MAJOR PROBLEMS FACED BY NYKAA A. Pressure on Profitability For all the strong recall of its brand and loyalty of its customers, Nykaa is under pressure from sustainable profits. High cost of operations due to marketing and logistics Heavy expenditure on technology and warehousing Margins are leaner in fashion than in beauty products
B. Intense Competition Nykaa doesn't enjoy a monopoly by any means. Is competing with Amazon, Flipkart, Myntra, and Reliance's Tira New D2C (Direct-to-Consumer) players are eating away at market share with a lower price tag Customers have several options with similar offerings.
C. Fading Shareholder Confidence Nykaa's stock has plummeted since the IPO. Market valuation declined after listing Investors worry about profitability and future growth plans