BR 11/2016 by Business Review

WHERE ROMANIA TALKS BUSINESS December, 2016 / Volume 20, Issue 11

www.business-review.eu

Berlin boost: a capital place for start-ups

CEZ Romania rolls out investment PLANS for smart cities

Medical staff shortage complicates recruitment process

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

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

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.

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.

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.

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.

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.

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

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

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

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

Manufacturing

Production of other goods

Financial services

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,â&#x20AC;? 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

Berlinâ&#x20AC;&#x2122;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 yearsâ&#x20AC;&#x2122;

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 â&#x20AC;&#x201C; both as

flower and visual amenity set up,

products and the design of bouquets

by winning two significant projects:

â&#x20AC;&#x201C; 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

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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

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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

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

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

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

Biomass

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 â&#x20AC;&#x153;Happiness Factoryâ&#x20AC;? 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. Itâ&#x20AC;&#x2122;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

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

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

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.

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-

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

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.

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

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.