Yatsen Global Pivoted Strategy to Clinical R&D
The beauty company shifted its model from rapid product launches to focus on long-term clinical research and development.
Updated on Sept. 25, 2026 in Business Strategy
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In 2025, Yatsen Global completed a strategic transformation from fast-beauty product launches to a clinical research-focused business model. This change reflects a broader industry shift toward ingredient transparency and functional beauty.
Why it matters
Consumer behavior has evolved from prioritizing marketing hype to scrutinizing chemical efficacy and long-term skin health. Yatsen aims to build sustainable brand loyalty by validating product performance through scientific rigor.
Yatsen dedicated RMB 137 million to research in 2025, representing 3.2 per cent of total revenue. The firm currently employs 153 R&D experts and has secured 240 patents.
The players
Yatsen Global
Yatsen Global is a cosmetics company that owns brands such as Dr Wu, Galénic, and Eve Lom.
The details
The company now utilizes consumer performance feedback to drive new formulation challenges for its chemistry teams. This approach powers the development of specialized products, such as its essence-powder technology, tailored for specific regional markets.
Timeline
Yatsen began its current R&D investment cycle in 2020.
The company's annual R&D expenditure reached RMB 137 million in 2025.
Market Landscape
Yatsen's pivot aligns with the beauty industry's broader movement toward clinical-proven skincare and ingredient transparency. This repositioning allows the company to compete against established legacy brands that have historically leaned on long-term laboratory investment.
Shoppers can expect to see more clinically tested products and formulations tailored for specific regional skin needs under the Dr Wu, Galénic, and Eve Lom brands. These changes aim to provide customers with more functional beauty solutions that address specific skin concerns.
The takeaway
Brands that prioritize scientific evidence can effectively combat consumer skepticism in a crowded marketplace. By investing in intellectual property, companies establish a foundation for long-term relevance rather than relying on short-term social media trends.
Further reading
Read more about industry pivots and operational changes in the Business Strategy section.
Source note: This article includes information reported by Inside Retail Asia.
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