[비즈한국] The kids cafe brand 'Wellpark' from the healthcare company Ceragem is showing signs of business contraction following a series of service suspensions. Following the recent temporary closure of the Wirye branch, the Cheongnyangni branch is also only operating a portion of its space. While Ceragem claims it is in the process of reorganizing its experience spaces, there is currently no set schedule for resuming operations or plans for opening new locations.
Combining play facilities with healthcare appliances… Signs of downsizing since last year
The Ceragem Wellpark Wirye branch recently entered a temporary closure. The Wirye branch, which opened in August 2024, was notable at the time for being the largest play space near the Wirye new town area, but it halted operations on the 12th, just about two years after opening.
The Cheongnyangni branch has also only been operating part of its space since last month, citing store renovations. It is reported that all of Ceragem’s healthcare devices have been withdrawn and the operation of the Wellpark brand at that location has ended. Out of the three branches that were operating until recently (Wirye, Cheongnyangni, and Busan Gijang), two are no longer in normal operation.
Ceragem launched the family-oriented kids cafe brand 'Wellpark' in 2023 in collaboration with the indoor children's theme park operator CMG World. The space combined CMG World’s expertise in operating play facilities with Ceragem’s healthcare appliance experience service, allowing parents to relax and try out healthcare products while their children used the play facilities.
Starting with the Jamsil branch in April 2023, the brand expanded with locations in Yongin Giheung and Cheongnyangni that same year, and the Wirye branch the following year. Early in the business, it showed growth as the number of visitors increased. Ceragem announced that Wellpark’s cumulative visitors surpassed 100,000 in August 2024 and had planned to expand the business, fueled by positive responses from family customers.
However, the initial expansion did not last. The Yongin Giheung branch closed last year, and even the first location, the Jamsil branch, shut down. Although the Busan Gijang branch opened earlier this year, the recent closure of the Wirye branch and the partial operation of the Cheongnyangni branch suggest a broader contraction of the existing Wellpark business.
Ceragem explains that these are temporary measures related to Wellpark store renewals. A Ceragem official stated, "We are strengthening health experience and personalized services by expanding and reorganizing existing Well Cafes and Wellparks into Well Lounges, Wellness Clubs, and Well Stores," adding, "The Wirye branch is also temporarily closed for renewal in line with this direction." Regarding the Cheongnyangni branch, the official stated, "As it is a branch operated primarily by CMG World, it is difficult to confirm the specific operational status."
Regarding future operational plans, the official added, "The schedule for resuming operations at the Wirye branch has not yet been decided. As of now, there are no plans for additional openings."
CEO Lee Kyung-soo, who led experience marketing, sees management succession accelerate
Wellpark is a space that was introduced as part of Ceragem’s strategy to expand its offline experience stores. Ceragem has been expanding experience-based marketing since it introduced 'Well Cafe' in 2019, where customers can experience healthcare appliances firsthand.
Well Cafe has established itself as Ceragem's core sales channel, expanding to approximately 110 locations nationwide. Ceragem's domestic B2C revenue also grew from 20.8 billion won in 2018 to 63.6 billion won in 2019, and 496.4 billion won in 2021. The expansion of consumer sales channels, such as Well Cafe, is considered a major factor in this revenue growth. In fact, a 2022 survey of customers who purchased spinal medical appliances showed that 55.1% of respondents had experienced the product at a Well Cafe before purchasing.
On the other hand, unlike Well Cafe, Wellpark has not shown clear results. The two businesses also differ in their operational models. Wellpark is a collaboration with an external company, CMG World, meaning that any store operations or business expansion require consultation between both parties. For this reason, it is known that there are limitations for Ceragem to pursue business independently.
Ceragem recently set out to reorganize its offline experience business. The new approach adds personalized health management services and wellness programs to spaces that were previously focused solely on product experience. A Ceragem official explained, "As our product line has expanded from spinal thermal medical devices to massage chairs and beauty devices, changes in the experience space were necessary," adding, "We are expanding spaces tailored to specific customer segments, such as 'Wellness Clubs' for senior customers. Rather than reducing the experience business, we are segmenting it by customer group."
Ceragem’s experience-based marketing has been led by CEO Lee Kyung-soo. Joining the company as a new recruit in 2003, CEO Lee gained experience in various fields including strategic planning, marketing, and sales, before taking charge of domestic operations in 2018. He subsequently led the expansion of offline experience spaces, starting with the introduction of Well Cafe in 2019.
CEO Lee was recently named as the successor to Ceragem. On the 20th, Ceragem announced that founder and Chairman Lee Hwan-seong adopted CEO Lee as his adult son last year and gifted him 10% of the total issued shares this year. This is highly unusual, as it involves handing over management rights to a professional manager rather than the founder's biological children.
Ceragem stated, "This decision is significant in that the founder made the choice by focusing solely on the future of the company, setting aside individual interests and blood relations." They added, "CEO Lee expanded the existing spinal medical device-focused business into a new market of 'medical appliances,' and established experience-oriented marketing in the domestic market with the introduction of Well Cafe in 2019. He has expanded the growth foundation for Ceragem by promoting product portfolio diversification and business structure innovation."
Ceragem plans to further expand its health management business scope based on the experience-based marketing that CEO Lee has led. A Ceragem official said, "We are expanding products and services in seven areas: spinal health, movement, relaxation, beauty, circulation, energy, and mental health," and added, "In the long term, we plan to transform into a global wellness company through the 'AI Wellness Home,' which turns the entire home into a user-customized health management space."