Perfect Diary is the flagship brand of Yatsen Holding, a Chinese beauty company. Established in 2016, the online direct-to-consumer brand established itself as a rival to international colour cosmetic brands like MAC Cosmetics and Maybelline.

After experiencing several years of rapid growth on the back of the swelling domestic make-up market, the COVID-19 pandemic triggered a sales decline for the brand.

For the quarter ending September 2022, Yatsen’s colour cosmetics business experienced a year-over-year decline of 48.8% despite efforts to develop a sustainable business model with channel optimisation and promotion controls.

Irene Lyu, head of strategic investments and capital markets explained that the company’s “key goal is to achieve profitability”​ for Perfect Diary.

“There are two major plans that we’re undergoing right now. One is in terms of channel optimisation, and the second one is on the product category optimisation,” ​said Lyu.

For the latter, Lyu elaborated that the brand intends to focus product development more on facial complexion products.

“Perfect Diary used have very high market share on the lip and also eye category. But in terms of complexion and facial makeup, that’s actually a larger market that we think we need to tap in and also increase our market share.”

She added: “We’re seeing quarter-over-quarter increase of market share in the facial makeup. So, that’s another driver that will help Perfect Diary brand’s turnaround and likely turn into a more healthy trend next year.”


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