Core Insights - The beauty industry is transitioning from "traffic competition" to "full-domain operation," driven by refined consumer demand and diverse touchpoints [5][11] - The report highlights the integration of public and private domains in the beauty sector, emphasizing the importance of Tencent's ecosystem in facilitating this transition [5][11] Market Overview - The retail scale of China's cosmetics market is projected to reach 435.7 billion yuan in 2024, with online sales surpassing offline for the first time, accounting for over 51% [11][12] - The industry is experiencing a slowdown, with a forecasted growth rate of -1.1% in 2024, marking a shift to structural growth [11][12] Consumer Insights - Skincare products dominate consumer purchases, with 87.3% of users buying them, followed by color cosmetics (50.7%) and perfumes (49.0%) [24][25] - There is a notable generational difference in purchasing behavior, with younger consumers (post-00s and post-90s) being more influenced by KOLs and collaborations, while older generations prioritize efficacy and personal enjoyment [24][25] Channel Dynamics - Traditional e-commerce remains the leading channel (62.6%), but the WeChat ecosystem is rapidly gaining traction, with 56.2% of transactions occurring through it [11][24] - WeChat mini-programs are becoming the primary transaction entry point, and social trust significantly influences purchasing decisions, with 45.5% of users buying based on friends' recommendations [11][24] Product Trends - High-end functional skincare products and male skincare (projected market size of 17 billion yuan in 2024, with a CAGR of 11% from 2025 to 2029) are experiencing significant growth [11][12] - Multi-functional and "makeup and skincare combined" products are gaining popularity, reflecting a trend towards convenience and efficiency in beauty routines [16][26] Brand Strategies - Leading brands are leveraging public-private domain integration to drive growth, with examples including Huahua Xizi and Proya utilizing mini-programs and KOLs for effective marketing [11][24] - Future strategies should focus on product innovation, targeted audience engagement, and leveraging video content for brand awareness and conversion [11][24]

Core Viewpoint - Chinese beauty brand Perfect Diary is not only chasing trends but is also leading them, reshaping the global beauty landscape through technology-driven innovation and cultural resonance [5]. Group 1: Technological Advancements - Perfect Diary has made significant breakthroughs in the "makeup-nourishing technology" field, with the third-generation bionic membrane technology (Biotec™) being a core driver of the brand's growth [7]. - The third-generation technology integrates five Nobel Prize-related technologies and has resulted in seven core patents, showcasing a systematic research iteration framework [7]. - The "Bionic Membrane Essence Lipstick," utilizing this technology, has sold over 6 million units globally, generating over 800 million RMB in sales, making it the top-selling lipstick brand in China [10]. Group 2: Global Recognition and Cultural Integration - Perfect Diary showcased its third-generation technology at the International Federation of Societies of Cosmetic Chemists (IFSCC) in September 2025, marking a shift from one-way technology releases to two-way academic dialogue [8]. - The brand participated in the "Paris Partners" program, gaining international recognition for its bionic membrane technology and makeup aesthetics [14]. - A collaboration with the animated IP "Nezha: Birth of the Demon Child" resulted in a beauty series that embodies the spirit of innovation and cultural identity [18][19]. Group 3: Consumer-Centric Innovations - The launch of the "Bionic Membrane™" star set, which includes a bionic membrane essence lipstick, foundation, and cream, aims to provide consumers with a comprehensive makeup-nourishing solution [21]. - An immersive exhibition titled "Change Scene Without Changing Makeup" was held to demonstrate the practical effects of the star set in daily life, showcasing the modernized expression of Eastern beauty aesthetics [23]. - Perfect Diary has established itself as a trendsetter by releasing the first "makeup-nourishing" research report in 2024 and collaborating with "ELLE" to publish insights on global beauty trends in 2025 [23]. Group 4: Industry Impact and Future Outlook - The brand's approach combines technological strength, cultural resonance, and standardized systems to build industry authority, reflecting the broader narrative of Chinese beauty brands moving towards globalization [24]. - The transformation from "Made in China" to "Created by China" signifies a pivotal moment for Chinese beauty brands, gaining global visibility and respect [24].

Core Viewpoint - The focus of the Chinese beauty market is shifting from brand marketing to research and development, indicating a revolution centered on scientific research and manufacturing [1][2] Group 1: R&D Strategy and Investment - Yatsen E-commerce has prioritized R&D as a core strategy since 2020, aiming to build a global R&D system and become a "world-class beauty innovation pioneer" [2][4] - The company has invested over 580 million yuan in R&D since 2020, maintaining a R&D expense ratio of over 3% for three consecutive years, positioning it among the leaders in the global beauty industry [4][6] - Yatsen has established a comprehensive R&D framework known as the "1-3-4-6-20" global R&D strategy, which includes one advanced beauty factory, three self-built R&D centers, four research directions, six co-built laboratories, and over 20 research cooperation projects [4][6] Group 2: Product Development and Market Performance - The company has developed a complete innovation model from basic research to commercial application, exemplified by the successful launch of the "bionic membrane" essence lipstick, which has sold over 4.5 million units and generated over 600 million yuan in GMV [6][9] - As of Q1 2025, Yatsen's strategic transformation has begun to show results, with revenue reaching 830 million yuan, a year-on-year increase of 7.8%, and a Non-GAAP net profit of 7.14 million yuan, marking two consecutive quarters of profitability [9] Group 3: Talent and Global Collaboration - The R&D breakthroughs at Yatsen are supported by a talent matrix that combines global expertise with local innovation, highlighted by the recruitment of Chief Scientific Officer Cheng Jing, who has 28 years of international beauty R&D experience [10][13] - The R&D team has received international recognition, with 12 papers presented at the IFSCC conference, showcasing the company's commitment to high-level research and collaboration with global partners [15][17] Group 4: Sustainable Development and Technological Innovation - Yatsen has integrated sustainability into its strategy, achieving MSCI ESG A rating for two consecutive years, and is focusing on green practices such as using natural plant fermentation instead of chemical raw materials [16][17] - The company employs AI technology in its R&D processes to enhance efficiency and reduce experimental waste, exemplified by its use of AlphaFold3 in anti-aging serum development [16][17]

Core Viewpoint - The article highlights the transformation of Yatsen E-commerce from a manufacturing-focused company to a technology-driven beauty brand, emphasizing the importance of scientific innovation and consumer trust in product efficacy [2][3][4]. Financial Performance - Yatsen E-commerce reported a revenue of 1.15 billion yuan in Q4 2024, marking a year-on-year increase of 7.1%, and achieved profitability for the first time [2]. - In Q1 2025, the company continued its growth trajectory with a revenue of 830 million yuan, up 7.8% year-on-year, and a Non-GAAP net profit of 7.14 million yuan [2]. Business Structure Upgrade - The skincare segment's revenue share increased to 43.5% in Q1 2025, maintaining over 30% of total revenue for 12 consecutive quarters [2]. - The main brand, Perfect Diary, experienced significant growth under the "makeup and skincare integration" strategy, with its bionic membrane essence lipstick achieving a GMV of over 600 million yuan since its launch [2]. R&D Investment and Strategy - Since 2020, Yatsen E-commerce has invested over 580 million yuan in R&D, maintaining a R&D expense ratio of over 3% for three consecutive years, positioning itself among the leaders in the global beauty industry [9]. - The company has established a comprehensive R&D system, including a global innovation center and multiple research collaborations, to enhance its technological capabilities [9][16]. Leadership and Talent Acquisition - The appointment of Cheng Jing, a seasoned scientist with 28 years of international R&D management experience, as Chief Scientific Officer (CSO) signifies a strategic move to strengthen domestic R&D capabilities [3][4]. - Cheng's vision includes transforming her extensive experience in international companies into a driving force for Chinese brands to compete globally [4][7]. Open Innovation and Collaboration - Yatsen E-commerce is building an open innovation ecosystem, collaborating with top global partners across various sectors to create a comprehensive innovation loop [16][17]. - The establishment of joint laboratories with institutions like Ruijin Hospital and Sun Yat-sen University has facilitated rapid conversion of research outcomes into marketable products [17][18]. Sustainable Development Initiatives - The company integrates sustainability into every aspect of product development, focusing on environmentally friendly innovations and responsible practices [22][23]. - Yatsen E-commerce has been recognized for its commitment to sustainability, achieving an MSCI ESG A rating for two consecutive years, aligning with leading international beauty brands [23][24]. Future Outlook - The company aims to continue its journey towards becoming a "world-class beauty innovation pioneer" through sustained R&D investment and a focus on consumer-driven product development [26].