2,3 millions de ¥

Lois de confidentialité des données et de protection des consommateurs

Loi sur la protection des informations personnelles (PIPL) La conformité est essentielle pour les opérations de Yatsen.

• Amende maximale pour la violation des données: 50 millions de ¥
• Protection des données des consommateurs Seuil de chiffrement obligatoire: 256 bits
• Stockage de localisation des données requise: 95% des données des utilisateurs dans les serveurs chinois

Règlements transfrontalières et marquantes

L'expansion internationale nécessite une navigation juridique complexe.

Zone de réglementation	Exigence de conformité
Enregistrement transfrontalier du commerce électronique	500 000 ¥ Investissement initial requis
Enregistrement de marque internationale	Coût d'enregistrement du protocole de Madrid: 3 500 $ par compétence
Exporter la documentation de la conformité	Minimum 7 certificats obligatoires

Yatsen Holding Limited (YSG) - Analyse du pilon: facteurs environnementaux

Accent croissant sur l'emballage de produits durable et respectueux de l'environnement

Yatsen Holding Limited a rapporté une réduction de l'emballage en plastique de 22,5% en 2023, avec une cible pour réduire l'emballage en plastique à usage unique de 40% d'ici 2025.

Matériau d'emballage	2022 Utilisation (%)	2023 Utilisation (%)	Objectif de réduction (%)
Plastique vierge	38.6%	29.4%	40%
Matériaux recyclés	12.3%	21.7%	50%

Répondre à la demande des consommateurs pour des produits de beauté responsables de l'environnement

La préférence des consommateurs pour les produits de beauté durable a augmenté de 37,2% en 2023, Yatsen allouant 4,6 millions de dollars au développement durable de produits.

Mise en œuvre des pratiques de fabrication verte et de chaîne d'approvisionnement

Pratique verte	Investissement ($)	Réduction du carbone (%)
Fabrication économe en énergie	3,200,000	18.5%
Conservation de l'eau	1,750,000	22.3%

Réduire l'empreinte carbone et explorer l'approvisionnement durable des ingrédients

Yatsen s'est engagé à réduire les émissions de carbone de 30% d'ici 2026, avec l'approvisionnement actuel des ingrédients durables à 27,6% de l'approvisionnement total des ingrédients.

Catégorie d'ingrédient	Approvisionnement durable (%)	2026 cible (%)
Extraits naturels	42.3%	65%
Ingrédients synthétiques	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.