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Yatsen Holding's Business Model, Simplified
Unlock the full strategic blueprint behind Yatsen Holding Limited’s business model. This concise Business Model Canvas reveals how the company creates value, reaches customers, and competes in a fast-moving beauty market. Ideal for investors, analysts, and strategists who want actionable insight—get the full version for a deeper, ready-to-use breakdown.
Partnerships
Contract manufacturers and OEM suppliers
Yatsen Holding Limited depends on contract manufacturers and OEM suppliers to make cosmetics, skincare, and accessories across its brands, which helps it launch products fast and keep quality steady at scale. This matters for a multi-brand model with broad SKU coverage, where outsourced production lowers fixed costs and adds capacity when demand shifts.
Ingredient and packaging suppliers
Yatsen Holding Limited depends on ingredient and packaging suppliers for formulas, raw materials, bottles, tubes, cartons, and beauty packaging. These partners shape color and skincare differentiation, shelf appeal, and launch timing; stable sourcing also helps protect product quality across its multi-brand portfolio.
E-commerce platform operators
In 2025, Yatsen Holding Limited still leaned on major Chinese e-commerce and social commerce platforms such as Tmall, Douyin, and Xiaohongshu for traffic, search visibility, storefront tools, and campaign access. These partnerships are central to its digital-first model, because beauty sales in China are driven by platform discovery and promotional events.
Logistics and fulfillment providers
Logistics and fulfillment providers are key for Yatsen Holding Limited because beauty SKUs need fast delivery, tight stock control, and low-damage handling across online and offline channels. In 2025, this matters even more as China’s e-commerce logistics scale keeps rising, with nationwide networks needed for warehousing, last-mile delivery, and returns.
- Warehousing supports inventory accuracy.
- Last-mile delivery speeds customer orders.
- Returns handling protects margin and trust.
- Nationwide reach links online and offline demand.
Influencers and content creators
Yatsen Holding Limited relies on KOLs, KOCs, livestream hosts, and beauty communities to build awareness, teach product use, and turn traffic into sales. This matters most in makeup and skincare, where trend speed and trust drive conversion.
- KOLs and KOCs build trust fast
- Livestream hosts convert traffic into sales
- Beauty communities amplify product education
Yatsen’s 2025 Growth Hinged on OEMs, Platforms, and Social Commerce
In 2025, Yatsen Holding Limited’s key partnerships stayed centered on outsourced makers, platform traffic, and fulfillment partners, which lets Company Name scale brands like Perfect Diary without heavy factory spend. KOLs, KOCs, and livestream hosts still mattered because beauty discovery in China is driven by social commerce and promotion.
| Partner | 2025 role |
|---|---|
| OEMs | Fast, flexible production |
| Tmall, Douyin, Xiaohongshu | Traffic and sales access |
| Logistics firms | Delivery, returns, stock control |
| KOLs/KOCs | Trust and conversion |
What is included in the product
Detailed Word Document
A concise Business Model Canvas for Yatsen Holding Limited, covering its 9 blocks with clear, real-world insights.
Customizable Excel Spreadsheet
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Reference Sources
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Activities
Product R and D
Product R and D at Yatsen Holding Limited covers formula design, stability testing, and shade or texture work for cosmetics and skincare. The company must keep refreshing launches to match fast-moving beauty trends; in 2024, Yatsen said it kept investing in product development to support brand relevance and new routine-based offerings.
Brand marketing
Brand marketing is a core activity for Yatsen Holding Limited, using campaigns, social media, livestreaming, and influencer-led promotion to win attention in China’s crowded beauty market. It supports both first-time buying and repeat purchases by keeping brands like Perfect Diary and Little Ondine visible and relevant.
Omnichannel sales execution
Yatsen Holding Limited’s omnichannel sales execution links online storefronts, platform promos, and offline retail so launches, prices, and merchandising stay aligned across Perfect Diary, Little Ondine, and other brands. This matters because the company reported RMB 4.1 billion in net revenue in 2024, so tighter channel control can lift reach and conversion without fragmenting the brand.
Supply chain and inventory management
Yatsen Holding Limited’s supply chain and inventory management covers demand planning, procurement, warehousing, and stock control, and it matters because beauty demand can swing fast by launch cycle and channel. Tight execution helps protect freshness and margins by cutting stockouts and excess inventory; in 2025, Yatsen still had to manage a large, fast-moving product mix across online and offline sales.
- Plan demand by SKU and channel.
- Buy close to launch timing.
- Keep warehousing lean and fresh.
- Control stock to cut write-downs.
Customer service and CRM
Yatsen Holding Limited uses customer service and CRM to handle support, resolve issues fast, and drive repeat buys through post-purchase follow-up. Its CRM data helps tailor offers and product picks, which supports retention and higher customer lifetime value; for a beauty brand, even a small lift in repeat purchases can matter because acquisition costs are high.
- Consumer support speeds issue resolution.
- CRM powers personalized offers.
- Repeat-buy programs lift retention.
Yatsen’s Growth Engine: Fast Launches, Strong Channels, Repeat Buys
Yatsen Holding Limited’s key activities are product R and D, brand marketing, omnichannel sales execution, and supply chain control, with customer service and CRM supporting repeat buys. In 2024, Yatsen reported RMB 4.1 billion in net revenue, so fast launch cycles and tight channel execution stay central.
| Key activity | Recent data |
|---|---|
| Net revenue | RMB 4.1 billion, 2024 |
| Focus | Launches, marketing, channel control |
| Execution need | Inventory and repeat-buy lift |
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Resources
Multi brand portfolio
Yatsen Holding Limited’s multi brand portfolio spans 8 brands, led by Perfect Diary, Little Ondine, Pink Bear, Abby's Choice, Galanic, DR.WU, Eve Lom, and EANTiM. It covers makeup, skincare, nail care, and adjacent beauty lines, giving Company Name more ways to target different price points and customer groups.
Beauty product know how
Yatsen Holding Limited’s beauty product know-how rests on formulation, product development, and category insight, letting it turn fast-moving consumer trends into launch-ready products. In FY2024, it generated about RMB 4.1 billion in net revenues, and this technical edge supports performance, safety, and repeat purchase.
Consumer data and digital insights
In FY2025, Yatsen Holding Limited uses online traffic, conversion, repurchase, and preference data to tune pricing, assortment, and promotion in near real time. That consumer data is a core asset in fast-moving beauty, where small shifts in repeat rate or channel mix can quickly change sales.
Distribution and fulfillment network
Yatsen Holding Limited’s distribution and fulfillment network links warehouses, last-mile shipping, and channel access across China, so products can move fast to both online and offline buyers. In 2024, China’s online retail sales reached RMB 15.4 trillion, which makes broad fulfillment coverage a core resource for keeping stock available and serving demand at scale.
- Warehouse ops support faster replenishment
- Shipping links widen China coverage
- Channel access supports online and offline sales
Brand equity and IP
Yatsen Holding Limited’s brand equity and IP sit in trademarks, packaging identity, creative assets, and trust built by brands like Perfect Diary and Galénic. In its latest reported year, Yatsen generated RMB 2.73 billion in net revenue, and strong brand power helps it defend share, support premium pricing, and lift new-launch sell-through.
- Trademarks protect core brand names
- Packaging drives shelf recognition
- Creative assets fuel launch speed
- Brand trust supports premium pricing
Yatsen’s 8-Brand Engine Powers RMB 4.1 Billion Revenue
Yatsen Holding Limited’s key resources are its 8-brand portfolio, product R&D, and consumer data from online sales. In its latest reported year, net revenue was RMB 2.73 billion, while FY2024 net revenue was about RMB 4.1 billion.
Its trademarks, creative assets, and China fulfillment network help protect brands, speed launches, and keep stock moving across channels.
| Resource | Value |
|---|---|
| Brands | 8 |
| FY2024 net revenue | RMB 4.1 billion |
Value Propositions
Wide beauty assortment
Yatsen Holding Limited’s wide beauty assortment spans color cosmetics, skincare, nail care, accessories, fragrances, devices, and contact lenses, so customers can buy several needs from one company. In FY2025, that kind of breadth supports higher basket size and cross-sell potential, helping Yatsen turn one category purchase into a larger multi-item order.
Trend led product innovation
Trend led product innovation lets Yatsen Holding Limited react fast to shifts in makeup and skincare demand by refreshing shades, formats, and collections before they go stale. In China’s beauty market, speed matters, so this keeps products relevant and helps Yatsen stay close to fast-moving consumer tastes.
Omnichannel convenience
Yatsen Holding Limited’s omnichannel convenience lets shoppers browse online, order through digital channels, and buy offline when they want to test shades or get same-day pickup. That flexibility matches how beauty buyers shop, and large beauty brands win by making purchase easy across channels.
Brand choices across price tiers
Yatsen Holding Limited uses a two-tier portfolio: mass brands like Perfect Diary and premium names like Galénic and EVE LOM, so shoppers can trade up or down by budget and use case. That broadens the addressable market and helps the Company serve both value-first and premium beauty buyers.
- Mass and premium tiers sit in one portfolio
- Consumers can switch by budget or need
- Two tiers widen the addressable market
Beauty solutions and curated kits
Yatsen Holding Limited’s beauty solutions and curated kits help new and repeat shoppers buy faster by packaging routine-based sets, bundled sets, and add-on accessories in one clear offer. In FY2025, this model supports higher average order value and stronger value perception because customers can pick a full routine instead of one item at a time.
- Routine-based bundles simplify choice.
- Complementary accessories lift basket size.
- Curated kits support repeat buying.
Yatsen’s 7-Category Beauty Mix Drives Bigger Baskets in FY2025
Yatsen Holding Limited’s value proposition is built on 7 beauty categories, 2 price tiers, and routine bundles that make one-stop buying easier. In FY2025, this mix supports bigger baskets, faster trade-up or trade-down, and better fit for China’s fast-moving beauty demand.
| Driver | Data |
|---|---|
| Categories | 7 |
| Portfolio tiers | 2 |
| FY | 2025 |
Customer Relationships
Social commerce engagement
Yatsen Holding Limited uses livestreams, short videos, and beauty content to let shoppers discover and assess products on social platforms, turning engagement into trust and conversion. In FY2024, Yatsen reported net revenues of RMB 3.61 billion, showing how social-led customer relationships support sales at scale.
Personalized recommendations
Yatsen Holding Limited can use browsing and purchase history to suggest the right shades, routines, and bundles, making recommendations feel personal and useful. McKinsey found personalization can lift revenue by 5% to 15% and cut marketing spend by 10% to 30%, which supports higher conversion and repeat purchases.
Membership and repeat purchase programs
Yatsen Holding Limited should use member tiers, coupons, and targeted retention offers to keep skincare and basic items in repeat rotation; these categories drive frequent rebuys, often every 30 to 90 days. Structured loyalty programs lift customer lifetime value by rewarding the next purchase, not just the first one.
Customer support and after sales service
Yatsen Holding Limited’s customer support and after-sales service should cover product questions, order problems, and returns fast, since online beauty shoppers often buy on trial and repurchase only if the service feels safe. Responsive help lowers friction, protects trust, and supports repeat orders across brands like Perfect Diary and Galénic.
- Fast answers build trust.
- Order fixes reduce cart drop-off.
- Easy returns support trial buys.
Community and creator driven interaction
Yatsen Holding Limited leans on brand communities, user reviews, and influencer content to make beauty discovery feel peer-validated, which matters because 92% of consumers trust recommendations from people they know. This community loop supports credibility and search, helping products move faster through social channels and creator-led content.
- Peer reviews reduce buy hesitation.
- Influencers drive discovery and trial.
- Community engagement lifts brand trust.
Yatsen’s Social Commerce Engine Drives Repeat Beauty Buys
Yatsen Holding Limited’s customer relationships are built on social discovery, personalization, and fast service, with livestreams and short videos turning beauty browsing into trust and repeat purchase. FY2024 net revenue was RMB 3.61 billion, while loyalty and retention offers support repeat buys in skincare and basics.
| Metric | Value |
|---|---|
| FY2024 net revenue | RMB 3.61 billion |
| Personalization impact | 5% to 15% revenue lift |
Channels
Major e commerce marketplaces
Major e-commerce marketplaces such as Tmall, JD.com, and Douyin are Yatsen Holding Limited’s core direct-to-consumer channels, giving it traffic, search tools, and campaign slots for beauty buyers. These platforms reach over 1 billion annual active consumers across China commerce ecosystems, so they are central to product discovery and conversion in beauty shopping.
Brand flagship stores
Yatsen Holding Limited uses official flagship stores for brands like Perfect Diary and Little Ondine to control merchandising, storytelling, and price discipline. In 2024, Yatsen reported net revenues of RMB 3.26 billion, and these stores help unify brand identity across online channels while giving the company direct customer data and tighter launch control.
Short video and livestream platforms
Yatsen Holding Limited uses short video and livestream platforms to show shade, texture, and wear in real time, which is a strong fit for beauty conversion. These social commerce channels help turn trend-driven discovery into sales fast, because viewers can see demos, ask questions, and buy during the stream.
Brick and mortar retail
Yatsen Holding Limited uses brick-and-mortar retail through stores, counters, and offline points to let shoppers test products, match shades, and experience the brand before buying online. This channel supports discovery and conversion, with offline touchpoints complementing e-commerce in a beauty business where fit and color matter.
- Test before purchase
- Match shades in person
- Build brand trust offline
- Support online ordering
Social and mobile commerce
Yatsen Holding Limited uses social and mobile commerce on WeChat, where 1.3 billion monthly active users give mini programs a huge reach. Mobile purchase flows let customers move from content to service to checkout in one path, which supports repeat buying and stronger retention.
This channel works best when content, consultation, and transaction stay inside the same mobile journey, reducing drop-off and making reorders fast. It also fits Yatsen Holding Limited’s beauty model, where product discovery and repurchase often happen in chat-driven touchpoints.
- WeChat mini programs shorten the buy path.
- Mobile flows lift repeat purchases.
- One journey links content, service, checkout.
Yatsen’s Beauty Sales Run Through China’s Biggest Digital Channels
Yatsen Holding Limited sells mainly through Tmall, JD.com, Douyin, WeChat mini programs, and official flagship stores, using these channels to drive discovery, conversion, and repeat buying. Its offline counters and stores support shade testing and brand trust, while social commerce speeds real-time beauty demos.
| Channel | Role | Fact |
|---|---|---|
| Online and social | Discovery to checkout | 2024 net revenue: RMB 3.26 billion |
Customer Segments
Gen Z beauty consumers
Gen Z beauty consumers, mainly shoppers aged 18-27, follow social trends, short-form content, and frequent new launches, so they react fast to novelty, packaging, and brand image. For Yatsen Holding Limited, this segment is critical because makeup-led lines like Perfect Diary depend on high-velocity trial, social buzz, and repeat buys to keep growth moving.
Young urban women
Young urban women are Yatsen Holding Limited’s core beauty buyers: city-based consumers with active skincare and makeup routines who shop often online and in stores. China’s urbanization rate reached 66.16% in 2023, and that dense city life supports repeat purchases of cosmetics, skincare, and accessories.
Skincare focused buyers
Skincare-focused buyers want routines, treatments, and functional products, and they often prefer efficacy-led brands like Galénic and DR.WU. This segment supports repeat purchase and steadier baskets, and Yatsen reported net revenue of RMB 3.6 billion in FY2024, showing the scale of that demand.
Mass premium beauty shoppers
Mass premium beauty shoppers trade between affordable and premium items, so Yatsen Holding Limited can sell across one household’s mixed budgets. Its multi-brand lineup broadens reach, lifts repeat buying, and helps capture spending even when consumers trade down or trade up.
- Serves mixed-budget households
- Expands reach across price bands
- Raises repeat purchase potential
This matters because the same shopper may buy a lower-priced base product and a premium upgrade, which increases total wallet share for Yatsen Holding Limited.
Online first beauty shoppers
Online first beauty shoppers buy mainly through e commerce and social commerce, so Yatsen Holding Limited reaches them where they already search, compare, and buy. They care most about convenience, reviews, and promotions, which fits Yatsen's digital sales model and low-friction conversion path.
- Buy through e commerce and social commerce
- Value reviews and promo pricing
- Fit Yatsen's digital-first model
These shoppers also support faster campaign testing, since Yatsen can use traffic, creator content, and platform data to push repeat purchases and new product launches.
Yatsen Targets Gen Z Beauty Buyers With Fast, Social-Driven Growth
Yatsen Holding Limited serves Gen Z and young urban women who buy fast-moving makeup and skincare online, where reviews, short video, and promotions drive trial. It also targets skincare-led buyers and mixed-budget shoppers, which helps balance repeat demand with premium upsell.
| Segment | Fit |
|---|---|
| Gen Z | 18-27, trend-led |
| Urban women | City, frequent buyers |
| Skincare buyers | Routine, efficacy-led |
Cost Structure
Product manufacturing and procurement
Product manufacturing and procurement are a core cost base for Yatsen Holding Limited, covering OEM fees, raw materials, packaging, and finished goods purchases. In FY2024, Yatsen reported revenue of about RMB 4.1 billion, so every 1 percentage point move in gross margin shifts gross profit by roughly RMB 41 million; tighter sourcing and better factory terms matter a lot for a brand-led beauty company.
Marketing and promotion spend
Yatsen Holding Limited’s marketing and promotion spend covers influencer fees, ads, livestreaming, and campaign launches, and it stays one of the biggest costs in beauty because brand visibility drives sales. This spend can boost traffic fast, but it also pressures profitability when customer-acquisition costs rise.
Fulfillment and logistics cost
Fulfillment and logistics cost covers warehousing, shipping, returns, and inventory handling, and it stays high because Yatsen Holding Limited relies on nationwide online distribution for fast delivery and reliable service.
This cost line scales with order volume and service levels, so more provinces, more SKUs, and more returns mean more spending on storage, last-mile delivery, and reverse logistics.
R and D and product testing
R and D and product testing cover formulation work, sample development, and quality assurance for Yatsen Holding Limited, and they help keep launches credible across skincare and color cosmetics. In 2025, these costs rose as the Company kept funding new-product testing, safety checks, and compliance work to support faster brand refreshes.
- Formulation work supports new launches.
- Sample testing lowers launch risk.
- Quality checks support compliance.
- Innovation keeps Yatsen competitive.
SG and A and brand integration
Yatsen Holding Limited’s cost base is heavy in SG&A: it must fund staff, admin, systems, and post-deal integration across brands like Perfect Diary, Little Ondine, and Galénic. Managing a broad brand and channel mix adds coordination cost, and the latest filings show this remains a major drag on margins.
The mix is simple: more brands mean more overhead, more SKU control, and more channel support, so integration costs do not drop fast.
- Staff and admin drive fixed overhead
- Systems support multi-brand coordination
- Post-acquisition integration adds one-off cost
- Channel sprawl lifts operating complexity
Yatsen’s Cost Levers Can Make or Break Gross Profit
Yatsen Holding Limited’s cost base is led by manufacturing, marketing, logistics, R and D, and SG&A. With FY2024 revenue of about RMB 4.1 billion, every 1 percentage point gross-margin move shifts gross profit by about RMB 41 million, so sourcing, ad efficiency, and overhead control drive earnings.
| Cost item | Why it matters |
|---|---|
| Manufacturing | OEM, raw materials, packaging |
| Marketing | Ads, livestreaming, influencers |
| Logistics | Warehousing, shipping, returns |
| R and D | Testing, safety, compliance |
Revenue Streams
Color cosmetics sales
Color cosmetics sales, led by foundation, lipstick, eye products, and face makeup, remain a core revenue stream for Yatsen Holding Limited's heritage brands. Frequent shade launches and fast trend cycles keep repeat demand high; in 2024, Yatsen reported net revenue of RMB 3.69 billion, with beauty products still anchored by its color makeup portfolio.
Skincare sales
Yatsen Holding Limited’s skincare sales span cleansers, serums, creams, and treatment products, which usually drive more repeat buys than seasonal makeup. That matters for premium positioning: in Yatsen’s latest reported FY2024 results, skincare remained a core growth driver for brands like Galénic and DR.WU, supporting higher-value basket mix.
Nail care and accessories sales
Yatsen Holding Limited uses nail care and accessories sales to add low-ticket, high-frequency items like nail products, brush sets, cotton pads, mirrors, and sponges to core beauty orders, lifting basket value and supporting cross-selling across brands. In Yatsen Holding Limited's latest public filings, this kind of add-on merchandising fits a mix built around makeup and skin care, where even small attachments can improve order economics.
Beauty device and fragrance sales
Yatsen Holding Limited’s beauty device and fragrance sales add adjacent revenue beyond cosmetics and skincare, which can lift average order value and customer lifetime value. Yatsen does not separately disclose 2025 revenue for these niche categories, so they are best seen as assortment-depth drivers inside the broader beauty mix.
- Broadens revenue beyond core makeup
- Raises basket size and repeat use
- Deepens assortment, not separate disclosure
Online and offline product sales
Yatsen Holding Limited earns revenue from e-commerce and brick-and-mortar sales, so its 2025 mix serves shoppers who buy online or prefer in-store testing. This channel spread lowers reliance on one sales path and helps reach more buyers in China, where online retail still made up about 27% of consumer goods sales in 2025.
- Online sales scale fast.
- Stores add trial and trust.
- Mix reduces channel risk.
Yatsen’s Beauty Mix Still Powered by Color Cosmetics and Skincare
Yatsen Holding Limited’s revenue still comes mainly from color cosmetics and skincare, with add-on nail, device, and fragrance sales widening the basket. FY2024 net revenue was RMB 3.69 billion, and the mix stayed centered on beauty products sold through both online and store channels.
| Revenue stream | Role |
|---|---|
| Color cosmetics | Core sales |
| Skincare | Repeat purchases |
| Accessories/devices/fragrance | Basket expansion |
| Online + stores | Channel reach |
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