Yatsen Group Invests $100M in R&D to Drive Science-Backed Beauty Innovation
YSG•Yatsen Group has invested RMB 700 million (approx. $100 million) in R&D since 2020, establishing three research centers and six joint labs to enhance technology-driven product development. Supporting brands Perfect Diary and DR.WU, it coincides with Chinese cosmetics market share rising from 43% in 2015 to 57% in 2024.
1. R&D Investment Strategy
Since 2020, Yatsen has allocated RMB 700 million (approx. $100 million) to its '1-3-4-6-20' global innovation program, featuring three research centers in Shanghai, Guangzhou and Toulouse, six joint laboratories and over 20 collaborative research programs. More than half of its R&D staff hold master's or doctoral degrees to accelerate technology-driven product development.
2. Market Share Growth and Consumer Trends
Chinese cosmetics brands have shifted focus from cost to proven efficacy and scientific credibility, driving domestic market share from 43% in 2015 to 57% in 2024. Yatsen’s emphasis on innovation and brand equity positions its portfolio to meet increasingly sophisticated consumer demands.
3. Brand Portfolio and International Expansion
Yatsen’s Perfect Diary, DR.WU, Galénic and Eve Lom leverage clinical-grade formulations and advanced science to target skin renewal, anti-aging and emotional skincare segments. Perfect Diary’s loose powder ranks among the top three SKUs on e-commerce platforms in Japan and Southeast Asia, while its Biolip Essence Lipstick leads global Chinese-brand lipstick sales.
