1. BUSINESS PROJECT:
ESPACE DÉTENTE
(FRENCH « JIMJILBANG »)
Slides created by Nicolas Simon

2. WHAT IS « ESPACE DÉTENTE »?
 It’s a place where you can:
 enter 24/7
 enjoy spa services, such as jacuzzis, hammams,
saunas and massages
 shape up in a gym
 have fun with others, watching TV, playing cards and
board-games,…
 eat snacks and small meals
 access the internet
 rest in dormitory-like rooms
 and stay as long as you want, for a very cheap price!

3. DOES SUCH A PLACE EXIST?
 Yes, in Korea! It’s called « jimjilbang »
 Jimjilbang are very common places there, probably
as common as fast-food restaurants
 In Seoul for instance, a 12 hours stay is priced 5 to
10 Euros. In comparison, one night in a Korean
guesthouse costs 12 to 25 Euros. Basically
everything is twice or trice less expensive than in
France

4. JIMJILBANG ILLUSTRATIVE PICTURES (1)

5. JIMJILBANG ILLUSTRATIVE PICTURES (2)

6. JIMJILBANG ILLUSTRATIVE PICTURES (3)

7. JIMJILBANG ILLUSTRATIVE PICTURES (4)

8. HAS THIS VERY CULTURALLY ROOTED
CONCEPT EVER BEEN EXPORTED?
 In recent years (2007 & 2008), two jimjibang have
opened in New-York and Los Angeles.
 These projects were initiated by Korean businessmen,
in response to the needs of the ever growing Korean
community in those two cities.
 Almost every piece of equipment and technology was
imported from Korea, to replicate a traditional Korean
jimjilbang
 The high quality facilities, called “Spa World” required 10
to 15 million dollars of initial investment

9. ARE THE USA JIMJILBANG SUCCESSFUL ?
 Probably yes, considering that:
 There is a large core customer base (e.g. Korean
expatriates and immigrants)
 Americans are lured in by high quality equipment and
exotic settings
 It’s relatively cheap ̶ 35$
 After a few years, the businesses still exist
 USA jimjilbang are almost identical to the original
Korean ones, expect for the location, outside the cities
at driving range
 Location costs were kept minimal, thanks to the deeply
rooted American habit of using cars as a first choice of
transportation system

10. HOW INNOVATIVE AND DIFFERENT IS ESPACE
DÉTENTE ?
 Though Espace Détente is conceptually similar to a
jimjilbang, it is not a jimjilbang
 It will use the power of the internet to add value to
the service, and benefit from inexpensive marketing
 No Korean branding. The decoration and the
marketed goods will be French. For example,
sandwiches will be served, not Korean food

11. SUCCESS DRIVERS OF ESPACE DÉTENTE
 Affordability
 Social usefulness (it’s an alternative to other social
places, such as bars, cinemas, parks, facebook,…)
 Practicality (everything seems possible and easy to do
there)
 Regenerativity (stress and other light illnesses will go
away)
 Coolness

12. EXPECTED PROBLEMS TO OVERCOME
 Team selection (required technical and human skills are very
diverse)
 French prejudices and habits (I don’t want to be naked in
front of people, I will only watch a football match at a bar,…)
 French laws and regulations (opening a business 24/7,
changing of the spa water,…)
 Funds finding (it’s a very capitalist business, which will most
certainly require millions of Euros of initial investment)
 Aggressive lobbying ( Espace Détente can be a problem for a
number of other business such as spas, gyms, cheap hotels,
taxis,…)

13. FIRST YEAR FINANCIAL EXPECTATIONS (1)
 Initial investment of 6 million Euros, fully covered by
a bank loan (5 years, 12% interest, constant
amortization).
first year financial costs ̶ 1 920 000€
 Estimated monthly running costs are:
 rent ̶ 100 000€,
 staff ̶ 80 000€,
 water/electricity/maintenance ̶ 50 000€
 insurance ̶ 10 000€
Annual running costs ̶ 2 880 000€

14. FIRST YEAR FINANCIAL EXPECTATIONS (2)
 Expected monthly revenues:
 Entry fees ̶ 4 073 000€ (700 daily customers paying
20€ on average to enter the facility)
 Services ̶ 852 000€ (based on margin per customer of
2€ for food, 1€ for massages, and 0,5€ for other
services)
Annual revenues ̶ 4 925 000€
 Expected first year profit – 83 000€
 If fully financed by shareholders, the expected rate
of return would be around 13%

15. THANK YOU FOR YOUR ATTENTION