Yatsen No Longer Needs Pink Bear

With its color cosmetics business under sustained pressure, Yatsen has finally decided to let go of one of its brands.

Yatsen was recently reported to have sold Pink Bear, one of its color cosmetics brands. In response, the company said it had brought in a new shareholder better suited to supporting Pink Bear's independent development, and would focus its resources on its core brands going forward. The identity of the new shareholder, the transaction value and other terms have not been disclosed.

Launched by Yatsen in 2021, Pink Bear is a makeup brand targeting younger consumers, with a distinctly girlish aesthetic. Before competition in China's color cosmetics market became quite so intense, the brand offered consumers an accessible sense of novelty through playful packaging, frequent collaborations and affordable prices, with most products priced below 100 yuan (about $14).

In its first year, Pink Bear generated more than 268 million yuan (about $42 million) in sales across all channels and ranked among the top 10 domestic makeup brands on Tmall during the 2021 Singles' Day shopping festival.

But that sense of novelty was easy to replicate. China has no shortage of affordable makeup brands with distinctive visual identities, including Flower Knows and Joocyee. Some social media users have also complained that while Pink Bear's packaging looks appealing, the products themselves fall short on quality. That makes it difficult to encourage repeat purchases and sustain long-term growth.

And even when brands get everything right, selling makeup is becoming an increasingly difficult business.

On one hand, rising customer acquisition costs have made social media-driven marketing increasingly difficult to sustain. On the other, after years of intense competition, consumers have already seen and tried countless shades and formulas. Many may still have eyeshadow palettes and lipsticks at home that they have barely used. Unless a product is something that needs regular replenishment, such as foundation, persuading consumers to buy something new is becoming harder.

After its color cosmetics revenue fell 35.8% year over year in the second quarter of 2026, Yatsen acknowledged that its color cosmetics segment faced "structural headwinds amid heightened competition." The company also said it would streamline its color cosmetics brand portfolio and redirect resources toward its high-growth skincare brands.

That decision has now taken shape, with Pink Bear becoming the brand to go. But why Pink Bear?

Yatsen built its business on Perfect Diary, which remains its flagship brand and is central to its efforts to reposition the color cosmetics business. It is unlikely to be discarded lightly.

Little Ondine, meanwhile, has shown little notable performance in recent years, at least judging by publicly available information. Yet its early reputation was built more firmly on core products such as contour palettes and eyeliners. The brand has also demonstrated greater creative potential, with recent collections featuring Tomie Kawakami and Tamagotchi attracting considerable attention.

Still, given the poor state of Yatsen's color cosmetics business, there is no guarantee that Little Ondine will not be the next brand to be cut.