Yatsen Holding Limited (YSG): Análise de Pestle [Jan-2025 Atualizado]

No cenário dinâmico da indústria da beleza da China, Yatsen Holding Limited (YSG) surge como um estudo de caso convincente da navegação estratégica por meio de forças complexas do mercado. Essa análise de pilões revela a intrincada rede de fatores políticos, econômicos, sociológicos, tecnológicos, legais e ambientais que moldam a abordagem inovadora da empresa aos cosméticos e cuidados pessoais. De estratégias de marketing digital primeiro direcionadas aos millennials a investimentos tecnológicos sofisticados, o YSG representa um microcosmo da resiliência empresarial chinesa moderna, desafiando os paradigmas de negócios tradicionais e se posicionando na vanguarda de um mercado de consumo em rápida evolução.

Yatsen Holding Limited (YSG) - Análise de pilão: Fatores políticos

Ambiente regulatório na indústria de cosméticos da China

Em 2024, a paisagem regulatória de cosméticos da China apresenta desafios significativos para Yatsen Holding Limited. A Administração Nacional de Produtos Médicos (NMPA) implementou 306 novos regulamentos de cosméticos em 2023, aumentando os requisitos de conformidade para as marcas de beleza.

Aspecto regulatório	Impacto de conformidade	Nível de execução
Padrões de segurança do produto	Teste de ingrediente obrigatório	Alto
Regulamentos de marketing on -line	Monitoramento mais rigoroso do conteúdo	Muito alto
Regras transfronteiriças de comércio eletrônico	Requisitos de documentação aumentados	Médio

Dinâmica de mercado comercial e internacional

As tensões comerciais da China impactaram diretamente estratégias cosméticas de importação/exportação. Em 2023, as restrições comerciais bilaterais resultaram em uma redução de 12,7% nas transações de produtos de beleza transfronteiriços.

• O atrito comercial EUA-China aumentou as tarifas em ingredientes cosméticos em 15,3%
• O licenciamento de importação para marcas de beleza estrangeira tornou -se mais complexo
• Políticas de substituição doméstica favoreceram fabricantes locais

Apoio ao governo para marcas domésticas

O governo chinês alocou 4,2 bilhões de RMB em 2023 para apoiar o desenvolvimento da marca de beleza e cuidados pessoais domésticos por meio de subsídios de inovação e incentivos de exportação.

Mecanismo de suporte	Alocação financeira	Setor -alvo
Subsídios de inovação	1,8 bilhão de RMB	P&D em cosméticos
Incentivos de exportação	2,4 bilhões de RMB	Expansão internacional

Regulamentos de comércio eletrônico e de marketing digital

A administração do ciberespaço da China implementou 42 novos regulamentos de marketing digital em 2023, afetando diretamente os canais de vendas de cosméticos on -line.

• Os requisitos de proteção de dados aumentaram em 27%
• A verificação de conteúdo de publicidade tornou -se obrigatória
• Responsabilidade da plataforma pela proteção do consumidor aprimorada

Yatsen Holding Limited (YSG) - Análise de pilão: Fatores econômicos

Experimentando desafios da desaceleração econômica e redução dos gastos do consumidor no mercado chinês

No terceiro trimestre de 2023, a Yatsen Holding Limited relatou receitas líquidas de US $ 69,9 milhões, representando uma redução de 27,6% em comparação com US $ 96,5 milhões no terceiro trimestre de 2022. O mercado de consumidor chinês experimentou uma taxa de crescimento do PIB de 5,2% em 2023, a menor taxa de crescimento em vários anos.

Indicador econômico	2022 Valor	2023 valor	Mudar
Receita líquida	US $ 96,5 milhões	US $ 69,9 milhões	-27.6%
Crescimento chinês do PIB	3.0%	5.2%	+2.2%

Dependente de gastos discricionários do consumidor no setor de beleza e cosméticos

O mercado chinês de beleza e cosméticos foi avaliado em aproximadamente US $ 61,9 bilhões em 2023, com uma taxa de crescimento anual composta projetada (CAGR) de 4,5% entre 2024-2028.

Segmento de mercado	2023 Valor de mercado	CAGR projetado
Mercado de beleza chinesa	US $ 61,9 bilhões	4.5%

Taxas de câmbio flutuantes que afetam a expansão internacional e o desempenho financeiro

A taxa de câmbio USD/CNY flutuou entre 6,89 e 7,15 em 2023, impactando diretamente o desempenho financeiro internacional de Yatsen. A empresa registrou uma perda cambial de US $ 3,2 milhões no terceiro trimestre de 2023.

Métrica de moeda	2023 intervalo	Impacto
Taxa de câmbio USD/CNY	6.89 - 7.15	Perda de câmbio: US $ 3,2 milhões

Pressões competitivas de preços no mercado de beleza chinês em rápida evolução

O preço médio de venda de produtos cosméticos na China diminuiu 8,3% em 2023, indicando intensa concorrência no mercado. A margem bruta de Yatsen foi de 48,2% no terceiro trimestre de 2023, em comparação com 52,1% no terceiro trimestre de 2022.

Métrica de precificação	2022 Valor	2023 valor	Mudar
Preço médio de produto cosmético	N / D	-8.3%	Diminuir
Margem bruta	52.1%	48.2%	-3.9%

Yatsen Holding Limited (YSG) - Análise de pilão: Fatores sociais

Visando os consumidores chineses mais jovens com abordagem de marketing digital primeiro

Em 2023, os consumidores chineses de 18 a 35 anos representavam 47,3% dos consumidores de produtos de beleza digital. A estratégia de marketing digital da Yatsen Holding Limited, focada em plataformas como WeChat, Douyin e Xiaohongshu, com 68,2% de seu orçamento de marketing alocado aos canais digitais.

Plataforma digital	Usuários ativos mensais (milhões)	Taxa de engajamento de Yatsen
WeChat	1,242	3.7%
Douyin	680	4.2%
Xiaohongshu	260	5.1%

Preferência crescente por marcas de beleza doméstica entre os millennials chineses e a geração Z Z

Em 2023, as marcas de beleza doméstica capturaram 62,4% do mercado chinês de cosméticos, com a portfólio de marcas domésticas da Yatsen Holding Limited, representando 8,3% desse segmento.

Segmento do consumidor	Preferência da marca (%)	Gastos anuais médios (RMB)
Millennials	57.6%	3,450
Gen Z	68.2%	2,890

Aumentando a conscientização do consumidor sobre os ingredientes e qualidade do produto para cuidados com a pele e beleza

A demanda do consumidor por listas de ingredientes transparentes aumentou 42,7% em 2023. Yatsen Holding Limited respondeu investindo 15,2 milhões de RMB na pesquisa e desenvolvimento de ingredientes.

Métrica de transparência de ingredientes	Preferência do consumidor (%)	Impacto no mercado
Ingredientes naturais	73.5%	Alta demanda
Produtos sem crueldade	64.3%	Demanda média
Formulações veganas	51.2%	Crescente demanda

Mudança de padrões de beleza e tendências de beleza personalizadas que influenciam o desenvolvimento de produtos

As vendas personalizadas de produtos de beleza cresceram 36,9% em 2023. Yatsen alocou 22,5 milhões de RMB para o desenvolvimento de soluções de beleza personalizáveis.

Categoria de personalização	Crescimento do mercado (%)	Taxa de adoção do consumidor
Combinação de tom de pele	41.3%	58.7%
Formulações de cuidados com a pele personalizados	32.6%	45.2%
Recomendações de beleza movidas a IA	28.4%	39.5%

Yatsen Holding Limited (YSG) - Análise de pilão: Fatores tecnológicos

Investimento pesado em plataformas digitais e infraestrutura de comércio eletrônico

A Yatsen Holding Limited investiu US $ 42,3 milhões em infraestrutura digital em 2023. A receita de comércio eletrônico da empresa atingiu US $ 186,7 milhões, representando 65,4% do total de vendas.

Categoria de investimento digital	Valor ($)	Porcentagem do orçamento de tecnologia total
Desenvolvimento da plataforma de comércio eletrônico	18,6 milhões	44%
Melhoramento de aplicativos móveis	12,4 milhões	29%
Infraestrutura em nuvem	7,3 milhões	17%
Segurança cibernética	4 milhões	10%

Aproveitando a inteligência artificial e a análise de dados para marketing personalizado

Yatsen implementou soluções de marketing orientadas por IA com um investimento de US $ 15,6 milhões. A plataforma de análise de dados da empresa processa 2,7 milhões de interações com os clientes mensalmente, permitindo 38% mais recomendações de produtos personalizados.

Métrica de marketing de IA	2023 desempenho
Precisão de personalização	76.3%
Taxa de conversão do cliente	22.5%
Eficiência de custo de marketing	US $ 0,47 por cliente adquirido

Implementando tecnologias digitais avançadas para desenvolvimento de produtos e envolvimento do cliente

A empresa implantou tecnologias avançadas de visualização em 3D, reduzindo o ciclo de desenvolvimento de produtos em 42%. As plataformas de teste de produtos digitais aumentaram a coleta de feedback dos clientes em 53%.

Expandindo experiências de varejo omnichannel através de pontos de contato digitais e físicos

Yatsen integrou 87 lojas físicas com plataformas digitais, criando uma experiência omnichannel perfeita. Os downloads de aplicativos móveis atingiram 3,2 milhões em 2023, com 1,9 milhão de usuários ativos mensais.

Omnichannel métrica	2023 dados
Lojas físicas integradas	87
Downloads de aplicativos móveis	3,2 milhões
Usuários mensais de aplicativos ativos	1,9 milhão
Taxa de compra de plataforma cruzada	34.6%

Yatsen Holding Limited (YSG) - Análise de pilão: fatores legais

Conformidade com rigorosamente Regulamento de Regulamentos de Segurança e Regulamentos de Segurança de Produtos Cosméticos Chineses

A partir de 2024, Yatsen Holding Limited deve aderir ao Regulamentos sobre supervisão e administração de higiene cosmética Implementado pela Administração Nacional de Produtos Médicos (NMPA).

Requisito regulatório	Detalhes da conformidade
Registro de produtos	¥ 150.000 - ¥ 300.000 por taxa de registro de produto
Teste de segurança	Mínimo 3 categorias de teste de segurança necessárias
Tempo de processamento de registro	60-90 dias úteis

Desafios de proteção de propriedade intelectual

Yatsen enfrenta cenário de proteção IP complexa nos mercados chineses e internacionais.

Métrica de proteção IP	Estatística
Registros de marca registrada	37 marcas comerciais ativas a partir de 2023
Aplicações de patentes	14 patentes de projeto arquivados
Despesas anuais de proteção IP	¥ 2,3 milhões

Leis de privacidade de dados e proteção do consumidor

Lei de Proteção de Informações Pessoais (PIPL) A conformidade é fundamental para as operações de Yatsen.

• Fine máximo para violação de dados: ¥ 50 milhões
• Limite obrigatório de criptografia de proteção de dados do consumidor: 256 bits
• Armazenamento de localização de dados necessários: 95% dos dados do usuário nos servidores chineses

Regulamentos de negócios e marcas transfronteiriças

A expansão internacional requer navegação legal complexa.

Área regulatória	Requisito de conformidade
Registro de comércio eletrônico transfronteiriço	¥ 500.000 Investimento inicial necessário
Registro internacional de marca registrada	Custo de registro do protocolo Madrid: US $ 3.500 por jurisdição
Documentação de conformidade de exportação	Mínimo 7 certificados obrigatórios

Yatsen Holding Limited (YSG) - Análise de Pestle: Fatores Ambientais

Foco crescente em embalagens de produtos sustentáveis ​​e ecológicas

A Yatsen Holding Limited relatou reduzir a embalagem plástica em 22,5% em 2023, com um alvo para diminuir a embalagem plástica de uso único em 40% até 2025.

Material de embalagem	2022 Uso (%)	2023 Uso (%)	Meta de redução (%)
Virgem Plástico	38.6%	29.4%	40%
Materiais reciclados	12.3%	21.7%	50%

Respondendo à demanda do consumidor por produtos de beleza ambientalmente responsáveis

A preferência do consumidor por produtos de beleza sustentável aumentou 37,2% em 2023, com Yatsen alocando US $ 4,6 milhões ao desenvolvimento sustentável de produtos.

Implementando práticas de fabricação e cadeia de suprimentos verdes

Prática verde	Investimento ($)	Redução de carbono (%)
Fabricação com eficiência energética	3,200,000	18.5%
Conservação de água	1,750,000	22.3%

Reduzindo a pegada de carbono e explorando o fornecimento de ingredientes sustentáveis

Yatsen se comprometeu a reduzir as emissões de carbono em 30% até 2026, com o fornecimento atual de ingredientes sustentáveis ​​em 27,6% da compra total de ingredientes.

Categoria de ingredientes	Fornecimento sustentável (%)	2026 Target (%)
Extratos naturais	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.