BR/05/2021

WHERE ROMANIA TALKS BUSINESS May, 2021 / Volume 25, Issue 4

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PANDEMIC BOOSTS COMPANIES’ COMMUNITY INVOLVEMENT

16

ROMANIAN STARTUP FUNDING ECOSYSTEM STRENGTHENS DURING PANDEMIC

22

BRAND LOYALTY GROWING IN CONSUMERS’ MINDS AND HEARTS

32

DATA SUSTAINABILITY – THE NEW FRONTIER

34

HOW ROMANIA CAN BECOME A REGIONAL FDI LEADER IN POST-PANDEMIC EASTERN EUROPE

www.business-review.eu Business Review | May 2020

EDITORIAL 3

• Editorial •

REAL ESTATE

Anda Sebesi • Editor-in-Chief • 6 Real estate market in better shape than expected after pandemic year

COVER STORY

Building a new society

E

8 How Romania can become a regional FDI leader in postpandemic (Eastern) Europe

very company in Romania, whether it is a local firm or a

MAIN STORY

multinational, will sooner or later have to include sustainability in its business strategies and processes. Although

there is no guarantee that sustainability will contribute to the post-pandemic economic recovery, its long-term role is becoming

16 Pandemic boosts

clear, and that’s why we’re dedicating the cover story of this issue

companies’ community involvement

to sustainability, a concept which is being embraced by more and more companies operating in Romania.

Now is the time for organisations to innovate, let go of the “business as usual” concept, develop “green” products and services, and build low-carbon infrastructures. Plus, companies should pay more attention to their customers, as the pandemic has

ENTREPRENEURSHIP 22 Romanian startup funding

changed consumer behaviour and has increased awareness around

ecosystem strengthens during pandemic

responsible corporate practices.

24 Mobility startups

As corporate social responsibility is closely connected to sustainability, we decided to also write about how companies have

preparing for post-pandemic future

been involved in their communities over the past year. Mitigating the effects of the pandemic on local communities and society as

CITY

a whole has been a priority for companies across Romania. Their involvement has helped the country overcome this difficult period and given people hope that better times would come.

36 Malmaison

come the crisis generated by the pandemic, and hence unity and

Studios: A new collective art centre in town

mutual aid have become vital values that should be at the heart

37 Who will finance

Last year was all about solidarity and finding ways to over-

of decision-making for citizens, civil society organisations, and institutions both locally and globally. It is therefore time for us to accelerate the process of building a development model that can lead to a truly sustainable society.

the grand reopening of the local cultural scene?

38 New in town

EDITOR-IN-CHIEF: Anda Sebesi JOURNALISTS: Aurel Constantin, Mihai Cristea, Romanita Oprea, Oana Vasiliu CONTRIBUTORS: Ovidiu Posirca, Claudiu Vrinceanu COPY EDITOR: Anca Alexe PHOTO EDITOR: Mihai Constantineanu PHOTOS: Dreamstime ART DIRECTOR: Raluca Dumitru PUBLISHER: Bloc-Notes Media Network ADDRESS: 82-98 Calea Grivitei, 1st floor, Hotspot Workhub, District 1, Bucharest, Romania SALES MANAGERS: Radu Fireteanu, Alexandra Rosca MARKETING & SALES MANAGER: Luiza Luca PRODUCTION: Dan Mitroi DISTRI­­BUTION: Eugen Musat EXECUTIVE DIRECTOR: George Moise GENERAL MANAGER: Catalin Alistari USA MANAGER: Oana Molodoi FOUNDING EDITOR: Bill Avery EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu SUBSCRIPTIONS on Manpres Distribution Business Review is a member of Fwei

Publicație auditată pe perioada Apr 2015 - Mar 2016

ISSN NO. 1453-729X

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4 NEWS

WHO’S NEWS BR welcomes information for Who’s News.

Submissions may be edited fo­­­r length and clarity.

Get in touch at mihai.cristea@business-review.eu

Pandemic only partially delays consumers’ plans to buy new cars

By Mihai Cristea to the pandemic (32 percent), followed by Spain (29 percent), the United Kingdom (20 percent), and France (17 percent).

Limited driving range and the lack of charging infrastruc-

Constantin Sebesanu has been appointed CEO of Impact Developer & Contractor, for a 4-year mandate. He is specialised in Strategic and Financial Management and has over 25 of experience in project development and asset management. Sebesanu joined Impact at the beginning of February this year, in the Development Director role, and was responsible for coordinating the company’s projects, while in late March he was promoted to Executive Director (COO – Chief Operating Officer), coordinating the company’s development, sales, and marketing departments.

Mircea Draghici was appointed General Manager (GM) for Romania by AGRIVI, a leading global farm management software company in the agritech sector. Draghici is a serial entrepreneur with a passion for science and technology, he has been a founding partner of Venture Growth Partners for almost eight years, and has worked in the tech industry for over 15 years. In his new position, Mircea Draghici will use his knowledge, experience, and expertise to bring AGRIVI to a leading position on the local market. page 5

ture are the biggest concerns regarding electric cars among consumers in most of the countries included in the study.

“Consumer prudence is

Europeans are more optimistic than Asians and maintain their plans to purchase a new car

natural in times of uncertainty.

In this context, it is noteworthy that Europeans are more

The COVID-19 pandemic has

context, which is dominated by

optimistic than Asians and

partially changed consumer

uncertainty, according to the

maintain their plans to pur-

behaviour on the auto market.

Deloitte 2021 Global Automotive

chase a new car. The decline in

Some of them have put off

Consumer Study, conducted in

electric and hybrid cars, which

their plans to buy a new car,

23 countries around the world.

can be explained by the con-

and their interest in engines

Most of the consumers who

sumers’ need for stability, is

with alternative propulsion

have postponed their purchase

expected to be temporary and,

systems has been temporarily

come from Asian countries,

once confidence in the overall

declining. Although the trend

while most Europeans have

development of the economy

around electric cars seems to

maintained their earlier plans.

is restored, the concern for

be consolidating in the long

Among the European coun-

environmental protection and,

term, consumers tend to be

tries participating in the study,

consequently, the appetite for

looking for the comfort of a

Italy has the highest percent-

this type of engine will return,”

well-known, tested, and acces-

age of those who postponed

said Ciprian Gavriliu, Tax Part-

sible technology in the current

the purchase of a new car due

ner at Deloitte Romania.

Publicis and Digitas Romania launch the Digital Health Index

By Mihai Cristea Publicis and Digitas Romania,

about the status of their brands.

with support from the Data

Monthly rankings dedicated to

Intelligence Team from Publicis

several key industries have been

Groupe Romania, have developed

generated based on DHI data.

the Digital Health Index (DHI), a

In this first phase, Q1 2021 was

tool that measures brands’ health

taken into account compared to

in the digital world. DHI has been

Q4 2020, with the aim of captur-

designed to provide clients with

ing the evolution of industries

real-time relevant information

based on their digital decisions.

The first categories analysed by DHI are automotive, banking, retail and telecom

www.business-review.eu Business Review | May 2021

NEWS 5

New plant in Urlati strengthens Romania’s position as a P&G hub

By Mihai Cristea

Dinu Bumbacea will take the lead at PwC Romania on July 1, 2021. With over 28 years of experience in professional services, of which 21 have been spent as Partner, Dinu is currently Partner and Advisory Leader at PwC Romania. Over the course of his career, Dinu has coordinated a wide range of consulting projects in various industries, in Romania and across the CEE region.

Recently, Procter & Gamble opened a new manufacturing site in Urlati (Prahova County).

The new plant will produce Ariel PODS, the company’s latest laundry detergent innovation. By exporting Ariel PODS in many European countries, this greenfield investment comes to strengthen Romania as a production hub for P&G. Over 200 new jobs will be

Over 200 new jobs will be created at the new plant

created and the new plant will introduce modern manufac-

production facility in Urlati,

businesses join forces, great

turing solutions in detergent

Romania, a significant invest-

things happen for all – the

production.

ment in the country. Romania’s

people who we serve and the

attractive profile, the successful

communities in which we live

step fibre science innovation,

track-record of P&G on the local

and operate,” said Antoine

Ariel PODS is the first 3-com-

market and, most importantly,

Brun, Managing Director at

partment laundry unit dose

the exceptional profile of P&G

P&G for South-Eastern Europe.

product that enables superior

people, have made this invest-

The new manufacturing

cleaning even in cold water

ment possible. We would also

facility strengthens P&G’s foot-

while being a great example of

like to acknowledge our strong

print in Romania, which today

sustainable innovation.

partnership with the local au-

consists of a Hair Care plant in

thorities, which has allowed this

Urlati, the operational office of

tant milestone of P&G’s pres-

investment to happen proving

the SEE cluster & regional ser-

ence in Romania. We celebrate

once again that when govern-

vice centre in Bucharest, and a

the inauguration of our PODS

ments, local communities, and

Logistics centre in Timisoara.

Thanks to its superior three-

“Today we mark an impor-

Ziv Gigi has been appointed Managing Director of GTC’s operations in Romania. He has more than 15 years of experience in CEE real estate markets, having developed and operated dozens of projects in the office and retail segments. In addition, his previous tenure as CFO of GTC’s operations in Bulgaria, Romania, and Serbia provided him with the financial acumen he needed to successfully execute and support the company’s strategic direction.

The first categories analysed are automotive, banking, retail, and telecom.

“Brands need fresh, current data that reflect what’s happening today or at least this week. DHI integrates millions of real-time data points with great insights into our clients’ future business decisions: from prioritising media channels or producing better content to developing more efficient communication strategies,”said Teddy Dumitrescu, the CEO of Publicis Groupe Romania.

Bettina Koblick is the new Chief People Officer (CPO) at UiPath. Koblick will report directly to UiPath co-founder and CEO Daniel Dines and will lead all aspects of the people function, from employer branding to talent acquisition through the entire employment lifecycle. Koblick joined UiPath from ServiceMax, where she served as Chief People Officer.

www.business-review.eu Business Review | May 2021

6 REAL ESTATE

Real estate market in better shape than expected after pandemic year Looking back beyond the last 12 months, we can see that the pandemic has only accelerated real estate market trends that had been taking shape in this industry and in the wider economy well before the health crisis hit.

By Aurel Constantin of uncertainty right to the end of 2020. This year began with a slight decline in construction activity, but estimates for the rest of the year remain optimistic, forecasting a slight increase for the full year.

OFFICE MARKET “The pandemic has definitely had a significant impact on the way we work and shop.

IMMOFINANZ Romania already had a good positioning of its office portfolio with the myhive concept, which is based on offering not just basic workspaces, but living spaces, with employee wellbeing as a priority. In the future, this will be central to the office experience, while flexible working and home offices will continue to be in great demand. Recently we have been talking much more about home offices, but this option will never completely replace the office workstation,” said Fulga Dinu, Country Manager Operations at IMMOFINANZ Romania.

The vacancy rate for office space has risen relatively steadily, with most customers’ postponement of expansion projects having Fulga Dinu, IMMOFINANZ Romania

C

contributed to this phenomenon.

Estimates for 2021 and 2022 show that the

hanges in working habits, and im-

cupants with a more comfortable alternative,

vacancy rate will rise even further because

plicitly in employees needs, started

possibly taking into account the requirements

projects that already have pre-leased spaces

to appear before the pandemic, and

of working from home. At the same time, the

cannot be postponed, and it might take longer

this topic was already on the agenda of many

industrial and logistics development market

to fill vacant spaces without an increase in

management teams.

will have to accommodate the growth gener-

net demand. Demand will come mainly from

ated by online commerce,” said Cezar Florea,

tenants whose contracts will expire during

real estate – consultants, architects, agents,

Head of Project & Development Services at

this period and who have seized the opportu-

engineers, developers, tenants, banks, and

JLL Romania.

nity to secure advantageous contracts for the

At the same time, players involved in

coming years.

investors – have been expressing more inter-

All these developing areas will generate

est in sustainable buildings and measures to

many opportunities for companies that oper-

reduce pollution.

ate in these sectors. Despite the moderate

nies have preferred to extend their current

At the same time, many other compa-

pessimism at the beginning of the pandemic,

contracts by one or several years, whether

the need to adjust existing office spaces. The

construction activity did not experience a

they’ll end up keeping the same space or not.

residential market will grow to provide oc-

decline, demonstrating resilience in the face

As they wait for the end of the pandemic,

“The new way of working will bring up

www.business-review.eu Business Review | May 2021 2016

COVER REALSTORY ESTATE14 7

they are taking the time to analyse new forms

will be directly affected by postponed exten-

foundations,” said Andreea Hamza, Senior

of work and adjust their own policies. It is

sion of the 5 percent VAT rate for housing,

Living Department Director at JLL Romania.

not a simple thing, especially for those with

so some buyers in this category could freeze

a large number of employees who have vari-

their purchasing decision at least until 2022.

ous needs and possibilities of working from

Rents have fallen by 10-15 percent as

THE INDUSTRIAL MARKET Industrial demand has had an interesting evo-

home, all of which need to be mapped out

a result of the increased supply of apart-

lution to say the least, given that in April-May

in order to maintain an optimal productivity

ments that would previously be rented as

2020 almost all ongoing leasing projects were

level.

aparthotels and are now being rented on a

suspended indefinitely only to be followed

long-term basis, as well as due to the declin-

by an explosive return in July-August. The

ing itself on the office market is that of com-

ing demand from students. The return of

market was strongly driven by confidence

panies subleasing spaces. At the moment, the

the rental market will happen rapidly as the

in logistics and distribution spaces, which

total area available for subletting is the largest

population's immunisation level increases

supported consumption throughout the

that has ever existed on the Romanian market

and travel restrictions are lifted. The hybrid

crisis period. One of the pleasant surprises

– approximately 70,000 sqm. “There is still a

working model – a mix

significant share of employees who say that

of working from home

they find it more difficult to stay focused

or elsewhere and from

or motivated at home or that they feel less

the office – will have an

connected with their colleagues. Demand for

impact on the design

high quality office space with added value

of residential products,

will therefore continue to exist, and it will be

while more and more of-

very important to focus on our tenants’ spe-

fice developers will turn

cific needs. Flexibility and community will

their projects into mixed

play key roles here,” Fulga Dinu added.

or exclusively residen-

Another phenomenon which is manifest-

IMMOFINANZ started 2021 by announcing

tial schemes. A new

two actions through which they expanded

product will appear on

the range of benefits offered to tenants.

the residential market

“First, we closed the transaction to acquire

– Built to Rent projects,

Bucharest Financial Plaza, an emblematic

i.e. homes which are

building in the Old Town. The agreement

purposely designed to

is an important step in strengthening our

be rented out.

high-quality office portfolio and innovative

The market will focus

myhive office brand. As part of the planned

on established develop-

refurbishment, we will provide more space

ers with strong finan-

for the public area and the green city terrace

cial support and with

will bring a highly appealing central attrac-

large volumes of units

tion to city residents. This year, we also

delivered, especially in

concluded a long-term leasing contract with

the context generated by the adjournment of

that we have been observing over the past

Provita Group, a leading medical services

Urban Zonal Plans (PUZs) for five out of six

year has been the strong confidence shown

provider that will occupy an entire building

sectors in Bucharest (2 to 6).

by large investors regarding the resilience of

in one of the largest office hubs in Bucharest.

Institutional investors will make an

This partnership expands our current offering

entrance on the local market, and this will

with a high-quality medical hub that will

reshape the rental market altogether by im-

increase the location’s attractiveness in the

plementing clear rules and international best

fact that, with the increase in the number of

long run. Seeing all this interest, we believe

practices, thus defining new rental standards.

investors and the volume of spaces avail-

that we offer the right kind of product in this

“The pandemic has also acted as a cata-

able for rent, the market is heading towards

lyst. It has helped in making decisions and ac-

a new turning point. Landlords are offering

celerating the desire to optimise the spaces in

increasingly attractive and consistent benefits

RESIDENTIAL MARKET

which we live, with a much more pronounced

to potential tenants, while also facing more

According to the JLL Romania forecast,

focus on comfort. Up to this point, we have

intense competition from new investors who

demand for housing will remain strong, espe-

seen a dynamic that is specific to a mature

need to be a little more flexible in order to

cially for the segments positioned at the ends

and stable market, without the slippages we

increase their client portfolios,” said Costin

of the market spectrum (low-end and high-

had seen in previous years, thanks to the pro-

Banica, Head of the Industrial Department at

end). Meanwhile, the middle-high category

fessionalism of market players and their solid

JLL Romania.

environment,” Dinu explained.

the industrial segment at the beginning of the pandemic.

“However, we must draw attention to the

8 COVER STORY

www.business-review.eu Business Review | May 2021

HOW ROMANIA CAN BECOME A REGIONAL FDI LEADER IN POST-PANDEMIC EASTERN EUROPE Bogdan Ion, EY Romania & Moldova Country Managing Partner and EY CESA Chief Operating Officer, talks to Business Review about the key role of foreign direct investment (FDI) in Romania’s post-pandemic economic recovery and explains what the country should do to attract more foreign investors.

By Anda Sebesi

www.business-review.eu Business Review | May 2021

COVER STORY 9

www.business-review.eu Business Review | May 2021

10 COVER STORY

FDIs will play a crucial part in the local economy’s post-pandemic recovery. What adjustments should Romania make in order to become more attractive for investors?

a driving force for Romania. The development of the industrial sec-

FDI will be at the foundation of economic recovery over the coming

in infrastructure.

years. The 2020 edition of the EY Attractiveness Survey shows that

tor should be carried out considering the European efforts towards a sustainable and green economy and the need for large investments Finally, the Romanian IT sector has experienced significant

foreign investors think Romania should focus on developing educa-

growth over the last decade, considering its competitive advantage

tion and skills, supporting high-tech and innovative sectors and

in terms of qualified workforce. With the pandemic having acceler-

encouraging investments in major infrastructure and urban projects.

ated the adoption of technology, the digital sector has a chance to

35 percent of surveyed investors were looking to invest in supply

become the most important industry in Romania. According to the

chain and logistics projects, while 34 percent were interested in

same EY Attractiveness Survey, last year 29 percent of investors

projects in the manufacturing sector.

saw the IT sector as the engine of the Romanian economy. We have

In this context, infrastructure investments, particularly transport

just witnessed the largest IPO of a Romania-born company on the

infrastructure, can attract investors from areas like production and

NYSE – UiPath – a tech company valued at EUR 20 billion. However,

logistics. Romania has the potential to become a European supply

digital infrastructure inside the public administration remains poor,

hub, since many players are planning to re-enter the European mar-

so major investments are still needed for the public sector to be

ket. Over the next few years, the National Resilience and Recovery

efficient. The National Resilience and Recovery Plan supports Roma-

Plan (PNRR) will play a major role, as infrastructure, skill develop-

nia’s objectives in this sector too, as the digitalization of the public

ment, and innovation are some of its key components.

administration is another key element of this plan.

Significant additional support is also expected in

Last year brought us the opportunity to advance

the energy sector through several instruments:

digitalization in medical and educational ser-

The Modernisation Fund, the 2021-2027 Just Transition Operational Programme, the 2020-

vices. In the future, this will lead to significant annual cost savings, improve the popula-

2030 Innovation Fund. The absorption of

tion’s access to these services, and acceler-

these funds at the national level could turn

ate the growth of the private components

Romania into a very attractive destination

of these two sectors. The new EY Attrac-

for foreign investments, thanks to both its

tiveness Survey for Romania, which will

human capital and local resources. In this

be launched on June 16, may change the

sense, significant public investment in education is also needed in order to keep up with innovation and remain competitive in terms of local workforce.

Lastly, stability within the political and fiscal environment

ranking of industries perceived as having high potential for the country, considering the accelerated digitalization and the impact of the pandemic on foreign investors’ perceptions and priorities, which will be reflected in this year's survey results.

will play an important role in attracting investors, who are aware of geopolitical dynamics. Romania has made significant improvements in the past decade, taking important steps in the fight against

To what extent do you think Romania was prepared to face a crisis before the pandemic started?

corruption and adapting its fiscal policies. Still, the Corruption

The COVID-19 pandemic had a significant impact across the world.

Perceptions Index from Transparency International places Romania

However, it also triggered unprecedented responses through eco-

on the 69th spot out of 180 countries, illustrating the fact that much

nomic recovery packages which have managed to limit the damage

remains to be done in order to obtain the long-term trust of inves-

caused by lockdown measures and by the slowdown in global trade.

tors at a larger scale.

A very important factor that contributed to Romania's economic resilience after the coronavirus outbreak was its highly competitive

Which of Romania’s economic sectors have the highest growth potential in the post-pandemic period?

mobile and fixed telecommunications infrastructure and especially

Based on the answers of over 100 global investors included in our EY

of a strong historical competition between operators in this sector,

Attractiveness Survey, agriculture, IT, transportation, and automo-

which led to significant investments in their networks, making them

tive are the main drivers of Romania’s economy. The agri-food sector

capable to support the move to teleworking.

the high degree of broadband penetration. These were the result

ranked first among the industries that will foster local economic

In Romania, the COVID-19 pandemic overlapped with a pre-

growth. And since agriculture has a strategic importance for Ro-

existing health crisis, so issues such as poor organisation, material

mania, it needs coherent policy and financial support to propel its

shortages, and the lack of a well-developed infrastructure were all

modernisation and contribute to economic growth in a sustainable

exacerbated by the pandemic. Contrary to all predictions, the Roma-

manner. This financial support is integrated into the National Resil-

nian economy proved to be resilient, thanks to both direct infusions

ience and Recovery Plan.

of cash – through economic recovery programmes and non-reim-

Manufacturing is another sector with a high potential to become

bursable fund schemes –and an increase in public investments.

www.business-review.eu Business Review | May 2021

The IMF predicts a 2.6 percent net increase for Romania’s GDP be-

COVER STORY 11 als generate direct added value by working for multinationals or lo-

tween 2020-2022, more than double the EU average of 1 percent. By

cal/entrepreneurial companies, I unfortunately don’t think that the

comparison, in 2008-2010, Romania’s GDP dropped by 0.8 percent.

pandemic has dramatically changed the situation. I think we need a

Furthermore, the unemployment level shows that the additional

country strategy to both retain high-skilled workers in Romania as

financial support and the job retention policies have kept Romania’s

well as to involve workforce from other countries in local projects.

unemployment rate stable, with only a minor increase of 0.6 percent (according to Eurostat) between February and December 2020 (compared to 1 percent for the same period of 2008). This is well below

What are your recommendations for Romanian authorities in terms of planning for future foreign investments?

the EU average of 1.9 percent, proving that the pandemic’s impact

Supporting education, adopting new technologies, and investing

on the labour market was better managed in Romania than in other

in infrastructure (especially transport and energy infrastructure)

European countries

should be top priorities for Romania. According to last year’s EY

In any case, regardless of how prepared Romania was when the

Attractiveness Survey, foreign companies believe that investments

pandemic started, what is most important now is maintaining mar-

in these sectors could increase Romania’s competitiveness. Yet, ac-

ket optimism regarding the country’s recovery, as the sentiment can

cording to preliminary results of the upcoming annual survey, these

attract investments in this uncertain context.

priorities seem to have changed in 2021. We’re noticing a greater

Foreign investments have mostly targeted the largest cities of Romania, which are drivers of the country’s economic growth. How do you think the gap between these growth poles and the rest of the country could be reduced, in order for economic development to no longer only be concentrated in certain areas?

Our studies frequently show that poor infrastructure, which limits the development of certain regions, is a factor that investors take into account when deciding where to invest. Investments in infrastructure represent a way to direct investors’ interest

focus on sustainability, environmental policy, and technology adop-

towards other areas besides large metropolitan areas, therefore the

tion among investors, while the financial stimulus programs offered

acceleration of certain infrastructure projects will put geographi-

by governments might not play such a significant role to attract

cal areas which are now economically isolated on the investment

foreign investment.

map. Additionally, introducing fiscal facilities designed to stimulate

Equally, authorities should focus on encouraging the creation

investments and economic activity outside the big cities could also

of intellectual property in Romania by offering various facilities,

generate economic growth in other parts of our country.

including fiscal incentives. Such policies will enable the retention of the tech entrepreneurial companies' IP in Romania and can support

Keeping highly qualified workforce from leaving Romania has always been a challenge for our country. What is the current situation and how could the pandemic context help the country retain its talent?

the attraction of more investments in the long term, because well-

A significant share of the qualified workforce that was living abroad

for many investors who are already present in the country, because

returned to Romania for various reasons during the pandemic,

it can influence their companies’ performance and resilience to

which significantly reduced their mobility. In addition, the number

shock. The National Resilience and Recovery Plan is therefore an

of students who decided to study abroad (many of whom will turn

opportunity for the Romanian economy to recover and develop its

into future Romanian expats) dropped as well during this period.

vulnerable sectors as well as to attract long-term investors. Romania

The exact impact of the pandemic on the number of Romanian uni-

will benefit from significant funds for green energy, public sector

versity graduates who will leave the country could be determined in

digitalization, reskilling, and upskilling. So, a strong dialogue be-

the next three to four years. This will generate an increase of domes-

tween decision-makers and the private sector to ensure the efficient

tic consumption and bring indirect added value. As for achieving a

absorption of these funds is crucial for the development of foreign

long-term retention of talent in Romania and having these individu-

investments in the future.

consolidated and protected intellectual property rights generate direct foreign investments.

Governmental support for future investments could be decisive

www.business-review.eu Business Review | May 2021

12 COVER STORY

Making the most of sustainability

By Anda Sebesi

Every company in Romania, whether it is a local firm or a multinational, will have to include sustainability in its business strategies and processes. Although there is no guarantee that sustainability will contribute to the post-pandemic economic recovery, its long-term role is becoming clear. Now is the right time for organisations to innovate, let go of the “business as usual” concept, develop “green” products and services, and lowcarbon infrastructures. Last but not least, companies should pay more attention to their customers, as the pandemic has changed consumer behaviour and increased awareness around responsible corporate practices.

www.business-review.eu Business Review | May 2021

I

COVER STORY 13

n recent years, sustainability has become a top priority for many companies, which have started to work on developing and refining the concept. The pandemic has had an impact on

this concept too, and it has accelerated some trends, including getting consumers to pay more attention to corporate behaviour and

A CRUCIAL SHIFT IN ROMANIAN CONSUMERS’ BEHAVIOUR

acknowledge the impact companies have on the environment.

In addition, the European Commission has set the main targets Europe should pursue in order to make a successful transition towards a low-carbon economy by 2050, in line with the objectives of the Paris Agreement, of which Romania is a part as well.

The orientation of economic activities towards sustainable development is crucial. This could be done only by integrating sustainability issues – environmental, social, governance – into

ACCORDING TO THE EY FUTURE CONSUMER INDEX SURVEY, THE PANDEMIC HAS CHANGED ROMANIANS’ CONSUMPTION PATTERNS AROUND PRODUCTS, SERVICES, MEDIA CHANNELS, AND SOCIAL EXPERIENCES. QUALITY AND PRICE HAVE BECOME THEIR MAIN CRITERIA. IN ADDITION, THE BEHAVIOUR OF COMPANIES HAS CHANGED AS THEY FACED THIS UNUSUAL CRISIS.

their business strategy. “We can define sustainability as a balanced and long-term alignment of the interests of all stakeholders in a

•

ROMANIAN CONSUMERS BECAME MORE AWARE OF RESPONSIBLE COMPANIES. According to the EY Future Consumer Index, about 85 percent of Romanian consumers say that the way in which companies act is as important for them as the products or services those companies put on the market.

Under the influence of the pandemic at a macroeconomic level, the new consumer, including the Romanian one, is more pragmatic and aware of companies’ behaviour during this crisis, as well as of their general business strategy.

•

THE PANDEMIC HAS LED TO COMPANIES GETTING MORE INVOLVED IN COMMUNITIES. The COVID-19 outbreak dramatically changed the dynamics of the private sector’s involvement in local communities. This translates into a large volume of corporate donations aiming to support the public healthcare system. In the last five months of 2020, the pandemic generated several changes in corporate behaviour among companies operating in Romania. They either stopped or increased their commercial communication, stepped up their involvement in the community, and focused more on their employees. Many Romanian companies developed new strategies and capacities to manage the crisis and to continue their activity during the pandemic.

•

COMPANIES SHOULD MAKE GREATER EFFORTS TO MAKE THE NEW CONSUMER FEEL SAFE. In this atypical context, an increased concern for the safety and protection of consumers could be crucial in strengthening the relationship with them. According to the same survey, both non-commercial communication – which focuses on health and safety measures and on community involvement – as well as commercial messaging are crucial for Romanian consumers who say that they prefer to be as well-informed as possible. Flexibility and a constant optimisation of product portfolios, along with a shift towards digital business and an increased focus on the current needs of consumers are some of the solutions companies could use to adapt to new market conditions.

•

STABILITY AS STANDARD. Globally, stability seems to be the one of consumers’ top demands, with 40 percent of them wishing for things to return to normal as quickly as possible.

Consumers expect to make significant and long-lasting changes both in their consumer behaviours and their daily activities. 62 percent of them indicate that they will be more aware and cautious when it comes to their physical health, while 58 percent will focus more on the value created by the products and services they buy. Last but not least, the most recent Future Consumer Index shows that the environment, the common good of society, and physical health are seen as priorities by the majority of consumers.

company’s ecosystem. The sustainability of a company is not just about its impact on the environment, but also about its impact on its entire ecosystem. Therefore, the mindset of ecosystem members should be based on long-term investment. A company cannot be totally ‘green’ just because its carbon emissions drop by, say, 50 tonnes/year, if its suppliers record an increase of 100 tonnes/year during the same period,” they argue.

EY points out that the pandemic created an unexpected opportunity for organisations to rethink their medium and long-term operations and strategies. In addition, it highlighted a number of risks and structural changes. “Some changes have already been accelerated by the pandemic – for example, many activities moved online, business trips have been cut out, and some operations had to be completely redesigned. This is a good moment for companies to adopt an agenda of stakeholder capitalism, in order to create long-term added value and encourage a culture of sustainability, based on responsible business practices,” EY specialists say.

In the “Sustainability and responsible investments in the context of COVID-19” study conducted by EY last year, 74 percent of respondents said that integrating sustainability principles into the business strategy was a priority for their companies. This change in business philosophy can also be seen among Romanian companies, in light of the change in consumers’ purchasing behaviour and the increasingly stringent requirements from investors and regulatory bodies – trends which are expected to continue and follow global tendencies.

A CHANCE TO RESET OUR MINDSET According to EY representatives, when organisations talk about economic risks and macroeconomic trends, analysing specific risks like climate change and pandemics, they tend to take crucial decisions only if they think these risks might affect them in the short term.

“Now that one of these risks turned into reality, we can use it as a chance for our generation to push the reset button and understand that factors like the environment or social and corporate governance are of a strategic importance.”

The pandemic brought to light the fact that companies in Romania should reprioritise the factors they take into account when making operational or investment decisions. In addition, there is a need

www.business-review.eu Business Review | May 2021

14 COVER STORY

to integrate sustainability principles into key business processes,

als believed that taking sustainability into account in the decision-

from supply chain to operations, research, development, and com-

making process has a long-term impact on operational performance.

munication. At the same time, COVID-19 highlighted the importance

“In order to post healthy and steady long-term economic growth,

of long-term thinking and added-value creation. This shift changed

sustainability must be adopted on a large scale.”

Business leaders were

investment and evaluation criteria, shifting the focus

sceptical for a long time

from financial situations

about including sustain-

to qualitative indicators.

ability in their organisational strategy. But for

“Embracing sustainability in business strategy

many of them, measuring

implies efforts to change

non-financial indicators

the status quo when it

became a usual practice,

comes to decisional pro-

albeit such indicators

cesses, technologies, and

don’t reflect tangible

organisational cultures.

actions and initiatives

But such efforts may open

in most cases. “It is not

up new opportunities,

enough for organisations

increase performance, and

to measure their non-

have a positive impact on

financial performance

the reputation of an organ-

solely as a component

isation in the long term,”

of their annual report.

EY representatives add.

They need to set further concrete targets and

The same EY sustainability study found that

take specific measures to

in the context of the

achieve these goals,” EY

pandemic, the majority

representatives advise.

There are companies

of organisations said that the health and wellbeing

which have placed sus-

of their employees and

tainability at the core of

partners were their main

their corporate strategy,

priorities. In addition, the

first because it generates

same source says that pri-

opportunities with a high

vate companies in Roma-

financial potential, and

nia were willing to make

second, because employ-

investments in energy ef-

ees have started to search

ficiency, technologies that

for jobs at companies

diminish environmental

whose organisational cul-

impact, and responsible

tures match their personal

purchasing.

values.

In turn, these compa-

AT THE CORE OF BUSINESS STRATEGY

nies are pressuring other

Although there is no guar-

their example. As a result,

antee that sustainability

concepts like sustainabili-

organisations to follow

ty audits and certifications

will contribute to the postpandemic economic recovery, its long-term role is becoming clear.

have become business priorities. Such certifications assure partners

“Now is the right time for organisations to innovate, let go of the

inside the ecosystem (including investors) that a company does its

‘business as usual’ concept, develop ‘green’ products and services,

part in terms of sustainability and also supports other partners in

high-end technologies, and low-carbon infrastructures. This way,

following this trend.

they become models for an equitable future and they maintain the

“Companies that do not recognise the role of sustainability in

competitiveness of their industry and of the wider business envi-

the long term will notice that neither the business environment nor

ronment,” EY specialists note.

society will continue to support them. For example, not complying

According to the same study, 80 percent of surveyed profession-

with investors’ expectations about the environmental, social and

www.business-review.eu Business Review | May 2021

COVER STORY 15

governance factors (ESG) will likely lead to higher costs and eventu-

to publish a sustainability report or a non-financial declaration.

ally to losing access to capital markets,” warn EY reps.

“These companies are more inclined to implement sustainability initiatives and most of them already have dedicated departments or

COMPANIES IN ROMANIA EMBRACING SUSTAINABILITY

positions.”

Companies operating on the Romanian market have started to pay more attention to sustainability. Legal changes around protecting

SUSTAINABLE FINANCE IS A MUST

the environment as well as the health and safety of workers and

Global trends show that as the financial losses generated by envi-

communities along with the obligation to report on non-financial

ronmental and climate change risks are on the rise, the adoption

indicators have made the concept more popular. “At the same time,

of sustainable finance is becoming a priority for all the signatories

clients have been more interested in studies about their company’s

of the Paris Agreement, including Romania. The EU has positioned

impact on the GDP and

itself as a leader in the fight

state budget, as well as

against climate change

their long-term social

and has set some very

and economic impact. In

ambitious targets for 2030.

addition, mechanisms

“To achieve these targets,

have been developed to

financial support needs to

transpose sustainabil-

come from both the public

ity actions into financial

and private sector, by

terms.”

mobilising investments in

As for management

sustainable business mod-

teams, most large com-

els and technologies and

panies worldwide have

by encouraging the circular

appointed a Chief Sus-

economy,” EY specialists

tainability Officer (CSO)

explain.

who plays a significant

The EU has proposed

role in the relationship

a set of legal measures

with shareholders and

which will be adopted by

other interested parties.

all member states start-

Part of their job is to

ing 2021-2022 to support

explain to the Board how

investors in their search for

strategic and operational

sustainable investments.

changes comply with the

“If applied, these measures

principles of responsible

could improve Romania’s

capitalism, how profit and

ability to adequately man-

sustainability can coexist,

age sustainable finance

and how the improve-

mechanisms in order to

ment of non-financial

meet its environmental

performance can increase and support the financial side.

“A CSO should guide the company so as to make it fully engaged

impact requirements.”

Along the same lines, sustainable finance has become a priority for the financial services sector in the context of the zero CO2 net

with all the aspects of the organisation’s long-term sustainability

emissions target by 2050, which could not be met unless financial

agenda, whether it is decarbonisation, circular economy, health

services are taken into account, as organisations will need finan-

and safety or CSR initiatives. We hope to see such roles created in

cial resources to manage the risks of this transition. “EY considers

Romania, too. So far, there has been some progress, with companies

sustainable finance to be any type of financial service that encour-

having appointed sustainability managers or created sustainability

ages the integration of ESGs in business decisions with the aim of

departments,” say EY reps.

offering more equitable, sustainable, and favourable benefits for companies, communities, and society.” EY representatives add that

ROMANIAN COMPANIES TO FOLLOW THE TREND

although such a transition requires large investments, organisations

A large share of firms with less than 500 employees don’t publish

that will fail to make this transition will face difficulties in getting

an annual non-financial report. By contrast, companies that are

financing and attracting investments. “For example, at the EU

part of international groups are more aware of this concept and

level, the cost of transitioning towards decarbonisation or generat-

have already taken concrete steps towards sustainability. On the

ing capacities with a net neutral impact on the environment could

other hand, companies with more than 500 employees are required

exceed EUR 2,000 billion in the next 30 to 40 years.”

16 MAIN STORY

www.business-review.eu Business Review | May 2021

www.business-review.eu Business Review | May 2021

MAIN STORY 17

Pandemic boosts companies’ community involvement Fighting against the effects of the pandemic on local communities and society as a whole was a priority for all companies operating in Romania last year. Their involvement has helped the country overcome this difficult period and given people hope that better times would come.

A

By Anda Sebesi

ll over the world, large companies are talking about their

nies. According to a new International Labour Organization (ILO)

values and boasting about how much they care for their

report, collective efforts and solidarity between employers’ and

employees, the environment, and other stakeholders. The

workers’ organisations is critical to responding effectively to the

coronavirus crisis was and still is the right time for them to deliver on

impact of the COVID-19 pandemic in the world of work. In crisis set-

that commitment. As a recent Harvard Business Review article says,

tings, collaboration and dialogue between employers and business

the way companies respond to this crisis will be remembered for

membership organisations and workers’ organisations can boost

decades to come.

economic and social progress and enable an accelerated recovery.

The same article points out that research has found that people

According to RIPESS, a global network of continental networks

only truly believe their company has a real purpose and clear values

committed to the promotion of Social Solidarity Economy, the

when they see management making a decision that sacrifices short-

challenge we face is building an alternative model of development

term profitability for the sake of adhering to those values.

driven by the needs of all people and communities around the world

Last year was all about solidarity and finding ways to overcome

and by the protection of our planet. The window of opportunity is

the crisis generated by the COVID-19 pandemic. With this in mind,

now open to accelerate the process, capitalise on the thousands of

many companies in Romania directed their efforts towards support-

ingenious solutions being created within communities, and make

ing local communi-

positive change per-

ties or the economic

manent and global in

sectors that were hit

all its diversity.

At the territorial,

hardest by this pandemic. From propping

regional and country

up the hospitality and

level, governments

healthcare sectors to

need to partner up

building mobile hospi-

with different players,

tals to treat coronavi-

who in turn need

rus patients, donating

to be organised in structured networks

hygiene and protective products or medical equipment, and supporting online education,

and organisations themselves, in order to build a national or regional

companies joined forces in an attempt to mitigate the impact of the

ecosystem that is sustainable and durable.

pandemic and make a real difference in this unprecedented context.

According to the 8th edition of the study titled “The dynamics

Unity, solidarity, and mutual aid have become vital values that

and perspectives of the CSR sector in Romania”, conducted by Valo-

should be at the heart of decision-making for citizens, civil soci-

ria in partnership with CSRmedia in 2020, 79 percent of surveyed

ety organisations, and institutions at the national, European, and

companies included defined social responsibility as a sustainability

international levels. While citizens have had to act responsibly and

strategy, 73 percent of the companies focused on health and educa-

comply with the measures and preventive actions recommended by

tion in their community interventions, and 40 percent of respon-

the EU, to reduce their mobility and contain the spread of the virus,

dents had implemented between one and five CSR projects.

national governments have had to show solidarity and act together to fight against this pandemic.

Last but not least, the pandemic has changed the relationship

As for the budgets allocated to CSR projects, 15 percent of the companies included in the study said that their CSR budget was between EUR 100,000 and EUR 200,000 last year. In addition, the

between employers and employees, taking it to the next level. The

same source says that last year’s CSR budget was similar to the 2019

health and safety of employees became paramount for all compa-

one for 41 percent of surveyed companies.

www.business-review.eu Business Review | May 2021

18 MAIN STORY

Fighting against hunger Manuel Fernandez Amezaga, the CEO of Sodexo BRS Romania, talked to Business Review about his company’s initiatives on the local market over the last year and the Sodexo Foundation’s positive impact at the global level.

By Anda Sebesi How did Sodexo Romania support disadvantaged communities last year and what was the impact of this involvement?

erative, and creating jobs. The

2020 was a year that put our

or through online platforms, some

creativity and imagination to the

even reaching Mega Image stores.

Predesti Agricultural Cooperative produces a variety of fresh vegetables that are sold in local markets

test, as we had to find new solutions to new problems. The same

generated a tremendous need for

What can you tell us about the Sodexo Foundation’s community involvement at the international level?

support among certain social cat-

Stop Hunger is a global association

egories. Last year, our projects and

that fights against hunger. It was

principle applied to our CSR initiatives, because these difficult times

actions continued to have a posi-

established in 1996 by Sodexo US

tive impact on individuals, communities, and the environment, and

teams, who wanted to offer free meals to disadvantaged children

we acted as a trusted partner. At the company level, we started by

during the summer holidays. Since then, Stop Hunger has evolved

offering optimal employment conditions including a safe workplace,

from a limited project developed by a handful of employees to a

attractive benefits, and a culture of well-being. Moreover, we ensure

global non-profit organisation. Its initiatives go beyond food aid, as

gender and generational balance in our team, which leads to better

it also aims to empower women so that hunger may be eradicated

inclusion and engagement.

effectively and durably in the most vulnerable communities.

At the community level, Sodexo employees were involved in

Stop Hunger is built upon partnerships with hundreds of local

volunteering events through Servathon – a global programme that

and international NGOs as well as the unique ecosystem of Sodexo,

provides families in need with access to food. Last December, it was

its founding partner. Over 7.3 million free meals were provided last

implemented in partnership with the Magic Association and resulted

year, up 63 percent from 2019, and over 26,000 volunteers from 47

in the donation of 60 packages with products covering basic necessi-

countries have contributed to the Stop Hunger emergency food aid.

ties to families with children undergoing oncological treatment.

We also launched the Together for Tomorrow project, in partner-

In Romania, the Stop Hunger Association was established in 2008 – with support from the Sodexo team – and it has managed to mobil-

ship with the Touched Romania Association, to help low-income

ise significant resources to help disadvantaged groups and develop

families overcome this difficult period. The project has a double tar-

programmes that could improve their quality of life.

get, supporting both families in need with daily hot meals, as well as businesses in the hospitality sector with constant food orders. Over

What are the strategic objectives of Sodexo’s CSR projects?

8,600 meals were donated between September 2020 and April 2021.

Since its inception, back in 1966, Sodexo has kept corporate re-

Some of our clients joined our initiative and contributed with in-kind

sponsibility at the core of its activities. The concept was innovative

or financial donations.

back then, but we improved it further as our company expanded.

As the pandemic situation generated the urgent need for quality

We strongly believe in this concept – now more than ever – because

online education, we joined the ‘Dam un Byte de Ajutor’ campaign,

our employees, clients, suppliers, consumers, and shareholders

coordinated by Ateliere fara Frontiere, and donated over 80 comput-

expect our growth to have a positive global impact. To sum up,

ers and other electronic equipment to schools. We also continued to

Sodexo follows three directions in its community interventions: at

support women’s development through the ‘Empowering Women’

the individual level – improving quality of life for all the individuals

project, alongside WorldVision Romania. Since 2019, it has been

we serve; at the community level - supporting the development of

supporting vulnerable women from a poor community in Predesti by

vulnerable communities; and at the environmental level – having a

providing financial education, building a self-sustainable coop-

positive overall impact.

www.business-review.eu Business Review | May 2021

MAIN STORY 19

Driven by responsibility and solidarity Dragos Mindreci, Country Manager at Betano Romania, Panos Konstantopoulos, Chief Marketing Officer at Kaizen Gaming, and Roxana Ciocanau Dinescu, Marketing Manager – Brand and Communication at Betano Romania, talked to Business Review about the company’s involvement in CSR projects, in Romania and abroad.

What is the Kaizen gaming company’s contribution in the region in terms of CSR projects?

DM: Kaizen Gaming is present in six

day. We believe in heroes who express

countries – in Greece and Cyprus,

ple working in hospitals, fighting non-

where we are market leaders under the

stop to save lives. On December 17th,

Stoiximan brand, as well as in Romania,

Betano Romania officially launched a

Germany, Portugal, and Brazil, where

human-centric CSR campaign, under

we operate as Betano. Romania was the

the Table for Two concept. It was an

birthplace of the Betano brand, the first

opportunity to show gratitude by also

market we chose for expansion outside

lending a helping hand to a seriously-

of Greece, and thus it has a special

affected sector – hospitality. Through

place in our business.

this initiative, Betano Romania sup-

themselves through their actions, and there is no doubt that the real heroes of the last 14 months have been the peo-

ported 15 restaurants owned by small

We have always been connected to the markets in which we operate, to

Romanian entrepreneurs or family

the needs of our customers, but also

businesses from 4 cities to prepare and

to the needs of the local communities.

deliver 15,000 hot meals to front-line

Our company fuses tech and entertainment, but also holds a clear

medical staff at 5 hospitals.

and unwavering commitment to community and responsibility. Our

RD: At Betano, we are proud to be part of a chain of goodness. As

philosophy is based on seven pillars: People, Technology, Entertain-

such, we have continued our commitment to invest in the commu-

ment, Responsibility, Extroversion, Commitment, and Contribution.

nity as part of our mission to act as a responsible and stable brand on

Responsibility has been the focus of the Kaizen group from the very

the Romanian market, and based on the initiative’s initial success,

beginning of our operations, back in 2013, and that is why we have

the Table for Two project has been implemented at the group level as

pioneered a social responsibility programme that focuses on Tech-

well, through Betano Portugal.

nology, Safe Entertainment, and Sports. We also have an extensive sports sponsorship programme across our markets, encapsulating gramme, as we strive to support performance in sports. Corporate

How does Betano enforce the concept of responsible gaming in Romania and how can technology help in this regard?

DM: The Kaizen group has been focusing on safe entertainment and

responsibility has been a key part of our business model; we are

responsible gaming since 2013. At Betano, we are proud to have been

connected to the communities we belong to and we understand their

the first operator to launch a campaign built exclusively around Re-

needs, so we try to maximise our positive footprint. And this moti-

sponsible Gaming, encouraging users to play responsibly and remain

vated us to take on an active role in 2020 by supporting medical staff

in control.

both traditional and digital sports. CSR is at the heart of this pro-

and units in overcoming the challenges of the COVID-19 pandemic.

Since we are fuelled by innovation and constant improvement

PK: In this unprecedented situation, we need to be guided by solidar-

to provide a ‘’best in class’’ customer experience, we have recently

ity more than ever before. Commitment, Contribution, and Respon-

developed an Artificial Intelligence-based system which is designed

sibility are elements that have made Kaizen Gaming the company it

to identify specific gaming patterns of users who might be at risk of

is today – one of the fastest-growing GameTech companies in Europe

developing vulnerable behaviours early on. This way, our dedicated

– and these are the very values that will set and guide our future

responsible gaming teams can provide them with the best pos-

steps as well. We will continue to invest in helping people and com-

sible support. This innovation recently won an award at the 2020

munities lead better lives.

EGR Marketing & Innovation Awards and was hailed by the jury as a ground-breaking example of how technology and human intel-

What can you tell us about Betano’s CSR projects in Romania?

DM: Betano is all about people who challenge themselves every

ligence can work together to offer a gaming experience that is both entertaining and ethical.

www.business-review.eu Business Review | May 2021

20 MAIN STORY

Connected to the local community Business Review sat down with Oswald Kolb, Manager at Continental Sibiu, to talk about the company’s involvement in the local community and how important its social projects are in the context of the pandemic.

By Anda Sebesi How do you think the concept of solidarity is reflected by the actions taken by companies in Romania to help society cope with the pandemic?

and it is our duty to get involved

Based on my observations, I think

ment. Our latest donation was

there have been very good reac-

to the Sibiu Ambulance service

tions from all the big companies

– an automatic cardiopulmonary

in Romania. Companies and their

resuscitation system that provides

employees are highly engaged

high-quality, automatic CPR to

and are closed to several courses.

victims of sudden cardiac arrest.

This is also Continental’s case at

Being there for each another is

national and locations level. Con-

the key to beating the crisis in our

tinental Sibiu is involved as well in

community.

when the community needs it.

Since the pandemic began, we have made several donations in the form of money and equip-

We are responsible for about

large number of employees. I am thinking here of the free internet

4,000 employees and their

provided on buses or the scholar-

families. Protecting the health and

ships for vocational or dual school

safety of our employees is crucial

students with more than 100

for us, with considerable impact in

pupils, university sponsorships,

the local community. In Continen-

and also recent projects in these

tal Sibiu we implemented plenty of

pandemic times.

preventive measures and actions for the employees: providing two

What can you tell us about Continental Sibiu’s initiatives in this regard?

masks per day to each employee

Two public vaccination centres

doubled the company’s bus fleet

and carrying out daily disinfection in buses, restrooms, and offices,

were opened on April 23rd by the initiative & with the support of

in order to reduce the number of employees traveling on a single

Continental in Sibiu and Timisoara. The public vaccination centre

bus. The feeling of belonging to a community, trust, and determina-

in Sibiu, located directly into the company’s yard, was established

tion have led to some noteworthy results, such as the establishment

and arranged by Continental in collaboration with the Regina Maria

of a COVID-19 Testing Centre for Continental employees and their

Private Health Network and the local authorities. The total area of

families at the beginning of the pandemic, where around 1,200 rapid

the vaccination centre is 134 sqm, consisting of 9 containers (7 offices

tests and over 800 PCRs have been performed to date. We’ve had no

and 2 medical areas), the staff and administration belong to Regina

major outbreak, and public health authorities have not forced us to

Maria, while our employees as well as the other citizens can get the

halt our operations, which would have had a huge financial impact.

vaccine in this centre after following the registration process of the

This March, Continental also managed to implement a project

national vaccination platform.

that had been on our wishlist for some time: inaugurating a Regina Maria Polyclinic on-site. Regina Maria covered most of the invest-

What about other projects through which Continental Sibiu supports its employees and the local community?

ment cost, which comprises medical offices for more than ten

As the most desirable employer in the region, it is natural for us to

area, a large waiting room, and a friendly medical team. This way,

get involved in the local community, and we will continue to do so.

our employees and their families have access to a wider range of

Continental Sibiu has been part of the community for almost 16 years

medical services.

specialties, with state-of-the-art equipment, a welcoming reception

www.business-review.eu Business Review | May 2021

ADVERTORIAL 21

Raluca Fiterman, CEO Arcadia – Hospitals and Medical Centers: Last year the community and our patients were in focus more than ever

O

ver 1 million

real septoplasty and a

patients in

rhinoplasty to correct

the North-

a severe nasal pyra-

east region and across

mid dysmorphia with

the country are part of

breathing functional

the Arcadia story. This

issues.

pushes our efforts

Sebastian is a shy,

and future projects

gentle and intelligent

in a commensurate

17 years old teenager

dimension, lead by

who faces the chal-

empathy, passion, and

lenges of this age.

innovation. We are

That alone is a strug-

constantly learning

gle nowadays, want-

and focus on bringing

ing to be accepted

forward initiatives

by those around him,

that respond to the

moreso when a physi-

ever-changing needs

cal disfunction adds

of patients in the

up to everything. That

Northeast Region of

is why we are happy

Romania and aim to

he will now have the

continuously adapt to the socio-medical and economic realities.

Since last year was a peculiar one, we

chance to learn to through the Arcadia ProBono program, even dur-

breathe again and will be able to express

ing the hard premises of last year. The program

himself more easily and live freely.

found ourselves in the position to mobilize

is dedicated to special cases that require surgery

unprecedented resources and come up with

at the Arcadia Hospital and top tier medical

several important adjustments, in order to

services, provided alongside our outstanding

INVESTMENTS FOR A HEALTHIER FUTURE

remain close to our patients. We adapted our

team of doctors. It includes a complete series

Last year, in the midst of the pandemic, hav-

portfolio of services in real time and made

of investigations, interventions and recovery

ing our patients` interest in mind we also

decisions while closely monitoring the evolu-

services which are pro bono and realized by the

expanded the Operating Room of Arcadia

tion of the new coronavirus. Thus, we have

entire Arcadia team from over 40 medical special-

Hospital, which now contains 8 surgery

taken a number of important measures to

ties, and over 20 surgical specialties.

rooms for children and adults. It is a project

maintain a safe space in Arcadia and the con-

Sebastian is our most recent patient, who

that will provide patients with quality medi-

tinuity of the medical activity: from safety

benefited from a pro bono surgical procedure

measures for our employees and patients, to

by the team lead by Dr. Daniel Rusu, primary

ensuring stocks of specialised materials for

ENT doctor, and Dr. Gabriel Mazilu, specialist in

Imaging Centers with 3Tesla MRI machines

investigations and surgeries.

Plastic Surgery, Reconstructive Microsurgery and

and launched a new health center dedicated

Aesthetics.

to women, where we created a space where

In addition to extending the functioning hours in our medical centres and hospitals,

Since birth, Sebastian had to face challenges

cal services for a long time.

Additionally, we equipped the Medical

patients feel safe and respected, combin-

we also launched the telemedicine service,

that brought to light his courage and strength to

ing functional aspects with aesthetics and

ArcadiaLine, to responde to the now acute

stand up every time. His story is written within

nutrition.

need for services and medical supervision.

years of medical recovery treatments and proce-

For the immediate future, we plan to

dures, surgery, patience and an ability to under-

open the Arcadia Medical Recovery Hospital,

ARCADIA PROBONO PROGRAM

stand beyond his age. It was a successful case, in

equipped with 140 beds, which will allow

We are grateful and happy that we have

which the ENT and cosmetic surgery techniques

patients access to high standard technology

been able to change lifes for the better

were combined, performing both an extracorpo-

and medical equipment.

www.business-review.eu Business Review | May 2021

22 ENTREPRENEURSHIP

Romanian startup funding ecosystem strengthens during pandemic Funding of local startups has accelerated since the start of the health crisis, and sectors that have attracted investors’ interest will continue to develop in the coming period.

Digital Health and EdTech were the most sought-after verticals in early stage, while enterprise SaaS and eCommerce have remained on the radar.

By Ovidiu Posirca

More funding opportunities for digital startups emerged during the pandemic

D

ata provided by the Roca X invest-

is going to play a key role in post-COVID-19

MORE ROMANIAN INVESTORS

ment fund shows that the total sum

growth, the main idea still holds: rather

Deals led by Romanian investors went up 70

of early-stage investments led by

than decreasing investment activity in the

percent in the 12 months to March 2021, with

Romanian investors increased from EUR 14.7

face of uncertainty and instability, Roma-

growth split between seed and Series A fund-

million from March 2019-March 2020 to EUR

nian investors have increased their capital

ing for startups.

25.3 million between March 2020 and March

commitments to early-stage startups,” Roca

2021. This refers to companies that have

X analysts wrote. The fund made fresh in-

for startups growing in emerging COVID-19

raised at least one investment round in this

vestments in e-learning and fintech startups

sectors, because the previous financial crisis

interval. “Even though 2019’s momentum

during the pandemic.

proved that innovative startups with disrup-

“We expect follow-on investment rounds

www.business-review.eu Business Review | May 2021 2016

ENTREPRENEURSHIP COVER STORY 14 23

tive business models could speculate new op-

ties that did not exist a year and a half ago,”

consecutive years of year-on-year growth in

portunities that arise from the crisis,” Marius

Black Sea Fund founding partner Matei Paun

capital invested in European tech could well

Nicolae, head of technology, strategy, and

tells BR.

continue.”

transactions at professional services firm EY

The local startup sector has significant

Europe is trailing behind North America

room to grow, and the digitalization of the

and Asia, where funding for startups amount-

economy will support the creation of innova-

ed to USD 141 billion and USD 64 billion,

and Games are sectors that have grown their

tive firms. While Romania has 58 startups per

respectively.

investment base since the onset of the health

1 million inhabit-

crisis. Romania aligns with global investment

ants, the European

trends targeting fintech, artificial intel-

Union average is 190

ligence, SaaS, mobility, and cybersecurity

for every million

companies.

people, according to

Romania, tells BR. Health, Education, Security, eCommerce

“These verticals have been attracting investors for several years now, and the pandemic has only further stressed their impor-

a report by Atomico and dealroom.co.

Moreover, Ro-

tance in our lives,” says GapMinder founding

mania had USD 79

partner Dan Mihaescu.

per capita of capital

For instance, in late April, local startup

invested in startups

FintechOS landed a USD 60 million fund-

from 2016 to 2020,

ing deal, on top of the USD 16 million it had

while the European

raised since its founding in 2017. GapMinder

average was USD

contributed to the new round, which will

172 per capita. Still,

help the startup open offices in the US and

Romania has been

Asia.

doing better than other countries in the re-

The improved results in Europe were

gion such as Hungary, Bulgaria or the Czech

driven by megarounds, with deals ranging

Republic.

from USD 100 million to USD 250 million.

In early spring, health-tech startup Medic Chat got more than EUR 250,000 from crowdfunding platform SeedBlink for its telemedicine platform, which is also backed by an American angel investor.

“It is clear that investors are increasingly interested in startups and that it is becoming

Romania is among the elite club of countries

MORE FUNDING IN EUROPE DESPITE PANDEMIC

that got a megaround for one of its startups.

European startups raised more funds in

public in 2021. Elsewhere, Sweden’s Klarna

2020, and last year’s result could represent a

got USD 650 million, while Northvolt secured

new record for the industry. Despite the

UiPath got USD 225 million before going

USD 600 million.

UK-based Revolut got USD 580 million,

challenges posed by

followed by Karma Kitchen and Cazoo

the pandemic, inves-

with USD 317 million and USD 310 million,

tors flocked to back

respectively. Several startups in Germany

startups that were

and France also secured late-stage funding

ready for the new

rounds with a joint value of more than USD 1

economy.

billion.

Capital invested

The creation of unicorns was not ham-

in Europe is set

pered by the pandemic. The valuations of

to exceed USD 41

18 startups hit the USD 1 billion milestone,

billion in 2020 –

while Klarna and UiPath both topped USD

adjusted for the

10 billion. Europe’s performance in creat-

reporting lag – about

ing unicorn startups is similar to the US’s.

easier for these companies to attract financ-

USD 1 billion compared to 2019, according to

Seed-funded startups in both regions have

ing. That doesn’t mean it has become an

preliminary data from Atomico and deal-

a 1 percent chance of seeing their valuations

easy thing to do, but it is significantly more

room.co report.

skyrocket to USD 1 billion and above.

accessible than it was five or ten years ago,

The authors of the report note that “in

Some deals have been delayed due to

because an entire ecosystem is being built to

the face of a global pandemic and a highly

lockdowns and the expansion of remote

address these needs. Moreover, the pandemic

volatile, uncertain macroeconomic climate,

work, so funds have a lot of “dry powder”

brought new types of funds that startups and

the European tech ecosystem has been

that could help the European startup sector

SMEs could access. We’re seeing opportuni-

resilient. A decade-plus unbroken run of

maintain its growth momentum in 2021.

www.business-review.eu Business Review | May 2021

24 ENTREPRENEURSHIP

Mobility startups preparing for post-pandemic future Reducing infection risk has been the key factor in choosing a mode of transportation since the onset of the pandemic, having dethroned the traditional time-to-destination factor. Lockdown measures have placed added emphasis on health and safety, while micro-mobility solutions are picking up and have the potential to reach a value of USD 500 billion globally by the end of this decade.

By Ovidiu Posirca

EU’s green agenda to shape future of mobility startups

T

he amount of venture capital funding

from Pitchbook. “There was some buzz on

of funding, if you look at how congested

going to European mobility startups

the market around this mobility vertical, and

Bucharest is, we will definitely see that in the

had reached USD 4.4 billion by the

we have big plans of our own here because

future,” Matei Dumitrescu, senior investment

end of September 2020, compared to USD 5

we are seeing a lot of new ideas for alterna-

partner at startup investment fund Roca X,

billion throughout 2019, according to data

tive means of transport. As for bigger rounds

tells BR.

www.business-review.eu Business Review | May 2021 2016

ENTREPRENEURSHIP COVER STORY 14 25

STARTUPS BET ON EXPANDING ON-DEMAND MOBILITY

Indiegogo in June-July, after which it aims

of e-scooters to 1,000 in Bucharest and has

to raise another Series A round of USD 10

30,000 active users. Local player Flow and

As working from home became mainstream

million.

international ride-sharing startups Bolt and

for employees in large urban areas, demand

“It is already clear at this point that the

Lime are also battling for market share with their own scooter-rental apps.

for ride-sharing and other app-based trans-

future of mobility is electric. In our case,

portation services declined, but will recover

we envision personal mobility devices like

once the pandemic is under control. How-

electric bikes, electric scooters, and similar

Link, which has a fleet of bikes and cars for

ever, it is not clear whether these changes

form-factors to become mainstream as more

lease in Bucharest, plans to expand in other

Elsewhere, ride-sharing platform City-

regional cities. Igor Grosu, founder

will have a long-term effect on the

and CEO of CityLink, said in

development of the mobility

an interview for ZF.ro that

field.

the startup will have

“Lately, due to the

900 cars in six cities

COVID-19 pandemic, many customers have

within the next three

preferred to own

years. His vision is to

their vehicle, shift-

develop a platform

ing market trends

that offers access to bike-sharing, car-

from scooter-sharing

sharing, ride-sharing, and

to vehicle ownership and

probably scooter-sharing.

accelerating market growth,”

Matei Paun, founding partner

Mihnea de Vries, co-founder and CEO of startup Scooterson, tells BR. Before

and more people living in densely populated

of Black Sea Fund, suggests that the devel-

the pandemic, electric scooters had become

city areas don't want to get stuck in traffic

opment of innovative mobility solutions in

extremely popular, fueled by the many shar-

with their cars. Bicycle paths will probably

Romania is increasing due to similar macro

ing options.

become the roads for all these new form fac-

trends in Europe and worldwide.

Meanwhile, the micro-mobility market could reach USD 300 billion to USD 500 bil-

tors,” says the CEO. Only three ride-sharing/ride-hailing start-

“At the European Union level, green energy and its ensuing impact on mobility will

lion by 2030, according to data from McKin-

ups in Europe have reached a valuation of

be a significant driver, eventually even here,

sey and Company and Grand View Research.

more than USD 1 billion, joining the unicorn

locally,” Paun tells BR.

Considering the current traction on the

club. If we add delivery and car platforms,

micro-mobility market, the total e-scooter

this figure climbs to nine. By com-

segment will be worth USD 41 billion by 2030,

parison, there are 43 mobility

while the electric kick-scooter segment, cur-

unicorns in the Americas

rently at USD 567 million in 2020, is expected

and 37 in Asia.

to grow to USD 3.9 billion by 2030.

PANDEMIC ENHANCES SHIFT TO SMART PERSONAL TRANSPORT In their attempt to

“We have been see-

reduce the risk of

ing interest in various

infection, city dwell-

on the population’s mobility style, generat-

forms of mobility for

ers have tried to

ing a tremendous drop in sharing behaviour.

three or five years

limit their exposure

Given the current context, with the potential

now. It is an interest

to public transport

of prolonged downturn and restrictions, the

that comes mainly

future of mobility is expected to be reshaped,

from consumers and

in a transformative process which is now

authorities, amid a con-

being led by electric propulsion, autonomous

tinuous search for a better

driving, and the potential rise of autonomous

and more flexible transport

sidewalk delivery bots,” Marius Nicolae, head

experience. This has implicitly at-

of technology, strategy and transactions at

tracted investors, especially Angel Investors,

professional services firm EY Romania, tells

to the mobility segment and I am sure we will

BR. Scooterson is now looking to raise a pre-

see higher amounts of funding,” GapMinder

of innovative micro-mobility models to get

series A round of USD 1 million, from various

founding partner Dan Mihaescu tells BR.

around the city if they want to avoid traffic

“The pandemic has had a massive impact

sources, including fundraising platforms like

Meanwhile, some Romanian startups have

and ride-sharing platforms. This was a window of growth for startups and more mature firms supplying rental services for bikes, scooters or even electric cars.

Romanians have access to a wide array

jams. Looking less risky than mass transpor-

Romanian SeedBlink and US-based Repub-

announced expansion plans, as they expect

tation, electric unicycles, stand-up scooters,

lic.co, as well as other private sources. The

demand for their mobility solutions to grow.

and e-bikes can become smart vehicles of

startup is preparing for a product launch on

For instance, Splash has doubled its fleet

choice when going shopping or to work.

www.business-review.eu Business Review | May 2021

26 TRENDS

Pandemic networking: alternatives to in-person meetings In-person meetings and events are still being replaced with original content sources, allowing for business strategies that are almost as effective as physical interaction.

Let's explore some creative alternatives to in-person networking, because they might be here to stay even as the pandemic comes to an end.

By Claudiu Vrinceanu

BIG ONLINE EVENTS While large in-person business conferences are not a safe choice at this time, hosting or

Big online events are an accessible launching platform for international speakers

speaking at an online event has proven to be a handy way to communicate with your target audience. But big online events are not just a

ture and hybrid events to continue to provide

access is invite-based. According to experts,

powerful way to reach your public, but also

valuable insights to business audiences.

Clubhouse creates a new type of content,

an accessible launching platform for international speakers and experts.

which the guest speaker can use to bring to-

AUDIO CONTENT

gether content creators who bring value to the

The Audio Economy, based on voice content,

discussion, creating a new type of influencers.

recent Tax, Law & Lobby | Whistleblower Fo-

is now on the rise through Clubhouse, Twitter

Companies and managers should join Club-

cus online event, which attracted a great deal

Spaces, and the future social audio app to be

house to create content there, as it is a space

of international attention, with international

launched by Facebook. Managers and entre-

that can generate strong links between users,

speakers such as Stephen M. Kohn (Chairman,

preneurs can make use of these new social

and the application is expected to become

National Whistleblower Centre), US Sena-

platforms to communicate more efficiently

mainstream in the next 12 months, i.e. two

tor Chuck Grassley, Bradley Birkenfeld (UBS

with the local business community.

years after launch.

One good example was Business Review’s

Whistleblower), Mark Worth (Executive Direc-

We are on the verge of a creative explo-

tor, Whistleblowing International), or Jane

sion, fuelled by a greater power to generate

THOUGHT LEADERSHIP

Turner (FBI Whistleblower) talking about

wealth strictly in the hands of individuals,

Thought leadership is defined as the content

Romania’s great chance to become a model

content creators, as well as entrepreneurs and

marketing strategy that positions individuals

country when it comes to adopting the EU

investors who develop businesses based on

or companies as experts and reliable voices,

Whistleblowing Directive. Just imagine how

content creation. For example, Clubhouse is

and it is a powerful way to engage with your

much time and money it would have taken to

an audio-based social networking platform

business community and future business

bring all these experts into the same room for

where you can easily organise events with 20-

partners. For example, by publishing an Op-

a physical event in Bucharest.

30 attendees who can listen to conversations

Ed or expert article, a manager can promote

and interviews on a wide range of topics.

groundbreaking ideas that could change the

The new audio platforms are growing

way people think about their industry. They

Webinars and online events give you the opportunity to build your brand, position yourself as an industry leader, and create a

due to the element of exclusivity, the feeling

can also organise their own online thought

good context for lead generation. I expect

of FOMO induced the fact that they’re only

leadership events by selecting a good topic

such online tools to remain popular in the fu-

available on specific operating systems or that

and building a niche audience.

www.business-review.eu Business Review | May 2021 2016

COVER HIGH-TECH STORY 27 14

Romania must do more to attract high-tech FDI Romania attracts only 5 percent of the total annual FDI going towards high-tech industries and knowledge-intensive services in the region, according to a study carried out by the Foreign Investors Council (FIC) and the Bucharest Academy of Economic Studies (ASE).

By Claudiu Vrinceanu since we know that any good communication strategy requires a decent budget, the country should take good practices from other countries. Enterprise Estonia has 15 employees and a marketing budget of EUR 1 million. With 25 employees (11 of whom are local and 14 are abroad), Invest in Latvia has an annual marketing budget of between EUR 500,000 and 700,000. Invest in Poland, a very good model for Romania, gets EUR 400,000 just for marketing and has 40 specialists in this department (in total, the agency has over 100 employees and a total budget of over EUR 3 million). Meanwhile, Invest Romania’s marketing budget is close to zero.

What should government investment promotion agencies (IPAs) do with these marketing budgets, which are obviously Defining a good way forward for Romania should start with marketing strategies

O

not that big compared those of large private companies? They should go towards media

ff the region’s total high-tech FDI, 52

gramme, companies can find the necessary

campaigns, local and international events,

percent of investments were directed

funding to develop their projects and expand

partnerships with other IPAs, presentations

to Hungary, 18 percent to Poland,

into an attractive and dynamic market.

to foreign investors, generating investment

and 14 percent to the Czech Republic. The

However, Romania is competing with

leads, and content creation. This mix is very

study highlights the need to stimulate the at-

other states in Central and Eastern Europe

similar to what we normally see in private or-

traction of FDI in high-tech sectors.

while its own regions remain less competi-

ganisations, but in this case it is built around

tive than those of neighbouring states and

the needs of a country brand, not a corporate

the high-tech sector as an industry that relies

it lacks coherent public policy measures to

brand. Whether we are talking about the

on a highly skilled and educated work-

attract FDI with high added value. These risks

public or the private sector, Romania today

force, acts as an innovative producer in the

consolidating the existing trend of attracting

lacks interactive online platforms providing

economy, and creates and utilises advanced

mostly low value-added activities with a low

real-time data about target destinations for

technologies. Perhaps unsurprisingly, the

technological intensity.

foreign investors. The creation of an English-

But what is high-tech? SelectUSA defines

high-tech sector’s share of workers in science,

It would be useful for Romania to out-

language marketplace where all local authori-

technology, engineering, and mathematics

line its path forward and build an action

ties could publish investment opportunities

(STEM) occupations is more than twice that of

plan. Public policy measures could focus on

on a monthly basis would increase the odds

the national average.

encouraging FDI with the highest possible

of international specialists generating a

added value and facilitating the reorientation

“pipeline” of new investments for Romania

project promoting foreign direct investment

of FDI towards high-tech and knowledge-

in the coming years. Spending a few tens of

in the United States, and it offers network-

intensive activities in the services sector.

thousands of euros to develop such an online

SelectUSA is the best-known diplomatic

ing opportunities for companies around the world, including Romania. Through this pro-

Defining a good way forward for Romania should start with marketing strategies. And

platform could bring in new investments worth hundreds of millions.

www.business-review.eu Business Review | May 2021

28 VENTURE CAPITAL

Two tech verticals targeted by VC and angel funding in 2021 The growth in venture capital and angel funding for SaaS and health-tech companies, which reached record levels in 2020, is expected to continue in 2021.

By Claudiu Vrinceanu so it’s more important than ever to increase the number of initiatives in the field of health-tech. Over the last year, in Romania, entrepreneurs and investors have developed a series of health-tech startups which are being integrated into the traditional medical services ecosystem. The degree of adoption and acceptance of technology by doctors has the potential to generate added value in the process of diagnosing, tracking, and treating disease.

It’s more important than ever to increase the number of initiatives in the field of health-tech

The development of these startups was also supported by the recent legislative updates, which had been demanded for a

SAAS

joined by existing shareholders Earlybird,

long time and became urgent in the context of

Software-as-a-Service (SaaS) is one of the

Gapminder Ventures, Launchub, and OTB

the pandemic. One such startup is SanoPass,

largest and fastest-growing market segments

Ventures.

which aggregates independent medical ser-

in 2021: Romanian-born company FintechOS,

The company will use the fresh funding to

vice providers and sells preventive medical

a SaaS developer of financial solutions, raised

hire 120 people and establish new offices in

packages to companies as benefits for their

USD 60 million this year, while Bulgarian

the US, Dubai, and Singapore. FintechOS was

employees. The company recently raised EUR

scaleup Payhawk, a SaaS platform for pay-

founded by Teodor Blidarus and Sergiu Negut

800,000 in a new funding round, which it will

ments and expense management, raised USD

and developed a low-code platform that helps

use for new marketing project, the integration

20 million.

banks and insurance companies build new

of artificial intelligence, and the launch of

services and analytics on top of and around

new services in the application.

A SaaS company usually focuses on delivering centrally located software on a subscrip-

their existing infrastructure. It has a portfolio

Medic Chat also announced that it had

tion basis. At the global level, European VC

of 40 major clients, including Erste Group, Vi-

secured an anchor investment of EUR 75,000

investors financed the SaaS sector with 12

enna Insurance Group, and Société Générale,

from Cleverage Venture Capital as well as

billions euros in 2020, with Romanian success

supported by a team based in Bucharest,

EUR 250,000 through crowdfunding on the

story UiPath becoming one of Europe’s most

London, and Amsterdam.

Seedblink platform. Another example from 2021 is Recomedica, specialised in providing

valuable tech startups, according to Sifted.

Interestingly, Earlybird (the first VC investor

HEALTH-TECH

telemedicine services, which has managed

in UiPath) is also behind both the FintechOS

The COVID-19 pandemic makes it more

to attract a total investment of almost EUR

(Romania) and Payhawk (Bulgaria) deals.

difficult to solve problems in hospitals and

300,000, of which EUR 135,000 came from

other medical facilities. Technology can

private investors, while the rest was obtained

provide very useful solutions in this context,

through crowdfunding.

FintechOS’s USD 60 million Series B round was led by London-based Draper Esprit,

www.business-review.eu Business Review | May 2021 2016

DIGITALIZATION COVER STORY 29 14

Surge in digital public services escalating citizens' privacy concerns Over the past year, the pandemic has increased the need for governments to provide more services remotely, with some having been moved entirely online. This practice has generated much larger volumes of citizen data to be collected and managed by public institutions.

By Aurel Constantin data to a private

technology will make people feel less con-

sector company,

nected to their communities. However, de-

even when the

mand still exists to further develop people’s

objective is to

digital skills. 61 percent of respondents say

fund better

they would be likely to use government train-

public services

ing schemes that improve their digital skills if

or tax cuts.

they were available.

“The survey

G

“The digitalization of public services is an

findings should

indisputable necessity, as it solves citizens'

be a wake-up

problems quickly and efficiently, especially

call for govern-

in the current context of the pandemic.

ments across

Today's citizens no longer live in small com-

the world. The

munities; they are increasingly connected

benefits of a

to online platforms, crossing the borders of

more digital

countries and continents. Digital governance,

state, includ-

cybersecurity, and education must therefore

ing increased

be intrinsic components of digitalization

overnments pushing an increased

efficiency, better value for taxpayers, and

initiatives, facilitating and protecting the

number of online services run the

better quality of service for citizens, will be

human-machine connection,” says Carmen

risk of alienating large numbers of

significantly reduced if large segments of

Adamescu, Consulting Partner and Technol-

their citizens due to concerns around data

the population aren’t convinced of them and

ogy Leader at EY Romania & Moldova.

privacy, according to a survey titled “How can

are at risk of disengaging from increasingly

digital government connect citizens without

digitalized public services,” says Arnauld

into seven personas: Aspirational Techno-

leaving the disconnected behind?,” commis-

Bertrand, EY Global Government and Public

philes, Capable Achievers, Diligent Strivers,

sioned by EY and carried out by Ipsos MORI

Sector Consulting Leader.

Tech Skeptics, Privacy Defenders, Passive

The EY survey segments respondents

Outsiders, and Struggling Providers. These

among 12,100 working age respondents across 12 countries. The survey further reveals a

OPTIMISM TEMPERED BY MISTRUST

categories provide insights into how govern-

roadmap for governments attempting to deal

While the survey reflects optimism that

ments should consider working with different

with the increased digitalization of services

technology improves quality of life (accord-

societal groups. For example, the survey

brought on by the COVID-19 pandemic.

ing to 72 percent of respondents), there are

indicates that Aspirational Technophiles,

significant concerns about its broader impact.

Capable Achievers, and Diligent Strivers are

veyed think that the privacy and security risks

Many believe that an increased use of tech-

more comfortable with sharing their data to

around how their data is shared outweigh the

nology could widen social inequalities, with

access a service or perform an online transac-

benefits. 46 percent think data should not be

32 percent stating that technology will lead

tion. But there is a lack of support among

shared between the public and private sector,

to greater social inequality and 34 percent

Tech Skeptics, Privacy Defenders, and Passive

with only 29 percent saying that it should.

believing that technology gives more power

Outsiders when it comes to governments and

And 41 percent think data should not be

to those who are already rich and powerful.

businesses gaining access to their data.

More than half (53 percent) of people sur-

There are further concerns around the im-

These personas also provide key insights

percent believe that it should. Almost three

pact of increased reliance on technology as a

into the views held by certain demographics

quarters of respondents (72 percent) are op-

means for communication on social cohesion.

around fundamental issues such as immigra-

posed to governments selling their personal

Globally, 32 percent of citizens believe that

tion, climate change, and globalisation.

shared within the public sector, while only 33

www.business-review.eu Business Review | May 2021

30 DIGITAL

How to communicate after an economic crisis Looking back at all the past crises in our history, specialists were able to conclude that brands that made every effort to remain true to their values were the most resilient. They used their brand power to point the company towards a shared goal, making the decision to invest in people and focus on the fundamentals of what made them different in order to provide real and authentic value to customers.

By Romanita Oprea

Ruxandra Voda, Telekom Romania

W

Alina Laslau, marketing business adviser

Simona Dan, The Public Advisors

hat should a brand do after an

ment for brands to invest in promotion and

evaluation to be a key factor, at every level.

economic crisis? The short-term

make a difference in communication through

For her, every downturn is an opportunity for

impact of an economic decline

a strategy that covers multiple touchpoints,

brands and companies to assess where they

can represent a very difficult period for most

concentrating on social media channels and

stand and readjust accordingly. Both dur-

brands. It all comes down to how resilient a

customers benefits.

ing and after a crisis, especially a recession,

business really is. “On the one hand, we’re

At the same time, one must realise that

customers and other stakeholders are looking

seeing strong companies willing to invest in

companies are impacted differently by an

for reassurance, for something that will help

advertising and promotion during the pan-

economic crisis: some are hit on the business

them navigate through dark times and look

demic, thus nurturing their growth strategies.

front, in terms of operations, others lose the

forward to sunnier days.

On the other hand, smaller companies who

relevance of their products as market require-

have managed to overcome the critical period

ments change, while some are just presented

porate communication director at Telekom

will put a lot of effort into innovating and sur-

with new opportunities. “It is important to

Romania, looks at communication from an

prising the end consumer, as they tried to do

see brands as the result of this entire chain,

organisational perspective and takes com-

when the crisis broke out. Nonetheless, both

from concept to production, market, and cus-

munication with employers and customers

categories will face some economic damage

tomers. If I had to choose one thing that fit all,

into account. In a crisis, she believes that it

and have their financial and energy resources

I would say it was the need to understand and

is strategically wise to heighten the level of

depleted. As history has proven, communica-

assess this whole chain and how it is affected

communication with both employees and

tion after a crisis tends to be very pragmatic,

by the crisis, before making any decision to

customers. Therefore, Voda points out that

focusing on functional and rational benefits,”

move forward. Sometimes you’ll see that just

organisations must communicate frequently

says Simona Dan, managing partner at The

trying to sell quickly based on the same old

at an internal level, provide safe feedback

Public Advisors. On the consumer side, as

routine just deepens your problems,” says

channels, help employees work from home

things tend to relax, customers become

Crenguta Rosu, managing partner at DC Com-

efficiently, address job-related concerns, and

tempted to buy different products or services

munication.

provide a roadmap for the future. Externally,

that they’ve lately deprived themselves of.

According to Simona Dan, this is a key mo-

Sorina Mihai, managing partner at Porter Novelli Romania, considers continuous

On the client side, Ruxandra Voda, cor-

companies must understand consumers’ changing psychology and habits and identify

www.business-review.eu Business Review | May 2021 2016

COVERDIGITAL STORY 31 14

new customer segments that emerge during

their statements might have because of the

Mihai explains. Corina Vintan, founder

a crisis. This way, they will be able to offer

multitude of disruptive messages that tend to

and managing director at Links Associates,

products and deliver messages which are

pop up in a difficult context. It’s just a matter

believes that brands should continue to build

aligned with the needs of such new consumer

of adjusting your messaging so that it doesn’t

trust and reputation and provide content that

segments. “In deciding which marketing

become irrelevant, using the most appropri-

is truthful, unbiased, and reliable. “Never for-

tactics to employ, it is critical to track how

ate media to spread it, and creating emotion

get that brands that alleviate fears are trusted

customers are reassessing priorities, reallo-

and familiarity in order to connect with the

four times as much and that action builds

cating budgets, switching among brands and

receiver,” argues marketing business adviser

brand trust. Without a trusted leadership

product categories, and redefining value. It

Alina Laslau. At the same time, brands must

source to look to, people don’t know where

is therefore essential to continue investing

quickly adapt to the context so as to avoid

to get reliable information – it is important

in market research. As the recession winds

losing the spotlight to someone who might

to communicate and maintain control of the

down, consumers will regain buying power,

be better at delivering the message. Some-

message. Business gains the most trust by be-

but they may not return to their old purchas-

times it is not enough to just do good things;

ing a guardian of information quality,” Vintan

ing patterns. Market research could thus

you have to communicate them, so that they

argues. One important aspect is also high-

explore whether consumers will end up going

reach your audience.

lighted by Ruxandra Voda, who points to the

back to familiar brands and products, stick to substitute products or welcome innovation. Reassuring messages that reinforce an

What advice would communication specialists give to brand representatives?

According to Sorina Mihai, honesty is

fact that during crises, it is more important than ever to remember that loyal customers are the primary, enduring source of revenue

emotional connection with the brand and

the best policy, and she is certain that every

and organic growth. Communication is es-

demonstrate empathy are vital as well. Such

communication professional can get behind

sential to maintain trust in the brand.

messages must be backed up by actions

this statement. Consumers are becoming

demonstrating that the company is on the

more aware of their power and looking for

of dos and don’ts, and especially of how

customers’ side,” the Telekom representative

shared values with the brands they choose to

easy it is for a company to lose its credibility

added.

interact with. Therefore, authentic, reassur-

in a second, just because it’s afraid to react

Even recent history has so many examples

ing, and empowering messages that reinforce

in certain moments. “Putting you company

style alongside products and services that

an emotional connection with the brand

on a pedestal and thinking it is intangible is

prove a brand’s customer orientation is the

and demonstrate empathy and purpose are

certainly not a good idea, especially since we

best way to convince people that remaining

key. “If I were to choose one piece of advice,

are currently facing an avalanche in terms

loyal to that brand is a sound decision.

though, I would undoubtedly tell them to al-

of brand communication. Social media is

What brands should never do is stop

ways be prepared and open to the possibility

indeed the best ally in this context, proving

communicating. “Many times, companies

of shifts in their consumers’ attitudes, values,

its usefulness even in the case of low budgets,

consider it inappropriate to communicate

and needs. Brands who maintain authen-

as it provides strong targeting and availability

during an economic crisis, due to the budget

tic and empathetic communication have a

without huge costs to reach a large number

reduction that always occurs when there’s a

better chance of creating a more meaningful

of people. Alternatives are always available,”

crisis, as well as due to the “lower impact”

connection with their customers post-crisis,”

Alina Laslau concludes.

A caring and empathetic communication

www.business-review.eu Business Review | May 2021

32 MARKETING

Brand loyalty growing in consumers' minds and hearts Yotpo’s latest survey, carried out among 3,800 respondents across four different demographics (Gen Z, Millennials, Gen X, and Baby Boomers) and three different geographies (US, UK, and Australia), reveals that one of the many changes generated by COVID-19 in shopper behaviour is related to consumer loyalty, which has actually gone up year-over-year from 2019 to 2020.

By Romanita Oprea strategies, personalised content, a focus on sustainability, and authentic cause marketing,” Gavrila adds.

A SHIFT THAT’S HERE TO STAY Every year, specialists wonder how trends will evolve and how they’ll affect consumer behaviour, but this year, (almost) post-pandemic, this question has been asked more often. It is normal for this to happen, because reality has changed in a shocking manner, and people's feelings have changed to adapt to this new reality. “I believe that brand loyalty in 2021 must also be adapted to the reality of 2021 and the first thing to keep in mind is understanding the changes in consumers’ lives: Alina Galeriu, Galeriu & Partners PR

D

Andreea Gavrila, New Moon

brands need to understand how they live, not what they buy. How have consumers changed? Moving out of

uring the COVID-19 pandemic, con-

the moment they’re exposed to the brand to

cities, online shopping, appreciating afford-

sumers have been more emotionally

when they actually experience it, but also

ability and sustainability (EY index 2021).

invested in their favourite brands

figuring out how to add emotional triggers

Homes are centres of gravity now; health is a

than in the past, viewing the shopper-brand

to which they can relate on a more personal

constant concern and the top discussion on

relationship as more than just a transactional

level. And that hopefully can turn consumers

the public agenda is respect for basic free-

exchange. This also helps explain why, in

into loyalists,” Gavrila argues.

doms. Brands are among the first entities to

2020, survey respondents were more likely to

According to Deloitte’s latest findings, 60

adapt their discourse and actions and we are

spend more on a brand they were loyal to; it’s

percent of consumers plan on buying more

already seeing changes in their approach to

no longer just about the money.

products and services from large companies

loyalty,” says independent brand and market-

that positively impacted society during the

ing consultant Alina Tudose.

According to Andreea Gavrila, creative

At the same time, brand loyalty nowadays

partner at New Moon, after 2020, brand loy-

pandemic. “My belief is that they are the ones

alty became a matter of survival, a powerful

who should invest efforts and resources in

is not just about repeatedly buying products

key brand indicator that can steer a company

protecting the world. Purpose-driven compa-

from a certain brand, but also about constant-

towards the right side of the new consumer

nies are already setting the rules of the game,

ly praising it and boosting its image through

economy. “Audiences are moving outside the

so I constantly encourage our clients to follow

word-of-mouth and online conversations

marketing funnel, changing the way they re-

emerging mega-trends that reflect the values,

that include brand mentions. Therefore, the

search and buy products. So, the big challenge

habits, and expectations of Millennials and

upgraded version of brand loyalty includes

for us is not only getting their attention from

Generation Z: comprehensive omnichannel

this publicly-owned image affiliation between

www.business-review.eu Business Review | May 2021 2016

COVER MARKETING STORY 33 14

consumers and the brands they root for.

are just a few examples of such hot topics

maintaining a balance though them is the art

How can we measure such intricate rela-

that can make or break a relationship with

that brands must learn to master.

tionships between consumers and brands?

consumers nowadays,” Galeriu says.

“Well, the highest level would be when an

At the same time, as Alina Tudose points

Looking at this from a branding perspective, Alina Tudose believes it’s now easier for

auto-proclaimed brand ambassador proudly

out, branded apps that engage consumers

local brands to make their voice heard and

shares their affiliation to the values of a brand

can change the conversation. It’s no longer

have a greater impact. The brand name is

on social media through tags, hashtags, and

about national research or focus groups, but

not important anymore (only 8 percent say it

photos with obvious product placement.

about real behaviour that we can analyse and

is important in their loyalty), but the values

Meanwhile, the slightly lower level of such

understand. Other recommendations include

reflected by the actions of that company, such

brand advocacy would be praising certain

finding new ways to be a part of an impor-

as sustainability and ethics, are crucial (Busi-

product features that are representative

ness Cloud, March 2021). “Brands need

for that brand, but while maintaining a

to take context into account: despite

more rational approach, focusing on the

concerns, a majority of consumers (56

functional aspects,” notes Alina Galeriu,

percent) would be more likely to shop

owner of Galeriu & Partners PR.

from retailers that require their employees to take the vaccine (EY, March 2021).

ENGAGEMENT AND PERSONALISATION

We live in interesting times, and people

So, what should brands do today to

have high expectations from brands

get their consumers' loyalty? Societal

beyond the transactional side and, more

changes attract new habits, therefore re-

recently, beyond status. They want

warding customers based on their value,

empathy, concern for the environment,

personalising content and offers, as well

sustainability, a discourse that’s adapted

as increasing the focus on audience value

to the context, and even vulnerability,”

segmentation are now the norm in mar-

Alina Tudose notes.

In different lockdown stages, brands

keting. According to New Moon’s creative partner, 2021 will definitely uncover

have had the opportunity to commit to

new strategies that will be shaped by the

a certain narrative and deliver empathy,

“new reality”. In all industries, business-

hope, and better customer experience.

es are already reassessing their priorities

And in Andreea Gavrila’s opinion, those

and igniting their power by claiming

who conveyed a humane and authentic

leadership in terms of human-centric

message will surely see the benefits in

brand values, as well as proven records of

the long run. In Romania, for instance,

corporate social responsibility. “

an EY study showcased how people were increasingly interested in companies’

According to Alina Galeriu, the real

behaviour during the COVID-19 crisis.

challenge for brands is to reach a point where their consumers are letting the brand

tant and ongoing dialogue, asking commu-

“A new type of brand storytelling is

become part of their lives and acknowledging

nity members to share stories, advice, tips,

emerging, which reflects authentic brand

that fact. The need for open and authentic

resources, and more. Also, offering useful

values and global belief systems. I trust that

dialogue has never been more real. “Con-

resources to help consumers get involved.

we are witnessing a worldwide shift from an

sumers need to feel that brands are engaging

“I would like to see, and I always encourage

ego-centric & ethnic-centric system of beliefs

them into a conversation, and not just to

more activism from Romanian brands. Early

towards a world-centric approach, where we

lure them into buying their products, but to

access to sales, early access to new products,

steadily become more concerned about the

genuinely learn what they like, what they

and tailored offers and recommendations will

health of people and of the planet altogether.

find interesting, what values make them tick.

be likely answers to this question. For many,

In this sense, I recommend that brands start

Sharing ethical values with brands is becom-

getting a VIP experience – early access and

segmenting their audiences not only by

ing increasingly significant for Millennials and

personalised recommendations – has become

demographics, but also by value systems.

Generation Z. Therefore, corporate policies

significantly more important,” she explains.

Marketing and social psychology should come

Has the pandemic changed the rules on

together now more than ever in order to un-

welfare, sustainability policies, and environ-

this matter? In Alina Galeriu’s opinion, it has

derstand the depths of consumers’ cognitive

mental measures to limit pollution and find

made people more cautious about spending

biases and mental dimensions and to create

smarter ways to tackle waste management,

money, but at the same time more eager to

appealing offers that trigger people at an

as well as cruelty-free policies for brands that

live life to the fullest and splurge on them-

unconscious level and ultimately make them

operate in the beauty and fashion industries

selves. People are having mixed feelings and

live happier lives," Andreea Gavrila explains.

regarding equal human rights, employee

www.business-review.eu Business Review | May 2021

34 DIGITAL

Data Sustainability – the new frontier The volume of digital information stored in data centres is growing, accounting for 2 percent of global electricity consumption, and that figure could quadruple to 8 percent by 2030, according to figures cited by Bloomberg and presented in Wunderman Thomson’s “Future 100 2021” report.

By Romanita Oprea However, with the emergence of standards, reports, and more importantly, tools that could bring transparency to sustainability efforts, Big Data sheds light on the future. “More and more funds and investors are bringing attention to financial rating by taking it through the filter of sustainability and fulfilled objectives. And luckily, technology and the data revolution are here to make it easy to confirm whether it is happening. So, positive pressure will come from sources of funding or access to capital as well, and that is something that keeps the world spinning,” Adrian Enache adds.

In turn, public sustainability policy expert Titus Lipovan confirms that the radical innovative breakthroughs we have experienced in the past decade and the openness to change that our societies have shown in recent years Anca Muraru, founder of Gaiance.com

E

lead us to believe that Big Data can definitely become Sustainable Data. “But only as long as the process of collecting, analysing, and

very email sent and every Google

addressing this issue, both claiming that their

disclosing data is carried out under the prin-

search performed, whether on a com-

data centres are carbon-neutral. Microsoft is

ciples of good democratic governance, espe-

puter or on a mobile phone, has an

working towards renewable energy solu-

cially in terms of sustainability and long-term

environmental cost. In an increasingly online

tions in its Azure data centres, citing a 2018

orientation, the rule of law, ethical conduct,

world, that burden mounts up like waste in a

in-house study that showed cloud computing

openness and transparency, and last but not

landfill. According to a March 2019 report by

could be “up to 98 percent more carbon-effi-

least, accountability,” Lipovan argues.

the Shift Project think tank, digital technolo-

cient than on-premise solutions.”

gies are responsible for 3.7 percent of global

Big Data is also expected to play a key role

As environmental issues become real for many countries, both the private and public

greenhouse gas emissions—a similar amount

in sustainable development in the public and

sectors need to find solutions for sustainable

to those generated by the airline industry.

institutional sphere, in what can be described

development. At the moment, companies

Moreover, according to the study, console

as the transformation of Big Data into Sustain-

are at the forefront when it comes to utilising

waste is a related issue, due to the minerals

able Data. “The ‘data revolution’ has been

huge amounts of data and turning them into

used in the manufacturing of gaming systems

around for almost a decade and will keep

value. “And if we look at existing solutions for

and the difficulties around safe and eco-

accelerating. The amount of data that can be

social and environmental issues that cause

friendly disposal.

collected will impact every single activity on

concern in the public sector, we can eas-

this planet, in both public institutions and

ily understand how using Big Data can also

University in the United Kingdom forecast

corporations. We have to be aware that until

have a beneficial impact with visible results

that a large-scale switch to streaming games

the pandemic hit and before the 2030 Sustain-

for governments. However, implementing

rather than using consoles could prompt a 30

ability Agenda was introduced, most sustain-

a data-driven system requires specialised

percent increase in gaming-related carbon

ability actions were PR/image-driven,” says

professionals, a change of mindset, new data

emissions by 2030. Microsoft and Google are

Adrian Enache, CEO at Omniperform.

protection regulations, and time, all of which

A 2020 study by researchers at Lancaster

www.business-review.eu Business Review | May 2021 2016

COVERDIGITAL STORY 35 14

make the process more difficult and complex.

SDG-related big data identifying accurate

will be engaged in the first major update of

Hence, even if the benefits are undeniable,

patterns and can produce data for complex

their sustainability strategies. This represents

implementation may be arduous and we

non-financial KPIs; blockchain can generate

a key opportunity for any businesses to make

cannot expect immediate changes,” explains

traceable SDG information for sustainability

their first mature step into sustainability: that

Anca Muraru, founder of Gaiance.com.

reporting through permanent audit trails and

of identifying and integrating sustainability

can ensure compliance with health and safety

strategies, a standard framework for sustain-

LOOKING IN

standards and import regulations through

ability reporting like SDGs, GRI (GLOBAL

Big data can assist a business owner in un-

a documented chain of custody,” says Titus

REPORTING INITIATIVE) or Global Compact,

derstanding the end-to-end impact of their

Lipovan.

for example. “This way, the data that will

operations. They can now look at their raw

From the regulatory point of view, the

be created will help them in the process of

material sourcing, product disposal, and

monitoring their strategies, building their

even employee travel, then determine

Sustainability Reporting, and position-

the most effective way to reduce waste

ing themselves as active and responsible

throughout the value chain.

players in the worldwide sustainability ecosystem,” he adds.

Companies and conservationists

Solutions come as a response to a

alike can employ big data to improve their practices. If we consider the fact

need – of reducing waste, increasing prof-

that 2015 alone had more data recorded

its, improving the wellbeing of employ-

than the entire history of mankind until

ees or minimising costs. Therefore, even

2014, there is no doubt that Big Data will

companies that may not be interested in

become a powerful tool for monitoring

sustainability can become more aware

sustainable development as interest in

of the environmental costs they produce

social, environmental, and economic

while aiming to improve their image and

global advances grows. So, what mea-

respond to customers’ desires. Within

sures should be taken in that regard? Ac-

the company, by analysing the waste

cording to Adrian Enache, almost half of

they produce and the energy they con-

the countries being tracked by the Global

sume, among other factors, data analyt-

Sustainable Development Goals Indica-

ics can help them reduce costs, improve

tors are yet to have Big Data systems

productivity or reduce carbon emissions.

“As for the products companies sell,

which are able to deliver reliable data. So, the need for private-public partnerships

acknowledging and taking responsibility

to implement better strategies to acquire,

for the lifecycle of a product is becom-

interpret, and standardise data are criti-

ing really important. It starts with the soil used to grow the raw material, the

cal to these countries. And the pandemic has further affected data collection activities,

European Single Electronic Format (ESEF)

water that’s being used, and the employees’

especially in less-digitalized countries.

already states that starting from 1 Janu-

working conditions, followed by end-to-end

ary 2020 all listed European companies are

supply chain management, measuring CO2

that the most important measure that must

required to label their financial reports with

generated by transportation, all the way to

be taken is shifting the current focus on the

XBRL (EXTENSIBLE BUSINESS REPORT-

how the product is used and how it gets dis-

quantity of recorded data to the quality of the

ING LANGUAGE) tags. XBRL is a reporting

posed of. Even though the product’s lifecycle

data – what we really need to record and how

tool developed to improve the exchange of

wasn’t taken into consideration in the past,

to standardise the means of disclosing this

information among systems that can use

nowadays it cannot be ignored, nor should

data, in the most ethical and transparent way,

predefined tags and can offer real-time trans-

be the potential for optimisation. I’ve already

to all stakeholders. Plus, another important

parency around the implementation status

seen discussions about blockchain-based

measure is sustaining the technological

of SDG targets, as well as a holistic approach

product lifecycle management systems that

transfer into practical strategic management

to integrated reporting by interweaving SDGs

could be implemented,” says Anca Muraru.

tools, in both the public and private sector.

and financial data.

At the same time, Titus Lipovan believes

Consumers are becoming more aware of the environmental issues companies generate

“Technological developments are already allowing sound and reliable data collection,

AWARENESS AND SOLUTIONS

and they are opting for more transparent and

which allows us to improve the analysis of

So, how can companies be more aware of sus-

environmental-friendly alternatives. In the

unregulated information. For example, AI

tainability when it comes to the data they cre-

future, this will become the norm and com-

applications include machine-automated

ate and work with daily? According to Lipo-

panies that choose to proactively implement

analysis and forecasting which can process

van, in the next two years, many companies

changes will surely gain attention.

www.business-review.eu Business Review | May 2021

www.business-review.eu

36 CONTEMPORARY ART Business Review | May 2016

COVER STORY 14

Malmaison Studios: A new collective art centre in town Atelierele Malmaison (Malmaison Studios) are a new Bucharest venue, a shared space that houses various art initiatives: artist studios, galleries, project spaces, and more.

The Malmaison Studios project organically and independently took shape through the efforts of a mixed group of artists and organisations operating in different areas of the Bucharest contemporary art scene.

By Oana Vasiliu

Photo: Ivan Gallery

ARTISTS’ STUDIOS:

“

Must see: book your visit here

2020 was a tough year for everybody

“Through our future exhibitions and

and it strongly affected art commu-

programmes, we will not seek to involuntarily

nities worldwide. Inside the deeply

contribute to artwashing this history, which

divided Romanian cultural landscape, 2020

we will fully acknowledge and integrate dur-

also marked new attempts at collaboration

ing the process of reintroducing the building

and cohabitation inside the same large space

in the live urban circuit,” Ivan Gallery adds.

in Bucharest. Malmaison started from young

Members of the public can now see Ivan

Alex Baciu, Dan Basu, Anca Benera & Arnold Estefan, Otilia Boeru, Radu Boeru, Anca Bucur, Constantin Cojocaru, Otto Constantin, Mihai Cosuletu, Anca Dima, Livia Falcaru, Ioana Gheorghiu, Veta Jones, Loreta Isac, Adelina Ivan, Nicoleta Moise, Codrut Negut, Gyarfas Olah, Daniela Palimariu, Mircea Popescu, Adriana Preda, Octavian Rachita, Lea Rasovszky, Ramon Sadîc, Virginia Toma, Liliana Basarab, Lucian Bran, Alex Buta, Floriama Cindea, Eduard Constantin, Larisa Crunteanu, Elena Diaconu, Giles Eldridge, Catalina Gubandru, Lucian Hrisav, Olivia Mihaltianu, Giuliano Nardin, Cristian Raduța, Sabina Suru, Silvia Traistaru, Andrei Tudose, Dan Vezentan, Zoltán Béla friendship and collaboration over time.

The main topic of the exhibition is the

artists’ need for studio spaces and it has

Gallery’s first exhibition in this new space,

body – the physical, real, flesh and blood,

the potential of turning into a genuine art

where they’ve curated a selection of works by

breathing, sweating, living human body; this

community, and we are happy to be part of

the more mature and established artists from

body that has kept us so concerned about its

it as a private gallery,” say representatives of

the gallery’s portfolio – Geta Bratescu, Florina

well-being and health during the past year,

Ivan Gallery, one of the tenants of this new

Coulin, Paul Neagu, and Lia Perjovschi –

this body that we distance and isolate our-

creative space.

alongside their most recent programme entry,

selves from. The human body that we tend to

Romanian artist Ion Grigorescu, with whom

neglect and forget about while captive in the

the gallery has developed a relationship of

digital realm of blue screens, this transient

Malmaison was built as a garrison in the 19th century by the first ruler of the United

body that longs for real touch and connec-

Romanian Principalities. It was later turned

tion.

into a military prison, and after WW2 it became an infamous communist detention and interrogation centre for bourgeoise elites and intellectuals. Malmaison Studios aim to reintroduce the building into the present life of the city, adding a new chapter to the building’s extensive history.

PROJECT SPACES & GALLERIES: Cazul 101, Ivan Gallery, Matka, Anca Poterasu Studio, H'Art, Invitro, /SAC (Spatiul de Arta Contemporana), Sandwich Off-space, Cabinet 44

The exhibition can be found at Ivan Gallery’s space on Calea Plevnei 137C, B side, 1st floor, until May 8 2021, by prior appointment only. Due to the context of the COVID-19 pandemic, visitors must follow the rules set by authorities at the time of their visit.

www.business-review.eu Business Review | May 2021

MUSIC 37

Who will finance the grand reopening of the local cultural scene?

With only two nationwide cultural priorities – Timisoara as the European Capital of Culture and the George Enescu International Music Festival – and a still-ongoing pandemic, everyone’s wondering what this summer will look like in terms of live events and gatherings. But there is still no official plan in place for the re-opening of the entertainment and culture sector.

By Oana Vasiliu and beverages may be served, etc., based on recommendations from local and national authorities.

Outdoor events could be easier to organise and not have limits on the number of participants as long as all attendees can pass the COVID-19 filter through tests, vaccine certificates or documents showing they have antibodies. However, they may still need to Photo: Electric Castle

maintain social distancing, wear a mask or only eat and drink in designated areas.

Various scenarios apply for cinema venues, as follows: indoor cinemas can operate without requiring customers to provide any medical documents, but audience members Everyone's question is when we can attend the next music festival

will have to wear masks during screenings.

However, 4DX cinemas will remain closed,

MONEY TALKS

tion in 2020. But the City Hall’s budget has

while 3D cinemas will have to either provide

With a budget almost 12 percent higher than

not yet been officially approved, so these

single-use 3D glasses or disinfect reusable

last year’s, the Culture Ministry has around

numbers could still change.

ones after each screening. Some seats will be left empty to ensure enough distance

EUR 181 million at its disposal to boost the

between moviegoers.

local cultural scene, of which EUR 12 million

A GLIMMER OF HOPE

will go to the Timisoara European Capital of

Recently, the Culture Ministry proposed a set

Culture project and EUR 10 million will be

of measures that would allow events to take

FOR FESTIVAL-GOERS

allocated to the George Enescu International

place from June 1 onwards, in both indoor

Although Europe and the US have started

Music Festival. Furthermore, the Ministry has

and outdoor venues. The plan was developed

to open venues for live concerts, festivals,

allocated 8.5 percent of the total budget to

based on current legislation and official rec-

and parties, we still don’t know what sort of

the Memorial of the Victims of Communism

ommendations and its implementation will

rules are going to be applied at events such

and of the Resistance in Sighetu Marmatiei

be supported by the Health Ministry and the

as Untold, Neversea or Electric Castle, which

and Timisoara.

National Committee for Emergency Situations

normally attract tens of thousands of people.

(CNSU).

Under the Culture Ministry’s current sce-

In Bucharest, the City Hall’s festival budget has been cut drastically, and so has

Organisers of indoor events will be able

narios, as described above, it seems that the

the budget for churches, which will only go

to implement various crowd safety mea-

cultural sector will be able to organise seated

towards financing historical monuments that

sures – from requiring attendees to provide

events in order to follow social distancing

need conservation, roof repairs or restora-

proof of vaccination, a negative COVID-19

regulations. We’ll probably get more infor-

tion. The three cultural institutions that

test or medical documents proving that they

mation on this issue after June 1, when the

usually organise cultural events – ARCUB,

still have antibodies after going through the

government aims to begin implementing the

PROEDUS, and CREART – will only receive

illness to limiting the number of participants

national recovery plan, and by then we will

EUR 9.5 million, much less than the EUR 27.8

to ensure social distancing, asking them to

also have a better overview of the success of

million offered by the previous administra-

wear masks, restricting the areas where food

the vaccination campaign.

www.business-review.eu Business Review | May 2021

38 CITY

New in town

By Oana Vasiliu

With the pandemic slowly coming under control, cultural operators have started to plan out events based on the new scenarios drawn up by the Culture Ministry, which will come into play starting on June 1. As we wait for the summer, let’s take a look at what’s happening in Bucharest this month. door public space in a post-pandemic context through a series of outdoor interventions. For the second consecutive year, a series of international design exhibitions will be presented in the Design Flags programme, to encourage the dialogue between the Romanian and the international markets.

CONCERTS So far, Gradina Urbana has confirmed a series of live concerts with Romanian bands such as Taraf de Caliu (May 7), Luna Amara & Tapinarii (May 7), Ducu Bertzi (May 14), Vita de Vie (May 15), Emeric Imre (May 16), Byron (May Check out new Samsara restaurant

FOOD & DRINK

Under the theme #together, the online

Samsara (9-9A Dimitrie Pompeiu Blvd., Iride

and offline agenda of the Romanian Design

Business Park) recently opened another

Week (June 4-13) will gather organisations,

restaurant in Bucharest, adding a highly

designers, initiatives, and events that focus

anticipated vegetarian menu to the city’s

on the importance, success, and contribution

gourmet map.

of creative industries in society, especially

For a Mediterranean touch, you might

in a post-pandemic reality. The main venue

want to try Oliveto by Caelia (122 Erou

of the festival will be Combinatul Fondului

Nicolae Iancu). Their menu is Italian-based,

Plastic, which is home to an extremely valu-

with pizza, pasta or risotto among the main

able and effervescent artistic community,

courses, but also with a lot of delicious sur-

which will host some of the exhibitions from

prises.

#RDW2021. A RDW creative board selection

For lovers of fast food with a twist, Circus

19), Jurjak (May 23), and Coma (May 28).

of the best design and architecture projects

Doner (65 Lacul Tei Blvd.) is the place to be,

of the last two years will be presented in the

especially if you enjoy Turkish cuisine. As a

SENAT Gallery, in an exhibition designed by

bonus, you can have Turkish Coffee there,

Attila Kim Architects. “Stradal”, an exhibition

among other traditional recipes.

highlighting the importance of graphic design

Enjoy Oliveto by Caelia menu

in the public space, will be presented by Local

ART The MNAC Bucharest Spring 2021 Exhibition

Design Circle at UNA Galeria.

“Rethinking Plastic” will showcase a col-

season has just opened with six new displays:

lection of innovative and sustainable objects

The Specter (artist Ciprian Muresan), Of love

made from recycled plastic by designers and

and other demons (artist Vioara Bara), Seeing

companies from around the world. A project

History 1947-2007 (collective exhibition),

by Serious Business, developed together with

YOU FEEL ∼ AND DRIFT ∼ AND SING. FROM

the Dutch Design Foundation and Yksi Expo,

ONE SCENE TO ANOTHER (collective), Life

Rethinking Plastic is presented at RDW 2021

Vest Under Your Seat (artist Ana Adam), and

by ASAP at Phenomenon Gallery. Zeppelin

Declined History (collective).

Design will offer a reinterpretation of the out-

Save the date for Romanian Design Week