August 2021
Case
HBS Case Collection

Perfect Diary

Format:Print
| Language:English
| Pages:25

Abstract

Jinfeng (David) Huang founded Yatsen Holding Limited in 2016 and launched the first direct-to-consumer (DTC) cosmetic brand, Perfect Diary, in 2017. Perfect Diary used social influencers or key opinion leaders (KOL) to successfully build brand awareness and to grow sales. By 2020, Perfect Diary was the second largest cosmetics brand in China behind Maybelline. Yet, as more brands used social influencers, Perfect Diary is facing increasingly fierce KOL competition. In resolving the problem, Huang has decided to build a multi-brand company by expanding into skincare. Could Yatsen compete with large legacy companies like L’Oréal and P&G in skincare? Huang needs to assess if the company could continue to grow using KOLs who helped successfully build Perfect Diary.