Nykaa should revisit investments amid consumer spending slowdown

Gross margins dropped in December 2022 quarter, reflecting inferior product mix, discounts and consumer downgrades

Nykaa should revisit investments amid consumer spending slowdown

Nykaa’s meteoric rise is attracting new entrants and competition in the beauty and personal care products sector


Growth in the beauty and personal care business is moderating 
Amid inflationary pressures, consumers are down-trading 
Thanks to scale efficiencies, the beauty and personal care business continues to see healthy profit margins 
However, investments in new business ventures are undermining earnings and profitability at the company level 

Companies, similar to individuals, should adapt to the changing environment. They should moderate spending and investments during a slowdown and alter the strategy when things improve. FSN E-Commerce Ventures, the seller of the Nykaa brand of…