Core Viewpoint - YSL is facing increasing competition from domestic beauty brands in China, despite strong sales performance and marketing strategies. The brand's market position is under pressure as it navigates a rapidly evolving consumer landscape and changing preferences [1][5][15]. Group 1: Sales Performance - YSL's sales have approached €3 billion, placing it among the top five luxury beauty brands globally, alongside Dior, Chanel, and Estée Lauder [1]. - In the Chinese market, YSL's sales on major e-commerce platforms exceeded ¥4 billion in 2025, significantly outperforming competitors and securing the top position in the color cosmetics segment [2]. - Despite strong sales, YSL's performance in the Douyin color cosmetics top 20 rankings has declined, dropping to fifth place as domestic brands gain traction [4]. Group 2: Market Challenges - The rise of domestic brands like Mao Geping and Huaxizi has intensified competition, leading to a challenging environment for foreign brands in China [1][5]. - Since 2022, at least 30 foreign beauty brands have exited the Chinese market, indicating a shift in consumer preferences and the challenges faced by international players [5]. - YSL's sales on the Tmall platform fell by 19% year-on-year in 2023, highlighting the impact of local competition on its market share [5]. Group 3: Marketing Strategies - YSL has effectively utilized marketing campaigns to enhance brand visibility, including collaborations with popular celebrities to connect with younger consumers [9]. - However, the brand has faced backlash due to marketing missteps, such as inappropriate promotional tactics that clash with its luxury image [9][13]. - YSL's marketing strategies have sometimes resulted in a disconnect between its brand identity and consumer expectations, leading to mixed consumer perceptions [13]. Group 4: Customer Service and Pricing Issues - YSL has received numerous complaints regarding its customer service, with issues related to product returns and service quality being highlighted by consumers [14]. - The brand's pricing strategy has also come under scrutiny, with significant price variations across different platforms and recent price increases that have not been matched by improvements in service [14]. - Maintaining a high standard of customer service is crucial for YSL to justify its premium pricing and retain consumer loyalty in a competitive market [14].