THE WHAT? Chinese beauty company Yatsen has reported full year 2020 results, with net revenues up by 72.6 percent to RMB5.23 billion (US$802.0 million). The rise was primarily driven by the growth in sales volume of beauty products thanks to an increase in the number of customers.
THE DETAILS Detailed in its first quarterly results since its initial IPO, net revenues in the quarter ending 31 December, 2020, rose 71.7 percent to RMB1.96 billion (US$300.6 million) YOY.
Parent company of Perfect Diary, Little Ondine, Abby’s Choice and Galenic, Yatsen reported its growth margin for the fourth quarter of 2020 at 66.3 percent, up from 62.7 percent YOY. Direct-to-consumer customers for the fourth quarter of 2020 increased 30.9% to 14.4 million from 11.0 million for the fourth quarter of 2019.
Operating loss for Q4 was RMB1.53 billion compared to income from operations of RMB71.5 million for the fourth quarter of 2019.
THE WHY? The popularity of C-beauty is said to have been a catalyst for the growth, giving the company room to expand its options.
Jinfeng Huang, Founder, Chairman and CEO of Yatsen, said, “The growing popularity of homegrown Chinese beauty brands is presenting us with unprecedented opportunities that we are well positioned to capture. With our acquisition of several distinct skincare brands and our partnership with Sensient Technologies, we are on track to offer our customers a full suite of products.
“While we continue to focus on innovation and quality, our efforts in expanding our offline experience stores will create even greater value for our customers and spur stronger brand engagement and loyalty. In 2021, as customers continue their journey of beauty discovery, we look forward to introducing effective skincare regimens and new color cosmetics consisting of an even fuller array of colors and textures.”