Carlyle invested into Yatsen to capture the opportunity in China's high growth beauty market
Beijing - Yatsen Holdings Ltd. debuted on the New York Stock Exchange on Thursday, November 19, as the company seeks to build on its leading position in China's fast-growing beauty market.
Founded in 2016, Yatsen has established a diversified platform of leading cosmetics brands, including Perfect Diary, Little Ondine and Abby's Choice. The company has multiple online sales channels and is the only scaled online domestic player with self-owned offline stores in China. This multi-channel approach enables Yatsen to capture strong consumer insights through proprietary data that is crucial to its product launch cycle and data-driven marketing.
Yatsen plans to use the proceeds from its IPO to further build on its leading position through strategic investments and acquisitions, expanding its store network, developing its products, and further enhancing its data analytics.
Carlyle co-led Yatsen's Series E funding in September, with Carlyle's investment coming from CGI IX INVESTMENTS, an affiliated entity of Carlyle Asia Partners Growth I.
Nina Gong, Managing Director of the Carlyle Asia advisory team congratulated Yatsen on its market debut: 'Yatsen has demonstrated a deep understanding of the Chinese consumer, which has enabled it to capture a leading position in color cosmetics in less than five years. We believe Yatsen's ability to continuously and quickly bring high-quality products to market, while also driving a successful distribution strategy through social platforms, gives the company a competitive advantage amid the rise of Chinese beauty brands. Led by what many consider to be the best team in the industry, we believe Yatsen has an exciting future ahead of it and we are honored to be part of this.'
China's beauty market is expected to experience significant growth as consumers become more sophisticated, with Yatsen's core market of online mass color cosmetics benefitting from increasing online spending among younger generations. The rise of short-video and social media platforms have also accelerated the growth of emerging Chinese cosmetics brands who moved quickly to capture this new trend.
Yatsen has experienced significant growth since inception. Gross sales increased from RMB 758mm in 2018 to RMB 3.5bn in 2019, representing a growth rate of 364%, or roughly 30 times the growth rate of the broader China beauty industry in terms of retail sales value over the same time period. Gross sales increased from RMB2.2 billion in the nine months ended September 30, 2019 to RMB3.8 billion in the nine months ended September 30, 2020, representing a growth rate of 70.2% or roughly 16 times the growth rate of the broader China beauty industry in terms of retail sales value over the same time period. In 2019 and the nine months ended September 30, 2020, Yatsen served 23.4 million and 23.5 million DTC customers across brands, an increase of 236.3% from 7.0 million in 2018 and 50.0% from 15.7 million in the nine months ended September 30, 2019, respectively.
Carlyle has a well-established history of investing in the consumer and retail sector, investing $16.8 billion of equity in 129 consumer and retail transactions as of June 30, 2020. Carlyle's investments in the global consumer sector include Moncler, Golden Goose, Beats Electronics, Vogue International, Dunkin' Brands, philosophy, Tokiwa, among others. Its consumer investments in China include McDonald's businesses in mainland China and Hong Kong, Luolai Lifestyle Technology, Spark Education, Xtep, among others.
Carlyle is a long-standing global investment firm with operations in China, making investments in this market for over two decades. With global resources, deep industry expertise and strong local knowledge, Carlyle has invested more than US$10 billion of equity in over 110 transactions across China as of September 30, 2020.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across four business segments: Corporate Private Equity, Real Assets, Global Credit and Investment Solutions. With $230 billion of assets under management as of September 30, 2020, Carlyle's purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 1,800 people in 30 offices across six continents. Further information is available at www.carlyle.com. Follow The Carlyle Group on Twitter @OneCarlyle.
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The Carlyle Group LP published this content on 20 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 November 2020 20:08:02 UTC