Yatsen Group, the Chinese company known for its Perfect Diary cosmetics, is shifting its strategies to concentrate on skincare and product development as part of its growth strategy. The Guangzhou-based firm has undergone significant changes in recent years, acquiring several overseas brands, but will now slow its acquisition activities to enhance its existing skincare portfolio.
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Founder and CEO David Huang stated that the company plans to maintain or possibly increase its research and development expenditure, which currently accounts for 3 to 4 percent of annual revenue. During a media event at Yatsen’s manufacturing and R&D facility in Guangzhou, Huang emphasized the company's belief in the potential of its existing brands, saying, "We still think there will be pretty big potential for our existing brands."
Although the focus is on internal growth, Huang did not dismiss the possibility of future acquisitions, particularly of companies with strong brand equity and effective products.