COMING SOON TO AN OFFICE NEAR YOU
WHERE ROMANIA TALKS BUSINESS June, 2017 / Volume 21, Issue 5
www.business-review.eu
6 x
PROMOTING LOCAL FOOD UNDER ROMANIAN CHIC CONCEPT
30xx
ROMANIA’S PRIVATIZATIONS RISK HITTING POLITICAL WALL
34xx
ROMANIAN TOURISM NEEDS A BREATH OF FRESH AIR
38xx
RIDING THE NEW INVESTMENT WAVE
www.business-review.eu Business Review | June 2017
EDITORIAL 3 REAL ESTATE
• Editorial •
Ovidiu Posirca • Senior Editor • 6 Coming soon to an office near you COVER STORY
Voices of foreign investors coming together The main foreign investment communities have expanded their efforts to improve the overall business making environment in Romania and have become more integrated than ever in the local economy. Because at the end of the day, each new job created in Romania is great news, either it comes from a company with foreign or Romanian capital. This idea of community, of coming together to share ideas that helps the economy progress, is also seen in the way in which foreign investors have been able to bridge this divide that has been put in place by frivolous politicians between international and Romanian capital. As one of the representative of a large busi-
10 Romania set to capitalize on new investment wave 14 Brexit unlikely to deter British companies from investing in Romania
16 German and Austrian investors voice concerns over lack of skilled workers
19 A pole of stability for French and other foreign investors 24 Dutch investors run before the wind 26 American companies go on a hiring spree TOURISM
ness association told me, all the foreign companies are essentially Romanian companies because they attract local talent, work with local suppliers, creating value here. And with the fourth technological revolution under way, Romania needs the help of the private sector to prepare its workers for the jobs of tomorrow. Already, the economy is attracting a growing number of investors looking for develop complex research and development projects here. This is an impressive phenomena that is not getting enough attention from the media and even from policymakers.
38 Romanian tourism needs a breath of fresh air CITY
For decades, Romania’s image has been plagued by bad news about poor infrastructure, red tape and corruption. Things are changing and the steady increase of foreign investment flows confirm that change is coming, although at a slower pace than we all expected. With the international political scene going into uncharted waters, Romania has a window of opportunity to boost its profile as a stable investment destination. This will mean that the investors and decision makers will need to further enhance their dialogue.
40 Private companies boost the Romanian cultural scene
42 It’s festival time! 44 Sky high fun 45 Back to stay: A third culture kid come home
FOUNDING EDITOR: Bill Avery, EDITOR-IN-CHIEF: Anda Sebesi, DEPUTY EDITOR-IN-CHIEF: Simona Bazavan JOURNALISTS: Georgiana Bendre, Georgeta Gheorghe, Otilia Haraga, Romanita Oprea, Ovidiu Posirca, Oana Vasiliu, HEAD COPY EDITOR: Debbie Stowe COPY EDITOR: Eugenia Pupeza, PHOTO EDITOR: Mihai Constantineanu, ART DIRECTOR: Raluca Piscu PUBLISHER: Bloc Notes Media, ADDRESS: No. 10 Italiana St., 2nd floor, ap. 3, Bucharest, Romania, LANDLINE: Office: 031.040.09.31 EXECUTIVE DIRECTOR: George Moise, BUSINESS DEVELOPMENT DIRECTOR: Oana Molodoi, SALES DIRECTOR: Ana-Maria Nedelcu MARKETING: Marius Andronic, Patricia Neamtu PRODUCTION: Dan Mitroi, DISTRIBUTION: Eugen Musat ISSN NO. 1453-729X EMAILS: editorial@business-review.ro, sales@business-review.ro, events@business-review.ro
www.business-review.eu Business Review | June 2017
4 NEWS
WHO’S NEWS
following the IPO and hovered around this value in the first
BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at simona.bazavan@business-review.ro
day of trading. Shortly, after the Digi shares started trading on the BVB, the National Anticorruption Directorate (DNA) announced that it was prosecuting Digi CEO Serghei Bulgac for money laundering. In early May, while the Digi IPO was underway, anti-graft investigators said they had
Yusuf Onder Eren is the new CEO of TotalSoft, replacing Liviu Dragan, the company’s founder. Dragan will remain member of the board of TotalSoft, following the management change. Eren brings over 40 years’ worth of experience in business management, having previously held executive positions in several international companies. He has been a board member within TotalSoft since September 2016, and also a member of the board of Logo for seven years.
Digi Communications’ IPO could help Romania’s capital market reach emerging status
page 5
telecom giant RCS&RDS officials over the broadcasting
Digi Communications raises record EUR 210 mln in IPO on BVB Digi Communications, the
rights for Romania’s main football championship, in a deal that covered the 20082011 seasons. The former head of the Professional Football League (FRF), Dumitru Dragomir, is accused of bribe taking
By Ovidiu Posirca
and complicity in money “The fact that companies from
laundering. Several current and former
company which controls tele-
diverse and more dynamic eco-
com operator RCS&RDS, raised
nomic sectors are listed shows
executives at RCS&RDS are
RON 956.7 million (EUR 210
the diversification and modern-
being investigated in the same
million) in an initial public of-
ization of the Romanian capital
case. Ioan Bendei, the former
fering (IPO) that took place on
market. With yields of over 16
administrator of the company,
the Bucharest Stock Exchange
percent in only four months,
is prosecuted for bribery and
(BVB).
Romania is the market with
money laundering. Digi is the
the highest growth rates from
parent of RCS&RDS, which
first part of May was the big-
Europe this year,” said Ludwik
stated that it was fully coop-
gest IPO of a private company
Sobolewski, CEO of BVB. Digi’s
erating with investigators and
in the history of the BVB.
price per share was set at RON 40
that it was innocent.
The offering closed in the
Tatiana Proskuryakova is the new World Bank country manager for Romania and Hungary. She will replace Elisabetta Capannelli who will be moving to Zagreb. Proskuryakova, a US and Russian national has previously worked as the World Bank’s country manager in Bosnia and Herzegovina and Montenegro since 2015. Between 2013 and 2014, she was World Bank country manager in FYR Macedonia and country operations adviser for Argentina, Paraguay and Uruguay (2010-2013). She joined the World Bank in 1992.
started to prosecute several
Romania posts biggest economic growth out of the EU in Q1 By Georgiana Bendre
of the year, with a GDP growth of 5.6 percent compared with the same period of 2016, according to a flash estimate published by Eurostat, the statistics office the EU. The highest growth rates across the EU were recorded in Romania (5.6 percent), Poland and Lithuania (4.1 percent), Latvia (3.9 percent), Hungary (3.7 percent) and Bulgaria (3.4 percent). Meanwhile, the Greek
Romania registered the highest economic growth in the European Union in the first quarter
economy fell by 0.5 percent. Also, Romania had the highest economic growth from the EU
The European Commission forecasts a 4.3 percent expansion of Romania’s economy this year
www.business-review.eu Business Review | June 2017
NEWS 5 “A significant share of the invested amounts, annually, by Regina Maria, is supported by the revenues obtained from the medical subscriptions. In 2016, the corporate segment represented 30 percent of our turnover of EUR 91 million. We constantly reinvested the obtained revenues and we could thus open more new locations, to bring modern equipment in the network locations and convince the good doctors to stay
Regina Maria aims to expand its network in the next years
Regina Maria investments reach EUR 70 mln in infrastructure development in the 2010-2017 period
in Romania. Currently, there are over 400,000 corporate subscriptions in our portfolio and in 2017, we aim to grow this segment by 15 percent,” said Fady Chreih, CEO of Regina Maria. Most of the investments
By Georgiana Bendre
were made in Bucharest, which
Private healthcare services’
percent over the budgeted value.
attracted EUR 45 million. Cluj
provider Regina Maria has
For 2017, the network has 18 de-
is the second biggest city in
invested over EUR 70 mil-
velopment projects in progress,
which Regina Maria put EUR 9
lion in the development of its
comprising expansions, reloca-
million.
infrastructure in the 2010-2017
tions and modernizations of the
At present, Regina Maria has
period, including the modern-
existing locations, acquisitions,
four hospitals, two maternities,
ization or the expansion of the
as well as Greenfield projects.
11 imagistics centers, 8 medical
current locations, as well as
The medical supplier has 37
centers and 3 centers for hospi-
opening new units.
locations and aims to double the
talization during the day time.
In 2016, it registered the
Vasile Mocanu has been appointed GM of Facilitec, the facility and property management division of Spanish group Mantec. He has more than 14 years professional experience in facility and property management. He previously served as operational manager of Mega Mall Bucharest. Over the years, Mocanu has also held management positions and led facility management projects with Eni Group, BCR Real Estate Management, GE Money Romania/ GE Garanti Bank Romania.
network’s value until 2020. The
The company has 3,500
highest portfolio growth of
investment budget for 2017 is
employees, out of which 1,700
over 20 percent and over 10
estimated.
are doctors.
in the first quarter of this year, compared with the increase of 1.5 percent in the last quarter of 2016. The European Commission, the executive arm of the EU, expects the Romanian economy to grow by 4.3 percent this year, while the government expects a growth rate of 5.2 percent. EC experts warned that Romania might overshoot the budget deficit target of 3 percent, while public officials in Bucharest say the public expenditure will not spiral out of control.
Be Connected. Be Stronger. June 13-14
Alexandru Reff has been appointed country managing partner Deloitte Romania and Moldova, officially starting on June 1st. He will replace Ahmed Hassan, who takes on a regional leadership position. Reff is an attorney at law, founder of Reff & Associates, the law firm representing Deloitte Legal in Romania. He started his career in Deloitte in 1997 and served in various executive roles, including tax and legal partner for a period of four years. Anca Moldovan is the new health and benefits leader for Central and Eastern Europe at Willis Towers Watson, this being for the first time when a Romanian takes a regional position within the company. She has 17 years’ worth of experience in brokerage, employee retention programs and adapting and implementing health and benefit plans for clients within the former Gras Savoye Romania, currently Willis Towers Watson Romania.
www.business-review.eu Business Review | June 2017
6 OFFICE FORWARD
Coming soon to an office near you Looking at how companies are innovating their office buildings in more mature markets offers clues about how people might work in a not-so-distant future in Romania, as well. By Simona Bazavan that provides both an attractive and productive environment, while at the same time conveying the company’s brand to employees and consumers.
BUMPING INTO ONE ANOTHER Some of the more recent office developments in the west – many of them belonging to IT companies – boast novelties in both external and internal layouts. Open-office workspaces and the so-called “hot-desking”, where employees no longer have an assigned desk or seating area, are nothing new. Having employees work both together and individually in different spots around the office, rather than having a fixed desk, or creating working areas whose functions overlap, creates an open, fluid and informal working environment, say employers. Facebook’s headquarters in California features the largest open-space office in the world
Such office spaces encourage people to be mobile and better interact with one another,
the first to challenge the traditional
B
is easy to see. For one, the competition to
proves communication and spurs creativity,
office environment by introducing
attract and secure valuable talent is perhaps
they argue. Last but certainly not least, such
perks to their employees, such as game rooms
highest for IT companies. They are also the
schemes also allow companies to better opti-
and free lunches. Nowadays, they are once
most likely candidates to innovate and come
mize space without leaving employees feeling
more at the forefront of altogether more
up with disruptive practices which, one way
too squeezed, points out The Economist.
profound changes. The way such companies
or the other, also end up reflecting in their
shape their headquarters in the US or Western
office spaces.
ack in the 1990s, tech companies were
Europe signal what sort of innovations may be in the pipeline for everyone else.
sometimes solely as the result of serendipiWhy tech players are driving these changes
The end game for such tech players, and other companies as well, is to craft an office
tous encounters. This interaction, in turn, im-
Some of the most recent office developments, however, are taking practices such as open-office workspaces, hot-desking and overlapping working areas to a new level.
www.business-review.eu Business Review | June 2017
OFFICE FORWARD 7 definitely hint at profound changes ahead. For
Bedouin tent from Morocco, according to The
Facebook’s headquarters in Menlo Park,
example, American cloud computing com-
Economist.
California, is an example worth showcasing.
pany Salesforce will open its new headquar-
Increasingly more, the trend for new
It features the largest such open-space office
ters later this year, in a 62-floor skyscraper in
office developments focuses on amenities
in the world, bringing within the same walls
San Francisco whose top floors will be used
that help employees save time, say industry
some 2,800 employees, including the giant’s
as a lounge and open space area for employ-
representatives. This might include concierge
founder, Mark Zuckerberg. The use of laptops
ees and the general public alike, rather than
services such as picking up laundry or order-
encourages mobility, while those looking
as traditional corner offices for executives,
ing groceries that wait to be picked up from
for privacy can use conference rooms or, so-
writes The Economist.
a fridge in the building’s basement, as is the
When it comes to open-office workspaces,
called libraries, with dedicated quiet spaces.
Apple’s colossal new headquarter in
case for Deloitte’s employees headquartered
To make sure productivity doesn’t suffer,
Cupertino, California, is another example of
in The Edge, the company’s Amsterdam office.
each desk is provided with 27-inch monitors,
an office that is designed and managed with
Other companies are offering their employees
which block out visual distractions, and noise
the self-declared purpose of being “a space
on-site wellness services, including health-
cancelling headphones, according to a com-
for creativity and collaboration.” The circular
care services, or free shuttle services, which is
pany employee cited by Inc.com. Moreover,
building the size of the Pentagon, which
something particularly popular among millen-
employees also enjoy flexible working hours,
opened this April, comes with a park at its
nial workers, they add.
according to the same source.
center, which is meant to create an open en-
Technology is also widely being used for
vironment for people “to create, collaborate
the self-declared purpose of making em-
into its new headquarters, The Barbarian
and work together,” they add. The parklands
ployee’s life easier. The result is the so-called
Group, a new generation internet-advertising
offer two miles of walking and running paths
smart office, which is both user- and environ-
agency, was making headlines by equipping
for employees, plus an orchard, meadow and
ment-friendly. American chip manufacturer
its own headquarters with a one-of-a-kind
pond within the ring’s interior grounds.
Nvidia, for example, is planning to install
In 2015, the same year Facebook moved
cameras to recognize what food people are
desk. Their 335m-long undulating desk could host as many as 170 people at the same time,
NO MORE OFFICE-LIKE ATMOSPHERE
taking from the cafeteria, thus eliminating the
but soon the company moved beyond that.
For all the changes technology has brought to
need for a queue and cashier, according to The
The Barbarian Group announced last year that
the way we work, achieving a work-life bal-
Economist. It also plans to have a self-driving
it had sold the office on Craigslist given that
ance has not become easier. And since most
shuttle to connect its various buildings and
the agency has ”transcended” the physical
people spend a good chunk of their weekdays
monitor when employees arrive and leave
office model and migrated to an MMOW,
in the office, why not make the office feel like
in order to adjust the building’s heating and
meaning a “massively multiplayer online
home? Or perhaps even better than home?
cooling systems.
Unconventional yet comfy office set-
Such practices are already available closer
said that it has migrated all internal commu-
tings help both distinguish a company’s
to home. At Deloitte’s The Edge headquarters
nications to Slack - a cloud-based team col-
brand and give staff a reason to come into
in Amsterdam, an app notifies employees
laboration tool - thus “doing away with email
the office, rather than work from home. And
about their schedule as they arrive, guides
and IRL person-to-person interaction.” Each
there are plenty of companies following
them to a reserved parking spot and an avail-
employee has been equipped with gesture-
suit. In Google’s Zurich offices, employees
able desk and adjusts environmental factors
controlled, wearable tech and Wi-Fi-enabled
work inside vintage alpine ski-lifts, and as
such as light and temperature according to
devices that are linked to a private IoT (inter-
in any other Google office, they enjoy three
individual preferences.
net of things) network.
free meals every day. Airbnb’s headquarters
workspace,” according to its CEO. The agency
While such developments don’t spell the end of offices as physical spaces, they
The building was delivered in September
conference rooms are designed according
2014 and it is one of the smartest and green-
to the company’s rental listings, including a
est office buildings in the world, Stefania
www.business-review.eu Business Review | June 2017
8 OFFICE FORWARD
Baldovinescu, senior partner, real estate
dashboards at the lobby lift areas showing
Spaces that are increasingly more public are
management services with Colliers Interna-
consumption per tenant/floor and building
becoming part of office projects,” explains
tional tells BR. Such perks will most likely
dedicated smart phone apps, in-building res-
Sandor.
become common place over the next years,
taurant, car and bike sharing as well as other
albeit there are also fears about privacy and
partnerships,” she explains.
how this could all backfire against those they
There is already a considerable difference
An important driver of change for the local office market is the fact that many of the companies active in Bucharest are local
are supposed to help by creating a surveilled
between the office buildings being developed
subsidiaries of large international companies
environment where employees are constantly
today and projects which are already 10 or 15
Sorin Visoianu, country manager operations
being monitored.
years old, Eduard Turcoman, senior broker of-
Romania at Immofinanz tells BR. “It is natural
fice agency C&W Echinox tells BR. “Today, we
that they expect the same quality level from
MEANWHILE, BACK HOME…
have buildings whose elevators store breaking
all their headquarters around the world. Ten-
Back in Romania, office buildings are under-
energy, led lighting solutions are becoming
ants’ demands have certainly contributed to
going changes too, and employees are the
wide spread and ventilation systems are in-
increasing the standards of the local office
ones dictating the change, real estate consul-
creasingly more employee-friendly. Also, elec-
space offer, as premium developers continu-
tants tell BR. “We will see over the next years
tric car chargers, bicycle parking and showers
ously invest in their properties,” he point out,
the first building in Romania to have a rooftop
have become standard for established devel-
stressing that many of the latest office trends
running track. Things are moving forward
opers such as Skanska, Globalworth, Vastint
are already visible, in various degrees, on the
fast,” say JLL representatives.
or AFI Europe,” according to him.
Romanian market. An example in this sense is the company’s international office brand,
The trend is for offices to evolve from
Moreover, developers are considering
places where people exclusively work, to
other office upgrades that can be seen on
myhive, which it has already rolled-out in
places where they also spend their free time
more mature office markets, but there is also
both western European (Germany, Austria)
and live, Gabriel Balaban, MRICS, head of
the matter of costs, he
building consultancy at CBRE Romania tells
points out. “Innovations
BR. Offices are fast turning into a hybrid
come with costs that are
between physical space and digital space add
later reflected in the rent.
JLL representatives, and new technologies
This is why developers will
are being used increasingly more by local
always pay attention to
developers. Companies are adapting to new
their tenants’ requirements
ways of working and the first to undergo such
and will avoid unnecessary
changes are generally those with a large num-
gimmicks,” explains Turco-
ber of employees, adds Balaban. “Therefore,
man.
we expect to see tracking systems for employ-
Developers themselves
ees being set up and more apps managed by
agree that there are new
the owners of the office buildings which will
trends taking shape and
help employees save time,” he forecasts.
that new office projects are
It might seem difficult to talk about smart
evolving. Ovidiu Sandor,
buildings in Romania at this point in time,
the developer behind the EUR 130 million
and CEE countries (Romania, Poland, Hun-
given that the local office market is relatively
ISHO project in Timisoara, tells BR that one
gary, Czech Republic,) points out Visoianu.
young, however, local reality catches up with
change is that energy efficiency and securing
trends set abroad, believes Baldovinescu.
green certificates have become a must. Anoth-
profound changes for the local office market
The majority of office buildings are already
er important trend is the growing relevance of
in the years to come, but exactly how those
equipped with heat pumps, radiant ceilings,
an office building’s social function, believes
changes will look remains to be seen. “I am
gray water systems, charging stations for
the businessman.
personally looking forward to welcoming
electric cars, car plate recognition systems
A new office project being developed
All these innovations hint at even more
a building like The Edge in the Romanian
and bike parking spaces, she points out. Oth-
in 2017 goes beyond being simply an office
market. I think the future of real estate
ers already boast improved environmental
building, he explains. First and foremost, it
development will blend real green attributes
features that range from interactive areas,
needs to be employee-centric. “All this means
with smart IT features and hot-desking spaces
community spaces, squares between build-
is that a project which is being developed in
with interactive, welcoming, hotel-type com-
ings and Wi-Fi in campuses to running paths
2017 must have an aspirational component,
mon areas. But until then, I leave you with a
and common areas sensors. “The future is
co-working spaces on all levels, flexible spaces
question: are you ready for buildings that are
even brighter considering the fact that more
and a mix of office and teleworking hours.
so technologically advanced that they know
and more ongoing projects include innova-
Spaces are being adapted to present working
everything you do, or do you consider it is too
tive technologies, such as: virtual reception
patterns with short meetings, many of which
much of an invasion of privacy and personal
with check-in and access control for visitors,
take place in very creative areas or standing.
intimacy?” concludes Baldovinescu.
10 COVER STORY
www.business-review.eu Business Review | June 2017
ROMANIA SET TO CAPITALIZE ON NEW INVESTMENT WAVE A controversial draft bill on the approval chain in Parliament would block any new privatization of a state-owned company for five years. While the initiators of the legal piece claim that the country’s public finances can manage without the privatization of any new state assets, the state-owned enterprises have recorded mixed results regarding the implementation of corporate governance. By Ovidiu Posirca
www.business-review.eu Business Review | June 2017
COVER STORY 11
A
fter growing by an estimated 5.7 percent in the first three months of the year, the economy needs to remain on stable footing going forward, suggested PM Sorin Grindeanu, in a
rather cautious manner. “We have to maintain this trend and we know this growth has to be recorded in a solid, sustainable and responsible manner. This is why I think that it is important to make these vital reforms by acquiring the best existing practices and standards, and the OECD is a renowned leader in global corporate governance with which we want to cooperate,” said the PM in mid-May, during a conference in which he announced that Romania aims to start negotiations to become a member of the The Organisation for Economic Cooperation and Development (OECD). The PM went on to say that Romania’s exports reached a fresh EUR 5.6 billion high in March, while foreign direct investments were up by around 22 percent, to EUR 1 billion in Q1.
MAKING LONG-TERM PLANS However, the good macroeconomic figures show only one side of Romania’s story, considering that the private sector still has to manage with a poor development rate of transport infrastructure and fierce competition for specialists in various industries, be it automotive, IT or construction. “A coherent vision and timely policies are critical to avoid turning what used to be Romania’s leading competitive advantage - quality and availability of skilled labor force, into a liability driven by the mismatch between the labor market demand and universities’ output, by the massive brain drain, or demographic trends. The shrinking workforce and the potential changes of the labor legislation are worrisome for companies already operating in Romania, therefore such challenges need to be addressed before they become an obstacle for new investments,” Anca Harasim, the executive director of AmCham Romania, told BR. AmCham Romania is a strong representative of the private sector, backed by around 400 members, including Romanian, American and international companies, which have created around 250,000 jobs and invested USD 20 billion to date. Harasim added that the poor physical infrastructure, correlated with Romania not being part of the Schengen agreement, has left Romania out of the investment map too many times. “Despite general consensus at all levels on the need for modern infrastructure, very little progress is still registered towards closing this gap that is heavily impacting businesses and citizens alike,” she added.
INVESTORS EXPLORING NEW PROJECTS OR LOOK TO EXPAND OPERATIONS IN ROMANIA The industrial sector continues to record a significant amount of investments this year and companies are struggling to find enough workforce in order to keep up with the pace of development. For instance, Arctic, one of the largest home appliances producers in Europe, will invest around EUR 105 million in southern Ro-
www.business-review.eu Business Review | June 2017
12 COVER STORY
mania for a new washing machines’ plant,
development of the private sector. Having
aiming to turn local operations into a hub
reached the maturity stage, the associations
for Arcelic group, the owner of the brand.
comprising foreign and local investors have
Around 2,500 people will be employed here
come under the banner of the Coalition for
and the firm got EUR 37.5 million in state aid
Romania’s Development, the main associa-
for this investment.
tion that meets government officials on a
Elsewhere, Chinese Ningbo HuaXiang
regular basis. The ease of doing business
Electronic is expected to invest USD 30
remains a hot topic during these meetings
million in Brasov, in a new production hall,
as Romania is vying for investments with
which will manufacture spare parts and ac-
other regional powerhouses such as Poland
cessories for German Mercedes cars. Some
and the Czech Republic.
265 jobs will be created here. This spring, Belgian aerospace company
“Investors’ confidence is to a great extent related to the stability, both in the
Sonaca opened in Cluj county, western
political realm and in the decision-making
Romania, a new plant that will manufacture
process, in the regulatory and taxation
parts for the Airbus A320 aircraft, following
framework. With no general elections in the
an investment of EUR 10 million.
next couple of years, we believe that Roma-
Going forward, we might expect more
nia has the opportunity to consolidate the
fresh companies to get on the market or to
country’s overall stability and to enhance
see further developments of already estab-
the rule of law, along with coordinated
lished players.
efforts in increasing its profile in the EU
“There is a significant number of inves-
framework,” said Harasim of AmCham.
tors on the Romanian market, and a rising number of potential ones. Companies that have never done business
INTERNATIONAL CHALLENGES
here have recently announced their intention of entering the market
Romania’s ongoing project is to seek further integration in the EU,
and investors already present, have lately made new investments.
culminating in the accession in the Euro zone. Just by taking into ac-
The market is evolving, showing economic growth and placing
count the fact that more than two thirds of Romanian exports get in
Romania more and more on their radar,” said Bruno Leroy, founding
the EU yearly, any political tide might have an impact on the sensi-
partner of law firm Leroy si Asociatii.
tive economic ramifications linking Romania to the rest of the Union.
Putting things into perspective, we should also look at companies
This year, it’s all about Brexit and the unpredictable leadership style
that have been operating on the market since 1990, from the early
of Donald Trump in the USA. Even some Romanian politicians from
days of the trailblazers.
the ruling coalition have taken a more nationalistic stance, but this
The top largest 20 companies founded 20 years ago re-
hasn’t become mainstream up to now.
corded a combined turnover
Across the EU, the big
of close to RON 800 million
risk elections seem to have
at the end of 2016. Most of
passed, according to analysts
them were founded in cities
at ING Bank, who claim that
in the center and eastern
upcoming elections in the
part of the country, along-
UK, France and Germany
side Bucharest, according to
pose little risks to markets.
data from the National Trade
However, Italy seems to be
Registry Office (ONRC). The
turning into the next politi-
companies are mainly active in the retail and construction sectors. When looking at the results founded 10 years ago, the top 20 firms had a combined turnover of RON 1.2 billion at the end of 2016. Most of them were founded in Bucharest and in several cities in central
cal volcano going into 2018. Polls suggest anti-EU parties make up almost half of the electorate in Italy, and the possibility of the 5-star Movement becoming the largest party could unnerve markets, according to ING. On this backdrop, the challenge for Romania’s top political brass
Romania. Real estate, transport and agriculture trading are some of
lays in keeping the ship on route. This doesn’t translate only in back-
the sectors in which most of these companies have operations.
ing the economic growth rate above 5 percent this year, but by also
In addition, in these years, the local economy has benefited
making sure that the budget deficit doesn’t exceed 3 percent of GDP,
massively from the know-how of companies from Germany, France,
a severe risk that has been mentioned by the European Commission,
UK, Austria, USA and The Netherlands, which had a key role in the
the executive arm of the European Union.
www.business-review.eu Business Review | June 2017
14 COVER STORY
Brexit unlikely to deter British companies from investing in Romania Real estate, the food and drink industry and retail are three of the sectors most likely to see new investments this year, including from British companies. By Simona Bazavan
W
ith Brexit negotiations scheduled to start this June, an
companies look at Romania as a new opportunity for investment,
important question is how this will affect British invest-
especially as costs increase in places such as Asia and “near sure
ments in the local economy. “The question everyone
solutions in Europe are becoming more viable and attractive”, he
would like an
adds. “We believe
answer to, but
the necessary
without a crystal
ingredients are in
ball it is difficult
place for British
to estimate what
companies to win
impact positively or
even more busi-
negatively the cur-
ness in Romania
rent negotiations
and newcomers
will have. What
will target sectors
we can say is, from
such as food and
discussions we
drink, retail, real
have had with Brit-
estate, health-
ish businesses and
care, energy and
investors, it is very
transport, as well
much business as
as financial and IT
usual and possibly, if anything, there’s an increased interest in Romania as a trading and investment partner,” Charlie Crocker, CEO of the British Romanian Chamber of Commerce (BRCC), tells BR. Some of the most significant investments made by British inves-
services,” continues Crocker. In particular real estate, where increased activity is indicative of new investors entering the market and already established players resuming acquisitions, food and drink and retail, where secondary
tors locally over the past year have been in pharma, energy, con-
and tertiary cities are driving new developments, show potential for
structions and IT. In the food and drink sector, wine producer Hale-
future investments, according to BRCC’s CEO.
wood invested over EUR 10 million and has now grown to operate
The UK is a major economic and trading partner for Romania,
five subsidiaries in Romania, says Crocker. “Also noteworthy is real
says Crocker. Bilateral trade reached EUR 3.95 billion in 2015, the
estate developer Tagor, owned by British fund Patron Capital. The
highest level reported so far in the two countries’ bilateral history
developer owns many residential projects in Bucharest, Timisoara
and the upward trend maintained in 2016, he adds. There are more
and Arad. In 2016, the company sold 120 apartments in all its residen-
than 5,000 British companies active in Romania, with a total sub-
tial projects and this year, it continues the construction work on the
scribed capital of over EUR 1.01 billion, indicate BRCC data.
second phase of its residential project Adora Park in Arad,” explains BRCC’s head. And more investments should follow given that, over the past years, Romania has strengthened its position as a location of choice for the British, suggests Crocker. “This is in some part because of the positive changes to the business environment, including greater transparency, one of the fastest growing economies in the EU over the last couple of years and availability of a technically skilled workforce with excellent language skills,” he explains. The global economic environment is also favorable, making UK
“FROM DISCUSSIONS WE HAVE HAD WITH BRITISH BUSINESSES AND INVESTORS, IT IS VERY MUCH BUSINESS AS USUAL AND POSSIBLY, IF ANYTHING, THERE’S AN INCREASED INTEREST IN ROMANIA AS A TRADING AND INVESTMENT PARTNER,” CHARLIE CROCKER, BRCC
www.business-review.eu Business Review | June 2017
16 COVER STORY
German and Austrian investors voice concerns over lack of skilled workers German and Austrian companies expand their local presence yet they’re finding it increasingly difficult to secure the right labor force.
G
By Simona Bazavan
erman and
attracted some of
Austrian
the major Austrian
investors
investments in
make up two of the
2016 and 2017.
best established
One of the most
investor communi-
recent examples is
ties in Romania,
Bardeau Holding,
with a strong
which opened the
presence across
Banat Industrial
the local economy.
Park in northern
German invest-
Timisoara this
ments alone pres-
May, adds Bom-
ently total some
mer. The indus-
EUR 8 billion,
trial park’s first
indicate data from
client will be an
the Romanian-
Austrian medical
German Chamber
technology firm
of Commerce and
which plans to
Industry (AHK Ro-
invest locally this
mania). Moreover,
year and in 2018. German
over 10 percent of the foreign-cap-
investors, on the
italized compa-
other hand, have
nies in Romania
a strong footprint,
are German and
in particular in the automotive field
they employ over 250,000 people, according to AHK estimates.
and in other manufacturing industries. “There is also potential in
When it comes to Austrian companies, data show that there are
industries such as green technologies, environment, energy, food
more than 7,200 companies with Austrian capital, out of which ap-
and agriculture, but also IT&C. Due to rising wages, trade also has
proximately 1,500 are active investors in Romania, according to Ad-
a potential for investments. However, it would be desirable that
vantage Austria, the Austrian official trade promotion organization.
investments also rise alongside consumption. Germany, who is a
Their direct investment value amounted to nearly EUR 9 billion in
leader in technologies for machinery and equipment, could take
2016, which represented a share of over 14 percent of all the foreign
advantage of that, as Romania needs urgent investments,” explain
investments in the country.
AHK representatives.
Such a strong presence means that within the last five years, most of the Austrian investments in Romania changed from new investments into enlargement, expansion, replacement and modernization investments, Gerd Bommer, commercial counselor with Advantage Austria tells BR, adding that Austrian investors who want to establish a business in Romania are already here. Metal working, steel, furniture and environmental technologies were the industries that
EUR
26.1
billion
bilateral trade between Romania and Germany in 2016
www.business-review.eu Business Review | June 2017
18 COVER STORY
Proximity to Central and Eastern Europe, low labor costs com-
investment plans include Rondo Ganahl, a cardboard manufacturer
pared to the rest of the EU, a legal system that is in line with that of
which plans to invest EUR 20 million into upgrading two of its local
the EU and the 16 percent flat tax, remain to this date some of the
plants.
main reasons behind the German investors’ interest in the Romanian
On the German side, there are automotive players such as Draxl-
market. “The reasons still apply, the combination of a favorable tax
maier, INA Schaeffler, ThyssenKrupp, Systems, Continental or HUF,
system, availability of resources, a mainly well-educated workforce -
which last year had planned investments worth EUR 14 million.
with a lack in professional skills - and a really strong growing domes-
There is also energy player E.ON, insurer Allianz, retailers Kaufland
tic market, are driving the development,” adds Bommer.
and Lidl, and telecommunications giant Telekom.
While Romania remains attractive in the region due to the previ-
An overview of the major German and Austrian investors present
ously mentioned aspects, as well as the size of its domestic market,
on the local market shows that the companies have been overall
the country needs to upgrade its infrastructure, as its 700 km of
posting positive results in 2016 and the first part of 2017. Austrian
highways are far behind those of other countries in the region and
controlled OMV Petrom, the largest oil and gas player on the Roma-
this represents a big disadvantage to boosting the country’s poten-
nian market, managed to boost its net profit by 114 percent in the
tial, point out AHK representatives.
first quarter of this year, against the same period a year ago to some
Another downside is that securing qualified employees is be-
RON 618 million. Higher oil prices and higher volumes of natural gas
coming increasingly difficult for investors, representatives of both
and energy have also helped the company see its turnover surge by
communities say. “One of the major challenges today is the lack of a
27 percent. Less positive news came from BCR, the biggest lender
skilled work force. In Romania, the employment quota is relatively
in Romania controlled by Austrian Erste Group, whose first quarter
low compared to countries like Austria or especially the Netherlands
profit fell by 33.7 percent to RON 196.3 million (EUR 43.3 million),
and Scandinavia. Therefore, we see that workforce in general is available, but the mobilization is difficult,” explains Bommer, adding that both issues are in the hands of the Romanian government. Dual education programs, many of which are endorsed by German and Austrian investors locally, provide a solution to the problem. It is important for Romanian authorities and decision makers to take the necessary steps to develop vocational training, also point out AHK representatives, stressing that long-term development can only be achieved by investing in education. There is also the matter of continuing the fight against corruption, strengthening the rule of law and ensuring predictability, stability and transparency in order to enable companies to plan future investments, say representatives of the two communities. “The national funds, and especially the EU funds will keep investments at a high
“THE NATIONAL FUNDS, AND ESPECIALLY THE EU FUNDS WILL KEEP INVESTMENTS AT A HIGH LEVEL, BUT THE GOVERNMENT WILL HAVE TO DO ITS PART IN ORDER TO CREATE EVEN BETTER CONDITIONS, ESPECIALLY IN PREDICTABILITY OF THE LEGAL FRAMEWORK AND LONG-TERM PLANNING AND STRATEGIES,” Gerd Bommer, Advantage Austria
level, but the government will have to do its part in order to create even better conditions, especially in predictability of the legal frame-
as the bank grappled with falling banking income and an ongoing
work and long-term planning and strategies,” stresses Bommer.
process to reduce the non-performing loans book.
In terms of trade relations, 2017 data confirm that Germany
According to the most recent data, Kaufland, the largest German-
remains Romania’s main trade partner. German imports to Romania
controlled company in Romania, and also the largest retailer on the
amounted to EUR 13.8 billion in 2016, which was up by 10.5 percent,
local market, passed the EUR 2 billion turnover threshold in 2015,
while Romanian exports to Germany increased by 14.6 percent to
some three years earlier than initially targeted. Lidl and Metro Cash
EUR 12.3 billion, according to AHK data. “Total trade between the
& Carry, two other German retail and wholesale players, also posted
two countries amounted to EUR 26.1 billion which was up 12.4 per-
growth last year. They might be joined by German discounter Aldi
cent y-o-y and which represents about some 20 percent of Romania’s
who earlier this year was looking for hiring local managers, accord-
exports. Overall, there is an upward trend,” say AHK representatives.
ing to media reports.
Austrian exports to Romania on the other hand, account for EUR 2.08 billion, up by 6.0 percent in 2015 and 4.1 percent in 2016.
Looking forward, both German and Austrian investors have a positive outlook about doing business in Romania. “We do annual business surveys with our Austrian subsidiaries in Romania. The
BUILDING UPON SUCCESS
results are overwhelming, while 50 percent of the respondents think
Major Austrian investors in Romania are spread throughout the
that Romania’s development will be good or very good, two thirds of
economy. There is oil and gas giant OMV Petrom, lenders BCR and
respondents think like this about their sector, but over 90 percent of
Raiffeisen, real estate companies Immofinanz and S Immo or con-
respondents think that their company’s development will be good or
struction firm Strabag, to name just a few. Some of their more recent
very good,” says the Advantage Austria representative.
www.business-review.eu Business Review | June 2017
COVER STORY 19
A pole of stability for French and other foreign investors With EUR 4.3 billion French investments in Romania up to 2015, according to the National Bank of Romania (BNR) data, France is Romania’s fifth commercial partner, with more than 2,500 active companies registered here.
Join the most active foreign business communities in Romania! June 13-14 http://countryfocus.business-review.eu
By Anda Sebesi
T
he French Chamber of
attractive mostly for contract
Commerce and Industry
manufacturing, today Roma-
(CCIFER) counts today
nia has become interesting in
some 500 members, representing
welcoming production facilities
15 percent of the GDP and more
and offices of big and medium
than 125,000 employees, cover-
groups, which are choos-
ing all sectors of activity, from big
ing the southern or eastern
names of French groups who start-
regions of Romania,” says the
ed to invest in Romania twenty
representative of CCIFER. She
years ago, to small entrepreneurs.
highlights that from a low-cost country, Romania is changing
“Every year, new investors are attracted by the opportunities
its status to a best-cost country,
offered by Romania, which is seen
where investors can still find a
nowadays as a strategic choice in
qualified workforce, very often speaking French or English,
the area, due to its human capital and the linguistic and cultural proximity. Our quarterly barometer showed big expectations in the beginning of 2017 regarding the
culturally close to France. Speaking of the business plans of some of the most representa-
growth and development of Romania, nevertheless with risks related
tives French players on the local market, Dacia, one of the most
to the general political and social context, but confident in the capac-
significant French companies in Romania, posted EUR 4.6 billion
ity of the business environment to reach a balance and a dynamic,”
turnover last year. After the company launched the Logan, Sand-
says Adriana Record, executive director of CCIFER. According to her,
ero and Duster models, it saw a steady increase of its business in
during 2016, CCIFER was involved in around 50 commercial projects,
Romania. “The increase of our turnover in 2016 has been fueled by
just to mention a few sectors in which French investors were inter-
both the domestic and international market. As for the exports, we
ested, whether to purchase some local companies, or to buy raw ma-
have performed very well both on the European market as well as
terials from local producers: packaging (cardboard), industry, NTIC,
the Asian and African ones. This makes our exports about 90 percent
wood, textiles, water transportation, aeronautics, destocking.
of our turnover this year,” stated Liviu Bocsaru, CFO at Grup Renault
“The interest shown by the French investors towards Romania
Romania earlier this year. According to the company’s data, Dacia
has been steadily growing in the recent years. During the first four
kept its position as market leader in Romania in 2016, with a market
months of 2017, CCIFER finalized several business development
share of about 30 percent. At the international level, the sales of
projects, either supporting French companies in opening a subsid-
Dacia increased by 6 percent to more than 545,000 units.
iary in Romania, finding new markets or identifying new purchasing
Elsewhere, Carrefour Romania, the largest multiformat retailer
channels” adds Record. According to her, automotive, engineering,
on the local market is also one of the most active players. The re-
services and agriculture were among the sectors in which French
tailer operates on the local market through 290 stores under several
investors showed their interest since the beginning of the year.
formats (hypermarkets, supermarkets, proximity stores and online)
As pundits say, today Romania is one of the most welcoming countries for doing business in the region, as it is a pole of stability
and has an annual turnover of about EUR 1.7-1.8 billion. Jean Baptiste Dernoncourt, the CEO of Carrefour Romania stated
reinforced by its membership to both the EU and NATO and through
earlier this year for Ziarul Financiar that a new strategic direction for
its strategic partnership with the United States and the other coun-
the company on the local market will be online, as this channel is
tries. “The trends have also changed - if in the past Romania was
supposed to grow in the next years based on its existing potential.
www.business-review.eu Business Review | June 2017
20 PARTNER CONTENT
20 years of Anchor Grup on the local market The international investor celebrates two decades of activity on the
Another aspect of Anchor’s Grup portfolio consists of its office buildings.
Romanian market. Anchor Grup is associated with several premieres,
The renovation also generated the mixed-use project developed by the
and its investments surpassed the benchmark of 400 million euros.
company, Plaza Romania Offices (PRO), which was inaugurated in 2016. This project began with identifying the synergy of work and leisure place
The first modern shopping center in Romania, the first cinema where
and the fact that the demand for office and commercial spaces feed
Romanians were able to watch 3D movies, the renovation of two malls
each other. PRO has a rentable area of almost 10,000 square meters, and
while keeping them functional and the first conversion of retail space
required an investment of 5.5 million euros, in addition to the costs of the
into office space, which resulted in the creation of Plaza Romania offices.
modernization works for the Plaza Romania.
These are the premieres that had a significant impact on the market, premieres which represent a trademark for Anchor Grup, one of the most powerful players in the real estate developers sectors due to its
Apart from PRO, Anchor Grup also developed two office buildings. Anchor Plaza, a class A building located in the nearby of Plaza Romania has an area of over 25,000 square meters. Currently, it is
portfolio of retail, residential and office building projects.
occupied at 80% capacity, and negotiations are continuing for closing the remaining areas. Its development
The international investor entered the Romanian market in 1997. Two years later, Anchor Grup
began as Anchor Grup observed that tenants were
inaugurated București Mall, the first modern
keen to move where they had access not only to premium accommodation, but also complemen-
shopping center in Romania, which quickly became a landmark in the urban landscape, a
tary functions. Another addition to the portfolio
meeting place for fashionistas and the favorite
is Anchor Plaza Metropol, a building that
shopping destination for trendsetters. In 2004,
Anchor Grup is currently developing. The build-
Anchor Grup opened its second mall, Plaza
ing, that has a rentable area that amounts to
Romania. This shopping center was dedicated
approximately 35,000 square meters, is suitable
to the local community, providing families and
for large tenants.
friends - not only an intimate and interpersonal Anchor Grup has also ventured into the residen-
experience, but also with entertainment. Plaza
tial real. Located in the very heart of Bucharest,
Romania hosts Movieplex, the first Romanian
close to București Mall and surrounded by 5000
multiplex that showed 3D films.
square meters of green areas, InCity Residences includes more than 500 apartments in four apartment
Starting with 2014,both malls went through a complex renovation process, which lasted more than two years. The
buildings. There are 13 types of flats and their surface ranges
refurbishment works, which required an investment that exceeded 30
from 63 to 265 square meters, thus catering to the tastes of a community
million euros, were done while both malls remained open for business
of people who have the same values, lifestyle and preference for things
and many interventions were carried out at night, in order not to disturb
of quality.
shoppers. The effects of the refurbishment were spectacular: not only that this premiere on the Romanian market received several national and international awards, but it increased the occupancy rate, the footfall and 80% of the tenants followed Anchor Grup’s example. They revamped their stores in accordance with the latest design trends, thus attracting even more visitors in Plaza Romania and București Mall.
invested by Anchor Grup in Romania since 1997
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PARTNER CONTENT 21
The refurbished București Mall preserves its status as an urban landmark The first modern shopping center in Romania went through a complex refurbishment process that earned it national and international prizes, such as the SEE Award and the Best of the Best Hall of Fame (HOF) Award granted by CIJ Europe, but also an increasing footfall
The story of București Mall begins with the the re-purposing of one of an
public spaces relate to its glass dome.
original market hall, a re-purposing that went on prior to its launch in 1999. The initial investment amounted to 60 million euros. The shopping
The design strategies were meant to increase the visibility of București
center was redesigned and upgraded in 2007, yet, seven years later, it
Mall’s tenants and to ease the customer experience. Architectural
was high time to do renovations once more. The purpose of the 2014
interventions were done in bold, yet understated ways so as not to
refurbishment was to refresh the look of the mall in order for it to be in
compete with what tenants have on offer. The renovation enhanced the
line with current trends and clients’ demands. The main changes aimed
urban landmark qualities of Bucuresti Mall, while adding to it a vibrant
a better usability of the space both for customers and tenants.
interplay of light and color.
The two year refurbishment process had very specific targets: quality of
The refurbishment and the way it was done – the hard way, in the spirit
place, quality of tenant mix, and quality of experience. Behind the reno-
of transparency toward the mall’s tenants and customers – yielded a
vations there was a strategic design vision that would allow the mall
high return. The occupancy rate reached 97% in Bucureşti Mall, as 23
to maintain commercial success and urban relevance. Thus, the design
new stores were opened in the shopping center during the renovation.
connects the sophisticated and trendy București Mall clients with the
The footfall also increased significantly, yet the profile of the shopping
project both literally and emotionally.
center has not changed: they are still fashionistas and trend-setters, yet among them one notices a new generation of shoppers. Bucureşti Mall
The main challenges were those entailed by working with a challeng-
remains the fashion heart of the capital.
ing existing structure: low floor to floor, massive columns and a dense structural grid. The existing infrastructure also caused mechanical defi-
BUCURESTI MALL IN FIGURES
ciencies. Furthermore, unexpected hidden conditions were discovered during construction. One of the priorities of the contractors was to minimize tenant disruption, so all these hardships had to be dealt without causing further interference with the shopping experience. New façades were added to the building, the symbolic fountain has been renovated and new terraces have been arranged. From a visual standpoint, the colors, the patterns, the white and the mix with the metals give București Mall an urban texture, which highlight the focus of the mall, which is fashion. Investments were made to increase the food and beverage offer and to strengthen the café society so critical to the local community. Its exterior terraces activated the urban landscape and
were invested in the renovation
www.business-review.eu Business Review | June 2017
22 PARTNER CONTENT
Plaza Romania, the interpersonal mall Boasting an occupancy rate that amounts to 95%, the shopping center provides a modern space, one for the community, easy to access. Moreover, if offers an interpersonal shopping and entertainment experience for families and friends. techniques were employed - and it illustrates a new set of architectural strata on an already existing building. The new entrance is consistent with the concept of Plaza Romania, which is defined by the dialogue between its inner spaces and the Bucharest urban space. The effect of the renovation was a positive one. Just as in București Mall, the tenants followed the example and remodeled their shops. The occupancy rate increased, as 28 new stores were inaugurated during the renovation, and the footfall as well.
Inaugurated in 2004, Plaza Romania was meant to be a shopping center that satisfies the needs and caters to the tastes of the neighborhood. This mall embodies an urban district itself, it appeals to families, office workers, and, in its 13 years of existence, became a day to day meeting place for all visitors. However, Plaza Romania also needed a refreshed look in order to comply with the latest trends. The mall was significantly changed by the renovation, which also resulted in a GLA of 38.000 square meters because of the first conversion of a retail space into an office space. After the renovation was finalized, the interior of the mall became lighter, with linear elements and patterns. New outside green spaces were added and the food court and terraces were expanded. One of the major changes was the new entrance that connects Plaza Romania to the Timișoara Boulevard, an entrance which has been under construction for six months. The building of this entrance was necessary as the Timișoara Boulevard is one of the busiest avenues in Bucharest, having 12 million visitors per year. The new entrance aims to facilitate the access of the pedes-
MOVIEPLEX CINEMA: 11 THEATRES AND THE LATEST TECHNOLOGY
trians in the southern area of the ground floor of the mall and from the underground parking space, as well as the access of commuters from the
Part of the Anchor Grup portfolio, Movieplex, hosted by Plaza Roma-
stations belonging to the network of public transportation.
nia, has 11 theatres which can accommodate approximately 2500 persons, among these being Figueras armchairs. Out of all these seats,
The concept of the new entrance, which seeks to strengthen the con-
30 are meant for people with health conditions or impairments. All the
nection between Plaza Romania and the neighborhood, focused on the
theatres are endowed with the latest sound systems (Dolby Digital
reduction of variables of the architectural experience, thus achieving
Surround Speakers) and projection equipment (Cinemeccanica/Barco).
transparency through simplicity. It was meant to integrate the natural,
Movieplex offers a complex cinematic experience that stands out
urban and virtual environments - therefore brand new materials and
because of the comfort conditions it provides.
www.business-review.eu Business Review | June 2017
PARTNER CONTENT 23
The evolution of the residential and office building portfolio of Anchor Grup
A residential complex situated in the heart of Bucharest, two office build-
The latest addition to the Anchor Grup portfolio is Plaza Romania Offic-
ings and a mixed-use project located in Plaza Romania, all these are the
es (PRO). The project was created during the refurbishment process of
results of developments made by the international investor.
the two malls owned by Anchor Grup in Romania – București Mall and Plaza România – and it took an investment of approximately 5.5 million
InCity Residences, the premium residential complex on Dudeşti Street,
euros, in addition to the costs of the modernization works for the Plaza
located 500 meters away from Bucharest Mall, Alba Iulia Square and Dris-
România Mall. PRO has a rentable area of almost 10,000 square meters,
tor subway station, was launched in the fall of 2009. The first develop-
and the main tenant is the Mega Image retail chain, with approximately
ment stage of the project involved the commissioning of three buildings
4,000 square meters. Those who occupy the office space are only one
totaling 373 living spaces. By launching the fourth apartment building
step away from all the amenities that the mall has to offer, but, at the
for sale, the capacity of InCity Residences reaches over 500 apartments.
same time, the mall itself does not provide a distraction for them, as
Prices start at 1,050 euros per built square meter, plus VAT. The residen-
the office area remains independent from the retail space. Further-
tial compound was conceived in order to develop a community of people
more, the cost of having a company’s headquarters in Plaza Romania
who have the same values, lifestyle and preference for things of quality.
Offices is one of its many advantages, taking into consideration the
Hence, it was endowed with generous spaces, triplex type housing and
location. The rent for the office building is at the usual level for the 6th
the high end finishes, including modern faucets, ceramic tiles and high
sector of Bucharest, but through the advantages it offers, it helps its
quality triple layer parquetry from some of the most appreciated Euro-
tenants save time and resources.
pean producers of such materials. As far as flexibility is concerned, Plaza Romania Offices is also a good The same preference for things of quality is reflected by the office build-
fit for companies, as their demands are listened to and met, as was
ings developed by Anchor Grup. Near Plaza Romania, the international
the case of Mega Image. For this tenant, local adaptations were made
investor also owns the Anchor Plaza Office Building, the first A class
in accordance with specific requests, which led to the transformation
office building integrated in a shopping center service area. The 13 floor
of certain parts of the common areas of the building. Considering
building has an area of over 25,000 square meters. Currently, it is oc-
these advantages, Plaza Romania Offices is the ideal office building
cupied at 80% capacity, and negotiations are continuing for closing the
for companies that want to offer a significant and diversified amount
remaining areas. Among its tenants are Adobe, Euroweb, Caroli Foods,
of benefits to their employees – access to a wide array of services and
Credit Europe Bank, LC Waikiki, Marks &Spencer, Securitas, Essilor and
products, but without the difficulties entailed by a central location.
Polisano. Among the developments of Anchor Grup is also Anchor Plaza Metropol. The works on it have been resumed in 2015 and are still ongoing, the structure being closed with drape-like facades. With a GLA of 35,000 square meters, this office building can accommodate corporations or other large tenants.
www.business-review.eu Business Review | June 2017
24 COVER STORY
Dutch investors run before the wind Economically, Romania has caught the attention of Dutch investors for years now, and the Netherlands is in a top-ranking position, as the largest foreign contributor to the Romanian economy. By Anda Sebesi
I
Keep up to date with the latest foreign investments in Romania! June 13-14 http://countryfocus.business-review.eu
n the past twenty years, Ro-
the European Union and the eco-
mania and the Netherlands
nomic growth registered in 2016 is
have engaged in strong
a positive sign and a confirmation
economy-related collaborations,
in this direction. The representa-
so that Dutch companies have
tive of NRCC highlights that many
invested in many economic sectors
Dutch companies that have been
of the local economy. At present,
here and moved to China or India
Dutch players are very well repre-
because it’s cheaper to produce
sented in transport and logistics,
over there, come back now to Ro-
banking, insurance, finance, retail,
mania because this country has a
manufacturing, shipbuilding,
labor force–better educated, faster
agriculture, industrial production
and more detail oriented.
and engineering. “As a result, for more than six
“Romania has much to offer, making it an attractive country for
years now, the Netherlands is in a
the short-term, but also for the
top-ranking position, as the largest
long-term investments. A great
foreign contributor to the Roma-
future potential lies in areas such
nian economy, with 25 percent of
as research, innovation (especially
the total foreign capital invested in the country, more than EUR 9
in the medical field and smart solutions for urban challenges), IT,
billion,” says Gerke Witteveen, NRCC President, CFO NN Life Insur-
environment, shipping and logistics/port. Romania boasts many
ance.
business opportunities especially when it comes to SMEs, a sector
According to him, in 2016, bilateral trade amounted to over EUR 3 billion, with exports up by 9 percent to over EUR 1 billion and imports up by 12.32 percent, to EUR 2 billion. “Going back in time, at
with the potential of becoming a seed of economic revival, essential for Romania’s development,” says Witteveen. Getting back to business, Philips, one of the largest Dutch com-
the end of October 2015, total Dutch-Romanian bilateral trade was
panies that operates on the local market through its plant in Orastie,
at EUR 3.2 billion, with an increase of 11.74 percent compared to the
Hunedoara County, ended 2015 with EUR 112 million turnover, up
first 10 months of 2014. This increase was higher than 9.05 percent,
by 1 percent on 2014. Despite this poor performance, its business
which was the average increase registered by Romania in the bilat-
was five times bigger than in 2009. The Philips plant in Orastie
eral exchanges with other EU member countries,” adds Witteveen.
produces coffee espresso machines under the Philips brand and
More than 4,000 Dutch companies are active now in Romania,
oral hygiene devices under the Sonicare brand, according to Ziarul
together boosting around 200,000 jobs. According to Witteveen, the
Financiar. The plant in Orastie has been taken over by Philips from
main sectors of investment last year were agriculture, water man-
Saeco in 2009 and it is one of the two product plants in Europe that
agement and the food industry. Plus, Romania and the Netherlands
Philips operates, specialized in manufacturing coffee machines.
deploy a successful cooperation in fields like fruit farming, dairy farming and greenhouse building. A very important additional pull factor for Dutch companies
Going to the financial sector, for NN Asigurari de Viata 2016 was a fruitful year, with the company posting RON 662 million gross written premiums on the insurance segment. 2016 was a year when
to land their feet in Romania is the continuous growth of the GPD
the company capitalized the experience from its core activity, life
expected: Romania displays one of the highest increases in GDP in
insurance, in order to extend in the health insurance, too.
www.business-review.eu Business Review | June 2017
26 COVER STORY
American companies go on a hiring spree The US is only the 10th largest foreign investor in Romania, yet American companies have established a strong presence in local industries such as IT and automotive. By Simona Bazavan
A
merican compa-
ing this fall. For the same
nies had invested
purpose, the company
a total of EUR 1.6
will also hire 900 extra employees.
billion by the end of 2015 in
Also earlier this year,
Romania, according to central bank data, albeit the
Ford Trucks opened its
actual amount is most like-
largest dealership in
ly higher, as many US firms
Europe in Romania, fol-
invest locally through their
lowing a EUR 200,000
Europe-based subsidiaries.
investment. The build-
While America’s asset
ing is located on the A1
base in Romania is rather
highway, at km 13.2, and
small, with assets total-
from here Ford Trucks
ing an estimated USD 14.4
will provide a wide array
billion in 2015, it increased
of services such as sales, post-sale operations and
by almost 40 percent y-o-y, according to a 2017 report on the state of the transatlantic economy, coordinated by the American Chamber of Commerce to the European
spare parts deliveries. American companies maintain a strong position locally when it
Union. The same year, American investors had generated 8,000 new
comes to IT and outsourcing activities. CGS, the largest call-center
jobs locally, which added up to a total of 57,446 employees.
operator on the local market, reported a turnover of RON 232 million
Romania’s exports to the US represented just 1.9 percent of the
(approximately EUR 51 million) and a RON 51 million (approximately
country’s total world exports and 7.3 percent of extra-EU export,
EUR 11 million) for 2016, according to ZF. The company has offices in
according to the same source. Machinery and transport equipment
Bucharest and five other regional cities, and last year it has grown to
represented about half of the USD 2.1 billion total US imports from
more than 2,600 employees.
Romania followed by other manufactured goods. “The US is a rather
Other local American investors are planning to expand their local
small supplier to Romania, with imports from the US totaling just
employee base this year. Last October, Amazon opened a develop-
USD 753 million, a 16.1 percent decrease from 2014. The US account-
ment and technology center in Iasi, Eastern Romania for which it
ed for just 1.1 percent of the nation’s total imports and 4.7 percent
plans to hire 400 people. This January, news broke that the Ameri-
excluding intra-EU trade,” reads the report.
can e-commerce giant was looking to lease some 10,000 sqm of
American investments in the Romanian economy are primarily in
office space in Bucharest, as well. This came shortly after General
the areas of IT, automotive, food and agriculture, hospitality, invest-
Motors said they leased 4,000 sqm in Skanska’s Green Court project
ment funds, manufacturing and consumer products. Players like
in the capital for a call-center.
Google, Microsoft, Oracle, HP, and IBM are some of the main names that come to mind, yet to this day, the largest American investor on the local market remains Ford. The car manufacturer has invested EUR 1 billion locally since 2008, according to its data. The company announced earlier this year that it will install 190 new robots at its factory in Craiova for the production the EcoSport SUV model start-
EUR
1.6
billion
The stock of US investments in Romania at the end of 2015
www.business-review.eu Business Review | June 2017
INTERVIEW 27
SILKDOM – striking silk stories into business With more than 12 years’ experience in key PR positions on both agency and client side, Madalina Nistor decided to follow her long-time passion for silk and start her own business. The only silk clutch designer and producer in Romania of successful brand SILKDOM, talks to BR about beginnings and future business plans. By Romanita Oprea of our customers. Up to now, a selection of SILKDOM creations can be found in Azay Boutique, a prominent luxury boutique with special, precious gifts, but also at Molecule F Concept Store in Promenada Mall, where our SILKDOM clutches are proudly displayed among the creations of the most relevant Romanian designers.
What about the long-term plan? My dream is to take SILKDOM to the fashion capitals of the world, right on the shelves of the most important shopping boutiques and centers. It is hard work and I do believe that such a goal requires a considerable timespan, but then, in my case it all started with a dream. I also plan to create a special division for brides. They are a fantastic category to work for because they are demanding and looking for spectacular, creative gems.
How did you choose the moment to launch your business?
What is your business plan for this year?
The moment I launched SILKDOM was the
I launched SILKDOM six months ago. On Oc-
What is your target and how do you reach it?
moment my childhood fairy tales finally
tober 30th, 2016, www.Silkdom.com was live
We mainly address affluent clients, both
caught up with me. Every member of my fam-
and so were the social media tools supporting
women and men, although in order to facili-
ily was an artist to a certain extent, but my
my silk business. I had been working on this
tate access to our products, we implemented
maternal grandmother was the one who gave
project for almost 1 year prior to its launch
solutions on our website that allow payment
me this love for silk and the courage to pursue
with challenges of all sorts. I finally man-
through credit card installments.
my dreams. She was fortunate enough to be
aged to fine tune all the pieces at the end of
During these six month of activity, we gladly
close to Queen Mary of Romania when she
October and by the third week of November,
acknowledged that our customers come from
was very young and was very impressed by
85 percent of our collection was sold out. It
all over Romania. We were also positively
the beautiful, elegant, valiant Monarch!
seems that women loved the idea of owning a
surprised to find out that men are great shop-
unique silk clutch, an item that did not exist
pers with exquisite tastes and generosity.
was born at the precise moment when my
on the Romanian market before SILKDOM
SILKDOM customers are either very young,
past collided into my present life and found
introduced it.
or people in their thirties, who commonly use
Getting back to your question, SILKDOM
me available and willing to venture into new
2017 comes with an “E designation”. We
social media and enjoy the online shopping
territories. I started this business while on
seek expansion both in terms of product
experience. That is why, in April, SILKDOM
maternity leave with my son. It was back
range and sales channels. We are currently
joined eMAG’s “Deschide Romania” platform,
then that I realized I needed a story of my
working on launching new collections in or-
a marketplace dedicated to Romanian design-
own, built around what I love most: precious
der to respond to the needs and requirements
ers and producers.
things, striking stories and silk.
www.business-review.eu Business Review | June 2017
28 ONLINE
E-Commerce: Romania still behind other EU countries This year, MindMagnet, one of the biggest Romanian agencies offering software solutions dedicated to companies, became part of the group Pitech Plus, allowing it to grow and diversify its services even more. BR met with Sandu Babasan, CFO MindMagnet and CEO Blugento to talk about entering the online market in 2006 and how the Romanian e-commerce market looks like today compared to other European countries. By Romanita Oprea it, a specialized division. We are specialized in Magento – an e-commerce platform and a world segment leader. Since the launch, we’ve been mostly working for international companies, and in 2014 we received the license for organizing the big event called Magento. We are very close to the worldwide event’s organizers which is something that allows us to have access to the latest trends and news in technology and e-commerce, just as they happen.
How did the services you provide evolve in time? From the simple projects that took us 2 hours, today we have projects larger than EUR 4-500,000 and on which teams of 5-7 people work for 2-3 years. But, I don’t think this is something special with us in this regard, I believe this has been the flow for all the organizations on the market. Usually, an IT business has at least a partner that understands the technical side very well and, in order to have success, a partner
How did you get the idea of starting your own company?
the company in Satu Mare, but because there
that knows the business side very well. From
weren’t enough specialists, I moved to Cluj. I
selling simple things (although complex at
I am from Satu Mare and studied at the
started with one partner and in only one year
that time, due to the fact that computers
University of Timisoara. In the first year as
we had 25 employees. We hit success pretty
could deliver to a certain limit, today, hav-
a student, I played around with the idea of
fast due to the fact that human resources
ing a more complex technology helps us a
bringing PCs to my hometown and selling
were low-priced at that time and we all had
lot), today we sell very intricate things. For
them, as there was a need in the market. As I
ambition and drive. At that time, online was
example, we had a project for the American
became more acquainted with the technology,
something new that attracted a lot of ambi-
State, software that was carried on the ships
I started to see that it represented the future
tious people, ready to work hard.
while going out to sea and, depending on the
and therefore decided to launch my own
The business grew stronger and, at the
engine’s number of revolutions, when they
beginning of 2008, we even bought a part of
came back to port, they connected to a server
our own supplier’s business and grew even
and the taxes for the state were calculated.
lacked in online image, I knew some special-
more. Today we are part of Pitech Plus, a big
That meant that the amount of the taxes owed
ists in the field and I felt and understood the
organization of 300 people. We, alongside the
depended on the emissions released, not on
business side very well. In 2006, I launched
software company, represent just a part of
the capacity of the ship.
company. It all came naturally: I saw that the market
www.business-review.eu Business Review | June 2017
ONLINE 29
Mastercard show around 4,000 online pay-
products, how to present them; we are trying
year and so did the IT sector. We started from
ment implementations. If the store is not
to promote them and generate sales.
a point in which we had specialists when
taken care of live, it means it doesn’t bring
there were none in other countries. In 2016,
value to the business and, therefore, not
certain fields, but there are also fields in
those specialists were working in this field
taken into consideration. I believe that if we
which we are wondering who is the leader
mostly due to curiosity and ambition. They
reach 20,000 active online stores in the next
as we have no answer. There are still a lot of
were self-taught. Today there are IT schools.
three years, it would be a normality.
domains in this situation.
The projects’ complexity grew from year to
As the complexity of the projects grew, so did
There are 3-4 well-known players in
Here, we have a product developed on
our rates. The rates allowed us to have a big-
the Magenta platform that functions on a
ger capacity, both in terms of employed per-
monthly subscription business concept and
How do you foresee your business in the next 2-3 years? What do you wish?
sonnel, as well as buying power and salaries.
we are Banca Transilvania’s partners with
Starting 2012-2013, we began to look at the
this product. A product that will be exposed
agency like it was a little factory; while it pro-
How would you characterize the Romanian e-commerce market and where do you believe it should develop more?
to the bank’s IMM’s portfolio (the 220,000
duces for its clients, it also creates some prod-
companies),we offer an application in which
ucts for in-house use. We can already spot a
we deliver the online store to the clients that
trend in Cluj and Europe: the transition from
The e-commerce market in Romania,
comes natively with Banca Transilvania’s
services offered to companies to in-house
compared to the European one is four times
payment system. The objective is to free
products. We already have some products,
under-developed, even if we look at our
everything that means access to the online
one being in time management (very popular
Hungarian neighbors that, with a population
store because today entrepreneurs don’t
already, with around 50,000 users), a product
of 9 million people, have double the online
know how to ask for the functions they need
that acts as a research online platform (ivox.
business of Romania, even with a population
and they also find it very hard to arrive at all
ro – the 120,000 users we have in the panel
of 19 million. No need to think about the UK
the suppliers in the eco-system, in order to
are responding to different online research,
market where the online business reaches
have a new product in the end. Moreover,
in a very short amount of time) and we have
EUR 150 billion, while Romania is somewhere
our company brings the carrier natively inte-
Blugento – and here I believe that in 2-3 years’
around the 1.4 billion margin.
grated with private banking, marketing solu-
time, the products will generate at least a
tions and good PR partners. We are trying not
turnover equal to the turnover generated by
Romanian market are around 10,000 online
only to create an online store for them, but
the agency. And if we succeed, one of them
stores, while the data provided by Visa and
also to teach clients how to handle their own
can even surpass the agency.
Moreover, there are talks that on the
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www.business-review.eu Business Review | June 2017
30 ENTREPRENEUR
Promoting local food under Romanian chic concept In 2004, after spotting a gap in the Romanian market, Le Manoir Group owners introduced the local crowd to French refined gastronomy. Through the newly-opened Romanian gastro wine bar La Vinuri and the Eastern European delicacies store Mariza, set to open in June, over a decade later the group plans to do the same for Romanian food, co-founder Cristian Preotu told BR. By Georgeta Gheorghe and more. The first store of a potential chain, which also required an EUR 50,000 investment, will be located on the same street.
INTRODUCING THE ‘ROMANIAN CHIC’ CONCEPT With Mariza, we propose the ‘Romanian chic’ concept, which revolves around premium quality traditional products that get sold at a price that stimulates producers to improve, Preotu explained. Romanian foods to be sold include Mangalita ham, morels, cheeses, Plescoi sausages, fruit syrups, jams and more. “We are looking for roe, and we are in touch with producers that will farm sturgeons,” he said,
W
adding that Romanian farmers grow very good quality products. According to Preotu, who is
hat started as a small business
online is a different trade. Our products must
the sole curator of all products that sell in the
opened by Preotu and his wife
be seen, touched and tasted,” added Preotu,
group’s restaurants and shops, the quality of a
Maria, with the later addition of
hinting that one cannot smile at a virtual
product should be reflected in its price. Supe-
customer.
rior quality produce needs special deposit and
his brother-in-law Calin, today it still remains
With its two restaurants, Le Bistrot
delivery conditions and producers are willing
people. In 2016 Le Manoir Group posted a
Francais and Sushi Room, and French
to do this if they get a good price. “What they
turnover of EUR 5 million and is expecting
chocolaterie Michel Cluziel, the owners of Le
need is support, and also to see that quality
a 15 percent growth in 2017. According to
Manoir Group have already contributed to
is rewarded.” Moreover, according to Preotu,
a family business which employs around 80
Preotu, Comtesse du Barry shops and corpo-
the cultural footprint of the area surrounding
the market is mature enough to welcome this
rate gifts are performing the best, represent-
Bucharest’s Atheneum. “French Revolution
approach and pay a premium price for good
ing 50 percent of the group’s turnover. Next
and Moritz are here too, so it is starting to
quality Romanian products.
are the restaurants, and the shop Le Petit
look a lot like Place de la Madeleine in Paris,
Bateau, run by Maria Preotu. “It is likely that
except that instead of the church, we have the
via another project currently in an advanced
in the coming years, the ranking will change,
Romanian Atheneum,” Preotu explained.
phase, the entrepreneur is planning to use the
as businesses progress.”
La Vinuri, opened on Episcopiei Street
Romanian wines are no exception. In fact,
experience that gave Le Manoir Group a 50
By comparison, online sales are insig-
after a EUR 50,000 investment, offers more
percent market share of French wine imports,
nificant, in terms of both volume and value.
than 250 Romanian wines and serves tradi-
to make Romanian wines popular in France.
Most customers who buy via the online shop
tional food platters. Romanian traditional
At the moment, negotiations have entered the
on the group’s website come from outside of
food will also be the highlight of the selection
final stretch with around 20 restaurants across
Bucharest. “We will continue to rely on our
of traditional Eastern European delicacies
the country that will be matched with wines
offline shops. Although I am aware of the
to be sold through Mariza, which will also
from all Romanian regions, such as Transylva-
importance of e-commerce, I believe selling
feature foods from Serbia, Russia, Ukraine
nia, Recas, Oltenia, Dealu Mare and more.
www.business-review.eu Business Review | June 2017
32 INTERVIEW
Gabriela Lungu, Romanian female CMO takes the reigns The biggest online retailer for beauty products in Europe, present in 16 countries, including the UK and the USA, is going through an elaborate rebranding process, which includes a new name. Starting March 2017, Notino (formerly Aoro), also appointed Romanian communications expert Gabriela Lungu as global chief marketing officer. BR talked with the recently appointed CMO about her path and objectives in the new role.
ABOUT Gabriela Lungu With 20 years’ experience in marketing and communication, Gabriela Lungu successfully led two communication companies in Romania: Ogilvy Public Relations (2002-2006) and THE PRACTICE (today MSLGROUP The Practice), the company she founded in 2006 which was purchased by Publicis Groupe in 2013. For the past 4 years, Lungu has been living in London, UK, where she worked for some of the most renowned communication companies in the world: Weber Shandwick (in the positions of consumer marketing practice leader for EMEA and chief creative officer UK and EMEA) and TBWA\London (as creative partner).
By Romanita Oprea
How was your journey with Notino, from proposal to signing? Smooth. I was looking for a multi-
client side or was it just perfect timing? I started thinking of working on the
Republic, I looked only for client roles in tech based/new economy companies.
client side 2 years ago, when I was ap-
market company with their HQ
proached for a role by a tech company
in the Czech Republic (where I
that I respect a lot. It didn’t work out
moved in September last year to
then and I took another agency role
reunite with my husband who’s
with TBWA\London, but it made me
been working in Prague) where I
think. Then, when the creative star
How do you believe that your expertise so far will help you on your new path? With your extensive PR and creative advertising background, what do you believe you bring to the table that is different?
could really have an impact,
Tor Myhren (Grey worldwide chief
It’s been an easy transition – when you have
creative officer) left the agen-
wide-ranging, extensive experience in mar-
a company with high international ambitions. Michal Zamec, our founder and
cy world to join Apple as
keting communications, many of the skills
its VP for marketing
are translatable. It helps that I’m not just a
communica-
communication or creative specialist, but
CEO, was
tions, I
first and foremost a business leader – I’ve run
looking for
read an
2 agencies (one of them was my own, which
interest-
strengthened my entrepreneurial DNA).
someone very expe-
ing article
Integration (with deep expertise in different
rienced,
about top
communication areas), bold award-worthy
but highly
creatives
creativity, and a passion for building brands
entrepre-
moving to the
with social purpose, are probably my most
tech industry.
different skills, and they make me particu-
same time, to
I remember that
larly suitable for a modern marketing role.
take the brand
I even shared it on
to a new level. We
Facebook, and I
both felt we were a good
neurial at the
decided that a role
What are your main roles in the new position and how will you tackle them?
match. We only had a few
on the client side was
My responsibilities are the ones you’d expect
meetings, and it took only 3
going to be on my
of a CMO in charge of 16 existing markets and
months from the first contact
path as well one day.
set to launch new ones. From brand vision
to my first day at work.
My experience with
to leading the global marketing team, from
Airbnb at TBWA was
building brand equity to supporting sales
very valuable. When
and development. Integration, creativity and
I moved to the Czech
purpose is my mantra, my approach.
Prior to Notino, have you ever wanted to work on the
www.business-review.eu Business Review | June 2017
What is your main goal for the first year in this position? To evolve the Notino brand and voice. Notino
INTERVIEW 33
Who is Notino right now and what do you want it to become? Notino is now a very appreciated and
them, were not always as deliberate and rational as the word strategist may seem to indicate; I did build a good career, that seems
is a growing, successful international busi-
successful functional e-commerce brand.
very strategically planned as we look back
ness merging beauty with technology, and
My goal is to transform it into a meaning-
today, but intuition, vision, and gut feeling
I’m very excited fully reflect this vibrancy in
ful, loved beauty brand, that connects with
played crucial roles.
the brand as well. I want to add emotional
customers far beyond function, a brand that
resonance to, what is today, a mostly func-
inspires, not just helps, with a clear social
is to do a good job wherever you are. Deliver-
tional brand, in all the markets we operate
purpose: to democratise and demystify the
ing good work that delivers results (and not
in. We are starting a complex brand devel-
beauty industry, to make the best and the
being a total arse while doing it, but trying to
opment process, together with a top global
most popular beauty products accessible to
bring good energy and to be fair) is the best
agency.
smart customers. Beauty should be acces-
professional recommendation – that is what
sible for everybody; when people feel at their
achieves status and position. I also think it’s
You are also famous for the numerous awards received during the years. Will Notino target creative & efficiency festivals in the future?
most beautiful selves, they are more confi-
vital to have the courage to shake things up
dent and creative to go after their dreams,
in your own life when you’re in a too com-
and make the world beautiful in return.
fortable zone, when you feel that you’re not
Of course we will. Awards are a great measure with our work is one of my top mid-term
What do you believe are the most important professional decisions you have taken in your life so far?
objectives.
Staying in this industry. Many people leave
for the value of communication. Winning
I think that the essential thing in a career
growing anymore, or you simply don’t feel that you belong somewhere anymore. Last but not least, I think flair to sense the next best thing is also quite important. My career has been based on all 3 things.
this domain when things get too complicated
And this is not very common. I think few
How involved were you in the brand’s rebranding process so far and how will that change or not in the future?
or too difficult or too repetitive. They change
people actually give their absolute best when
course radically – some find themselves by
they work – I personally can’t function in any
doing that, but most of them lose themselves
other way. Even fewer have the courage to
Romania is the first market where we’ll start
completely. I strive to reinvent myself within
change things long before they are broken,
rebranding this year, shifting from Aoro to
the industry I know and love, rather than
just out of hunger for new challenges - I per-
Notino. Several markets were rebranded
outside of it.
sonally love a good challenge.
last year, before I joined the firm. The new global brand name and visual identity were
the whole brand ecosystem: our vision, our
Is there anything you would do differently, with the knowledge you have now? Why?
mission, our values and so on.
All decisions I took
developed therefore last year. What I’m doing now is to add substance and depth to this identity, developing our brand narrative and
I will lead the rebranding effort, but we
were, at that mo-
have a special team managing the entire
ment, the best deci-
process. In Romania the involvement was
sions for me. Any-
higher, and a bit more personal to be honest,
thing else doesn’t
as it was the first rebranding under my lead-
really matter.
ership, and because I’m Romanian.
constantly. Being an online retailer, we have
You have been an amazing professional strategist, planning your big, important moves ahead. How essential is the strategy in order to achieve a very good professional status and position?
additional challenges compared with brick
My “big, important
and mortar retailers.
moves” as you call
How long will the whole rebranding process take and what will be the most important steps in the process, in Romania and worldwide? The global rebranding will be finalised at the end of next year, 2018. In Romania, we’re aiming for the end of this year, but it depends on how fast Romanians will become familiarized with the new brand, which we’ll monitor
www.business-review.eu Business Review | June 2017
34 COMPANIES
Romania’s privatizations program risks hitting political wall A controversial draft bill on the approval chain in Parliament would block any new privatization of a state-owned company for five years. While the initiators of the legal piece claim that the country’s public finances can manage without the privatization of any new state assets, the state-owned enterprises have recorded mixed results regarding the implementation of corporate governance. By Ovidiu Posirca
Although privatizations could be blocked, the government is working on Romania’s first sovereign wealth fund
I
n mid-May, MPs initiated a draft bill
weapons, ammo and war materials’ indus-
and assets of companies found to have been
that would exclude certain SOEs from
tries. This project is still in its early stages and
fraudulently privatized.
appointing private managers. The list
could still receive amendments.
of companies banned from implementing
Last month, the Social Democratic Party
“All analyses show that Romania is not in the situation to be under pressure to privatize
corporate governance principles are in the de-
(PSD) put out another draft bill that would
(…) We are not in the beginning of 1990, there
fense sectors, but airline Tarom and shipyard
stop any privatization for five years. The
isn’t an acute requirement for liquidities that
Mangalia are also mentioned. The exemption
draft bill, initiated by MP Serban Nicolae,
could be covered through privatizations.
would apply only to companies active in the
would also allow the nationalization of shares
Practically, Romania is not in the situation
www.business-review.eu Business Review | June 2017
COMPANIES 35
to make a strategic objective for economic
stake in Hidroelectrica, Romania’s biggest
this is a decision that belongs to Romanian
development out of the privatizations and, on
hydroelectricity producer. The IPO would be
authorities (government and parliament)
this backdrop, what has remained in the pat-
worth up to an estimated EUR 1 billion, but
and should definitely be in line with EU rules
rimony of the state should be better managed
authorities have delayed the listing till next
and regulations. Furthermore, the Romanian
and the whole patrimony should be seen,”
year, and it’s not clear if this deadline is final.
state, through this suspension, would have the necessary time to reevaluate its portfolio
Nicolae told Mediafax newswire. The MP added that Romania’s privatization program was worth EUR 7.9 billion to date. There is little data about the success rate
WHAT DOES THE “NO PRIVATIZATION” MANTRA MEAN FOR INVESTORS? Institutional investors in Frankfurt, London
and make smarter and better investments of its ownership,” Leroy told BR. The firm has worked on some of the big-
of Romania’s privatizations program in more
or Paris might raise an eyebrow if they see
gest privatizations in Romania, including that
than two decades so far. Out of the 7,726 SOEs
that Romania is planning to block all priva-
of car maker Dacia, owned by French Renault,
that were privatized since 1990, 22.3 percent
tizations, considering the way in which key
gas distributor Distrigaz, controlled by French
of them were still active and had more than
public enterprises have been plagued for
Engie, Electrica and lender BCR, controlled by
10 employees, according to a study published
years with allegations of corruption, nepotism
Austrian Erste.
at the end of 2015 by The National Association
and political intervention.
of Entrepreneurs (ANA). The analysis was made by economist Cristina Chiriac.
“The authorities should reenergize the
Although privatizations could be blocked, the government is working on Romania’s first
stalled program for privatization and restruc-
sovereign wealth fund, which is planned to
turing of SOEs to help improve overall SOE fi-
reach EUR 10 billion in assets under management by the end of this decade.
PRIVATIZATIONS ON THE STOCK EXCHANGE, MISSING SINCE 2014
The Sovereign Fund for Development and Investments (FSDI) should in theory manage
BR got in touch with Fondul Proprietatea
the most valuable companies in the state’s
(FP), the EUR 2.4 billion closed-end fund
portfolio.
managed by Franklin Templeton, to find
Leroy suggested that the initiative to
out its perspective on the planned mora-
stop privatizations could be seen as a
torium on privatizations.
support point for the FSDI, but there
“It’s still too early to make a comment on this subject, considering that
are still numerous unanswered ques-
the draft bill is still in the early stages
tions. “The Sovereign Investment and
of the legal process, and changes can
Development Fund (FSDI) is still a
emerge,” said FP representatives.
project and we do not know exactly
FP has been one of the strongest
how this fund will be built, what its
promoters of corporate governance in
scope will be (governance tool for state-
SOEs for more than 6 years, and the fund
owned companies/support for SMEs). It
has constantly called on the government to bring more state-owned firms to the stock
is still very early to assess this project and
exchange. As of April, less than 30 percent of
get a clearer view of its repercussions as the
its net asset value (NAV) comprised of listed
strategy is not clearly defined yet,” said the founding partner.
equities. The fund manages minority stakes
The wealth fund is set to have a starting
in large SOEs, including Hidroelectrica, which
nancial performance and reduce arrears,” said
accounts for more than 30 percent of its NAV.
the International Monetary Fund (IMF) this
capital of over EUR 400 million and will in-
The lack of appetite for new privatiza-
spring, following a staff mission in Romania.
clude between 25-30 companies that are prof-
tions has been visible on the Bucharest Stock
Bruno Leroy, founding partner of law firm
Exchange (BVB), considering that the last
Leroy si Asociatii, says that any decision taken
initial public offering (IPO) of an SOE took
on blocking new privatizations has to respect
place in 2014. Roughly 3 years ago, Elec-
EU legislation.
itable, listed or not, the minister of economy, Mihai Tudose, told News.ro in early May. Tudose said there will be a dual-management system and the management will be private.
trica, the electricity supplier and distributor,
“Thus, we can say that the project initiated
raised EUR 444 million from a dual-listing in
by the social democrats aimed at blocking the
“It will be fueled with the dividends of
Bucharest and London. This was the biggest
privatizations of state-owned companies will
state-owned companies, which will be the
IPO recorded in the history of the Romanian
not positively or negatively impact the image
capital of this fund,” said the minister.
capital market, and since then, the pipeline
of Romania for foreign investors.
for privatizations has remained dry.
Of course, one would expect to see a
Government officials said earlier this year that the fund will be used to finance the
Going forward, the government is careful-
shift in the way the country is perceived in
construction of hospitals, roads and factories
ly looking at the option of selling a 15 percent
the eyes of foreign investors, but in reality,
in Romania.
www.business-review.eu Business Review | June 2017
36 LEGAL
Romania’s planned household tax puzzles business environment With Romania’s tax collection remaining below the European Union average of 40 percent of the GDP, Sorin Grindeanu’s center left government proposes a new taxation system for individuals, practically removing the 16 percent flat tax, operational for more than a decade. By Ovidiu Posirca “It is possible that taxation at household level would increase state budget revenues, provided that the tax base will be extended so as to include income that is not currently taxable or to decrease certain tax deductions that are currently available. On the other hand, there is a big question mark whether this would actually happen, given that a reduction of the tax rate is also planned. In addition, significant costs would be incurred in relation to administration and collection of income taxes under the proposed system, including financing costs related to postponing collection of taxes by one additional year to elimination of withholding tax by the employers,” Madalina Racovitan, tax partner at professional services KPMG Romania, told BR. There are also serious questions regarding the public finances considering the fact that for one year, the income tax would not be The household tax could be delayed by one year
collected from individuals. Annually, some RON 25 billion, which accounts for 3.5 percent
T
of GDP, is generated in this way, according to Raluca Bontas, director of Global Employ-
he business environment’s reaction
taxes can be collected by regulating over
ment Services at professional services firm
to this planned change has been
seven million households that would submit
Deloitte Romania.
rather cautious until now, and tax
a yearly tax return with the help of tax con-
Romania’s tax collection, including social
consultants warn that if this system is poorly
sultants paid by the state. Deductions would
contributions, stood at 28 percent of GDP
implemented, the state might end up with a
be put in place for certain expenses related to
in 2015, growing only slightly compared to
revenue gap. Under the pessimistic scenario,
education and healthcare, but this provision
previous years, according to Eurostat, the EU
any projected shortfall in revenues will have
is still under debate. The new mechanism
statistics office.
to be compensated through other sources,
was to be initially rolled out starting next
and the increase of the tax burden for the
year, but the head of the Social Democratic
might pay less in taxes yearly because of the
private sector remains a risk.
Party (PSD), Liviu Dragnea, said mid-May
expansion of the deduction system. Accord-
that this initiative could be delayed a year if
ing to current provisions, personal regressive
HOW THE STATE MIGHT END UP COLLECTING LESS TAXES FROM INDIVIDUALS
35,000 fiscal consultants can’t be found. This
deductions are available for gross wages up to
means that Romanians might file their first
RON 3,000. There are few categories that can
In short, the government claims that more
tax return in the new system starting 2020.
be deducted right now, such as private health-
Bontas went on to say that individuals
www.business-review.eu Business Review | June 2017
LEGAL 37
Corina Mindoiu, EY Romania
Raluca Bontas, Deloitte Romania
care insurance services.
air once the household tax is enforced, as they
Madalina Racovitan, KPMG Romania
will be able to cut one of the fiscal obligations
GOVERNMENT LOOKING TO HIKE TAX BURDEN FOR PART-TIME JOBS THIS YEAR
lenges related to the financial education of
they currently have to manage, but there
On the back of controversies regarding the
Romanians, considering that the new system
might be some adverse reactions in the labor
household tax, the minister of finance, Viorel
fundamentally changes the way people pay
market.
Stefan, announced another change to the fis-
Bontas explained that there are also chal-
their taxes. “Practically, most taxpayers don’t have
“I think that giving up the flat tax rate
cal legislation that would be enforced in the
could represent a step back and will create
second half of this year. Authorities say that
experience in this field, they don’t submit
distortions in the market, especially in areas
employees with 2 or 4-hour contracts need to
a tax statement, and they don’t know the
where there is a deficit of specialized work-
be better protected so their employers would
deductions system. We shouldn’t be afraid to
force. This will have a negative impact on the
have to pay their healthcare and pensions
say that there are probably a lot of people that
level of foreign and local capital investments
contributions at a level similar to those paid
will have problems understanding the fiscal
going forward,” Corina Mindoiu, senior man-
for the minimum wage. This measure would
information in just a few months and the
ager, People Advisory Services, at EY Roma-
be rolled out starting July until the end of the
risk for erroneous filing and payment could
nia, the professional services firm, told BR.
year.
be pretty high,” said the Deloitte Romania expert.
According to the government’s plans, those
Stefan cited data from the Labor Inspec-
earning less than RON 2,000 monthly will not
tion Inspectorate (ITM), according to which
pay the income tax, while those earning above
there are 360,000 part-time work contracts as
fact that individuals need to be disciplined
this threshold will pay 10 percent. Although,
the only source of income. This measure will
to save for one year the amount of taxes they
policymakers have claimed that they don’t
apply only for employees who have one job,
have to pay in the following year. Under the
plan to roll out a progressive tax system for
part-time.
current system, the employer handles the
wages in Romania, we might end up with such
payment of the income tax, alongside the
a mechanism.
Another thing to take into account is the
mandatory contributions for healthcare and pensions.
Ultimately, if the administrative burden for
“The fiscal burden of companies will grow as the fiscal inequity will appear between normal contracts and those with part time (on
companies decreases, we might see prolonged
the same wage), which will be taxed in the
negotiations between companies and employ-
same way, although the labor time is differ-
sons (AOAR) said that the implementation of
ees on the difference between the gross/net
ent,” Florin Gherghel, head of Tax Depart-
the new taxation mechanism starting 2018 is
wages.
ment at Noerr Finance & Tax, told BR.
The Association of Romanian Businessper-
unrealistic. The organization explained that in
“In my opinion, employers and employees
Experts say that this measure will primar-
the United States of America, the taxation of
will renegotiate the contracts in favor of the
households is an optional system.
increase of the gross wage because, effective-
“Probably conceived as a measure to
ly, the costs for employers will stay the same.
generate additional state budget revenues,
income tax system and has given up the with-
If some employers will reject the increase of
the measure will raise some concerns as to
holding tax system,” said the AOAR.
the gross wage, given the conditions of the
the principle of fairness of taxation, as well as
labor market in which the offer has reached a
to predictability (consistency) of fiscal policy,
WHAT WILL THE HOUSEHOLD TAX BRING COMPANIES?
peak similar to 2007, there will be migrations
as it is intended for a timeframe of only 6
of employees towards other companies,” said
months,” Racovitan of KPMG Romania.
In theory, employers will get a breath of fresh
Bontas of Deloitte.
“There is no EU member that has a global
ily hit small companies.
www.business-review.eu Business Review | June 2017
38 TOURISM
Romanian tourism needs a breath of fresh air Despite its vast natural landscapes, Romania still lags far behind its European peers when it comes to attracting foreign tourists. Its poor infrastructure and the lack of a clear tourism strategy makes it more difficult for Romania to compete with more attractive destinations worldwide. By Anda Sebesi by 25 percent compared with its total population. Slovenia managed to attract foreign tourists by implementing a strategy based on the concept of a “green country”, positively using its natural resources toward the benefit of the local economy. Under the umbrella of “Green Slovenia”, they transformed every part of their nature into a touristic destination, thus creating a complete touristic concept around this idea. For example, bee culture became a real brand for the country, as it created
T
the so called “international bee day,” recognized by the
he number of foreign tourists that
modation units in 2015, two times less than
visited Romania has grown steadily
Bulgaria and Hungary, according to the same
in the past years, from 1.71 million
United Nations (ONU) as such.
source. For example, Bulgaria alone attracted
LANDSCAPE IS NOT ENOUGH
in 2013, to 1.91 in 2014 and 2.23 million in
around 8 million tourists last year, more than
In a complex context where tourists have
2015, reaching a peak of 2.47 million last year.
the country’s population, according to the
plenty of travel choices, how can Roma-
There’s an increase of 10.6 percent compared
data of the Bulgarian minister of Tourism.
nia be seen and how can it benefit from its
to 2015, according to the National Institute
On the opposite spectrum, Spain (270
of Statistics (INS). While most of the foreign
million nights), Italy (193 million nights) and
international experience, of both Eastern and
tourists came from Europe, Asia and North
Great Britain (118 million nights) were the
Western European countries, shows that the
America, about half of them, or 1.1 million,
most popular destinations in 2015, cumulat-
diversity of the natural resources and land-
also visited Bucharest last year.
ing 56.2 percent of the total nights spent by
scapes are not enough for Romania to become
non-residents in the EU, says Eurostat.
an attractive destination for foreign tourists.
countries in the European Union in 2015,
A SUCCESSFUL CASE STUDY
Bucharest is a beautiful city in Romania, but
along with smaller ones like Slovakia, Latvia
From the CEE states, Slovenia became one
Romania has plenty to offer: its mountains,
and Luxembourg, says Eurostat, the statistical
of the most visited destinations in Europe in
Transylvania, the Danube Delta, its citizens
office of the European Union.
the past years, from a percentage perspective.
and its gastronomy. It is a complete world.
The country managed to attract 2.5 million
It is more than a country,” stated Taleb Rifai,
foreign tourists around the world last year, up
the secretary general of the World Tourism
However, despite the many foreign tourists, Romania was still one of the less visited
Just 5 million nights booked by nonresidents were registered by local accom-
yet uncapitalized tourism potential? The
“Many think that Bucharest is Romania.
www.business-review.eu Business Review | June 2017
TOURISM 39
Organization at its annual meeting recently
Mamaia resort will be advertised as the best
organized in Madrid, quoted by digi24.ro.
destination for the night-clubbing scene. According to the first estimates, the
Similar comments show both the huge potential for developing its travel industry as
number of tourists recorded in the Romanian
well as the positive perception that Roma-
seaside resorts grew by 15-20 percent versus
nia has abroad. However, this is not enough
last year, considering that 2016 was the best
to attract foreign tourists, as the poor road
year out of the last ten.
infrastructure places a serious brake on the development of this sector.
WHAT ROMANIANS LOOK FOR WHEN ON HOLIDAY
“Romania is a complex travel destination with a diverse landscape and a potential for both nature and cultural tourism, suitable especially for groups of 10-20 tourists as well as
According to a recent study conducted by Slovenia implemented a strategy that focuses on the concept of a “green country”
MKOR Consulting, 77 percent of Romanians will go on vacation this summer. While half of
individual ones. Tourists should visit specific
them prefer to spend their holiday in Roma-
destinations like the Danube Delta (by landing
nia, the remaining ones choose destinations
at the Tulcea airport) or castles and man-
from abroad. The same research shows that
sions in Transylvania (by landing in Sibiu or
the Black Sea coast remains the favorite Ro-
Cluj-Napoca),” says Carmen Pavel, president
manian destination for local travelers. While
of J’Info Tours. She adds that the revival of
for 25 percent of the respondents the price
spa resorts like Felix or Techirghiol by offering
plays a significant role when choosing a desti-
promotional packages for seniors is a valid
nation, for 41 percent of them landscapes and
option for Romania in order to develop its
touristic objectives are more important. “Ro-
travel sector.
manians’ behavior when it comes to spending
In her opinion, the yet unpolluted nature and a diverse range of travel objectives and landscapes, along with the Danube river, are
their vacation has changed in the past years, Spain is one of the most popular destination
despite the fact that financial constraints remain a constancy – like frequency, the budget
some of Romania’s main advantages. As Pavel
allotted for a vacation and their conservative
says, the potential of the Danube river is still
behavior. The results show a clear increase
unexploited. Developing cruises on the river
this year compared to 2016, but the market is
along with the creation of resorts that can en-
still far from achieving its potential,” says Co-
tertain tourists during the whole year, would
rina Cimpoca, senior consultant and founder
be a solution to reviving the local tourism.
of MKOR Consulting.
For that matter, promoting the Danube Delta
As for the destination, the study shows
is one of the top goals on the agenda of the
that 33 percent of Romanians choose a new
Romanian authorities. Starting this fall, the
destination this year, while the remaining
representatives of the largest tour operators
ones will choose a place that they already
worldwide, journalists and bloggers will be
visited at least once so far. Last but not least,
invited to discover Romania. As part of their strategy to attract foreign tourists to Romania,
31 percent of Romanians say that they go Tuscany is a protagonist of international tourism
local authorities will organize info trips. “The
in vacation once a year, while 36 percent of them twice. “Romanians want much more
Danube Delta will be one of the most impor-
to Corina Martin, the president of the Associa-
privacy when on vacation, travelling with
tant destinations for these info trips. We need
tion for Tourism Promotion in Romania and
their family or in small groups of friends or
to gather all these touristic destinations and
vice president of the Seaside-Danube Delta
joining groups of tourists similar in age or
show their value,” stated Mircea Titus Dobre,
Association. She told Agerpres newswire
interests,” says Pavel of J’Info Tours. She
the minister of tourism, earlier this year,
that Mamaia and Vama Veche were the most
adds that, while Romanians prefer seaside
quoted by digi24.ro.
popular destinations for young people.
destinations - especially the Mediterranean
LOCAL HOLIDAY SEASON OPENING SHOWS PROMISE
7,000 foreign tourists in Mamaia coming from
sports are preferred for winter stays. “We see
Great Britain, France, Germany and Italy
an increasingly interest in city-breaks and
Up to 70,000 tourists visited the Romanian
for the Sunwaves Festival (electronic music
cultural tours. Spain, Greece and Cyprus are
seaside during the short holiday season for
festival). In addition, during this period, the
preferred for vacations while Israel, China,
May 1st celebrations, almost double compared
Israeli tour operators are assessing Mamaia
North America, Brazil, Argentina, Vietnam,
to initial estimates of tourism operators. Each
for companies that handle the Tel Aviv-Con-
Cambodia and Japan are looked at for tours,”
tourist spent on average EUR 300, according
stanta charter,” said Martin. She added that
concludes the representative of J’Info Tours.
“I am especially glad that there were over
coast – during the summer, exotic and winter
www.business-review.eu Business Review | June 2017
40 SPONSORSHIP
Private companies boost the Romanian cultural scene It’s a fact that culture is still underfinanced in Romania, although official data shows that the Ministry of Culture’s budget has increased by 51 percent since 2016, meaning RON 766 million. It’s also a fact that each year, more and more companies decide to sponsor the cultural sector. Why? Business Review tried to find the answer by speaking with veteran brands when it comes to financing the Romanian cultural scene: DHL, JTI, Mastercard and Staropramen.
Sebastian Marcovici | FITS2016
By Oana Vasiliu
Dan Perjovschi’s Vertical Newspaper is a non-museum collection that forms the new urban poesy
T
he cultural scene is blooming in
BUILDING TRUST
year when Sibiu International Theatre Festival
Romania, national and international
What does an ideal partnership with a cultur-
was organized under the motto: ‘building
cultural happenings are taking place
al project looks like? Being one of the journal-
trust’. Maybe this should be the motto of
in increasingly more cities, not to mention the
ists constantly present at nationwide cultural
every successful partnership. We are talking
amplitude that the already known cultural
events, I sometimes laugh with friends from
about trust in each other, trust in our impact
events have – bigger events, world-famous
the communications industry that only MAR-
on society, trust in the power of inspiring
legends and outstanding setups. Cinema,
COM specialists read the banners and posters
people. (…) Being an active actor in society
music, theatre, performing arts and indepen-
of an event to see the sponsors and partners.
represents one of the pillars of our business,
dent creative creators: everything is in the
However, it’s clearly more than that.
not something additional to our activity,” says
spotlight nowadays, and everyone is trying to
“I think that an ideal partnership could be
Gilda Lazar, director corporate affairs and
make the best out of their cultural product.
defined as a long-term relationship in which
communications, JTI Romania, Moldova and
Although the official data isn’t as positive as
the parties help each other grow, develop and
Bulgaria.
the charts below indicate, each festival has its
become better. It’s a sincere commitment to
target public and people travel exclusively to
achieve greatness together by giving some-
card Romania underlines that her company
be part of the events.
thing back to the community. There was a
has a rich tradition of supporting cultural
Ana Iftodi, marketing manager of Master-
www.business-review.eu Business Review | June 2017
SPONSORSHIP 41
events all over the world, offering priceless experiences to fans from a large range of interest areas. “Each edition, we focus on offering the participants’ memorable moments,
PARTICIPATION OF THE GENERAL POPULATION AT LOCAL FESTIVALS*
PARTICIPATION OF THE GENERAL POPULATION AT FESTIVALS OUTSIDE THEIR HOMETOWN*
“IN THE PAST 12 MONTHS, HOW OFTEN HAVE YOU PARTICIPATED IN A FESTIVAL IN YOUR LOCAL CITY?”
“IN THE PAST 12 MONTHS, HOW OFTEN HAVE YOU PARTICIPATED IN FESTIVALS IN ROMANIA OUTSIDE YOUR HOMETOWN?”
together with the most innovative payment technologies. In 2015, we launched the Mastercard Priceless Surprise concept, through which we make people’s dreams come true. (…) On the other hand, by providing festival participants with modern, safe, fast and innovative payment solutions, we make sure they can enjoy the spectacular atmosphere of the festivals relaxed and without cashrelated worries. We manage to do all of these wonderful things due to the fact that for both us and the organizers, the main objective is to generate quality time and create special experiences for the participants.” Teodora Agafitei, the brand manager of Staropramen, said that the support showed for cultural events comes from their wish to contribute to creating a complete cultural story. “That means that the audience is connected to the artists and truly understands the cultural act. People and tastes are the ones that define us, and we like to create connections that go beyond a single theatre
Never
Never
once per year
once per year
once every 4-6 months
once every 4-6 months
once every 2-3 months
once every 2-3 months
monthly
monthly
play, a concert or an exhibition. We look for continuity in the relation between public and art, and we are very interested to see what will happen next to the people we connect
*Information from the Cultural Consumer Barometer 2015 released by the Romanian Ministry of Culture
*Information from the Cultural Consumer Barometer 2015 released by the Ministry of Culture
Romania. We believe these partnerships help
see the real benefits this collaboration has,”
us identify synergies in terms of our shared
explains Agafitei of Staropramen.
with. (…) These are the things that unite us with a great cultural project.” From the logistics point of view, basically the ones who help to make magic happen,
values, including passion, perfectionism, a
On the other hand, Ana Iftodi says that
challenges are inevitable. “Firstly, we choose
can-do-attitude, team spirit and discipline,”
most companies choose to support already-
partnerships that deliver in a number of
explains Daniel Kearvell, the managing direc-
known projects, events and artists, with a
areas. Then, we appreciate the opportunity
tor of DHL Romania.
strong background, as they gain a higher
to showcase our market-leading logistics ca-
visibility through such a partnership. “It
pabilities, such as our transporting of musical
RISE TO THE CHALLENGE
is important to always be open about new
instruments to and from the Enescu Festival,
However, does everything go smoothly during
projects and collaborations and be ready to
for example. We also choose partnerships that
the implementation of a cultural project? The
offer consumers the best experiences and mo-
allow us to engage our employees, custom-
unanimous answer given by the companies as
ments, instead of just directly exposing them
ers and the wider community, in order to
to the successful cooperation between culture
to your own products and services.”
promote our association with what generally
and arts on one side and success on the other
“The main obstacle is also the best chal-
are some of the most interesting projects in
side is that, together, they serve the cultural
lenge: to choose from a variety of projects the
act. “Firstly by creating it and secondly by
ones that best suit the vision of the company,
developing the frame that gives it scale. The
the ones that promote the same values, the
way we perceive this relation affects the way
ones that could make a difference. To make
we collaborate, and this reflects on the image
the best of our collaboration, cultural institu-
that the public has. Both on the cultural act
tions and private companies need to identify
and on the business, in the same ratio. If we
common grounds, objectives and understand-
start with a common belief, and we align our
ing, not just look for immediate benefits,”
goals, then it would be easier for the public to
concludes Gilda Lazar.
Currently, the Romanian Government offers a limited deduction of sponsorship to no more than 5‰ of the companies’ turnover in the given fiscal year, but no more than 20 percent of the tax on profit.
www.business-review.eu Business Review | June 2017
42 CALENDAR
It’s festival time! Longer days and the promise of warm temperatures can (only) mean one thing: it’s festival season. Head to one of these festivals and you’ll find critically acclaimed bands, world-famous artists and once in a lifetime performance to the background of a beautiful sunset. By Oana Vasiliu workshops, film screenings, the drama and
and dreaming.
art management universities’ convention as well as the Sibiu Performing Arts Market. Over
mances and events, produced in 70 countries
JAZZTM WHEN: June 30-July 2 WHERE: Timisoara, several locations WHAT: A festival creates a symbol for the
that will take place in 71 performance spaces.
city that hosts it and strengthens its iden-
3,200 artists and guests will be coming to
Eyal Hrisch
FITS 2017 with a selection of over 500 perfor-
tity. JazzTM comes to celebrate the vibrant Sibiu International Theatre Festival / Kibbutz
June
NEXT INTERNATIONAL FILM FESTIVAL WHEN: June 22-26 WHERE: Bucharest, several locations WHAT: The newest and most innovative short
cultural energy of Timisoara and we can only confirm. At this edition, Thomas de Pourquery & Supersonic, Monty Alexander Harlem Kingston Express, The Chick Corea Elektric Band,
films from all over the world come together
Miles Mosley feat. The West Coast Get Down,
TRANSYLVANIA INTERNATIONAL FILM FESTIVAL WHEN: June 2 – 11 WHERE: Cluj Napoca, several locations WHAT: A wide selection of international
for the biggest short film competition in
Bill Laurance and China Moses are among the
Romania, unprecedented formal experiments
bands who will be jazzing up Timisoara.
and national movies, well-known actors and
in Cluj for the festival. Special guest star this
JAZZ IN THE PARK WHEN: June 26-July 2 WHERE: Cluj Napoca, several locations WHAT: For five years now, a new jazz setup
year is Alain Delon.
has arrived in Romania. The concept was
actresses, producers, filmmakers and key decision people from the film industry will be
and fantastic travels through distant galaxies, a lot of guests and the hottest parties.
first born in New York in the 80s, where
PELICAM INTERNATIONAL FILM FESTIVAL WHEN: June 8-11 WHERE: Tulcea WHAT: The film festival touches upon a prob-
small scenes, dance floors and vintage fairs
lem that is ever so present – the environment.
Park.
appeared, while in the evening, a big concert stage was set up for the music lovers. Long story short, go to Cluj and enjoy Jazz in the
Pelicam invites you to a new tour around the Black Sea through five documentaries about the countries of this region, among other surprises.
AIRFIELD WHEN: June 29-July 2 WHERE: Cisnadie, Sibiu county WHAT: Airfield is the place where you can re-
July SIBIU INTERNATIONAL STREET ART WHEN: July 3-9 WHERE: Sibiu, several locations WHAT: There will be colors and artists and a new perspective to the beautiful city of Sibiu. Old walls, be prepared! Beautiful colors will inject you with life.
SIBIU INTERNATIONAL THEATRE FESTIVAL WHEN: June 9-19 WHERE: Sibiu, several locations WHAT: Probably the most complex cultural
lax, dance, enjoy art and absorb the mesmer-
event in Romania, besides the indoor theatre,
innovation and design, it`s about creating a
GARANA JAZZ FESTIVAL WHEN: July 6-9 WHERE: Garana village, Semenic Mountain,
dance, circus and music performances, FITS
complete atmosphere with people, enriching
Caras Severin County
also offers outdoor street performances, play
your mind, soul and body. A simple aero-
WHAT: Garana Jazz Festival still nurtures
readings, special conferences, book launches,
drome is transformed into a universe of love
the passion for jazz and nature along with
izing nature surroundings, all while having lots of fun. From music to visual projects, from sculpture to painting, touching upon
www.business-review.eu Business Review | June 2017
CALENDAR 43
the freedom of bringing these two elements
came from the need to befriend Timișoara
Anonimul, but nothing compares with the
together in a unique festival experience.
with European cinema, which has been miss-
experience of actually being there, right in
The festival will remain faithful to its initial
ing lately from the local scenery.
the heart of one of the most savage places in
mission of revealing a distinctive universe
Europe, the Danube Delta, watching movies
where inspiring artistic encounters are made
ART MANIA FESTIVAL WHEN: July 28-29 WHERE: Sibiu, several locations WHAT: A mix of live acts and alternative
possible.
and living with the locals.
A wide range of activities and interactive
IDEO IDEIS THEATRE FESTIVAL WHEN: August 7-13 WHERE: Alexandria, Teleorman County WHAT: Ideo Ideis Theatre Festival brings to
areas, including video projections, reading
life the small town of Alexandria in southern
international celebration of music, lifestyle
spots, board games, tarot, make-up and tat-
Romania, supported with enthusiasm and
and seaside adventures, the biggest summer
toos, will be on the plate.
implication by some of the greatest Romanian
NEVERSEA FESTIVAL WHEN: July 6-9 WHERE: Constanta WHAT: Neversea is a 3-day and 3-nightlong
events around the medieval fortress of Sibiu.
actors and others active in the cultural sec-
shore. Neversea blends world-class musical
tors. The event is about high school teenag-
performances with unique magical entertainment and promotes the diversity of music and the notion that we are all connected by the love of dance.
BUZZCEE FILM FESTIVAL WHEN: July 4-9 WHERE: Buzau, several locations WHAT: BUZZ CEE, meaning Buzau International Film Festival, represents a new film festival, which already started in southeast Romania, offering an impressive line-up of films from all genres, with spectacular results
Adi Bulboaca/Divan Film Festival
festival ever to be held on the Romanian sea-
ers, who spent seven days in Alexandria to discover the art of the theatre performance, being trained and supervised by their mentors who are well-known directors and actors.
FULL MOON HORROR FILM FESTIVAL WHEN: August 10-13 WHERE: Biertan, Sibiu County WHAT: This is the first film festival in Roma-
August
nia focused exclusively on horror and fantasy pictures. Aiming to scare your socks off in the name of high quality entertainment, “FULL
RASNOV HISTORIC FILM FESTIVAL WHEN: July 28- August 6 WHERE: Rasnov, Brasov County WHAT: A film festival during which history
MOON” intends to bring the best offerings
ELECTRIC CASTLE WHEN: July 12-16 WHERE: Bontida village, Cluj county WHAT: The festival is a unique festival
and historical movies give birth to thoughts
cinema in general, or are about to.
experience that combines music, technology
which mixes indispensable academic rigor
and alternative arts. It features many genres
and compulsory sense of humor in an attrac-
SUMMER WELL WHEN: August 12-13 WHERE: Stirbei Domain, Buftea, Ilfov county WHAT: Interpol, Editors, Birdy, Glass Ani-
of music including rock, indie, hip hop, elec-
tive manner.
mals, Metronomy and The Kills, are some of
for a region that doesn’t have a tooth for culture.
in terms of horror and fantasy, both classic and modern, movies that either have become landmarks of the genre in particular, and of
and passions, provide information and create feelings, raise questions and argue possible answers. A relaxing and vivid happening,
tronic and reggae, as well as art installations.
the bands what will be on stage at this summer festival, close to Bucharest. The domain
WAHA FESTIVAL WHEN: July 20-24 WHERE: Micfalau village, Covasna county WHAT: There will be six stages with diverse
UNTOLD WHEN: August 3-6 WHERE: Cluj Napoca WHAT: Romania’s biggest electronic music festival, which won the Best Major Festival
experience to all participants.
music for any state you might be in. From
title at the 2015 European Festival Awards,
techno, psychedelic, deep house, jazz, ambi-
will bring artists from the top 10 DJs of the
ent, live bands, cumbia, psychill and many
world back to its stage. Of course, everyone
other subgenres only the DJs know, relaxation
expects the Armin van Buuren show.
and zen are in order here.
CEAU, CINEMA POCKET FILM FESTIVAL WHEN: July 20-23 WHERE: Timisoara, several locations WHAT: Ceau, Cinema! Pocket Film Festival
is in fact a park, larger than 25 hectares, with old trees, an inner lake and beautiful buildings and it definitely promises an amazing
DIVAN FILM FESTIVAL WHEN: August 21-26 WHERE: Cetate Harbor, Dolj County WHAT: The Divan film and culinary art festi-
ANONIMUL FILM FESTIVAL WHEN: August 7-13 WHERE: Sfantu Gheorghe, Danube Delta,
val brings again the spirit of the Balkans to an
Tulcea County
Balkan food is included, with master chef
WHAT: Much has been said and written about
Mircea Dinescu taking care of everything.
old Danube grain-shipping port, with movies, documentaries, debates and workshops. Also,
www.business-review.eu Business Review | June 2017
44 RESTAURANT REVIEW
SKY HIGH FUN >>> NOR - Sky Casual Restaurant, Sky Tower 36th Floor, Barbu Vacarescu Street, 0726 567 567 <<<
I
t’s difficult for me to say anything negative about this, the newest restau-
a calm ambiance to our lunch mood. So, away to the menu: it was adventurous
Hence the prawns were as hard as stone and the mussels had shrunk to little bullets
and I could not find a fault with any of their
due to overheating. The dish cried out for
is so, so cool and almost loving towards
dishes- provided that the kitchen could cook
lashings of garlic and white wine, but there
you as a customer that it hurts. And please
them correctly. I started with an asparagus
was none of it!
consider that to be a compliment. They are
and truffle risotto with mushroom foam. The
By now we were being ‘buzzed’ by
all superb.
house correctly used Arborio rice, a big grain
happy staff that were not being intrusive,
designed for risotto so it absorbs all the mois-
rather they gave the impression that they
ground floor at reception, who takes your
ture without collapsing the rice into a mush. I
really did care about us enjoying our expe-
name and beams it up to mission control on
asked our waiter if I would get fresh truffle or
rience. However, my next experience was
floor 36. There, you will be met at the lift
imitation truffle oil.
somewhat sad, as I ordered a superb ‘pork
rant in town- simply because the staff
You are met by a sweet girl on the
doors by lovely Lavinia who will table you with charm and courtesy. But that is the best part, for much about ’Sky’ needs an overhaul. The décor
His reaction was commendable by his demonstration of loyalty to the house, tem-
with juniper berries, decorated with apple chutney and honey/chili peppers.’ The combo was an excellent creative
pered with enthusi-
blend, but I was let down
asm. He
by my pork.
was
It was cooked
needs to be reviewed.
‘sous vide,’ namely
This means faux
the meat was
leather brown padded seats that
boiled in a
would look dated
vacuum pack and
even in the 1970’s.
subsequently
Worse still was
briefly grilled. No, the pork was too
the clientele. OK, I
dry and I blame the
went there for lunch
meat supplier. The
and it is possible that the diners would be a lot more sophisticated crowd at nighttime, but hell, these were not
kitchen performed their
al-
task professionally.
most shocked
By now, Blondie was doing the
at my ‘impertinence’ and invited me into the kitchen to witness the
usual girly thing by craving a desert. The
chef shaving fresh truffle into my dish. I did
desert menu was excellent, and I can only
That means girls down dressed to scruffy
not accept his offer, but bravo waiter. The
urge you to Google it to save me reporting
ragamuffins, and men wearing the same
resulting risotto was absolutely perfect.
it to you.
my kind of people. Most of them were nerds and geeks.
Blondie chose a simple eggplant salad
However, we were told that it would
they slept in for days. So I am a snob and I
which was far from simple. It was a layer
take 15 minutes to prepare her order, as
don’t apologize for it, but my ever patient
of pureed aubergine, topped with chopped
each dish was crafted, rather than taking it
Blondie pointed out that we were in ‘tech-
tomato, together with a layer of mayo and
from a pre-prepared stock. I have no prob-
nology-central Bucharest’ whereby one
spinach puree with a perfect side of sugar-
lem with this, but sadly with time pressing,
look at the tenants of the neighborhood
caramelized peppers and toasted bruschetta.
we had to pass on it.
reveals a mini Romanian ‘silicon valley,’
She rammed it into her face so quickly that I
whereby dressing like a scruff is de rigueur.
can only assume that she hugely approved.
denim and tee shirts (sans shower) that
Sky offers amazing value. With starters under RON 30 and mains around RON 50, it is a ‘must do’ for food lovers. As it is a new
But let’s look the place over. It is on the
But my satisfaction was short lived when
top 36th floor of the tallest building in Ro-
I got my seafood soup, which was a disaster.
joint, I urge you to give them some latitude,
mania. From the ground, Bucharest is not
The chef made the classic mistake of cooking
as their menu is dynamic and right on con-
the prettiest city in Europe. But from the
the octopus, mussels and prawns simultane-
temporary, as befits the age and area.
air, all this city’s sins are both hidden and
ously, oblivious to the fact that they all reach
forgiven. The view is a delight and it added
their perfection at different temperatures.
Michael Barclay Mab.media@dnt.ro
www.business-review.eu Business Review | June 2017
REPAT EYE 45
Back to stay: A third culture kid come home In our first ever monthly column reflecting on the Romanian experience from the perspective of a native whose life has primarily been spent abroad, BR’s resident repat will temporarily fill the expat’s shoes by reflecting on life back home.
can be extremely frustrating when you need to get things done, but also leaves space for the “human” element. Following a difficult and long day at the office, I stopped by the local Billa for groceries. Tired and distracted,
By Eugenia Pupeza
F
In Romania, it’s only grey, a situation that
I finally made it to the cash register, realizing I had forgotten to weigh the bananas. After
irst, a short backstory – my own per-
relate my own personal experiences, one
I told her I didn’t want them anymore, the
sonal elevator pitch. I left Romania in
idiosyncrasy at a time, in hopes of infusing a
woman at the cash register took my bag and
1988, at seven years old, shortly be-
little positivity and, perhaps, even answering
walked away without saying a word, leav-
the question.
ing me with a dose of frustration (“did she
fore the Revolution, as a result of my father’s courageous swim across the Danube River
1
have to take the bananas back right then?!”).
ROMANIANS SWEAR IT BEST
Finally, she returned with a smile on her face
courageous two-year toil with Communist
Back during my international school days,
with the bag weighed. “You looked tired and
authorities. The following 26 years were
we would sometimes gather (a Japanese, an
I wanted you to be able to eat the bananas,”
spent between the US, Germany, Italy and
Israeli, a Serbian, an American, a Swiss and
she told me. I was instantly revived; human-
New York City (a country all on its own, in my
several Italians) and have contests about
ity exists!
opinion), before a sudden and little-thought-
who had the best swear words. And even
out decision to drop everything brought me
then, with my limited knowledge (I was
back home to Bucharest three years ago.
only 14 and a good girl, of course!), I always
Insane? Rash? Perhaps, but my roots were
walked away so proud that my country’s
calling.
foul language trumped everybody else’s,
two years earlier, and my mother’s equally
A third culture kid is a term used to refer
hands down. Germany’s “your mother can’t
to children that have spent a significant
cook” doesn’t even compare with “f&^%
amount of time growing up in a culture
your mother’s dead relatives” and you can
other than that of their parents – “citizens
also add “you f*&$ing c@*&sucker,” for good
of everywhere and nowhere”, to quote the
measure, at the end. Seriously, if you’ve had
BBC. We’re much more used to transition,
the chance to delve into the expressiveness
pick things up much more quickly, speak
of Romanian swearing, you’ll agree with
more languages, have a broader worldview,
me that creativity reaches a whole other
but also suffer from “rootlessness”. I have a
level. Just recently, the opportunity to go
music conservatory education from Milan, a
to a soccer (or football, whatever) match,
Music Therapy Bachelor from Boston and a
vastly expanded my cultural horizons (they
strategic communications MS from Colum-
even managed to work “sarmale” in). With a
bia University in New York City. Between all
country that’s so expressive when it comes to
those, I also completed all pre-med course-
stress relief, what’s not to love?
work (but decided not to go into medicine), did accounting work and learned French for
2
RULES ARE MEANT TO BE BROKEN
fun on my morning commute; there is really
Most likely stemming from Romania’s
nothing I couldn’t do if I wanted to – did I
complex cultural history, natives are both
mention my modesty? ;-)
fatalistic and negative, but have also learned
“What the @*%#& were you thinking?” is
1
how to be survivors, with a large dose of
the question I’m always asked, piqued with
humanity, especially when it comes to rules.
shock and disbelief by all of my compatriots.
In the US, dealing with the everyday is fairly
And since any (positive) answer – “I love it
simple, yes is yes, no is no and people line
here” – is unsatisfactorily received, I can only
up one behind another; it’s black and white.
2
www.business-review.eu Business Review | June 2017
46 CITY
Perfect Strangers (Perfetti sconosciuti) FILM REVIEW
By Debbie Stowe It’s a juicy set-up, not least because it
DIRECTOR: Paolo Genovese STARRING: Giuseppe Battiston, Anna Foglietta, Marco Giallini, Edoardo Leo, Valerio Mastandrea, Alba Rohrwacher, Kasia Smutniak ON AT: Cinemateca Union, Hollywood Multiplex, Cinema City Cotroceni, Cinema Muzeul Taranului, Cinema City ParkLake
T
invites the viewer to imagine how well – or badly – they would fare in a similar scenario. Is your private life whiter than white, or a charade that would rapidly come crashing down if your secrets were exposed? Aside from some brief opening scenes of the guests getting ready and travelling to the home of the host couple, the action unfolds entirely in one apartment. Such one-location
his is the intriguing premise of
movies can feel inert, and it’s true that
Italian director Paolo Genovese’s
Perfect Strangers could easily be a theater
2016 comedy-drama. A group of old
play. In that respect, and in its tale of the
friends sit down to dinner together: two sets
surreptitious sexual shenanigans of bour-
of parents, a pair of newlyweds and a peren-
geois couples (no, it’s not a spoiler – they’re
nially single pal due to introduce his new girl-
Italians, what else was going to happen?), it’s
friend to the gang, Their lives aren’t perfect,
reminiscent of the 2004 Mike Nichols film
but their problems – a troublesome teenage
Closer, based on the Patrick Marber play.
daughter discovering boys, an infirm parent,
However, the lively Latin vibe prevents pro-
some work stress – seem no more serious
ceedings from becoming too stagey.
than those faced by the average middle-class forty-something.
A greater flaw is the contrived narrative
given for the improbability of the timeframe,
– whatever sordid skeletons a group has in
this doesn’t spoil the fun. Genovese’s story
the closet, the chances of texts or phone calls
also includes a imaginatively wide range of
proposed: everyone puts their mobile phone
relating to all of them coming within a two-
foibles and failings, from the obvious roman-
on the table, and all incoming communica-
or three-hour window late one evening are
tic deceits to filial disrespect (in Italy, home
tion is made public to the group – calls played
remote. One character even gets an awkward
of the mama’s boy!), family troubles, and
on loudspeaker, emails, SMS and WhatsApp
out-of-hours response to a business enquiry
even darker deeds.
messages read aloud. Because, if the friends
(though the implausibility of its arrival time
know each other as well as they think they
is at least remarked upon).
To liven up the dinner party, a game is
do, and if they’re all as honest as they claim to be, what could possibly go wrong?
However, Perfect Strangers is a high-concept film and, provided that leeway is duly
Watching these vibrant Italians digest each other’s faults throughout dinner is as indulgent and succulent a pleasure as the food they’re doing it over.
The Last Day (Ultima zi) FILM REVIEW
By Debbie Stowe
DIRECTOR: Gabriel Achim STARRING: Doru Ana, Mimi Branescu, Adrian Vancica, Adrian Ciglenean ON AT: Cinemateca Eforie, Cinema Pro
T
in thrall. Said companions are a morose childhood friend of the mayor’s who plans to become a monk, and, driving in convoy, an obsequious police officer, and the president of the town’s Christian Youth League.
he Romanian New Wave’s answer to
The two cars and a dining table at the
the road movie, Gabriel Achim’s The
mayor’s place form the setting for the vast
Last Day consists of a long nighttime
majority of the running time, making the
derous takes, lashings of gloom, the specter
drive in the tedious company of a small-town
film largely dialog-based (see it with subtitles
of post-communist corruption, and mordant
mayor, a loquacious blowhard whose tin-pot
unless your Romanian is fluent). All the usual
wit – including a very funny incident with a
tyrant status keeps his companions largely
New Wave ingredients are here – long, pon-
hitchhiker.