WHERE ROMANIA TALKS BUSINESS December, 2016 / Volume 20, Issue 11
www.business-review.eu
6
Berlin boost: a capital place for start-ups
26
CEZ Romania rolls out investment PLANS for smart cities
42
Medical staff shortage complicates recruitment process
48
Team health, company wealth
Photo: Betfair Development Romania
Retailers walk in a winter wonderland
www.business-review.eu Business Review | December 2016
EDITORIAL 3 RETAIL
• Editorial •
Anda Sebesi • Editor-in-Chief •
6 Retailers walk in a winter wonderland 9 Deck the malls: AFI Europe Romania prepares for festive frenzy COVER STORY
A totally different mindset The past two decades have brought a significant shift in the mindset of both companies and their employees in Romania. Back then, it was enough for Romanians to have a well paid job that would give them financial security and protect them from an
10 How well are your company and employees? 14 Development opportunities: a key for healthy companies 16 The road to wellbeing passes through the office 20 Work-life balance: a never-ending debate 22 Healthy work environment becomes new focus for local HRs
uncertain professional future. On the other side, companies were
ENTREPRENEURSHIP
focused more on financial results and their employees were seen as subordinates rather than equals. But in the meantime, the financial crisis has hit almost all economies, including the local one, and the business mindset has changed from these roots. Firms have started to pay more attention to cost efficiency, and along with the inevitable layoffs they have become aware that their human resources are a great asset onto which they need to focus much of their efforts. Things have also changed significantly in line
24 Local entrepreneurs need more support to get innovative
26 Berlin boost: a capital place for start-ups
with developments on the international scene, forcing organizations to adapt to the new economic and social context. This has made both large and smaller companies concentrate more on creating a friendly working environment. Today, things have evolved so much that employees expect their bosses to provide them with an environment that makes them feel happy at work and encourages them to be creative and innovative. But happy people also bring the best outcomes and performance for the company, as many studies show. You might ask what you should do to make your employees happy. Well, the sky is the limit as long as the wellbeing concept is closely linked to your corporate culture and values.
CITY 50 Disgusting Donald’s victory adds to the West’s woes
52 Door to door: the story behind delivering goods
53
Winds of change blow through national cultural marketing scene
54 Cultural calendar
FOUNDING EDITOR: Bill Avery, Editor-in-Chief: Anda Sebesi, DEPUTY Editor-in-Chief: Simona Bazavan Journalists: Georgeta Gheorghe, Otilia Haraga, Romanita Oprea, Ovidiu Posirca, Oana Vasiliu, HEAD COPY EDITOR: Debbie Stowe Copy Editor: Eugenia Pupeza, Photo editor: Mihai Constantineanu, ART DIRECTOR: Raluca Piscu publisher: Bloc Notes Media, Address: No. 10 Italiana St., 2nd floor, ap. 3, Bucharest, Romania, Landline: Office: 031.040.09.31 Executive Director: George Moise, business development director: Oana Molodoi, Sales DIRECTOR: Ana-Maria Nedelcu Sales CONSULTANT: Valeria Cornean, EVENTS DIRECTOR: Oana Albu, Marketing: Adina Cretu, Marius Andronic, Patricia Neamtu Production: Dan Mitroi, Distribution: Eugen Musat EMails: editorial@business-review.ro, sales@business-review.ro, events@business-review.ro
ISSN NO. 1453-729X
www.business-review.eu Business Review | December 2016
4 NEWS
WHO’S NEWS BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at simona.bazavan@business-review.ro Horia Braun has been appointed chief economist and research director at BCR. His mandate starts on January 1 2017. Prior to the appointment, Braun had been working for ING Group since October 2007, as investments manager for fixed revenue instruments within ING Investment Management Romania and later as investment director with ING Pensions. In 2013, he was appointed general director of NN Investment Partners until he relocated to the Czech Republic as regional investment director.
Ioana Grigore is the new commercial director of Business Lease. She first joined the company as field sales manager. Grigore has wide experience in sales and marketing and eight years in the retail and online business. Business Lease has also appointed Daniel Ivan to the newly created position of mobility solutions manager. Catalin Dumitru is the new first vicepresident of operations at KMG International. He was previously vice-president of operations and from now on will be responsible for the group’s whole operational chain. He was in charge of the coordination of the procurement of raw materials and finished goods trading. Dumitru has professional experience spanning 23 years. He joined KMG International in 2002 as financial director for the group’s two companies. page 5
Powering investments: Minister Victor Grigorescu says the local energy sector needs yearly investments of at least EUR 500 million
Romania releases energy strategy for 2016-2030 By Ovidiu Posirca The Ministry of Energy un-
the 2030-2050 period. Under this
order to start the replacement
veiled in mid-November the
pricing scenario, industrial con-
of worn out energy production
country’s new energy strategy,
sumers will end up paying EUR
capacities.
which covers the 2016-2030 pe-
87 per MWh in 2030 from EUR 67
riod, with an outlook to 2050.
now, while for households, prices
new nuclear reactors at
are set to grow by 50 percent to
Cernavoda, which require an
been put up for public debate,
EUR 195 per MWh over the same
investment of around EUR
projects that the price of elec-
period. The minister of energy,
7 billion, remain a key point
tricity on the wholesale market
Victor Grigorescu, said that the
in the strategy, although the
will grow from EUR 30 per
local energy sector needs invest-
country has as yet failed to
MWh at present, to an average
ments of between EUR 500 mil-
reach a deal with the Chinese
level of EUR 65-85 per MWh in
lion and EUR 1 billion yearly in
partners on the project.
The document, which has
The construction of two
Romania needs 20 years to join euro zone at current growth pace, says Dan Bucsa By Simona Bazavan GDP per capita in Romania is
today’s growth pace, he added.
currently almost 60 percent
“I don’t think we will see a
below the EU average and will
country joining the euro area
most likely need to reach about
with a GDP per capita lower
80-90 percent before joining the
than 80-90 percent of the EU
euro area, thinks Dan Bucsa, an
average. It won’t be lower than
economist at UniCredit London.
that considering the sad experi-
Getting there would probably
ence with Portugal and Greece,”
take Romania 20 years, given
said Bucsa, during a press event
Romania has no official target-year to join the euro zone
www.business-review.eu Business Review | December 2016
NEWS 5
PM Ciolos: ‘We are the government with zero corruption’
Vasile Godinca-Herlea will be the new CEO of CITR starting 2017. He is a lawyer and insolvency practitioner with over 13 years in the field, and a track record of some 150 insolvency projects, having also contributed to the drafting of regulations in this field. In recent years, Godinca-Herlea has been the managing partner of CITR.
By Georgeta Gheorghe Speaking one year after assuming office, PM Dacian Ciolos called on the ministers of his cabinet to self-assess the
Dacian Ciolos told his ministers to present their accomplishments from the past year
performance of Romania’s first technocratic government.
findings, so that we may engage
things that have been done
those interested in reality and
throughout the year. As I said
government was to ensure the
truth, transcending the populism
at the beginning of my term,
political and economic stability
that is probably inherent to all
we did not set to revolutionize
of the country. However, since
election campaigns, to be able
Romania in just one year, but
we took on this exceptional
to discuss in a civilized manner
we will launch, as we said then,
mandate, it has been obvious
what has been done and what is
some reforms in key areas.”
that society has much greater
to be done.”
“The main goal of this
Ciolos was sworn in on
He added, “If we do not do
November 17, 2015, and his
litically independent govern-
that ourselves, others will come
government one week later.
ment,” stated the official report
up with their own analysis and
The PM was nominated by
on the first year of governing.
call us something like ‘govern-
President Klaus Iohannis after
Speaking at the begin-
expectations from this po-
ment zero’. We must stand up
Victor Ponta stepped down
ning of a government meet-
and say: indeed, we are the zero
following mass protests in Bu-
ing, Ciolos said, “I believe it
corruption, zero populism and
charest and other major cities
is important to conduct our
zero lies government, and, start-
in the wake of the deadly fire in
own analysis and disclose the
ing from there, we will explain
Colectiv club.
in November. Should Romania
global trends. Bucsa argues that
want to adopt the common
the Romanian economy is not
currency sooner, it will need to
at risk of overheating, despite
accelerate its economic growth,
recent salary increases which
which can be done by focusing
once again are not correlated
on investments and labor force.
with an equivalent productivity
“If we look at investments
boost. The timing, however, is
alone, we see that the high-
challenging, he suggested. “Tax
est increases are observed in
collection hasn’t improved
countries continuing reforms,”
following the VAT cut and the
he commented. Unicredit Bank
drop in tax revenues comes at a
estimates that the Romanian
time when Romania’s economy
economy will grow by 4.3
is riding the wave. At this point,
percent this year, with expan-
budgetary revenues should
sion slowing to 3.5 percent in
increase at a faster pace than
2017, in line with European and
the GDP,” he said.
Mihai Patrulescu has joined Colliers International as head of strategic analysis in charge of the research department. He replaces Daniela Popescu, who joined the consultancy’s retail department this autumn, as senior associate. Patrulescu has a master’s degree in International Finance from the Barcelona Graduate School of Economics. He spent a year in Milan in the internal consultancy department of the UniCredit group.
Silviu Sandache has been promoted to tax services director with professional services firm Deloitte Romania, alongside seven new directors. He is a tax professional whose primary focus is the Romanian energy and resource businesses. Over the years he has led teams in assisting clients during M&A projects, reorganizations, business modeling and tax litigation. Sandache has an economic background, having graduated from the Marketing Faculty in ASE. He has been a member of the Romanian Tax Advisors Chamber since 2006 and graduated from ACCA in 2009. Sandache also plays an active role on the tax committee of AmCham in Romania.
www.business-review.eu Business Review | December 2016
6 RETAIL
Retailers walk in a winter wonderland ‘Tis the season to go shopping and malls are firing up their engines to make the most of the holiday season, before the end of yet another good year for the local retail scene. By Simona Bazavan
gifts, in Bucharest and outside the capital, she outlined. In fact, the holiday season is so important that some retailers get a considerable chunk of their revenues around this time of the year. “There are retailers for whom the period from Black Friday until after the winter holidays can generate up to 40 percent of their fullyear revenues,” noted Dumitru. Therefore, shopping center owners have been placing greater importance on marketing campaigns dedicated to the holiday season over recent years, say consultants. How have they been preparing to pull in shoppers this year? By bringing out the whole festive arsenal and making sure they differentiate, say pundits. “On a market where we are bombarded daily with all sorts of advertisement messages, atmosphere – for example decorations and music – have become very important and marketing campaigns have become more and more complex in an attempt to appeal to different shoppers,” Aura Dinu, head of marketing shopping centers with CBRE Romania, told BR. Getting shoppers into the holiday mood
Photo: Anchor Grup
is key and malls are looking to boost sales by using all media channels, both online and offline, said Ilie. There is an increasing focus on indoor decorations as well as facades and also on organizing winter fairs with seasonal Anchor Grup estimates that traffic in its two malls will increase by at least 30 percent this holiday season compared to the previous months
products and decorations. “Each mall has its own specifics, so I do not know if it is
ocal shopping mall owners and
L
fashion players saw their sales increase by be-
themselves in terms of marketing campaigns
retailers alike have good reason to be
tween 10 and 20 percent this year compared
for the holidays, but rather the quality of the
satisfied with the year that is almost
with the same period of last year, Liana Du-
events they organize, the atmosphere that
ending. On the back of salary increases and
mitru, associate director in the retail depart-
every mall manages to convey and, finally, to
overall improving consumer confidence,
ment of Colliers International, told BR. “We
what extent all this brings in more shoppers,”
retail sales – excluding cars – were up by 16.8
expect this trend to continue over the coming
explained Ilie.
percent in the first semester compared to the
months, with this growth rate to apply for the
same period last year, according to official
entire year,” she forecast.
important to follow how they differentiate
Entertainment too is very popular with consumers during the holiday season, particularly families who want to provide
statistics.
Getting into the holiday spirit
their children with entertainment options,
centers have reported average sales increases
Most importantly, the best is yet to come.
such as cinema, playgrounds, skating rinks,
of between 9 and 10 percent y-o-y, accord-
Mall owners and retailers alike are now get-
Christmas fairs, concerts or other events for
ing to Doinita Ilie, leasing manager for retail
ting ready to make the most of the end-of-
different age groups, added Dumitru. “All this
with JLL Romania. “If we also consider the
year shopping spree. “Winter holidays are
can increase traffic and influence the shop-
period from July to September when retailers
peak sales season for malls and retailers. On
per’s choice to go to one shopping center or
introduced new collections, we estimate that
average sales may increase by 10-20 percent
another, both when it comes to shopping and
for the first nine months, the growth rate was
compared with a typical period of the year,”
for spending leisure time with the family,” she
slightly higher,” she told BR.
said Ilie. Leading retail projects that have
noted.
During the same period, leading retail
Fashion retailers, in particular, have been posting above average results. Most major
several anchor stores are the ones likely to cash in the most from the rush for Christmas
Timing is also important and starting early is the winning strategy, stressed Dumitru.
www.business-review.eu Business Review | December 2016
8 RETAIL
and can directly influence the performance of
een movie marathon that brought in some
its tenants,” she concluded.
2,500 people.
Mall owners confirm that they are expect-
Retailers that secure the highest sales in-
“Both malls have loyal customers who
ing a better than average holiday season this
have shopped there daily for more than ten
year. Anchor Grup, the owner of Bucuresti
years. Therefore, our marketing efforts focus
Mall and Plaza Romania in Bucharest, esti-
on both securing their loyalty and attracting
mates that traffic in its two malls will increase
new a new audience,” explained the GM. All
by at least 30 percent compared to the previ-
this is supported by a higher marketing bud-
ous months.
get this year, he added.
creases during the holiday season are those
For the first nine months of this year,
with very aggressive programs starting with
the two shopping malls reported sales that
Competition hots up for winter
Black Friday at the end of November, and
surpassed last year’s level. “This trend was
Spending more and on more complex market-
who generally promote their discounts even
fueled both by private consumption picking
ing campaigns makes sense since the capital’s
before the start of the holiday season, she
up and by the fact that early this year both
retail scene, and eastern Bucharest in particu-
said. “Consumers are increasingly responsive
malls were officially relaunched following
lar, have gotten considerably more crowded
to discounts offered by retailers, both because
a complex refurbishment process,” Affan
this year. With the opening of the 70,000
they are looking for a good price-quality ratio,
Yildirim, GM of Anchor Grup, told BR.
sqm ParkLake and the 30,000 sqm Veranda
but also because they want novelties and an
A mix of events, sales and promotions
malls earlier this year, Bucharest has seen
element of surprise that contributes to a more
will be used to bring in shoppers this year
its modern retail space stock increase to 1.16
pleasant shopping experience,” she said.
by taking into account the specifics of each
million sqm, according to data from Colliers
mall, says the developer. The core audience at
International.
At the end of the day, the emphasis on more complex marketing campaigns can
Bucuresti Mall is made up of fashion lovers,
also be seen in the fact that shopping malls
hence a focus on sales and promotions. Plaza
account the development of local purchas-
are allocating more money to such activities.
Romania, on the other hand, is particularly
ing power as well as forecasts of increased
Marketing budgets have been going up for the
popular with families, which led the devel-
consumption for the coming years, Bucharest
entire year for most shopping centers, said
oper to focus on extending its food court offer
can absorb another 100,000 sqm of additional
Dumitru. “This is further proof that a well
and free time activities. For example, this
space over the next few years, meaning only
thought out campaign during the year can be
October a chestnut festival was held in Plaza
one more large-scale shopping mall, accord-
a strong differentiator for a shopping center
Romania, along with concerts and a Hallow-
ing to the real estate services firm.
Based on previous estimates that take into
www.business-review.eu Business Review | December 2016
INTERVIEW 9
Deck the malls: AFI Europe Romania prepares for festive frenzy Georgiana Oltenescu, corporate marketing manager of AFI Europe Romania, talks to BR about the developer’s plans for its two shopping malls this winter season. By Simona Bazavan put together with scenogra-
tively, which is how they are known by most
pher Dan Tita. There will be
of our shoppers. On this occasion, we have
a lot to choose from, from
also upgraded our logos. We want to address
clothing and accessories to
as large an audience as possible, families and
interior design products,
young people, for whom shopping is a way of
gadgets and toys.
life but for whom each shopping decision is
An alternative we offer
also rational. In other words, we target people
our shoppers is the AFI Gift
who know what they want and who are will-
Card, a solution for any-
ing to invest more for quality products.
one who wants to give the perfect gift but lacks the inspiration or time. It is a
Will AFI Cotroceni be open this year for Christmas and on January 1?
value card for individuals
Yes, as before, AFI Cotroceni will be open
and companies alike, worth
for Christmas as well as on New Year’s Eve
between RON 50 and RON
and January 1 and 2. Our holiday working
10,000, which can be used in
hours have become something of a tradition
numerous stores in the mall.
as people can come and shop when most
In AFI Palace Ploiesti we
other stores in town are closed. AFI Cotroceni
have a promotional cam-
will be open between 10.00 and 22:00 on
paign called “At least once
December 24, 26 and 31 and on January 2, and
be Santa Claus for yourself”
between 14:00 and 22:00 on December 25 and
whose grand prize is an Audi
January 1. AFI Ploiesti will also have special
A1.
opening hours.
What are your expectations for this year’s holiday shopping season in terms of the number of visitors, and how do you plan to achieve this?
Will this year’s marketing campaign for the end of year shopping season be different from what you have done in the years before?
How is the mall’s tenant mix different now from the beginning of the year? Who are the new tenants and who has left?
Over the coming period, we will focus on the
AFI Cotroceni this year. These include fashion
Every year we see a substantial traffic
winter season campaign. Shopping for gifts is
retailers such as Fossil, Tezenis, New Era, Sa-
increase at both our shopping malls – AFI
a challenge each year because of either lack
brini, Cozette Boutique, Lacoste, Viggo, Anna
Cotroceni and AFI Ploiesti – which in turn also
of time or inspiration. This is why we plan to
Cori, Louis Purple and Tezyo. This year we
generates higher sales. AFI Cotroceni reports
offer our shoppers a source of inspiration so
have also launched AFI Aventurier, the larg-
the highest traffic among local malls with an
shopping remains pleasant and relaxing.
est adventure park in Europe in a shopping
average of 52,000 visitors per day. Over the
For six weeks we will hold the largest gifts
center. Another entertainment tenant is Max
next period we expect significant increases in
fair in AFI Cotroceni. We have also prepared
Fun and new restaurants include Taksim,
line with the previous years when we reached
an eight-day Saint Nicholas promotion with
Cremeria Emilia, Sushi Bar and Japanese cake
records of over 100,000 shoppers per day.
the footwear brands present in the mall.
store Motiko.
This year we have prepared for our shop-
With the launch of the winter campaign,
We have brought in several new tenants to
New tenants in AFI Ploiesti include
pers a Christmas-themed fair that will give
we also plan to refresh our own brands. The
Pimkie, Candrani, Tally Weijl, Max Fun,
them gift ideas. On the main corridors of AFI
names of our shopping malls will be changed
Starbucks, Deichmann, Calzedonia and
Cotroceni we will have an ideas exhibition
to AFI Cotroceni and AFI Ploiesti, respec-
Donuteria.
www.business-review.eu Business Review | December 2016
10 COVER STORY
Photo: Betfair Development Romania
How well are your company and employees?
Wellbeing is linked to positive results for both individuals and organizations
Individual wellbeing, employee engagement and a culture of wellbeing are linked to an organization’s performance, whether it is measured through productivity, staff retention or even financial outcomes. With companies fighting a fierce battle over highly educated and trained personnel, the wellbeing of employees and organizations as a whole has become one of the most important KPIs a company should follow.
T
he science behind emotions The field has evolved so far at international level that experts in psychology can scientifically demonstrate a direct correla-
tion between wellbeing and its positive impact on work performance. “Wellbeing is the precise acceptance that a happy employee is more efficient than an unhappy one,” says Dan Petre, business developer at D&D Research. He adds that this concept is important because it is linked to positive results for both individuals and organizations, such as better performance, engagement and lower levels of conflict. “The concrete parts of wellbeing are linked to the way emotions interact with behaviors at work, usually recognized as engagement, burnout, satisfaction at work and workaholism,” adds Petre. According to international studies, when we experience a positive
By Anda Sebesi
mood/feelings, our brain is on average 31 percent more productive
www.business-review.eu Business Review | December 2016
12 COVER STORY
than when we are in a negative, neutral or stressed mood. Research-
have joined this endeavor as partners and participants, particularly
ers also found that salespeople perform 37 percent better while
in view of the fact that many of our resources have in the past few
doctors are 19 percent quicker to make a correct diagnosis when they
years been concentrated in the prevention area and public educa-
enjoy psychological and physical wellbeing. In addition, according to
tion regarding this key pillar of health. The data provided by this
Fortune, the company you work for can improve your personal/fam-
survey, together with our internal data, will help us become more
ily life (supporting you in your role as a parent) and health (encour-
competitive: by knowing certain behaviors in depth, we will be able
aging you to give up smoking or maintain a healthy lifestyle).
to adapt our range of services to positively respond to the needs of every client,” says Fady
Individual wellbeing’s link to organizational performance
Chreih, CEO of Regina Maria.
Business Review has been
they wanted to get involved
covering Romania’s most active
in the OWB study to see how
industries and top performing
their employees feel and “take
businesses ever since its launch
their pulse”. “Any such activity
in 1998. In recent years, both
helps us to improve what we
at our business conferences
do,” they add.
In addition, representatives of Autonom Rent-a Car say that
“The OWB Index is not just
and during interviews, we
the first that uses a dedicated
have noticed that whenever we discuss a business’s evolution
scientific tool, but it also mea-
or company performance, the
sures topics of great interest
story leads to bosses saying: “We have invested in people”, “We are
within corporations, like burnout and workaholism. Through our
growing and heavily recruiting”, “Our biggest challenge is retaining
partnership with D&D Research, we will be able to deliver, free of
talent”, “Our main priority is to increase productivity and retention”,
charge, results that will be extremely useful in the development of
“We have built a powerful employer brand”.
effective and sustainable wellbeing policies for the companies that
What these stories have in common, besides highlighting an increase in attention to human capital, whether it be from local SMEs
participate in the study,” says Adina Cretu, marketing manager at Business Review. Asked what the concept of
or large multinationals, is how complicated the discussion
wellbeing means for Autonom
gets when we get to questions
Rent-a Car, the representa-
about results, return on invest-
tives of the company say that
ment and measurement. The
it includes aspects like salaries,
answers are tougher to ascer-
medical insurance, time for
tain because the indicators are
sport, healthy food and the
very difficult to measure. And
creation of well-rounded teams
what are the best indicators to
based on respect and com-
follow? Is staff turnover and
mon sense. “For us, wellbeing means that our employees see
retention a correct reflection of how well a company is doing? Is the engagement indicator enough?
their job as a place where they work with friends on activities that
Does being voted a “best company to work for” really capture the
matter and help them develop,” they say. They add that the company
complexity of organizational wellbeing?
periodically evaluates employee engagement and has at least two
In this context, Business Review, along with D&D Research and
one-to-one meetings every year with each employee where they talk
the Faculty of Psychology, has launched the Organizational Wellbe-
about their motivation and activities. “We also set together his or
ing Study – the first research project looking to measure Organiza-
her future professional path,” adds the representatives of Autonom
tional Wellbeing within companies active on the Romanian market,
Rent-a Car.
with a unified scientific instrument that is deeply rooted in today’s business culture and context. “Our connection with the first survey that deals with the health
Organizational Wellbeing Aspects For this issue’s cover story, BR dived deep into four of the dimen-
of Romanian companies and their employees was natural, given
sions and socio-demographic descriptors that impact organizational
that we support all initiatives with a positive impact on the future of
wellbeing, to illustrate their contribution towards the Organizational
healthcare in Romania. Regina Maria employees willingly partici-
Wellbeing Index and what that means for participating companies
pated in this survey, which is included in a longer series of internal
and the overall business environment: work-life conflict or spillover;
surveys carried out to measure certain activity parameters. We
development opportunities; healthy lifestyle and the workplace.
www.business-review.eu Business Review | December 2016
INTERVIEW 13
Preventive health subscriptions gain ground with start-ups and SMEs Fady Chreih, CEO of Regina Maria, says the private healthcare operator has 365,000 corporate subscriptions in its portfolio, accounting for 40 percent of its total business. He adds that there is growing demand for preventive healthcare packages from start-ups and small and mediumsized enterprises. Talking about the company’s own employees, Chreih says that they now enjoy more benefits in the prevention area, alongside flexible working hours and the option of gym memberships. By Ovidiu Posirca How does Regina Maria promote wellbeing internally, among its employees?
nearly a mature market. It’s a million and
create and build things and we have launched
counting, especially since this segment has all
the only preventive packages on the market
Our patients have understood that it is better
the premises to double its volume in the years
for start-ups and SMEs. In the future, we will
to prevent than to treat – on a practical level,
to come. The Regina Maria private healthcare
grow due to two decisive factors: patients
not just in theory. Given that the beneficiary
network owns more than a third of the total
who will understand the benefits of preven-
of a health subscription is an ambassador for
market, with 365,000 corporate subscriptions
tion for health; and tax deductibility, a step
a healthy lifestyle within society, the same
in its portfolio, representing 40 percent of the
that we are waiting for from the authorities.
power of example works at a business-to-
total business.
business level as well. In order to sell a health
Over time, these products have come to
service, a medical provider must, itself, be a
play a very important role in expanding our
healthy company. We support those who are
network at national level: we have constantly
In terms of industries, from where did you register the biggest demand for corporate subscription packages for health services?
building, through their daily efforts, a Regina
reinvested profit in education and medical
The study we conducted reveals that medical
Maria premium brand that stands out on the
performance and we have been the main sup-
services included in health subscriptions are
market. Our employees and specialists enjoy
port of the health system. When we intro-
mostly accessed by clients from fast-growing
more benefits in the prevention area.
duced the first health subscriptions
industries with a large number of employees
in Romania, 20 years ago, they were
and generally dominated by multinational
in training campaigns (such as
rather exclusivist products given
companies. Beyond their major interest in
first-aid classes for employees),
by large companies to top manage-
medical services, these companies are ambas-
they are actively involved in
ment and expats. Current demand
sadors of a healthy lifestyle and prevention is
educational health programs for
is much higher because they are
part of their organizational culture.
patients, have flexible working
widely accessed and the next level
Our staff occasionally participates
hours, and access to gym memberships.
of development has already begun: customization. The better you understand
How does the analysis of your internal data on the health of your corporate clients shape the company’s business plans? Currently, there are over 1 million health subscriptions
companies’ needs, the employees’ profiles and the
How would you describe Regina Maria’s corporate clients’ interest in services that have a strong focus on prevention? Our data show that patients with health subscriptions who come to the doctor on a preventative basis contribute to the increase
specific nature of
in Romanian life expectancy, which lags
the industries they
seven to eight years behind other countries in
are active in, the
Western Europe. Employees who benefit from
more competitive
subscriptions access medical services 2.5
you are.
times more often than patients who go to see
The health subscriptions market is also growing beyond large companies. Today, we
on the Romanian
support those who
market, which is
want to further
a doctor only when in need. Corporate subscribers make 6.6 medical visits a year on their own initiative, and 63 percent of the patients we cared for are young adults aged 26 to 45. They have turned prevention into a lifestyle; therefore their most frequent diagnosis is “clinically healthy”.
www.business-review.eu Business Review | December 2016
14 COVER STORY
Development opportunities: a key for healthy companies International studies link development opportunities with business outcomes, and companies are becoming increasingly aware that they need to offer such programs in order to have happier employees and post healthy results.
A
By Anda Sebesi
ccording to a study conducted
implemented such programs. According to
by Gallup in 2014 and quoted by
a wellbeing survey conducted earlier this
Smart Experience, seven out of
year by Smart Experience, entitled Smart
ten employees do not feel they resonate
Experience: Methods of Non-Financial
with the organization they work for and
Engagement in Companies, the number of
feel unmotivated. This means additional
its customers has increased ten-fold since
costs of EUR 450-550 billion a year for the
2010 from 5 to 52 now. The study measured
companies to cover their employees’ low
the top preferences for programs delivered
level of productivity and foot the bill for
and trends for the upcoming year.
their health problems, generated mainly
“For example, I have never had more
by stress at work. In response to this, both
requests for self-knowledge programs in
worldwide and in Romania, more and more
corporations as now. Two years ago for the
organizations are interested in wellbeing,
first time I delivered a workshop about hap-
a very wide concept that includes, among
piness for the finance team of a very large
other things, development opportunities
company. Scores of people attended it and
for employees.
it was something very special both for me
“Ever since the early ‘80s, we have known that when an organization’s employees are satisfied with the career and development opportunities available to them, client satisfaction levels are also
and them,” says Alis Anagnostakis, trainer and coach and founder of Mind Learners. According to her, there are already positive leadership training
high. The initial focus was to link development opportunities with
courses that help managers create an open mindset and a frame-
business outcomes. Regarding organizational wellbeing, plenty of
work where their teams can be happy. “From mindfulness programs
studies have made the connection between the two. It is now an
for employees to individual coaching and more flexible processes
accepted fact that employees’ development opportunities
that enable individual initiatives and the introduction of
are critical for their wellbeing,” says Cristian Mihai,
‘gamification’ systems within employees’ learning
training academy director at CEB/SHL Romania. In
and development processes – are all courageous
this context, the OWB study conducted by Busi-
attempts to create a working environment where
ness Review with D&D Research and the Faculty
the individual can find joy and meaning,” says
of Psychology aims to check if Romanians are
Anagnostakis.
aware of the development opportunities that
As for the types of programs, Alecsandra
their company offers them and how these influ-
Ionita, wellbeing specialist and CEO at Smart
ence both individual and organizational wellbe-
Experience, says that the study conducted by the
ing scores. When analyzing the data, the research-
company shows that half of its delivered programs
ers will explore whether there are direct correlations between development opportunities and the other
come from the arts & hobbies field, including acting and improvising, painting, photography and cooking.
dimensions measured by the study, such as: Significance, Engage-
“More than 50 percent of the employees engaged in the survey said
ment, Job Satisfaction and Commitment to the Organization, which
that they wanted the same programs for the next year. So arts &
will help organizations identify the most impactful and relevant
hobbies will govern the corporate wellbeing industry in 2017, too.”
development programs and focus their efforts on that area.
Companies that have chosen Smart Experience as their wellbeing
As pundits say, today’s employees, from multinationals or large
supplier come from industries such as IT & telecom, FMCG, shared
Romanian companies, are more interested in the opportunities that
services, banking, pharma, building and technology. The majority
their organization offers, for both their personal and professional
of its customers are multinational corporations and big Romanian
development. Proof of this trend is the number of firms that have
companies.
www.business-review.eu Business Review | December 2016
15 - PARTNER CONTENT -
Significant shift in tenants’ philosophy Sorin Visoianu, Country Manager Operations Romania at IMMOFINANZ and well-connected location, easily-available
on the premises, on-site facility management
service providers, energy friendly technologies
that can handle tenants’ requests, to name
and round the clock property management, have
just a few of the elements that contribute to
turned into key aspects which tenants take into
the employees’ well-being.
account when choosing their offices. Nowadays, it is not only about the cost/ sqm anymore when leasing a new office space, but about the cost/ employee and how that particular new space can positively influence the wellbeing and the results of the company’s teams.
Open or closed spaces – is the tenants’ approach regarding these layout options changing? What are the main arguments for each of these? In our experience, there is no right or wrong
How does this interest translate when it comes to choosing a new office space? What attributes (relating to wellbeing at work) do they aim to incorporate into their offices?
when it comes to office layout, but the key
This shift towards the best interest of the
ment of a company will always have a
employee has certainly influenced the mindsets
different dynamic and different needs from
How important has employees’ wellbeing become for the tenants of Bucharest’s office buildings? Do you see a growing interest on their side for this aspect?
of real estate developers and owners: the sector
the sales team, and these also translate into
is now less about bricks and mortar, and more
varying office layout necessities. Our ten-
about services and facilities. Landlords who
ants, most of whom have been our partners
understand this shift in tenants’ philosophy and
for many years, are progressive-minded
have the flexibility to translate this into custom-
companies that understand the importance
From what we have witnessed, there has
ized office spaces will be a step ahead of the
of responding to specific needs with specific
been a significant shift in the mindsets of
market. At IMMOFINANZ, this is a core view and
solutions, and this also applies to their office
companies over the last years, particularly
we are working hard to ensure that all our exist-
layout choices.
in terms of how employees and their needs
ing and future properties are designed to answer
are understood and taken into account.
the needs brought by these new mindsets.
to providing an inspiring and productivityboosting work environment lies in tailoring the layout to the business and operational specifics. For example, the creative depart-
There is no standard fit-out that follows an up-to-date trend; tenants do ask for a nice
Furthermore, we can see multinational
fit-out when moving on the premises, but
the job are now seen as a result of the well-
companies consolidating their local presence,
this is synonymous to a proper fit-out suit-
being of employees, therefore companies
which can lead to growth on many economic
able for their business model and it can be
have started to recognize the benefits of a
levels, including the office market. This increase
different from one company to another.
thoughtful and inspiring work environment
in offer and demand is already raising the quality
– a reality which translates into how tenant
standards of new properties and the focus on
companies view their office spaces.
providing comfort and a wide range of services
Productivity, collaboration and innovation at
the buildings themselves have become a
ample, our own most recent project, Metroffice,
reinforcement of the values and culture of
has been designed to incorporate a wide range of
Is hot desking a practice which gained popularity on the local market? Why? What is your tenants’ experience with this practice?
the company, helping to recruit and retain
added services and tailored functions, in order to
Each company is unique and so are their
employees. As a result, companies value
provide the people who work there with benefits
operational needs, therefore there is no
more and more the flexibility which the
that answer their specific needs and comfort
universal office layout solution. Hot desking
owner of the building offers in adapting
necessities. Also, when it comes to our stand-
is still a novelty for the Romanian office
and implementing the operational concept
ing office portfolio, IMMOFINANZ permanently
concept, and not wide spread at this point,
of the company, and this also applies to
invests in providing its tenants with up-to-date
but we are always ready to assist our tenants
elements which aim to improve employee
facilities. As such, we can mention the great ac-
in implementing any design concepts which
wellbeing. Other aspects, such as an ideal
cessibility, various retail options and restaurants
can contribute to their business success.
We can now say that the offices and
to corporate employees is gaining ground. For ex-
www.business-review.eu Business Review | December 2016
16 COVER STORY
The road to wellbeing passes through the office Companies are increasingly investing in offices that foster workplace wellbeing as a means of boosting their employees’ job satisfaction and ultimately their productivity.
T
By Simona Bazavan
he local of-
its office of over
fice scene
5,500 sqm was one
is changing
of the reasons it
and employees are
won, thinks head
bringing about the
of finance and ac-
shift, tenants and
counting, and local
developers agree.
manager, Bogdan
In the competi-
Tomsa. The office
tion to attract and
is designed as a
secure the best tal-
city within a city,
ent, companies are
with areas replicat-
turning their of-
ing landmarks
fices into a differ-
such as a garden,
entiator and selling
library, theater,
point. Boosting
cinema and even
productivity is
“grandma’s coun-
still at the heart
try house”. Com-
of any decision
ing up with the
when choosing or
concept was a pro-
designing an of-
cess that involved
fice, but firms have
the employees,
increasingly come
whose wish list
to understand that
for the new office
their employees’
included a low-
workplace wellbe-
light relaxation
ing is key to ensur-
and working area,
ing it.
standing desks,
However,
a library and an
securing workplace wellbeing has become harder of late given lo-
area to store and share sports equipment. The office is part of the
cal employees’ change of mentality. “While a few years back they
package the company uses to attract new workers, so the area where
were motivated by financial aspects alone, now they are consider-
candidates are interviewed gives them a glimpse of the whole office
ing new elements as well. People place greater importance on the
and its facilities.
work environment and are more concerned about quality of life,”
Some EUR 2 million was invested in the headquarters of Betfair
Gabriel Balaban MRICS, LEED green associate with CBRE, told BR.
Romania in The Office in Cluj-Napoca, said Tomsa. The 550 employ-
All this has been good news for employees, especially those of large
ees have some 650 work stations to choose from and they all work
multinationals. Working in unconventional spaces meant to boost
in an open space which the company’s manager says helps promote
creativity, unwinding in games rooms, music rooms or libraries or
transparency and openness.
getting massages at the office are perks that more local employees now get to enjoy during office hours. As expected, IT and telecom companies are at the forefront of
Vodafone Romania opted for the same in its new headquarters in the Globalworth Tower in Bucharest. The objective was to create a digital office that nurtures communication, collaboration and cre-
this trend. Software company Betfair Development Romania in
ative interactivity, Florin Petrescu, HR director of Vodafone Roma-
Cluj-Napoca recently won three prizes, including the grand prize in
nia, told BR.
the first edition of The Most Office competition organized by CBRE in partnership with Skanska. Having a well-rounded concept for
Hot-desking – the practice of multiple employees using a single physical workstation at different times – was an important part of
www.business-review.eu Business Review | December 2016
18 COVER STORY
the interactive and collaborative work environment Vodafone has created in its new headquarters, he explained. “Employees are con-
comfort requirements,” he told BR. If over the past few years office innovation has been mostly ap-
stantly moving, so Vodafone’s ‘digital’ office concept features very
proached by companies in terms of interior design advancements
few landlines and desktop computers, printers or other traditional
and less in terms of complex facilities, buildings efficiency or long-
office equipment. Laptops and mobile connections make it possible
term performance, this is now changing, Antoniu Panait, managing
to base workers in any area of the office. This fosters more transpar-
director of Vastint Romania, told BR. Some of the highpoints Vastint
ency, open and direct collaboration and greater productivity,” he told
integrated into its Timpuri Noi Square and Business Garden Bucha-
BR.
rest office projects include a more central, easily accessible location
Catering to the new demand
by various means of public transport including by bike, complete
All this means developers are upgrading their offer to meet tenants’
with parking, showers and lockers, real outdoor green areas, a more
new demands. “Wellbeing has already become a key element for
natural indoor environment and easy access to service areas.
developers when they are working on a new project. Therefore they
For Skanska Property Romania, wellbeing goes hand in hand with
are factoring in aspects such as air quality, thermal comfort, lighting
green technologies. “Most often tenants are interested in the green
quality, acoustics and noise, interior design and various facilities
solutions implemented and the building’s certifications. LEED and
from as early as the design stage,” Andrei Voica, head of project
BREEAM are among the most popular and a building that has one of
management with the office advisory of Colliers International, told
these certifications is eco-friendly because it is built out of sustain-
BR.
able materials and therefore ensures a healthy environment,” Aure-
Nowadays, it is no longer about the cost per sqm when leasing a new office space, but rather about the cost per employee and how
lia Luca, country director of Skanska Property Romania, told BR. But how do employees themselves feel about all these features
that particular space can positively influence staff wellbeing and
that companies and developers brand as wellbeing ingredients? The
results, confirms Sorin Visoianu, country manager of operations
organizational Wellbeing Study put together by BR and D&D Re-
Romania at Immofinanz. “The increase in supply and demand is
search aims to shed some light on this. It will do so by looking into
already raising the quality standards of new properties and the focus
how elements such as the office commute (means and duration),
on providing comfort and a wide range of services to corporate
extra facilities such as relaxation rooms or bike parking, an open
employees is gaining ground. For example, our own most recent
layout or having a mobile workstation influence measured wellbe-
project, Metroffice, has been designed to incorporate a wide range of
ing dimensions such as work and family time balance, burnout,
added services and tailored functions, in order to provide the people
perceived stress, engagement, support from colleagues and supervi-
who work there with benefits that meet their specific needs and
sors, and commitment to the organization.
www.business-review.eu Business Review | December 2016
20 COVER STORY
Work-life balance: a never-ending debate Work-life balance or spillover has been a well known concept for years now, one of which both employees and employers are aware. It is a widespread phenomenon, but the argument still rages about where the responsibility lies: while some say that it is the individual’s business, others maintain that it is the bosses’ duty to solve this issue.
A
By Anda Sebesi
ccording to EHS Today,
Why is it relevant?
one of the biggest US mag-
Balance is not just something
azines for environmental,
nice to have; it positively affects
health and safety management
individuals’ wellbeing and task
professionals in the manufactur-
engagement. That is why organiza-
ing, construction, and service sec-
tions should focus on fostering a
tors, “presenteeism” (where em-
work environment that supports
ployees show up for work but don’t
a positive relationship between
perform at full capacity) costs
work and home through concur-
businesses ten times more than
rent organizational and individual
absenteeism. As the publication
interventions.
says, presenteeism impacts not only workers who are “absent but present,” but also their coworkers.
How can organizations improve work-life balance?
According to a GCC Insights report by Global Corporate Challenge
Organizational practices found to be successful, when tested in
quoted by the title, on average, such employees cost businesses the
applied research, include providing access to health and sports
equivalent of three months per year in lost productivity.
centers, onsite childcare, a part-time job and flexible program,
Last year the American magazine Forbes identified 25 of the best
compressed working weeks, and flexible daily start and finish times.
companies for work-life balance. At the top of the list for the third
Importantly, all strategies – and perhaps mainly those related to
year in a row was Colgate-Palmolive. The company’s career page
the work schedule – need to be appropriate for both employee and
touts its commitment to “encouraging a healthy balance between
organizational needs; one specific strategy might not work for all
work and personal responsibilities”, and considerations like nearby
employees. Also, individual actions play a role. Examples are not
childcare centers; emergency in-home care for dependents; tuition
bringing work home, allowing full recovery when on vacation (i.e.,
assistance; health, legal, and financial counseling services; and
no contact with the office), respecting the regular work schedule
relocation assistance feature prominently in an outline of employee
and not doing overtime, taking breaks and allowing appropriate
compensation and benefits. Coldwell Banker, Google, Nokia, Philips
time and space for lunch, and engaging in creating a supporting
and Walt Disney are some of the giants included in the list.
work environment. Also, reducing demands (e.g., diminishing expectations or the number of duties of work or family roles) and
Against this backdrop, Coralia Sulea, university lecturer and doctor within the Psychology Department of the University of Timisoara, highlights five crucial things about work-life balance.
increasing resources (e.g., seeking work-family support, getting help with chores or difficult tasks).
When do interventions work? The way an intervention is implemented might be more important
What is it?
than the intervention itself. It is not enough to have a list of work fa-
The topic of work-life balance is concerned with the negative and
cilities for employees. In some cases, policies and options do exist,
positive relationships between an employee’s work and non-work
but employees are not aware of them, or they might worry that their
roles — family, lifestyle, and hobbies.
career will suffer if they take advantage of such benefits. That is why certain actions are required to initiate and foster such interven-
Balance and imbalance
tions, which are basically focused on integrating specific policies in
When there is an imbalance, the employee might not have enough
the organizational culture so that employees feel encouraged to use
time for one domain or takes work stress home, or the other way
them. Examples might include a survey of employees’ particular
around. Importantly, individuals can experience more than balance,
needs and engaging employees in decisions. Importantly, the role
having enriching experiences when skills and positive moods are
of managers is crucial — the way they are responsive to employees’
transferable between work and home.
outside work responsibilities and how they enact specific support.
www.business-review.eu Business Review | December 2016
22 COVER STORY
Healthy work environment becomes new focus for local HRs More companies in Romania are looking to promote healthy habits among their employees, while human resources managers at both multinational and local firms are deploying a mix of wellbeing initiatives and educational programs to help their workforce maintain a healthy lifestyle.
T
By Ovidiu Posirca
here are companies in Roma-
Maria, told BR.
nia paying a lot of money for
When it comes to companies, doc-
wellbeing and health-related
tors’ recommendations for combat-
services, says Fady Chreih, CEO of pri-
ing stress may include reorganizing
vate healthcare chain Regina Maria. He
working processes, providing areas
described how one multinational com-
for relaxation or sports, redecorating
pany in the logistics sector, which has
spaces, and even organizing workshops
its four-storey HQ in Bucharest, had
and stress management sessions,
motivated its employees to become
added Georgescu.
more aware of their health. “The firm set a three-month challose a certain amount of weight and
All local firms to undertake at least one wellbeing program within three years, says player
exercise, and they won prizes from the
Companies looking to promote healthy
company if they managed it. It was
practices at work are also catching
very successful,” Chreih told a press
the eye of valuable job candidates, in
lenge for people not to use the elevator,
conference, when asked by BR about the corporate sector’s initia-
addition to strengthening relations with current employees, says
tives in this area.
Alecsandra Ionita, wellbeing specialist & CEO at Smart Experience. “In the last three years we have witnessed an increase in the
Private healthcare providers working with HRs to encourage healthy choices at work The way in which an employee arrives at work, be it by public transport, bike, on foot or by car, his or her eating habits at the office and even the
popularity of the outdoor segment of our business, which translated into higher demand for corporate sporting games, marathons, wellbeing retreats and in-house wellness,” Ionita told BR. Looking at the next three to five years, the
design of the building where a person works
local market will undergo a significant shift
impacts an individual’s overall health.
from the minimum non-financial package that
“Recently, the number of diseases or symptoms triggered by day-to-day stress has been on the rise. We are speaking mainly about digestive illnesses such as irritable bowel syndrome, gastritis and ulcers, or cardiovascular illnesses such as high blood pressure. Insomnia, headaches and symptoms related to anxiety/ depression are also very frequent. In this context, the stress level is
companies currently offer to a bigger and more consistent one. She added that wellbeing was practically an unknown word to companies three years ago, but in three years from now “each and every company will be involved in at least one wellbeing program.” According to a study published by Regina Maria on the health
assessed during examinations by occupational health physicians,”
of its service users, the highest demand came from patients active
Dr. Nirvana Georgescu, quality and patient safety director at Regina
in: IT & telecom (accounting for 8 percent of corporate medical services), finance & insurance (3 percent) and automotive (2 percent).
Questions from the Organizational Wellbeing Index on healthy life habits Do you do sports/planned physical exercise? What sport(s) do you do regularly? How do you wind down/relax between intense work sessions? When do you arrive/leave the office?
Chreih said that a third of corporate clients have been diagnosed with chronic disease during tests at Regina Maria. Another conclusion of the study was that employees with a health prevention package use medical services 2.5 times more than those who don’t have this kind of subscription and go to the doctor only when they are sick.
www.business-review.eu Business Review | December 2016
23 - PARTNER CONTENT -
What makes a cool office? to Porto and then to Dublin, in the cocoon rooms,
which was integrated in the company’s com-
or the authenticity of the Romanian traditional
munication campaigns.
way of living in the ‘grandma’s country house’. Through the relocation, the company wanted
ing at how fast the presence of Millenialls is
transparency including for the managers. There-
growing and the modern technologies are
fore, we came out with an open-plan and flexible
advancing, it is sure that offices will be more
work-spaces where staff members work along-
about customized and adaptable spaces
side managers and executives. Fewer walls and
and will become part of a wider message to
doors make management more reachable and
employees saying: We care!
has been erased and that makes everyone feel part of something special. People become team members instead of employees, says Diana Calfa, Managing Partner Morphoza. One of the eye-catching parts of this office interior is the use of art in the open-space areas. The designers chose graffiti wall to suggest the friendly, modern and forward thinking brand im-
usinesses today need their employ-
age of the company. Beside the essential purpose
ees to do their everyday job as well
of creating an aesthetically pleasing environ-
as they can, but they also want them
ment, the wall murals stimulate the senses, make
to be inspired, to innovate and to help the
people feel good and enhance company culture
company move forward. For that, employees
or instil new corporate values. We worked with a
need a creative environment that engages
very talented local artist, for the graffiti wall and
and is basically more fun. To make that hap-
it was our creative way to suggest to the com-
pen, Morphoza, the interior design firm that
pany’s staff that their employer wants to create a
signed the Betfair’s office design, winner of
really nice workplace for them, says Diana Calfa.
The Most Office 2016, goes beyond the clas-
Featuring gaming rooms, high-tech equip-
sical office design and reshapes corporate
ments and green technologies, IT companies, in
offices in flexible, collaborative and sustain-
particular, use office design in order to create an
able workplace, but also aesthetically attrac-
unique identity from the rest of the competition.
tive for the employees. For instance, for the Betfair offices in Cluj-
One of them is definitely NTT Data Romania, former EBS Romania, whose offices were honored
Napoca, the architects and interior designers
with the ‘High-Tech Award’ at The Most Office
from Morphoza aimed to create the perfect
2016 Gala.
place where the creativity and innovation power of more than 550 employees would
universal answer to this question. But, look-
to create a collaborative office, with maximum
encourage information to flow freely. Hierarchy
B
What makes a cool office? There is no
The company wanted an office interior that is considerably different and serves to boost
be constantly stimulated. The well-rounded
employees’ wellbeing and job satisfaction. Ap-
concept of this 5,500 sqm office, The City
pointed to create a workspace optimized for col-
Within The City, integrates open spaces, flex-
laboration and full inclusion, Morphoza designed
ible meeting rooms, low-light relaxation and
it right down to the last detail, mixing recreation-
working area, standing desks, but also pri-
al spaces with more formal and private spaces.
vate spaces. At Betfair, you will find yourself
An entire floor, with a spaceship-inspired aspect,
enjoying the cosy atmosphere of a library,
hosts the gaming equipments, allowing employ-
the excitement of a Formula 1 race in one of
ees to relax between tasks. However, the most
the meeting rooms, a great journey from Cluj
inspiring element of design is a functional robot,
www.business-review.eu Business Review | December 2016
24 ENTREPRENEURSHIP
Local entrepreneurs need more support to get innovative With Romanian entrepreneurs confident in the future progress of the business environment, the state needs to support entrepreneurial initiatives and innovation more, as the next generations will prefer to become entrepreneurs or be self-employed. By Anda Sebesi within their industries. In a very competitive market such as today’s, innovation is a key element in the success of any business. But for firms to be innovative and come up with new and fresh ideas or products, innovation needs to be truly supported by the local economic environment. And this, unfortunately, doesn’t yet happen here. “In Romania, we do not respect the Romanian innovator, we don’t respect Romanian ideas, we do nothing to help these ideas come to life,” said Cristian Parvan, general secretary of the Association of Romanian Businesspeople (AOAR), earlier this year, quoted by Ziarul Financiar. According to Sergiu Negut, business angel and associate dean at Maastricht School of Management, in order to support local entrepreneurial initiative, there is a need to stop disincentivizing and to rationalize bureauA needed shift: government grants should be replaced with government investments
A
cracy. “This is quite easy to do as technology is a great facilitator of automatic processes.
ccording to the 2016 Barometer of Ro-
framework (15 percent) and a better attitude
Public servants tend to have robot jobs, with
manian entrepreneurship, conducted
from state institutions towards entrepreneurs
limited, if any, authority to make decisions.
by Raiffeisen Bank and EY, 66 percent
(12 percent).
So you would just need to replace them with a mix of software and humans – people able
of local entrepreneurs think that Romania will offer a friendly business environment in
How to support entrepreneurship?
and willing to use their own judgment to
less than ten years, compared with 55 percent
From his entrepreneurial perspective, Lucian
make complex decisions.” In his opinion,
in 2015. The same research shows that expe-
Miess, owner of Gett’s Salons, says that there
a second major step is to allocate funds for
rienced entrepreneurs consider the fiscal and
is a need now for a more dynamic business
development in a way that best facilitates
legal framework, along with its instability
scene in order to encourage companies on
value creation. This means co-investment
and bureaucracy (70 percent), tough access
the local market. “A more active business
with entrepreneurs, rather than giving grants
to financing (8 percent) and poor education
environment should put more pressure on
and distorting competition. “We are still far
including in entrepreneurship (4 percent) the
the political scene in order to change the
behind in the availability of capital. This can
biggest three obstacles to the development
paradigm of the Romanian state regarding the
be fixed in two ways: first, replace govern-
of entrepreneurial initiatives in Romania. In
private sector and to improve initiative, local
ment grants with government investment
addition, 36 percent of entrepreneurs think
capital, direct investments and increase com-
and create sovereign funds ready to co-invest
that fiscal relaxation is the measure that
petitiveness on external markets.” He warns
alongside private money. Second, change
would have the greatest impact on support-
that, although local entrepreneurs know what
regulations to allow pension funds greater
ing entrepreneurs short term. This is followed
to do in these areas, they are organized in less
access to investments in illiquid equity,” adds
by a clearer, effective and simplified legal
vocal confederations and are not consistent
Negut.
www.business-review.eu Business Review | December 2016
ENTREPRENEURSHIP 25
Who is the Romanian entrepreneur?
real businesses. According to the EA, over 91
OMV Petrom and Lukoil, in Brasov County,
George Alexe, business consultant and serial
percent of the graduates of this educational
many entrepreneurs became suppliers for
entrepreneur, says that the Romanian entre-
model get a job in the first six months after
large companies like Continental. Last but
preneur has started to make medium-term
graduation, while 47 percent have a sustain-
not least, Covasna and Harghita counties are
projections. “A few years ago, few people
able business within two years of graduation.
known for their businesses in the wood and
who knew what they wanted to become were
From the entrepreneurial perspective,
interested in starting a business. Now, entre-
Alexe says that the introduction of entrepre-
preneurial education programs have more
neurial education courses in high schools
problems lacking a solution could be a good
participants, the networking is stronger and
and colleges could have positive results.
opportunity to start a business in Romania.
the number of business events in Romania
“There is a need for programs for entrepre-
“A big problem for Romania now is that a
has increased significantly. The know-how
neurial development involving entrepre-
significant part of our industry has low added
transfer and connections created have re-
neurs with real business experience.” Along
value. We just extract the raw stock, export it
shaped the profile of the Romanian entrepre-
the same lines, Miess of Gett’s Salons says
at a minimum trade margin and then import
furniture industry. Miess of Gett’s Salons thinks that current
neur: oriented towards
the processed products
his or her business,
with high added value
employees and partners
and trade margin,” says
and open to new things
the entrepreneur.
in a constantly changing
Another weakness of
economic environment,”
Romania is that it is not
says Alexe. He adds that,
a great source of capital.
unlike Romanians, en-
“Resources are naturally
trepreneurs from more
limited, and immedi-
developed countries are
ate applications that
more conservative and
come to my mind are
operate, even from the
agriculture (with high
start, in sectors where
value added intensive
they have expertise.
farms slowly replacing traditional corn fields)
Entrepreneurial education is the Achilles’ heel
and tourism (low-cost,
The same barometer
diocre infrastructure),”
conducted by Raiffeisen
says Negut. But he says
Bank and EY shows that
that the big opportunity
61 percent of entrepre-
still lies with labor. “We
neurs think that the new
can continue to build
scenic destinations, still hard to get to with me-
generation of Romanians does not get the
that it is important for education to be close-
service centers of higher and higher complex-
proper education in terms of entrepreneur-
ly linked with practical internships within
ity and added value. Practically, the service
ship. This is quite alarming as, according to
companies. “Strategic, ongoing education,
industry is still below potential, whether
OECD data, 51 percent of Europeans between
with the aim of creating and promoting value
we’re talking about local or international
15 and 24 would prefer to become entrepre-
and using it to train the next generations is
clients, B2B or B2C. What’s truly missing is
neurs or be self-employed in the future.
the key to both the present and future.”
intellectual property, new branded products and services.”
In such a context, the foundation of The Entrepreneurship Academy (EA), the only
However, he warns that while it may seem
accredited faculty of entrepreneurship
Which sectors are attractive to entrepreneurs?
a huge opportunity, Romania still lags behind
in Romania, seems to be part of the solu-
At present, Prahova and Brasov counties are
international best practice when it comes to
tion. The institution has put forward a new
two of the most important industrial centers
marketing, branding and commercialization.
educational model implemented in countries
in Romania, both from the production
“We are stuck with creating brands for the
such as Finland, France, Germany, the UK,
perspective and the number of Romanian
local market. Furthermore it is still quite easy
Spain, Hungary, Argentina and Peru, based
entrepreneurs who have managed to create
and safe to make money from labor, without
on a mix of courses with experts from the
businesses in this sector. While in Prahova
the more sophisticated and riskier layer of
business environment, annual internships in
entrepreneurs have focused on the oil in-
investing in international branding and IP,”
foreign countries and the opportunity to run
dustry, as the county attracted investors like
says the business angel.
www.business-review.eu Business Review | December 2016
26 ENTREPRENEURSHIP
Berlin boost: a capital place for start-ups Bringing the government, universities and the private sector together has proved to be the right way to nurture high-tech start-ups in the German capital.
bioprinters that print “mini-organs” and physiological human tissue. Speaking to BR in Berlin in October, founder and owner Lutz Kloke says he got the idea for the company while researching various 3D bioprinters for his PhD thesis at the Technical University of Berlin (TU Berlin). How did he manage to turn a PhD thesis into a running company in just two years? The first step was to present his idea to the university’s Centre for Entrepreneurship, something of a one-stop shop for students considering a career as technology
By Simona Bazavan
entrepreneurs. Here they get everything from courses and workshops on how to set up a company, obtain venture capital and win government grants, to access to prototyping labs and co-working spaces. Mentoring students on how to turn ideas into sellable products and enabling their contact with business angels, venture capitalists, potential business partners and services providers have been key to turning the center into a hotspot for entrepreneurship, Jan Kratzer, chair for entrepreneurship and innovation at TU Berlin, told reporters in Berlin this October.
All for one Alongside the involvement of the private sector, the government’s contribution has been critical. Its flagship program for supporting tech-oriented start-ups, called Exist, focuses Fast forward: it took Cellbricks’ founder and owner around six months to apply and secure grants worth around EUR 500,000 to kick-start his company
B
erlin has been a start-up success story
that bringing together the government, pri-
in the making for years. All the right
vate sector and universities is key to creating
ingredients seem to be in place.
There is the dynamic, creative and open environment and numerous universities bringing in students from all around
coherent support schemes. Not surprisingly, all this has been shaping up into a well-structured and maturing start-up ecosystem that produced one start-up
the world with tuition-
every 20 minutes in 2015,
free education. There are
according to official data.
also numerous public and
Many of these are validat-
private initiatives meant
ed by investors. Berlin’s
to retain as many of these
start-ups alone collected a
talents in the city as possible and get them to join the ranks of the city’s growing start-up community. Perhaps more important that
whopping EUR 2.4 billion in venture capital last year alone, according to EY data. One of the most recent additions to the
anything, there is an overall agreement that
city’s start-up scene is Cellbricks, a Berlin-
innovative start-ups are the way forward and
based company that creates and distributes
on finding entrepreneurs from the ranks of
Number of newly registered businesses in Germany 2012
346,000
2013
338,000
2014
310,000
2015
299,000
Source: IfM Bonn
Startups by sector in 2015 Personal services
29%
Business Services
37%
Retail/wholesale
12%
Constructions
5%
Manufacturing
7%
Production of other goods
4%
Financial services
3%
Source: KfW startup survey 2016
www.business-review.eu Business Review | December 2016
28 ENTREPRENEURSHIP
university students and researchers. They can even be foreigners as long as they study in a German university. The Exist Business Start-up Grant provides support to technology-oriented start-ups in the form of grants for the development of an idea for a product or service and business plan right before company launch. The funding is offered in the form of a grant for a period of up to one year. Individual applicants or teams of up to three members can receive between EUR 1,000 for undergraduates and EUR 3,000 for Photo: Deutsche Telekom
PhD graduates per month. The program even considers parents by offering an extra EUR 100/month for each child. In addition to this, applicants also receive up to EUR 30,000 for material expenses and EUR 5,000 for start-up related coaching. The application process for funding through this program consists of a summary
Deutsche Telekom’s Hub:Raum provides seed funding as well as benefits such as co-working space for startups
report outlining the business idea, submitted by the university or research institute. BeGermany,” he outlined. Securing money from
sides that, the university also has to designate
The Exist program was vital to carry out
a mentor who commits to providing specialist
research, build a prototype and finally turn
a business angel was not an option either in
advice for the applicant as well as providing
his idea into a running company, Kloke told
those early days. “Investment in Germany
its wannabe entrepreneurs with the relevant
BR. All in all, it took him around six months
is pretty different from the Anglo-American
infrastructure for one year. Applications are
to apply and secure around EUR 500,000 to
type of investment because in the US, for
assessed by a government-associated agency
kick-start his company. Looking back on the
example, they take the risk to invest even if
that relies on tech specialists to provide
early days, he remembers how founding his
all you present is a vision. If I go to a busi-
relevant feedback on the projects considered
company was the
for financing.
most daunting step,
More funds are made available through
especially as going to
the Exist Transfer of Research program which
the bank was not an
targets high-technology start-ups with inten-
option. “I mean, look
sive development periods. The drawing up
at me: I am a long-
of a business plan setting out how the future
haired, bearded guy
product or service will be brought to market
and I’m going there
and preparations for the development of
telling them that I
business activities are also eligible for funding
need half a million
through the program. Successful applicants
euros because I want
receive in the first phase money to cover their
to print organs! Yes,
staff expenses and up to EUR 250,000 for
I come from the uni-
material expenses that include other equip-
versity, I have done
ment, research, property rights and coaching.
my PhD and I have
As much as EUR 180,000 is made available in
built some proto-
the second phase.
types, but that is all I have. If you enter a
11.5 working days are needed on average to set up a company in Germany
bank with that alone, you won’t get any money. So I am quite happy that TU Berlin has this program and I’m happy about this Exist program in
www.business-review.eu Business Review | December 2016
ENTREPRENEURSHIP 29
ness angel in Germany and I tell
from KfW, a government-owned
them that I have a vision and I
development bank that is the
want to print organs, they would
first option for many start-ups in
say that this is a good idea but
Germany. Should he eventually decide
that I have to prove that I have traction. I would have to show
to give venture capital a chance,
some revenues. Yet, the moment
a potential investor would get a
I reach the point where I have
tax-free 20 percent reimburse-
revenues I would no longer need
ment of its investment. The
their investment,� pointed out
measure is meant to support and
Kloke.
encourage private investors and business angels in particular to
It is precisely this gap that the Exist program is meant to
consider innovative start-ups,
fill, say representatives of the
say ministry representatives. And this is only one measure
Federal Ministry for Economic Affairs and Energy. And the
on a long and impressive list.
program has managed to achieve
There are over 200 various sub-
that target. With the help of
sidy programs to choose from,
Exist and by getting the private
cheap loans and even a public
sector on board, TU Berlin has
venture capital fund. There is the
become something of a hotspot
Association of German Cham-
for innovative entrepreneurship.
bers of Commerce and Indus-
The numbers speak for them-
try (DIHK) offering wannabe
selves. By 2015, 253 companies
entrepreneurs coaching and
had already been founded by
consulting in more than 200 of-
TU Berlin alumni, accounting
fices throughout the country and
for more than 18,000 employees
publicly held Investitionsbank
and close to EUR 2.6 billion in to-
Berlin holding an annual trade
tal turnover. The center can take
fair for start-ups and entrepre-
pride in a 70 percent survival
neurship (deGUT) that dates back
rate for the start-ups it has sup-
to 1982. Add to that numerous
ported so far. In 2015 alone, TU
other private initiatives such as giants Bayer and Deutsche
Berlin’s center for entrepreneur-
Telekom investing in their own
ship supported the setting up of
pharma company millions in the early phase
39 new start-ups, out of which 26 were high-
of developing a new drug so the entrepreneur
start-up support programs to name just two
tech initiatives. The same year it secured
is confident there is plenty of potential to
of many, and one gets a pretty good idea why
more than EUR 3 million in pre-seed grants as
grow his business. To take his company even
Berlin and for that matter Hamburg, Munich
part of the two Exist programs.
further he is now planning to apply for a loan
or Frankfurt are emerging as start-up hubs.
Some two years
How could Romania
after having started
possibly replicate at
working on his idea,
least part of that suc-
Kloke says the new-
cess? A good starting
ly funded start-up
point would be to
is already generat-
understand that
ing revenue and he
innovation is key to
estimates Cellbricks
future growth and
will reach break-
that a coherent strat-
even in two years’
egy is equally vital
time. So far, clients
to any support pro-
include academia
gram. And for that,
and small research
the government,
organizations. Using
private sector and
3D printed micro-
universities have to
organs can save a
work together.
www.business-review.eu Business Review | December 2016
30 INTERVIEW
Flower power: from online seeds to a blooming offline business Marina Popescu, general manager at Floria.ro, tells Business Review about the strategy behind the online and offline arms of the Floria Group and highlights the main challenges that the company faces in a market dominated by a high level of fiscal evasion. By Anda Sebesi What does the Floria Group consist of now on the Romanian market and how much have you invested in this business so far?
At present the company operates through
on Campineanu Street in Bucharest, we real-
two flower shops in Bucharest – Floria in Stra-
ized that we wanted to offer our Romanian
da – which both opened last year, the result
customers a different concept designed to be
At present the Floria Group includes two
of an investment of more
major divisions: online, where Floria.ro is the
than EUR 300,000.
ments made in the past two years exceed EUR
When did you launch the Floria concept store and why?
500,000.
After we took
Strada flower shops and the corporate, events and visual amenity departments. The invest-
concept for a premium location where, along with a wide range of special
market leader on the bouquet delivery segment, and offline, where it runs the Floria in
more than a flower shop. So we created a
our first step
flowers, bouquets and flower pots, we exhibit products designed by local artists. And we don’t want to stop at the concept store in Dorobanti
How much do the online and offline sales make up in your turnover?
in the offline
Plaza as we intend
environment,
to develop Floria in
Our prediction for 2016 is that the website will
by opening
Strada nationwide,
represent about 40 to 45 percent of our in-
a flower
making use of the
come, while flower shops and events will ac-
shop
count for about 40 percent. The remaining 15 percent is made up of flower setup projects.
franchise system. The total investment in the Floria in Strada concept
How has the online division developed over time and who are its main customers?
store exceeded EUR 200,000 for a location
The online division posted a EUR 1.05
of 200 sqm in
million turnover in 2015, an increase of
Dorobanti Plaza.
40 percent on 2014. It consolidated
It has a unique
its leading position among local
concept that will
online flower shops. The consoli-
be the base of the
dated turnover of Floria Group
development of
reached EUR 1.8 million last year, compared with EUR 1 mil-
a national chain of flower shops.
lion in 2014. More than half of our sales were generated by the online platform. In addition, in the first quarter of 2016, the group posted EUR 900,000 in sales throughout all of its
What terms do your franchise holders need to meet? We intend to extend our
divisions. Individuals are the main customers
business by franchising it
of our online platform.
because we want a rapid pace of development. We
How about your offline development?
target large cities of over
www.business-review.eu Business Review | December 2016
INTERVIEW 31
100,000 inhabitants and we focus on central
Romanian flower and visual amenity setups.
locations for our franchises. It is important
It is probably the most valuable floral setup
pany to grow and develop on an emerging market like this one?
for us that Floria in Strada flower shops be in
project from a retail center in Romania. The
The very high level of fiscal evasion is the
ultra-central locations so that they can attract
project needed about 10,000 plants and flow-
main problem facing the market on which
many visitors who can discover the expe-
ers in order to create a synergy between the
we are active. Despite the occasional efforts
rience of buying flowers and gifts de-
of the local authorities, the black
signed by local artists in a premium
market for flowers represents more
location and at the right price.
than 50 percent of total sales. There are plenty of flower shops that sell
How are the other divisions of Floria Group doing?
their flowers without issuing a fiscal
This year Floria started its first large
taxes. Fortunately for us, what they
projects in the area of commercial
sell is of very poor quality – both as
flower and visual amenity set up,
products and the design of bouquets
by winning two significant projects:
– and customers have started to
coupon, and paying VAT or other
avoid buying such flowers. Slowly
Park Lake and Veranda Mall. The project we developed within the partner-
interior of the commercial center and its ad-
but surely, customers will understand the
ship with Park Lake was very ambitious and
jacent park. As for the Veranda Mall project, it
importance of the design of a bouquet and
it is likely to become a benchmark for the
involves external setups for about 5,000 sqm,
will see the significance of buying a bouquet
with greensward, trees and other plants.
created by a well trained florist. But there are
Because the commercial center is designed
still opportunities for development on the
to have external restaurants, the green zone
market.
OVER EUR
500,000 is the investment made in the past two years
will be extremely important as it will offer a generous green area.
What are your plans for the future? We intend to develop new business areas in
Both the shareholders and management of the Floria Group are 100 percent Romanian. How hard is it for a purely local com-
the flower sector and to consolidate our existing ones. We will continue to invest to make the entire group a market leader.
www.business-review.eu Business Review | December 2016
32 BR EVENTS
Focusing on human capital is key to future growth, say investors Romania can outperform its own positive economic results and ensure sustainable growth, but for that to happen it needs to focus on developing its labor force, said panelists during the third edition of the Foreign Investors Forum (FIS).
Photos: Mihai Constantineanu
By Simona Bazavan
Left to right: Daniel Daianu, BNR; Claudiu Vrinceanu, Ministry of Economy; Jörg K. Menzer, Noerr; Alexandra Predeanu, ICAP Romania; Codrut Pascu, Roland Berger
“
To compete or not to compete?” challenged John Riker, man-
neighbors, Romania is among the winners, she went on. However,
aging director of the Blue Ocean Strategy Initiative Centre, a
not all is rosy and there are still issues that need to be addressed, one
participant during the first day of the Foreign Investors Summit.
of the most pressing remaining the slow development of transport
The blue ocean strategy – which argues that companies succeed not
infrastructure. The lack of good infrastructure is one of the biggest
by focusing on the competition and thus “red oceans”, but rather by
obstacles to major investments, stressed Ioana Gheorghiade, execu-
creating ″blue oceans″ of uncontested market space – made the case
tive director for public sector and infrastructure financing with BCR.
that the strategy itself applies not only to economic players but to
Public-private partnerships would be a viable alternative and it would
countries as well. “How can Romania create a blue ocean of market
include the use of public money and European funds, she noted.
space for itself?” asked Riker. For starters, Romania already makes a compelling case for inves-
People are the key
tors, panelists throughout the day pointed out. The economy is
However, the most urgent issue raised by investors during the event
looking “more than better”, posting an economic growth rate that is
had to do with the local labor market. “We have an exodus of human
surprising in the European Union, said Daniel Daianu, member of the
capital,” said Daianu. “There is a lack of labor force.” Romania needs
administration board of the National Bank of Romania.
to retain its workers and ideally attract back some of those who have
It is also distinguishing itself from other countries in the region.
already left if it wants to ensure sustainable growth for the years to
“The FDI flow is growing and will reach a post-2008 record,” said
come, commented panelists. Any talk about strategies for develop-
Codrut Pascu, senior partner and managing director of Roland Berger.
ment should take this into account, they urged.
In fact, Romania currently ranks first in the CEE cluster, said Pascu,
The government should focus on the reasons why human capital
citing the good macroeconomic figures and economic policy stability.
is flowing out of the country and meet the basic requirements so that
In terms of direct taxation, Romania is a competitive destination for
fewer people have reasons to leave, argued Jorg Menzer, partner and
investors, although social contributions continue to be burdensome,
head of CEE offices with Noerr.
argued Mitel Spataru, tax manager at Finexpert Consulting. The avail-
One way of moving forward in this direction would be to tackle the
ability of state aid gives Romania an additional competitive advantage
growing inequality, suggested Carmen Marcus, economic counselor
and makes a strong case for investors to come and invest here, espe-
with the Representation of the European Commission in Romania.
cially as the state aid program consists of cash and not fiscal facilities
“There is a paradox. Romania has one of the highest economic growth
like elsewhere in the region, added Manuela Furdui, managing partner
rates in the EU but at the same time, 40 percent of the population is
of Finexpert. All in all, when it comes to competitiveness versus its
at risk of poverty. So in terms of the blue ocean strategy one might
www.business-review.eu Business Review | December May 2016 2016
COVER BR EVENTS STORY 33 14
Left to right: Anca Harasim, AmCham Romania; John Riker, Blue Ocean Strategy Initiative Centre; Carmen Marcus, Representation of the European Commission in Romania; Dragos Pislaru, Ministry of Labor; Eric Stab, Foreign Investors Council; Ionut Simion, AmCham Romania; Robert Miklo, Colliers Romania;
Left to right: Anda Sebesi, Business Review; Ioana Gheorghiade, BCR; Manuela Furdui, Finexpert; Mitel Spataru, Finexpert Consulting; Daniela Serban, Bucharest Stock Exchange
say that 40 percent of the population are ‘non-users’ of the economic
the Ministry of Economy, Commerce and Relations with the Busi-
growth,” she outlined. Demand-side policies like last year’s tax cuts
ness Environment. Some fresh wind in the sails of the local economy
and salary increases do not promote sustainable growth and these
should come over the next period from measures such as the Competi-
need to be complemented by supply-side policies and further struc-
tive Romania plan, a tax exemption for R&D workers, the promotion of
tural reforms, added Marcus.
vocational training and the scaled-up state aid scheme, he noted. The latter has a RON 200 million budget that targets medium-sized invest-
Eric Stab, president of the Foreign Investors Council, said it was possible for Romania to become one of the top ten economies in the
ments and aims to promote investments in poorer areas, and will be
EU. “Romania has to create trust and remove the regional disparity.
rolled out next year, said Vrinceanu. Should the country be able to tackle its growing human capital
Unfortunately, the whole country is not growing at the same pace,” said Stab. The authorities too agreed that “the future challenge for
issue, the country could outperform its present growth rate, said
Romania is not necessarily capital, but people and skills and talent,”
panelists. “Five percent growth is your red ocean. Keep it going,”
said Dragos Pislaru, minister of labor.
concluded Riker, adding that it should be complemented with blue
Some of the programs the government is presently working on should lead to that, said Claudiu Vrinceanu, secretary of state with
ocean elements such as the location of the country, plus the health and education systems. - ADVERTORIAL -
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www.business-review.eu Business Review | December 2016
34 BR EVENTS
Investors waiting for new national energy strategy The authorities are working to complete the new national energy strategy, which is set to map the country’s objectives in this industry over the coming decades, considering that current oil and gas reserves could be depleted by around 2025, said government and industry representatives, during the third Foreign Investors Summit (FIS). By Ovidiu Posirca Stratan, president of the Romanian Petroleum Exploration and Production Companies Association (ROPEPCA). Photo: Mihai Constantineanu
“Oil and gas reserves are finite. If we do not start looking for bigger reserves, in 12 years we will run out of oil and in 9 years we will run out of gas,” said Stratan. He added that if the country does not generate extra reserves, it will use up what it has at present. On the government’s side, Adina Georgescu, counselor to PM Dacian Ciolos on energy & environmental matters, said that the energy strategy is close
Left to right: Gabriel Avacaritei, Wing Media Energy Consulting; Adina Georgescu, Romanian Government; Silvia Vlasceanu, ACUE; Artur Stratan, ROPEPCA
“
It is difficult to assess whether the level of investments in the
to completion. “In the Romanian energy sector we have moved forward towards the creation of a transparent and non-discriminatory gas market,” said Georgescu, who acknowledged that the renewable energy sector has gone through several changes of regulation. Silvia Vlasceanu, execu-
oil and gas sector is a satisfactory one; the price of oil has hit us
tive director at the Federation of Associations of Energy Utility Compa-
hard, especially at the level of services, and related industries,
nies (ACUE), said the energy sector was impacted by the intervention
where there are companies that have entered insolvency,” said Artur
of politicians and the instability created with each electoral cycle.
Automotive industry calls for focus on local vocational education The promotion of the vocational education system in Romania should be the priority of the public authorities, suggested company representatives during the third Foreign Investors Summit (FIS). By Ovidiu Posirca that vocational education should be adapted to the Romanian economy so that “at the end of three years of education, the graduate Photo: Mihai Constantineanu
is well-prepared and can handle an expensive car.” Boldijar noted that Robert Bosch Romania has invested EUR 200 million in the country in the past ten years. “As far as vocational education is concerned, there is a legal framework, but we are in the early stages,” said Loredana Van de Waart, partner at Gruia Dufaut Law Office.
Left to right: Nadia Crisan, McGuire Woods Romania; Patrick Moleins, NTN SNR; Loredana Van de Waart, Gruia Dufaut Law Office; Mihai Boldijar, Robert Bosch Romania; Johannes Heidecker, Star Transmission; Iulian Sorescu, Noerr
“
In the past few years, Romania has been able to attract new investments to the automotive sector, mainly car parts makers, with the help of state aid schemes. Iulian Sorescu, associated partner, head of the financial department at Noerr, noted that the current state aid schemes run through to 2020, so there is time for other investors to apply for funding. “The initiative exists but we also have to look at the compa-
Romania needs a much stronger exchange between schools and
nies’ side, which, from our point of view, should inform themselves
the industry,” said Johannes Heidecker, CFO of Star Transmis-
better, to understand the criteria and when they are ready to submit
sion, the company making gearboxes for the German Daimler.
a request for state aid to say that they are meeting the criteria,” he
Mihai Boldijar, general manager of Robert Bosch Romania, added
added.
www.business-review.eu December Business Review | May 2016 2016
IT market remains in growth mode, while R&D gains prominence, say players Romania’s IT industry is set to exceed EUR 4 billion next year and more firms are focusing on research & development (R&D) projects in the country, said industry representatives during the third Foreign Investors Summit (FIS).
COVER BR EVENTS STORY 35 14
- partner content -
Real estate and IT&C partnership to happier people Antoniu Panait, managing director, VASTINT Romania
Photo: Mihai Constantineanu
By Ovidiu Posirca
Left to right: Bogdan Pelinescu, Luxoft; Claudiu Petre, Telekom Romania; Teodor Blidarus, ANIS; Radu Puchiu, GovItHub; Ion Sturza, Fribourg Capital; Antoniu Panait, Vastint
“
In Bucharest we have two teams working exclusively on R&D. The first is involved in automated testing and the second is active in cloud technology. (...) We no longer talk about outsourc-
ing; we get access to the latest technologies in order to add more
P
articipating in the IT&C panel within the Foreign Investors Summit was a great experience, providing the opportunity to exchange information first hand with some of the big-
gest players on this market, while gaining valuable insight on how to provide better support from the office environment perspective. At VASTINT we are continuously learning, from constructors
value to services and we implement products,” said Bogdan Pelines-
as well as from the tenants, we are studying the evolution of the
cu, country manager at multinational IT firm Luxoft.
buildings in time, in order to incorporate some of the most ef-
Teodor Blidarus, president of the Employers’ Association of the Software and Services Industry (ANIS), said the organization forecasts
ficient, cutting-edge technologies and tenant requirements, for a long-term competitive investment.
that the IT market will exceed EUR 4 billion in value next year, up
The tenant companies are evolving, they become better
from EUR 3.6 billion this year. Claudiu Petre, structural funds and
informed by asking more questions and paying more attention
business development projects manager at Telekom Romania, added
both to us and to their employees’ needs and wishes. One very
that the outsourcing industry in Romania employs around 63 000
significant aspect we should all be considering with priority is the
people and is worth RON 1.2 billion. Currently, the growth rate in the
fact that the employee is more efficient if he or she does not spend
local outsourcing industry stands at 20 percent.
a lot of time commuting. The manager should think of this in num-
Meanwhile, the Extreme Light Infrastructure - Nuclear Physics
bers, how much productivity is lost and how much that’s costing
(ELI-NP), the cross-border research project that has some of its key
both the company financially and the people on a personal level.
components near Bucharest, in Magurele, has the potential to gener-
For instance, we decided on a central location for both VASTINT
ate an ecosystem that could include smaller firms willing to bring to
projects, Timpuri Noi Square and Business Garden Bucharest, to
the market some of the research being done here, said the director
provide just a short subway or bike ride away from work, with cy-
of the project, Nicolae Zamfir, general manager of the Horia Hulubei
clists parking, lockers, showers and charging stations for electrical
National Institute for R&D in Physics and Nuclear Engineering, during
cars offered within the complex.
the Foreign Investors Summit. Ramona Jurubita, partner, head of tax and legal at professional
We are a partner to the tenant companies in their quest for competitive advantage to achieve better results with employee
services firm KPMG, explained that the authorities had made some
attraction and retention, we offer advice when needed and we de-
changes to the legislation regulating R&D. Companies can now deduct
velop high quality, comprehensive office environments for happier,
50 percent of their R&D expenditure. In August, employees in this
more productive people.
sector were exempted from paying income tax.
www.business-review.eu Business Review | December 2016
36 BR EVENTS
Financiers highlight Romania’s attractiveness for investments, make case for entrepreneurial education During the third day of the Foreign Investors Summit (FIS), panelists tackled topics such as Romania’s potential to attract investments, and pinpointed the sectors most likely to secure funding from both financial institutions and private investors. They also highlighted the need for entrepreneurial education to boost growth. By Georgeta Gheorghe
T
he financiers
the travel indus-
participat-
try is an untapped
ing in the
industry. Agriculture
Funding round
and related indus-
| Perceptions vs
tries, such as food
Realities discussions
processing, are also
rated Romania’s
interesting. So too
attractiveness as
is the energy sector,
a destination for
which is usually
investors in the
limited to traditional
current economic
and big investment.
and political climate
However, there is
very highly. Due to
potential for smaller
its current political
investors. And of
stability and strong
course, we should go
economic growth rate, Romania finds itself in a favorable position,
for renewables, and not fossil fuel,” he argued.However, entrepreneur
compared to neighboring CEE countries. “Romania is on the map
and business angel Sergiu Negut warned that the business environ-
of investors. This is a very interesting wind of opportunity for the
ment should be aware that Romania‘s efforts to attract big investments
country. Turkey is no longer the promised land. Here there is fertile
could be hindered if its neighbors are not performing well. “Although
ground,” said panelist Matteo Patrone, EBRD Romania director.
most of our neighbors are doing well, being an island of something
Patrone said the EBRD offers two products for SMEs, under two pil-
that looks attractive is not necessarily helping us. For the larger region,
lars, namely the financing stream and the advising stream. However,
it is not going well, because investors want a big market, meaning the
banks can also benefit from financing opportunities. “The advisory
whole region,” Negut said.
stream is deployed in synergy with the first pillar. We advise SMEs in all sectors and areas from government to private sector companies.
Making a case for entrepreneurial education
For smaller companies we employ local consultancy firms and for
The need for entrepreneurial education emerged as a major theme
larger ones we use international consultancy companies,” Patrone
across panels, with speakers representing both the public and private
outlined.
sector stressing its importance. A speaker on the Industry Zoom: Im-
According to venture capitalist and entrepreneur Marius Ghenea, a
pactful Entrepreneurial Ventures panel, Ilinca Paun, managing partner
speaker on the same panel, the perception of Romania has improved
at Colliers International, stressed that education is a powerful and
in recent years. “We’re seeing big players in private equity coming
necessary tool in shaping the future of entrepreneurship in Romania
to the country. Romania has the highest GDP growth in the region;
and highlighted the need to bring companies closer to start-ups. “In
the financial markets are stable. Also, political stability is important.
Romania we have a lot of entrepreneurial spirit. Young people hate
Neighboring countries such as Bulgaria, Poland, Ukraine Turkey have
corporations. That is why they should integrate more start-ups in
political issues, which makes Romania a safer destination for invest-
their structure. Young people today are much braver than wewere,”
ments,” he commented.
she said. For co-panelist Bogdan Iordache, managing director at MVP
As far as investments are concerned, Ghenea said that 3TS Capital,
Academy, things are already moving in the right direction. “We are
the private equity and venture capital fund he manages, invests “in
very lucky to be part of this transformation, to carry it forward,” he
local companies that can become global challengers. We do not expect
said, while making a case for self-development. “Do not read books
to breed global leaders, but we do expect local challengers. We believe
about it, but do something; be an entrepreneur,” he told the audience.
www.business-review.eu Business Review | December 2016
38 ENERGY
Romania tries to appease renewable investors with planned legislative changes After more than three years in which renewable investors have claimed that the Romanian government was ignoring their requests, despite combined investments of EUR 7 billion, the authorities have taken the first steps and announced major changes to the renewable law in a bid to reassure companies that feared their money had gone down the drain. By Ovidiu Posirca The wind industry alone lost around EUR 900 million in 2014 and 2015, according to a study carried out by professional services firm EY Romania for the Romanian Wind Energy Association (RWEA). In this period, authorities also decided to offer large energy consumers some exemptions from acquiring green certificates, after industrial players warned
I
that the additional costs for renewable
n late October, the Ministry of Energy
to limit the financial burden borne by the
energy were denting their competitiveness,
published the draft of an emergency
end consumers,” Alina Stancu Birsan, partner
which in turn would bring layoffs.
government ordinance to amend Renew-
at law firm PeliFilip, told BR. She added
Under the proposed changes, the green
able law no 220/2008. Among the envisaged
that this system should help narrow the
certificates will be valid from the date they
changes are new price limits and transaction
gap between supply and demand for green
are issued to December 31, 2031. Under the
changes for green certificates.
certificates.
current legal provisions, the certificates are valid for one year. In addition, the regu-
“The new system for determining the
lated price limits for the certificates will be
tificates seems to reflect the intention to find
Government struggling to offer clearer path to 2031 for investors
balance (or reach a compromise) between
The government’s move came after the
EUR 25 and a ceiling price of EUR 55, to EUR
two sensitive points. On the one hand, the
renewable industry claimed that changes to
25 and EUR 35 respectively in the 2017-2031
need of renewable power producers to have
the incentives scheme in 2013 that delayed
period.
more certainty that they can sell their green
the issuance of some green certificates had
certificates and, on the other hand, the need
triggered a chain of losses in the market.
mandatory acquisition quota of green cer-
changed from a floor price per certificate of
“Through the proposed change, there will be a number of green certificates that remain
www.business-review.eu Business Review | December 2016
40 ENERGY
untraded, with the option for the surplus certificates to be sold during the period of the support scheme at a lower estimated price,” said Ministry of Energy officials. At the end of December 2016, the authorities will close enrollment in the current support scheme for renewable projects and it is unclear what will happen with the new investments that could be made from next year. Birsan of PeliFilip claims that the proposed ordinance clears up some of the legal
Romania’s electricity production structure over January-October 2016 Hydro
29%
Coal
25%
Nuclear
18%
Natural gas
15%
Wind
10%
Solar
2%
Biomass
1%
the environment for substantial developments in renewable power generation. “Instead, they are trying to strike a compromise and allow those who have entered the game to survive for the rest of the support scheme’s lifetime. For some of them, it
RON
900
ment, where it could receive further amendments, and the final version approved
EUR
million
25-35
proposed price limits for green certificates over 2017-2031, according to the draft government ordinance amending the renewable law
for implementation, including the new regulations that have to be issued by energy
nanced by European
regulator ANRE, still remains an enigma to
funds could emerge
investors.
in the country, according to the
Authorities think new renewable projects could survive without support scheme
strategy.
The current support scheme for renewable
of wind capacities
players, which was criticized as being too
and 1.3 GW of solar
generous by the big consumers that had to
installations includ-
foot the bill, might be the last one approved
ed in the support
by government, if we look at the future out-
scheme, according to
lined for the sector in Romania’s new Energy
grid operator Tran-
Strategy 2016-2030, which was put up for
selectrica. Biomass
debate in mid-November.
capacities accounted
Under a scenario included in the strategy,
As of August 2016, Romania had 2.9 GW
for around 100 MW,
Romania could attract new green energy
while small hydro
investments from 2020 without putting in
had 317 MW.
place a new support scheme if the technol-
“The alternative
ogy costs go down. New wind projects with
if the capital costs
an installed capacity of 1,500MW and solar
remain high, which
farms totaling 1,400MW could be put online
discourages the
in the decade to 2030.
installation of new
In the next three years, the government expects that only renewable projects fi-
scheme for renewable energy is not justified, especially going towards 2030, when the effects of the current scheme, based on green certificates, would have diminished after 15 years from the recent entry into production However, the authors of the strategy admit that focusing on renewable energy could
manufacturing sector for specialized equipment and electric cars. Meanwhile, the frequent changes in the legal framework have seen Romania drop out of the EY ranking of the 40 most attractive destinations for renewable investments.
their resilience, regardless of the insolven-
The ordinance will also head to Parlia-
country, the introduction of a new support
the energy efficiency field, as well as in the
the losses sustained by the wind industry in Romania over 2014-2015, according to an EY survey commissioned by the RWEA
able power producers have demonstrated
added.
hand, given the lower living standards in the
help the country attract new investments in
may be too little, too late. However, renew-
cies/bankruptcies in the sector so far,” she
Romania end up with a dilemma. On one
of the new SRE capacities,” read the strategy.
Source: Romania’s Energy strategy for 2016-2030
uncertainties, but the changes do not create
the absence of a support scheme, will see
renewable energy capacities (SRE) in
The country has lost the 34th place that it held last year and is no longer among the most attractive markets for new green energy investments. According to calculations made by EY Romania, it takes around 30 years to recover the investment in a wind farm.
www.business-review.eu Business Review | December 2016
42 INTERVIEW
CEZ Romania rolls out investment strategy for smart cities development Utility group CEZ is planning to expand its electric car charging station infrastructure in Romania and to invest EUR 95 million in the coming years in the gradual transformation of cities under smart principles, says Martin Zmelik, country manager and chairman of CEZ Romania.
ABOUT About Martin Zmelik, country manager and chairman of CEZ Romania Martin Zmelik has been country manager and chairman of CEZ Romania since July 2014. He began his career in CEZ Group in January 2005 and took over the position of COO and board member at CEZ Romania in February 2010. He is a graduate of the Management Faculty at the University of Economics in Prague and holds an MBA from the US Business School.
By Ovidiu Posirca
How much has CEZ Group invested in Romania this year and what are the plans for 2017? What divisions attracted most of the investments?
First of all, by making us more competitive,
tion to take the right decisions depending on
creative and client oriented. Our constant
their commodity profiles and demands.
We kept our level of investments as high as
objective: the satisfied client
in previous years, mostly going into the mod-
and/or consumer. As we
ernization of the electric grid. In 2016, RON
were expecting, the
166.3 million was invested to optimize and
opening of the market
secure the low voltage lines, take the meters
has proved household
close to home, improve the quality param-
clients’ mobility, yet
eters of the medium voltage grid, extend the
we’re still talking
automation SCADA system by increasing the
about a one-digit per-
remote control level and provide consum-
centage. We do believe
ers with the proper connection conditions.
mobility will increase in
In 2017, we plan to invest another RON 178.3
the coming years. In
million.
the best case
In 2016, we continued to invest more
pursuit of process and cost optimization has now more than ever a clear
scenario,
than RON 2 million in projects and initiatives
clients
for the local community, most of them now
will be
traditional and using our employees as vol-
provided
unteers. Maratonul Olteniei, Niciodata Singur
with the
and Scoala de Meserii are the flagship proj-
neces-
ects we’re developing, aiming to increase the
sary
quality of life in the communities wherein we
informa-
operate.
How many employees does CEZ Group have in Romania and how many people are working in each of the divisions? We are a team of approximately 1,800 employees, spread, as of 2016, across 11 counties in the country.
How does the ongoing liberalization of household electricity prices impact the operations of the group in Romania?
How does the CEZ Group in Romania view the development of smart cities initiatives in the country? I am referring to the ongoing trends emerging on the market, from electric cars to smart metering systems for households.
www.business-review.eu Business Review | December 2016
INTERVIEW 43
We believe that the key concept behind
our company car fleet includes electric cars
competition reaching its fourth run in 2016
smart cities is transformation: a transfor-
that are used by our employees on their busi-
and gathering on the start line this year 548
mation in the business model, new tech-
ness trips.
participants. More than 100 employees in
nologies and the way we relate to clients’ needs. In the context of burgeoning urban
CEZ and partner companies volunteered to dedicate their time and energy to the
populations, smart cities projects propose an
How can Romania attract more investments in the energy sector?
integrated approach to the systems that are
By providing investors with a stable and pre-
social cause behind the competition: a EUR
essential to the functioning of a city – energy,
dictable economic and legal environment,
15,000 sponsorship for the pediatric ward in
transport, water supply, health, security, etc
definitely. In my opinion, added to all the im-
Ramnicu Valcea County Hospital. Referring
– and therefore to ensure the efficient func-
portant advantages Romania has as a market
to the results, one of the things I appreciate
tioning of the critical infrastructure, costs
(human, natural and know how resources),
most about this fourth marathon is that we
and consumption reduction and optimal
the stability of the business framework is the
saw a significant increase in the number of
allocation of existing resources.
only ingredient that can make Romania the
participants coming from Oltenia, which
harbor of the most important foreign invest-
means that mass sports have become a
ments.
strong trend in our operational area, as well.
Regarding energy, the component part of smart cities is the smart grid intelligent network which involves two-way communication between utility companies and their
outstanding organization of the event and
I can’t help feeling that we made a certain contribution to it too.
is composed of automation, computers and
What is the CSR strategy pursued by CEZ Group in Romania and what results has it had this year?
new technologies, all working together.
In the past 11 years in Romania, we have been
We are, after all, an Oltenian company, and
customers. Like the internet, the smart grid
In order for Romania to be able to
close to the communities in
align to the community objec-
Niciodata Singur, a project we began this year, is our form of tribute to the elderly. our connection to our roots remains an important anchor for what we want
which we oper-
tive of energy efficiency and
to become. By means of Niciodata
ate in a
a reduction in harmful
Singur, we aim to give elderly
con-
emissions, it needs to
people in Pitesti the comfort
expand the smart grid
of quality time and affec-
projects to a national
tion, and to our volunteering
scale, thereby creating
employees the rewarding
the premises for the
feeling of making a positive
development of smart
difference to somebody’s
cities.
the great people in Centrul pentru
tainable way. Our social responsibility strategy
ready to face the digitalized utility era. Our
is built on the needs we identify and on our
smart initiatives have an increased degree
inner beliefs.
of automation of grids, at the same time
emotion in our meetings with
and sus-
gines for a full transformation of the distribution operation model and
life. I must say there is a lot of
stant
We are running our en-
Over the past 11 years, we have invested
Varstnici in Pitesti. Scoala de Meserii, another project we began this year, responds to a common need of ours and the community’s: the match
empowering customers over their energy
more than EUR 5 million, mainly in four
between the education system and the em-
consumption by providing them with the
key sectors: education, culture, healthy
ployment market. We need a new generation
necessary information to take wise decisions
living and sports and infrastructure. All
of electricians to be attracted and trained in
about their utility profiles. New technologies
our projects make up the platform Energie
the upcoming digital era; this is why we are
are emerging in all fields, and we are pre-
pentru Bine, which is more than a name
financially and professionally supporting
pared to invest around EUR 95 million in the
to us; it is what we aim to give back to the
educational institutions, one in Pitesti and
coming years in systems that will allow us on
community. In the past two years, we have
one in Craiova, to develop the curricula for
one hand to manage the additional require-
made very encouraging progress in attracting
more than 50 future electricians. Our em-
ments of consumers and on the other hand
our employees into volunteering. Another
ployees will be an active part of this project,
to be open to integrate our systems with
important achievement for us is that we have
too, by teaching some of the practical classes
other components of smart cities.
managed to persuade our traditional contrac-
and guiding the students during their intern-
tual partners to support our initiatives in an
ships.
We give significant credit to the future of e-mobility, as well. This is why we are among
active way: by involving their employees or
the most ardent promoters of the trend in
adding new components to our traditional
a special meaning to us on our Facebook
Romania. We plan to expand our electric car
initiatives.
accounts (CEZ Romania and Energie pentru
charging station infrastructure and introduce
One of these flagship projects is Mara-
an own concept in the near future. Currently,
tonul Olteniei, a two-day biking and running
We proudly tell all these stories that have
Bine) and on our website energiepentrubine. ro.
www.business-review.eu Business Review | December 2016
44 INTERVIEW
Finding meaningful solutions With more than 17 years’ experience in advertising and marketing, Ajay Naqvi, former country marketing manager for Airbnb India and creative excellence general manager for Coca-Cola India and South West Asia, visited Romania to serve as president of the jury for the biggest local digital advertising awards competition – Internetics 2016. He sat down with BR to look back on his career. By Romanita Oprea
Advertising was your first passion. Do you believe you chose it or that advertising chose you?
you should be. I spent a lot of time at Ogilvy
ABOUT Ajay Naqvi, investor in StayUncle & president of the jury at Internetics 2016 He invests, incubates and advises startups in India in the social economy and IoT space. Established as a creative revolutionist, with a strong brand positioning, and integrated communication expert, Naqvi has worked at some of the most respected advertising agencies and iconic brands. He has helped reposition brands such as Tata Sumo, Tata Safari, Limca, Coke India, Thums Up, Maaza and Sprite and has won several major awards.
The second skill is very sharp observation.
(four years and three months) and I don’t regret it at all.
jobs were hard to come by. I was studying in
What do you think are your best skills for the advertising industry?
How did the shift from advertising to marketing come about, especially after so many years of advertising and your love for it?
this rather small city in India; therefore the
First, I believe it’s emotional intelligence: I
I’ve risen very fast in my career, probably
only thing I really wanted to do was get out
put a lot of emphasis on aspects that are not
because I’ve had the right people around
of there and go to a big city. When we went
the skills or theory you learn at university or
me and the right brands to work on. I have
to Delhi, I landed a job at an events manage-
all the books that you read. It’s more about
worked with the best advertising agencies.
ment company.
how emotionally intelligent you are (are you
What I think happened was that I kind of
able to understand people? to observe
reached the ceiling too fast. In 2005 I was
I did my master’s in advertising. It was 1999 and given the global recession at the time,
Then, it was always at the back of my mind that I had to get back
behaviors? are you able to
into advertising, because
push and see why a certain
I always believed there was a reason I had studied advertising.
already thinking about what’s next. While trying to answer that question, I moved from
behavior exists? observe
India to Singapore, where I set up the account
cultures? etc.). You
and planning functions for Bates Asia. To me,
should be very open
it was like the great things I’ve done in the
I’ve always felt that I
and ready to observe
past. I’ve done work that has been solid both
could do well [in the
things.
on creative and efficiency levels. Therefore,
advertising indus-
Because my
try], because I wasn’t
father was in the for-
particularly exceptional at anything else! I tried different services, but I was never cut out for those things and somehow I knew that. I think that the answer is both: me choos-
at that time I decided to get out of advertising. However, I didn’t go into marketing; in-
eign services while
stead I became an entrepreneur. I came back
we were growing up
to India, spent two years as an entrepreneur
and we traveled a lot,
in an industry where we were responsible for
we were always exposed to
designing stores, at Shark Design Studio. The
many kinds of people, cultures
business belonged to some friends from high
and behaviors. The learning that
school. I let them take care of the design jobs
comes from there eventually reflects on the
and I did the merger and acquisition talks.
ing advertising and advertising choosing me
brands you handle. I strongly believe that
However, I still didn’t find the answer.
as well. I really felt that I had to move back
brands are nothing but a reflection of the
So I went back into advertising in 2009,
into advertising when I joined Ogilvy. I be-
brand owner or creator and his/her value
leading the largest mobile telephony brand –
lieve what they say, that Ogilvy is the Mecca
system, beliefs, how he/she wants to see
Airtal, with 300 million subscribers in India.
of advertising. If you want to learn advertis-
the world and wants the brand to act in the
I was a country head of the advertising busi-
ing, it’s the best school and the place where
world.
ness, leading a team of 91 people in 6 offices.
www.business-review.eu Business Review | December 2016
INTERVIEW 45
I enjoyed the scale of it, leading large teams,
refuse to give them a hotel room. When I met
In my opinion, he is probably the best hu-
being with the best of the best; it was a dif-
the founders of the project, we decided to
man being around and he is a super great
ferent perspective. I did that for one year, a
change that. They are two young guys that
marketer. He is the guy that made Coca-Cola
period that took its toll on me (I lost a lot of
want to make a very large change to the
the Cannes brand of the year.
weight, I got grey hair, etc.), working for up
culture and I decided to help them
to 18 hours a day.
grow the project.
best work of my life at Coca-Cola.
I got out of that and started to work with
Today they are doing really
DDB, where I was responsible for the whole
well, with about 1,200 transac-
office, including the part of profit and loss,
tions a month, and they are
leading the whole north of India. Happily
ready to grow even more.
for me, at the same time, I was working on
Also, I think that I produced the I never thought that I would be given such a large mandate. I remember that Jonathan hired me the next day after a
Going back a little bit, tell
nice pitch of just min-
a project for Coca-Cola, after receiving a
us more about your experi-
call from them. The important story is not
ence at Coca-Cola. What are
from advertising
that I eventually joined Coca-Cola, but the
the most important things
to marketing can
fact that I felt that I had to work for them,
you learned while
be overwhelm-
and I pushed very hard for it. I felt, at that
working for this very
ing, the scale
time, that the Coca-Cola brand was pushing
popular brand?
can make you
the limits of leadership and creativity, their
utes. The switch
I found my
shiver. I was
headline “Happiness Factory� being the best
hero. I person-
responsible for
chapter written for the brand in the last 100
ally think
India and South
years. I thought that this is what I would like
that
Asia, eight
to tell the world through a brand.
people
brands (a few
can
of them billion
I also thought that because the brand was not present in India with that positioning,
dollar ones), and
I could translate that for Indians and make
they all needed
them feel a little bit happier. What is it that
massive marketing
we should eventually all strive for? To be
help. For instance,
a leader, to become a part of something
in India, Coke was
that is good for the world or do some-
always behind
thing that is good for the world. I
Pepsi, for the longest
wanted to do something mean-
time. However, we
ingful and this is how I got into
changed that in three
marketing. It has always
and a half years,
been about trying to
overtaking Pepsi by
provide mean-
preference, volume
ingful solu-
and market share.
tions for real
Coca-Cola became the
problems.
most exciting beverage brand in India. Moreover, with local billion
So is this the reason you chose the project StayUncle in which you have now invested and are a business angel?
dollar brands and multinational ones (such as Sprite and Fanta), I had the chance of completely repositioning them
While everybody knows that India is culturally very rich, there are still a lot
and being recognized for doing
of things that keep India back. It’s still
so both inside the company, and
not realizing its full potential and this
regionally, outside it. We received
is probably because there is a little bit
awards every year for creativity, efficiency
of regression in our culture and part of this is that it is very difficult for couples to go out in public if they are
spend their entire lives not being able to find their
and marketing excellence. It has been a huge learning and satisfying professional experience.
not married. Or to book a hotel room and
hero, but I was lucky enough to find him
not feel like somebody is giving them dirty
in Jonathan Mildenhall, now the CMO of
You can read more in the online version of this
looks. Even hotel managers will sometimes
Airbnb. He was my function boss in Atlanta.
article.
www.business-review.eu Business Review | December 2016
46 BLACK FRIDAY
Black Friday puts S retailers in the black
ince its inception, but especially over the past three years, Black Friday in Romania has seen a very rapid evolu-
tion from various points of view, such as the number of transactions, the sums traded, the average value of the shopping basket, and the number of countries that joined the Roma-
Five years down the road since the first local Black Friday in 2011, what has changed? Apparently, many things, if one asks the retailers, payment processing companies, survey companies and other players and observers of the event. Black Friday in Romania has moved away from the American concept that inspired it and gained an identity of its own. By Otilia Haraga
nian event, according to PayU estimations. “In Romania, Black Friday is an event with its own identity. It is not a one-day sales action as it was conceived and is done in the United States, but rather an action that generates consumption, a marketing instrument which some retailers use for at least a month. On Black Friday, the average value of the shopping basket doubles compared to the annual average value,” said Marius Costin, country manager at PayU Romania. In terms of indicators, the number of transactions increased from approximately 56,000 in 2013 to 120,000 in 2015. In terms of sums, the total value of orders went from RON 18 million in 2013 to over RON 68 million last year. The value of the average shopping basket also increased from RON 330 to RON 560 during the same interval. For this year’s Black Friday, PayU estimates a 60 percent growth in traded volumes, reaching RON 110 million. The most expensive products to have sold on Black Friday during the past three years include professional photography equipment, TV sets, and holidays to Rio. The sums spent range between RON 16,800 and RON 25,000, according to PayU. IT&C products have topped preferences and will remain favorites this year. However, other categories that have started to catch up are furniture, decorations, food and wines. These items, which represented only 5 percent in 2013, increased their share to 21 percent in 2015, and are predicted to make up approximately 30 percent of total Black Friday sales this year, according to PayU. Consumer behavior has also changed when purchasing products on Black Friday. Many shoppers choose to pay in installments. “The percentage of customers who are paying for their purchases in installments has nearly doubled over recent years and we expect it to increase significantly over the next period,” Mihai Patrascu, CEO of evoMAG,
Less optimism: some retailers think that Black Friday will lose its importance in time
tells BR. He adds that the average value of the
www.business-review.eu Business Review | December 2016
shopping basket for orders paid in install-
BLACK FRIDAY 47 The customer’s online behavior also dif-
which we grant maximum discounts on a
ments is between RON 800 and 1,000,
fers depending on the category of products.
very high number of products,” Dragoș Sirbu,
significantly higher than the average value of
Today’s experts have noticed an interest-
CEO of Flanco Retail, tells BR.
orders usually registered on evoMAG.ro
ing trend: in the case of IT and electronic
Due to the range of the event and its
products, the volume of searches is higher,
growing popularity, Romanian retailers are
ments choose to pay on average during a
especially closer to Black Friday, while for the
confronted with daunting logistical issues.
regular time of year between three and six
home & deco and fashion, interest is higher
“The biggest challenges were mostly calibrat-
installments. On Black Friday and towards
from October to December, with peaks dur-
ing the stocks, on which the maximum dis-
the end of the year, when Romanians usually
ing Black Friday and Christmas.
counts we can give depend, the capacity of
“People who acquire products in install-
make the most acquisitions, the need to pay
In the case of companies that have promo-
the servers, and delivering the orders in due
in more installments grows. So delivery op-
tions on Black Friday, the cost per promo-
time. This largely depended on the partner
tions are more diverse,” Patrascu tells BR.
tional click increases by 20 percent because
delivery companies who have it very tough
many competitors have offers, according to
during this time. In fact, I think they are very
Today’s survey.
glad that Black Friday is longer,” says Sirbu.
But the customer’s financial behavior is not the only thing that has seen changes. The shopper’s online behavior has also changed,
Another thing that changes with Black
Retailers are aware of the importance of
with greater migration towards mobile
Friday is the number of phishing attacks. Ac-
Black Friday in terms of takings during this
phones.
cording to Kaspersky Lab, Black Friday kicks
period. “While in the beginning, it was the
off the winter holidays when phishing attacks
time when they got rid of products left in
Black Friday searches made from mobile devices have doubled in number,
stock, by listing them at a low price,
while searches made from a desktop
now this event is considered the
have taken a nosedive. In October,
most important shopping day of the
Google searches are dominated by
year, which is definitely not going
the phrases “Black Friday offers,”
to change over the coming years,”
“Black Friday 2016,” “Black Fri-
Manuela Lica-Ionescu, country
day discounts,” and “Black Friday
manager at Bonami Romania, tells
Romania.” In November, the number
BR. She adds that since there are
of searches will double, according to a survey carried out by online marketing
are projected to grow, and this year will be
many sales periods throughout the year, cus-
agency Today’s.
no exception. During 2014 and 2015, the
tomers’ expectations have spiraled year after
number of phishing pages hunting informa-
year, expecting better offers, bigger discounts
electronic and home appliance products
tion about cards detected by Kaspersky in the
and a wider range of products. “The good
soars from the second half of October, sales
fourth quarter was approximately 9 percent
thing is that the transparency in e-commerce
are dropping. Romanians are interested
higher than in the rest of the year. While for
has increased, and the terms and conditions
in the offers but do not buy the products,
the whole of 2014, financial phishing actions
for customers are better, as even more inter-
waiting for the discounts in the last two
were 28.7 percent more frequent, in the
action services have developed,” she notes.
While the volume of online searches for
However, other re-
months of the year. They are comparing prices, saving
tailers do not share her
links to the goods that they
optimism. Marian Alecsiu,
want and even comparing
CEO of F64, seems to think
features of various prod-
that the event will lose its
ucts. Searches for key words
importance in time. “We
such as “promotions” and
have reservations regard-
“offers” increased by 17.5
ing companies’ ability to
percent at the start of the
support massive reductions
fourth quarter, compared to
every year for thousands of
Q3, according to Today’s.
products, and even trans-
“The biggest challenge for retailers remains the omni-channel strategy. Consumers are looking online more and more for the
fourth quarter the number was 38.5 percent higher. “While in the early years, Black Friday was
form this into a tradition,” he tells BR. He says that the maintenance and even supplementation of stocks during Black
products they want. However, in the end,
similar to the American discount event, being
Friday can prove risky for retailers: given
they make the acquisition in store, because
organized on one single day, we gradually
that the event only lasts for a few days, if the
they don’t want to be deprived of the experi-
chose to adapt this event to the specifics of
number of orders does not meet the retailer’s
ence of direct buying,” Daniel Mirea, retail
the country, to incorporate our customers’
expectations, they risk remaining with a
director at Altex Romania, tells BR.
feedback and opt for a longer period during
great deal of extra merchandise.
www.business-review.eu Business Review | December 2016
48 HEALTHCARE
Medical staff shortage complicates recruitment process The Romanian Healthcare Ministry recently announced that it will create 700 new positions in medical areas with severe personnel shortages. The local medical system is still seriously under-staffed, which makes recruitment very difficult. By Otilia Haraga
Professional development: doctors are interested in both the financial aspects as well as the development perspectives within the clinic
age of 13,000 doctors, after many left
R
situation, which directly affects patients and
on for years and it does not look likely to stop
the country in search of better pay,
the quality of the medical services they re-
any time soon. The authorities know this, but
according to a statement by the Romanian
ceive. “The deficit does not lie in vacancies,
the measures they are taking are ineffective
authorities released mid-2016. Numerous
because the number of job offers in the medi-
to stop the effects.
vacancies in areas such as cardiology, ENT
cal sector is high and continually growing. It
“There is a hemorrhage of doctors; we
(ear, nose and throat) and intensive care have
lies in the number and availability of medical
will have a massive problem with the doctor
remained unfilled in many cities. There are
specialists applying for these jobs,” Catrinel
exodus. In no other sector is a person more
counties where the deficit of doctors reaches
Hagivreta, founder and CEO of MEDIjobs,
important than in medicine. There are cities
as much as 50 percent.
tells BR.
in which entire medical areas are not rep-
omania is functioning with a short-
Recruiters are aware of this complicated
The drain of medical staff has been going
www.business-review.eu Business Review | December 2016
HEALTHCARE 49 Hagivreta.
resented, because they simply do not have
“The greatest challenges in medical
doctors,” said Vlad Voiculescu, Romanian
recruitment are caused by the lack of con-
healthcare minister.
sistency between the yearly number of new
weigh a great deal in the recruitment process.
graduates looking for a job and the market
In these cases, the reputation of the employ-
fully filled the vacancies for doctors. Some of
needs – both in the case of public and private
er matters a great deal. According to Ha-
these jobs are being advertised even for the
employers,” the CEO tells BR.
givreta, sometimes candidates are not even
At the moment, no county in Romania has
third time, while other positions are covered by doctors doing overtime. What is even more concerning is that op-
At the end of September, more than
The preferences of medical staff also
interested in learning what the salary is, and
24,407 doctors were registered on the
bluntly refuse to find out more about a job
recruitment platform Bestjobs.eu. Out of the
opportunity at certain medical companies. “The clinics that understand that the best
portunities for medical staff abroad abound,
total, 5,607 were dentists, 1,267 optometrists,
especially since other countries are recruiting
188 were laboratory doctors, 110 labor medi-
medical specialists are attracted to those that
aggressively from Romania. For instance,
cine doctors, 66 were ORL doctors, and the
have a positive employer brand in the com-
the largest doctor recruitment company in
remaining 17,169 were specialized in other
munity are the ones that will obtain the best
Great Britain announced that it intends to
areas.
applicants more quickly and easily,” she says.
hire up to 1,000 doctors over the next four
Apart from doc-
Doctors are in-
years, from countries like Romania, Hungary,
tors, 56,851 nurses,
terested in both the
Portugal and Spain, to cover the UK’s deficit
1,483 dental nurses,
financial aspects as
of specialists, according to the Daily Mail,
9,835 pharmacists,
well as the develop-
quoted by Agerpres newswire.
1,696 pharmacy
ment perspectives
nurses, 22,665
within the clinic.
cost Great Britain just GBP 500 per day, com-
medical representa-
“The medical com-
pared to GBP 650, the cost of a doctor trained
tives and 1,415 sales
munity is very well
in Great Britain.
representatives in
informed and its
the pharma/medical
members commu-
A doctor brought from these countries will
The UK healthcare system has also launched a pilot-program through which it will bring doctors from Poland, Romania,
sector were also listed on the website. “The recruitment of medical staff is very
nicate a great deal. This is why many clinics lack employees while others do not have
Spain and Italy to cover the lack of specialists
delicate and has a strong social impact. In
problems in this respect, says Hagivreta. She
in Lincolnshire. If the program is successful,
this sector, the performance or lack thereof
gives as an example a recent experience with
it will be expanded to other regions.
makes its mark directly on patient health,”
a doctor that MEDIjobs was in the process
says Hagivreta.
of recruiting, who knew more about the
The Romanian Healthcare Ministry recently announced its intention to supple-
employer’s devel-
ment the number of jobs available in state
opment plans than
medical units by 700. Some 500 new jobs
the recruitment
will be created in the ambulance service and
company did, which
200 for resident doctors. The total number of
made direct contact
positions in state-financed units will go up to
with the general
18,196, according to Agerpres.
manager to obtain the most important
“This hike is also triggered by the need to
information.
build teams, so that the response times both
In terms of pro-
at the headquarters and the ambulance sta-
fessional develop-
tions are respected,” said officials. In the case of some ambulance services,
This is why candidates at MEDIjobs have
ment, there is a trend among young medical
the proportion of doctors, nurses and ambu-
to go through a vetting process, not only
graduates to opt for areas such as dermatol-
lance workers compared to the population
from a professional point of view but also in
ogy, ophthalmology and gynecology. “One
is 90 percent lower than the national average.
terms of innate and acquired abilities.
reason for this is that these areas allow pretty
But this is not the only place where the
The CEO explains that the recruitment of
fast professional development with substan-
medical system faces staff shortages. Accord-
a doctor is validated when that doctor proves
tial financial benefits that one can obtain also
ing to Hagivreta, only six doctors specialize
communication skills, both with the patients
by opening a private practice,” notes the CEO.
in laboratory medicine every year at the
who will recommend that doctor as well as
Faculty of Medicine in Bucharest. Meanwhile, on the MEDIjobs platform
the team that he or she cannot do without. “We recruit a lot using recommendations
MEDIjobs intends to centralize and promote all these data to decision-makers in the medical system across the country, “in
alone, there was a list of approximately 15
from members of the community, who are
the hope that we will manage to put forward
openings that needed filling for this job in
very active. We register a monthly aver-
several solutions for solving some problems
just six months.
age of 12,000 visitors to the platform,” says
in the system,” says Hagivreta.
www.business-review.eu Business Review | December 2016
50 EXPAT EYE
Disgusting Donald’s victory adds to the West’s woes In BR’s monthly look at life here from the point of view of an outsider, our expatriate writer, grateful for the comparative stability of Bucharest life, bemoans Trump’s triumph and the resurgence of smoke.
better – six were arrested after an Old Town bar was reportedly trashed. Though deplorable, the incidents were a reminder of how rare (away from football) public violence is in Bucharest.
By Debbie Stowe
A
tion player. Some Polish fans behaved no
Of course there are fights and muggings, but far fewer than in most comparable West-
break from Brexit berating this
How devastating that the flagship policy of
ern European cities – or at least that’s how it
month, as that disaster has been
the incoming leader of the so-called Free
feels to many expats. I wouldn’t think twice
temporarily trumped (sorry) by
World (albeit a policy that many doubt will
about walking home, alone, through a city
something even more depressing, if that
ever come to fruition) is to construct another
center park late at night here – something I’d
were possible. The powerful prospect of the
divisive wall (real-time update: now partly
never risk back in the UK. With protests in
US’s first woman president has been derailed,
downgraded to a “fence”).
the US – now raging rightfully against Trump
and, in her stead, will be a racist, sexist, ho-
As with Brexit, the sad events in the US
– often turning violent and sometimes even
mophobic, vulgar, narcissistic, self-confessed
make me even more grateful to be living in
resulting in shootings, and both America and
sexual predator, who mocks disabled people,
Romania, far from the madness.
Britain suffering an upswing in post-vote
thinks women who have had abortions should be “punished”, wants to dismantle
1
attacks, hostility and bigotry, Romania is
Progress goes up in smoke?
reproductive and gay rights, inflamed the
From one noxious presence to another:
ludicrous conspiracy theory about President
nicotine. What has happened to the smoking
Obama being born in Kenya… there’s so much
ban? At a popular expat pub the other night
more but I’m too weak to go on.
for a darts match, one game took place in a
Like the UK’s own recent voting catastro-
new sort of conservatory, in which punters
phe, this result is further confirmation that
were happily puffing away. From what I could
Romania has no monopoly on bad politics
tell (I didn’t inspect it closely because of the
or leaders. I’m not sure how Donald Trump
stink), this room was effectively inside – and
would measure up alongside Vadim Tudor or
would presumably have been covered by the
Ion Iliescu, but at least they never had their
ban.
hands on any nuclear codes. As a Westerner, it’s easy naively to assume
Though it’s dreadful that it took the Colectiv disaster to galvanize Romanian lawmak-
that no truly awful leader could come to
ers into protecting the public’s health, the
power in your country, that the mechanisms
smoking ban was a great leap forward for
of a long-established democracy would
the nation, set to have a huge impact on the
prevent a demagogue from achieving high
well-being of one of Europe’s unhealthiest
office. Romanians are perhaps more realistic
countries. What a pity that – due, perhaps, to
about this, having had a dictator within liv-
the special interests that fought the law ag-
ing memory. So it comes as a big shock to us
gressively when it was first adopted – Roma-
when our political landscape goes so badly
nia seems to have caved in and rolled back on
awry.
this impressive step.
It has been repeatedly noted that Trump’s election victory ironically took place 27 years
seeming an ever better bet.
2
1
Kicking off
to the day after the fall of the Berlin Wall.
It was an ignominious night for Romania
Romania, along with the rest of Eastern
both on and off the pitch, when the national
Europe, has advanced hugely thanks to the
football team played Poland this month.
crumbling of that symbol of separation and
The match was twice interrupted by crowd
the greater integration and freedom it hailed.
trouble, and a flare was thrown at an opposi-
2
www.business-review.eu Business Review | December 2016
Snowden FILM REVIEW
By Debbie Stowe
CITY 51
Multiplex, Cinema City Cotroceni, Cinema City Sun Plaza, Cinema City ParkLake
E
knowledge this ambiguity: his portrait is onesided, presenting the ex-CIA hacker as brave
famous whistleblower, so his is a
and noble, and painting his higher-ups in
fascinating story, even if director Oli-
the agency and government as the bad guys.
ver Stone can’t stun his audience with a big
There’s even an overemphasized romantic
reveal. Events begin with the title character
subplot, which is cutely enough done, but
(a well cast and highly plausible Joseph Gor-
something of a needless sideshow. However, while some may see Stone’s
room, spilling the beans about America’s vast
Hollywood treatment as a missed opportu-
spying program to Guardian journalists. The
nity to take a more nuanced look at one of
movie then unfolds in chronological flash-
the most explosive stories of the internet age,
backs, detailing the computer whizz-kid’s
it’s still a riveting depiction of the National
rise from army dropout to top CIA program-
Security Agency’s hugely creepy surveillance
mer – and the shocking exposé that made
program.
him one of the USA’s most wanted fugitives. Though not as reviled as fellow super-
An opening caption positions the film as a dramatization, so we can only surmise how
leaker Julian Assange, Snowden remains
much is factual, but even if it’s a fraction, it’s
controversial. To some he’s an American
a horrifying prospect – and one which will
hero, sacrificing a lucrative job and easy life
have you scrutinizing your laptop camera.
to uncover the abuses the government was
Eye-opening and enjoyable, this is not the
perpetrating on millions of innocent citizens.
Snowden movie some wish Stone had made,
To others, he’s a traitor, compromising cru-
but on its own terms, it’s a solid take on the
cial US intelligence operations and enabling
surveillance scandal of our times.
The Handmaiden FILM REVIEW
Stone, however, has chosen not to ac-
dward Snowden is the world’s most
don-Levitt) holed up in a Hong Kong hotel
DIRECTOR: Oliver Stone STARRING: Joseph Gordon-Levitt, Shailene Woodley, Melissa Leo, Zachary Quinto, Tom Wilkinson ON AT: Cinemateca Union, Movieplex Cinema Plaza, Grand Cinema & More, Grand VIP Studios, Cine Globe Titan, Hollywood
terrorists to operate more effectively.
smith by Welsh author Sarah Waters, which has already been adapted for the screen in a BBC miniseries. Director Park Chan-wook has swapped the Victorian England setting for Ko-
By Debbie Stowe
rea under Japanese rule, prior to World War II. Otherwise, little of significance has been changed in an old-fashioned, twisty plot. A guileless young pickpocket, Sook-Hee (Kim Tae-ri), is hired by conman “Count Fujiwara” (Ha Jung-woo) to assist him in his scheme to snare a wealthy heiress, Lady Hideko (Kim Min-hee). Sook-Hee is to take up employment as Hideko’s maid, gain her confidence, then encourage her to fall in love with, and marry, the count, who plans to steal her fortune. Hideko lives in a remote mansion with her pervy uncle, who keeps a big library of ancient pornographic texts, from which he
DIRECTOR: Park Chan-wook STARRING: Kim Min-hee, Ha Jung-woo, Kim Tae-ri ON AT: Movieplex Cinema Plaza, Cine Globe Titan, Hollywood Multiplex, Cinema City Cotroceni, Cinema City ParkLake
It’s an accurate description of much of the
makes Hideko read aloud to an audience of
content of this South Korean psychological
wealthy sleazes. How avuncular.
thriller. You certainly get a lot of bang for your
Happy, then, to have someone normal for
buck. However, viewers of a less carnal mind-
company, Hideko bonds with Sook-Hee, and
set should not be deterred. It’s not trashy,
the pickpocket starts to have second thoughts
Brian de Palma-style bonking, but tastefully
about the plot…Well acted and lavishly ren-
done love scenes. And they don’t detract from
dered, The Handmaiden is an absorbing tale,
ex! This isn’t one of those sneaky,
the rest of the film, a stylish story of love,
albeit one whose pacing would have benefit-
“Right, now I’ve got your attention, I’d
obsession and revenge. It has fertile source
ted from a less indulgent editing of the love
like to sell you car insurance” taglines.
material: the historical crime novel Finger-
scenes.
S
www.business-review.eu Business Review | December 2016
52 INVESTMENT
Door to door: the story behind delivering goods Have you ever wondered how a package travels from you or your company to its destination? Business Review took a trip to Leipzig, Germany to the biggest logistics center in Europe, recently opened by DHL, to see how the entire process unfolds as quickly as possible, while taking into account the industry specifics. By Oana Vasiliu
A
ccording to the DHL Global Connectedness Index, data on global levels of connectedness demonstrate that
we live in a semi-globalized world where levels of connectedness are only a fraction
most mod-
of what flat-world intuitions would lead one
ern hub, inaugurated
to expect. However, they are still sufficiently
in 2015 with a EUR 1 million
large that a fully local or national worldview
investment, and measuring 800 sqm.
also fails to accord with reality.
The DHL Cluj hub is due to get a new exten-
midnight, activity in the hub intensifies, as
sion next year, mainly as a result of volume
most of the aircraft come to the center once
increases; it currently measures 700 sqm.
again to sort the packages for their destina-
Basically, DHL, like the other delivery companies, tries to outpace its competitors, drawing on today’s technology. The company
At the moment, the logistics company
mately 65 aircraft per day. At
tion.
opened the new sorting center at its express
has 3.5 million shipments per year, meaning
hub in Leipzig in mid-October, enabling bulk-
almost 14,000 shipments/working day, while
EUR 230 million, and 1,300 jobs have been
ier and heavier shipments to be sorted on a
70 percent of country volumes are processed
created since the beginning of expansion,
fully automated basis, at what DHL describes
in the Bucharest hub for the south and parts
bringing the total number of people em-
as Europe’s most modern shipment sorting
of the north and east of the country. In
ployed by DHL at the hub to around 4,900.
facility. That means that every international
terms of speed, volumes processed during
The expansion covers a total area of 44,000
package from Europe comes to Leipzig to
the inbound sort in Romania across all three
sqm, of which 40,000 sqm hosts the ware-
be prepared for worldwide delivery. DHL
gateways combined exceed 5,000 pieces per
house building and 4,000 sqm modern office
representatives outlined the technology used
hour.
facilities.
in the process of transporting a package from
Where do most of the packages go once
The investment in the Leipzig hub was
Here in Leipzig, both personnel and
they leave Romania? The top outbound des-
machinery can handle 150,000 shipments per
tination is Germany, followed by the UK and
hour. What’s more, the hub has the newest
From your door to the national logistics center
France/Italy.
sorting technology, the first of its kind in
DHL Romania has three international avia-
various innovative conveyor technologies,
tion hubs/gateways in Bucharest, Timiso-
From Romania to your international destination
ara and Cluj: one for inbound and one for
Every international package goes to Leipzig,
packages with a weight of up to 170 kilo-
outbound flights, operating every working
Germany, in order to be processed for its final
grams, otherwise too heavy or bulky for
day. Across the three hubs, all the packages
destination. The success of the hub is due to
standard conveyor belts.
are sorted by 450 employees. By midnight, all
its Central European location and good road
have been sorted and allocated for inter-
and rail links from the airport, say repre-
the aircraft once again take to the European
national or national delivery, via aircraft or
sentatives. Half of the company’s European
skies to deliver packages to international
trucks.
flights and 16 percent of global flights come
destinations. This is how the brand can keep
through Leipzig, which handles approxi-
its promise to deliver the next day.
door to door.
In terms of investment, Timisoara is the
the industry: consisting of a combination of enabling the fully automated handling of
In the early hours, between 1 am and 3 am,
www.business-review.eu Business Review | December 2016
CULTURAL MARKETING 53
Winds of change blow through national cultural marketing scene The Cluj Comedy Film Festival is going from strength to strength. Business Review travelled to Cluj-Napoca to talk to Oltea Zambori, one of the best-known cultural marketing specialists nationwide. In charge of the festival’s newly-created sponsorship department, she gave BR the lowdown on cultural marketing, a nascent sector in Romania. By Oana Vasiliu Do we have cultural marketing in Romania?
companies’ marketing departments. Then, it’s a win-win situation. I also believe that
What exactly does a partnership with a sponsor of a festival mean?
In my opinion, we are now starting to have
we no longer think of companies in terms of
First and foremost, it is more than the
cultural marketing in Romania. We are cur-
products and services, but more regarding
brand’s logo on the festival’s advertising
rently trying to figure out what we can do to
their openness towards ideas and projects.
package. It’s about the festival’s capacity to
offer different experiences of a brand while the consumer is there for the cultural act.
bring ideas and proposals of how they can promote the brand during the festival. From
major festivals in Romania. To name a few,
In terms of ROI, how do you evaluate the investment in cultural products, namely an investment in a festival?
cultural brand activations happen at TIFF,
A real, tangible return on investment doesn’t
running campaigns within the cultural
Electric Castle, Untold, the Sibiu Internation-
yet exist, or maybe only if we talk about a
experience.
al Theatre Festival, Plai Festival in Timisoara,
brand’s image and, in this case, all the
and now, we have tried to put Comedy Cluj
discussion moves to PR. But a good
on this “best practices” national map.
idea which can bring ROI to both
This “phenomenon” is already happening at
my point of view, a festival’s sponsorship department should act like a marketing agency,
What are the do’s and don’ts of such a partnership?
the brand and cultural projects
The most important thing for
Are Romanian companies interested in long-term investment in a cultural project?
can be fiscal relaxation for those
both sides is to feel repre-
who invest in such projects.
sented by the terms agreed
The idea is not to cut all the
to. Also, attention to detail.
Definitely. I truly believe that this is the
taxes, but maybe a discount
An example that crosses my
future of marketing here in Romania. Lately,
can be given to those sup-
I have had meetings with key people from
porting arts and culture,
marketing departments and all of them were
a form of encourage-
your press conference
talking about this commitment towards a cul-
ment from the state.
starts and the boxes
tural project on a long-term basis. They want
Also, companies
to spend money wisely on campaigns, and
that invest in
cultural products can bring the product or
such events and
service added value. After talking with them,
offer brand ex-
I realized that next year’s budgets will largely,
periences have
to go out
or at least half of them, go on these types of
increased sales.
and buy that
activations, while the rest will be spent on
For example,
traditional marketing campaigns.
Ursus beer
Moreover, as a cultural
designed a
event, you should keep your
mind right now is regarding the water suppliers: if
of water from the sponsor haven’t arrived yet, you’ll have
specific brand.
From your experience raising funds for Comedy Cluj, which companies are more willing to invest in a cultural project, product brands or service brands?
special bottle
Both of them, but it mostly depends on who
was sold all over
is responsible for fundraising for the cultural
the country
event. If she/he knows all the “ingredients”
and thus
for your cultural product, because not
of the festival, for example, she/he will
boosted
everything can be matched and will make
definitely know how to sell the event to
sales.
promises and give the space and
and can label
attention you signed up for with
for the Untold
the brand in order to make your
festival, which
festival bigger and better. Also, it’s very important to ask for funding from brands that are actually suitable
sense.
www.business-review.eu Business Review | December 2016
54 CITY
Cultural calendar Accord Vibes December 4, Radio Hall
The Ephemerist, a Mihai Olos retrospective Until March 23, 2017, MNAC
By Oana Vasiliu
Lara Fabian December 11, Sala Polivalenta Craiova
new album as SKYE | ROSS. It
Accord Vibes - Just Tango pres-
has the signature mix of influ-
ents some of the most advanced
ences from trip hop, blues and
new tango music in Romania.
With hits including Tu t’en vas,
downtempo soul that Morchee-
Alexandru Anastasiu (vibra-
Si tu m’aime and Deux ils, deux
ba’s fans love so much. Edwards
phone), Fernando Mihalache
elles, Fabian has sold over 20
has one of the most recognizable
(accordion) and Cezar Knihinschi
million records, making her the
voices on today’s music scene,
(contrabass) together play Astor
best-selling Belgian-born female
The National Museum of
and hearing her smooth, effort-
Piazzolla in a unique form. The
artist of all time. This will be her
Contemporary Art (MNAC)
less tones teamed with Godfrey’s
concert will feature a seductive
third time on a Romanian stage.
reopens its doors for several
psychedelic guitar is an unforget-
story of passion and abandon,
Currently, she is promoting Ma
exhibitions, of which BR highly
table, spellbinding experience.
about the love and suffering each
vie dans la tienne, her latest al-
recommends the Mihai Olos
Tickets cost RON 175.
of us experiences. Tickets cost
bum. Ticket prices run from RON
from RON 30 to RON 50.
30 to RON 395.
retrospective. Active between Romania and Germany over 1970-2000, Olos left an impressive body of work, exploring various techniques (painting,
Carmina Burana by Ballet Flamenco de Madrid November 28, Sala Palatului
sculpture, drawing, ceramics, fashion, performance, poetry), and several stylistic trends (late modernism, conceptualism, minimalism). The Ephemerist is the first attempt at a comprehensive look into the work of probably the most important artist in post-WW2 Romania, a
Under the leadership of the artis-
kindred spirit to Buckminster
tic director Luciano Ruiz, more
Fuller, Yona Friedman and
than 30 well-known internation-
other such visionaries.
al artists, musicians and dancers will perform the famous Carmina Burana, a beautifully visual
Skye & Ross (Morcheeba) November 23, Sala Palatului
performance. They have created a mix between the profane and the sacred, of 21 poems from medieval times which have been
Skye Edwards and Ross God-
harmoniously transformed into
frey, founding members of
flamenco dancing. Tickets cost
Morcheeba, have produced a
from RON 64 to RON 160.