Salons give thumbs up to Modi’s Rs 500 and Rs 1000 currency demonetisation
In a massive move, Prime Minister Narendra Modi announced the demonetising of Rs 500 and Rs 1000 currency notes. These notes cease to be illegal currency starting today, November 9, 2016. The new Rs 500 and Rs 2,000 currency notes will only be available from November 10, the banks will remain shut today, November 9, and the ATMs also won’t work on November 9 and November 10. This means those with Rs 500 and Rs 1,000 currency notes cannot use them for transactions. With the consumer in a tizzy, how is the beauty industry reacting to this? Are they accepting these currency notes? Is their business getting hampered? Wellness India finds out.
Even though this may be temporary inconvenience, the beauty services industry is giving a thumbs up to the notification. In fact, some salons are making the most out of this by actually accepting the demonetised currency. “I’m very happy with the decision. I have nothing to worry about as all my money is white money and I’m a law abiding tax payer,” says Ankita, CEO, Panache Unisex Salons. She also feels that the business won’t really be affected as many salons are accepting credit cards too. In addition, she says that Panache is accepting Rs 500 and Rs 1,000 currency notes for a couple of days as they can be deposited in the bank later.
On the other hand, there are also salons that have stopped accepting Rs 500 and Rs 1000 currency notes right away, yet it’s business as usual for them. Sachin Kamat, Director and Founder, Enrich Salons has given a huge thumbs up to the decision. “We are very happy with the decision as it will auger well for not just the country but the industry too in the long run. As for business, it’s usual for us as we are accepting credit cards and even online payments through IMPS and NEFT,” he says. Enrich Salons are not accepting Rs 500 and Rs 1000 currency notes as they have been deemed illegal. “We are following the rules and not accepting these notes. We have asked all our salons to not accept them and to inform the clients about our decision to avoid confusion. It’s just a day or two of adjusting, but it’s all for larger good.” He adds.
Vikram Bhatt, co-founder, Enrich Salons also adds that his brand is unaffected as, “60 per cent of our business is credit card driven.”
However, as the card accepting salons celebrate, is this a clampdown in a sense on smaller stand-alone salons that accept cash? “It’s not about big or small. The decision is for the larger good and it will benefit all of us,” says Bhatt.
However, it may spell doom for the unorganised stand-alone fitness centres. "This will affect the unorganised sector and there will be a massive shake up in the fitness industry in the coming months.The brands, although, will do better," says G Ramachandran, Director and Promoter, Gold's Gym.