RESIDENTIAL MARKET SHOWING RESILIENCE IN THE FACE OF COVID-19 CRISIS
July, 2020 / Volume 24, Issue 6
www.business-review.eu
6
HOW CAN ROMANIA ATTRACT THE FDI IT NEEDS TO RECOVER?
17
NEW TREND TO WATCH IN POST-PANDEMIC ROMANIA: ROBOTICS
18
PODCASTS TAKING OVER IN BUSINESS & ENTERTAINMENT
32
MISSION: A SAFE RETURN TO WORK
www.business-review.eu Business Review | July 2020
EDITORIAL 3 REAL ESTATE
• Editorial •
Anda Sebesi
6 Residential market showing
• Editor-in-Chief •
resilience in the face of COVID-19 crisis
COVER STORY
Restarting the engines W
8 Mission: A safe return to work
ENTREPRENEURSHIP
ith the SARS-Cov2 pandemic blocking almost the
entire world for about three months, economies need
22 UiPath IPO set to boost
to take a breath of fresh air and restart their engines.
local startup power
Therefore, companies are making significant efforts to get back to
24 Coronavirus could be a
normal after they’ve dealt with the impact of COVID-19. The next
gamechanger for Eastern European startups
step for them is to set up a plan for their employees to return to the office. As experts say and companies confirm, this return will be a
DIGITAL
gradual one, as the evolution of the coronavirus pandemic is still unpredictable. The main focus now for both landlords and their corporate clients is to ensure a safe working environment by implementing measures and clear protocols for how everything in the office operates while managing health and safety risks for employees. It is obvious that employee safety is a top priority for all companies, both in Romania and abroad. They may have devel-
30 Pandemic builds up
oped clear strategies for the return to the office, but one thing is
companies’ appetite for digitalization
certain: the plan for this return remains adjustable and companies are adopting a one-step-at-a-time strategy, depending on developments related to the pandemic. As international studies show,
CITY
what employees miss most is communicating with colleagues and seeing others working around them. Despite the fact that all the companies have opted for a work from home approach during this period, HR specialists believe that it will not become the main form of work, at least in the near future. BR sat down with landlords and companies and dedicated this month’s cover story to finding out how they were preparing for their employees’ return to the office. Enjoy your read!
36 Reshaping cultural businesses
38 The state of TIFF: On screen with Mihai Chirilov
EDITOR-IN-CHIEF: Anda Sebesi JOURNALISTS: Aurel Constantin, Mihai Cristea, Romanita Oprea, Oana Vasiliu CONTRIBUTORS: Ovidiu Posirca, Sorin Melenciuc, Claudiu Vrinceanu COPY EDITOR: Anca Alexe PHOTO EDITOR: Mihai Constantineanu PHOTOS: Dreamstime ART DIRECTOR: Raluca Dumitru PUBLISHER: Bloc-Notes Media Network ADDRESS: 58 Stirbei Voda Street, 3rd Floor, District 1, Bucharest, Romania LANDLINE: 031.040.09.31 SALES MANAGERS: Radu Fireteanu, Alexandra Rosca EVENTS MANAGERS: Mara Dragoiu EVENTS & MARKETING MANAGER: Luiza Luca PRODUCTION: Dan Mitroi DISTRIBUTION: Eugen Musat EXECUTIVE DIRECTOR: George Moise GENERAL MANAGER: Catalin Alistari USA MANAGER: Oana Molodoi FOUNDING EDITOR: Bill Avery EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu SUBSCRIPTIONS on Manpres Distribution Business Review is a member of Fwei
Publicație auditată pe perioada Apr 2015 - Mar 2016
ISSN NO. 1453-729X
www.business-review.eu Business Review | July 2020
4 NEWS
WHO’S NEWS BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at mihai.cristea@business-review.eu
Employee needs not among IT managers’ top priorities when making new technology investments By Aurel Constantin standable desire for businesses to embrace transformational technologies, such as Artificial Intelligence and the Internet of Things, as soon as possible.
Catalin Buliga the CTO of Vodafone Romania, won the Mobile Europe & European Communications CTO of the Year Award 2020, in the Gamechanger category. The award is offered by the prestigious publication for Mobile Europe and European Communications, an important European media outlet for telecommunications professionals. The jury designated Catalin Buliga as CTO of the year 2020, in the Gamechanger category, for his outstanding performance, among them the first 5G network in Romania, the first live holograms at a 4K resolution in the world, or the NB-IoT technology.
Georgiana Stancu has been appointed as Leader of the Human Resources Department at PwC Romania. Georgiana joined the PwC Romania team after three years in which she held the position of Human Resources Manager at IKEA Romania. She has over 20 years of experience in a variety of roles and industries, including banking and retail. Georgiana is a graduate of the Bucharest University of Economic Studies (Management School) and the University of Bucharest (Psychology School).
page 5
The benefits these promise – innovation, improved productivity, reducing cost, and greater customer experience most
There is an understandable desire for businesses to embrace transformational technologies
importantly – are tantalising for any organisation, but their true potential is completely
Lenovo recently unveiled
implement new technologies
untapped if adoption is purely
a new study which found
without considering the human
led by business goals. While
that organisations are plac-
impact, many employees become
successfully implemented tech-
ing business and shareholder
overwhelmed due to the com-
nology should act as an enabler
goals above employee needs
plexity and pace of change, with
for employees and businesses
when adopting new technolo-
47 percent of IT managers report-
to achieve greater things, a poor
gies. The research, conducted
ing that users struggle to embrace
strategy can lead to technology
among 1,000 IT managers
new software. With all industries
becoming an inhibitor – ham-
across the EMEA region, found
having to adapt to the “new
pering users whose needs have
that only 6 percent of IT man-
normal” and take stock of their
not been carefully considered
agers considered users to be
responsibility – to employees,
and catered for. Almost half
their top priority when making
to the environment, and to the
(48 percent) of respondents
technology investments. This
wider world – Lenovo encourages
reported a negative outcome
approach to IT adoption is ulti-
businesses to place the needs
where technology implementa-
mately leading to productivity
of their people at the heart of IT
tions have actively inhibited
being stifled. When businesses
decisions. There is an under-
their teams’ ability to operate.
Local media market to fall by 16.5 percent in 2020 By Romanita Oprea Looking at the entire media
positive evolution in normal
market in Romania, a Media Fact
economic and health conditions,
Book analysis estimates a drop of
with a potential of EUR 506
16.5 percent in 2020 compared to
million. Quarterly, the effects
2019, down to EUR 401 million.
of COVID-19 are expected to be
The market would have had a
more pronounced in the second
The estimated impact of the COVID-19 pandemic is significantly lower than that of the 2008 crisis
www.business-review.eu Business Review | July 2020
NEWS 5
Romanians willing to pay for monthly parking subscriptions Georgiana Iancu is the new Partner in the Tax and Legal team of EY Romania’s Indirect Tax practice. In this role, Georgiana will focus on developing the Indirect Tax practice, as well as on expanding EY Romania’s footprint on the local market by transforming the department from an organisational perspective and diversifying the tax advisory services. Her experience covers a wide spectrum of industries, such as retail and FMCG, real estate, energy, and automotive.
By Mihai Cristea A study conducted by Reveal Marketing Research and Tritech Group found that 38 percent of Romanians would be willing to pay for a monthly private parking subscription of as much as RON 150 per month, if this service were available and they lived near a shopping centre with a parking lot. Romanians’ expectations regarding the facilities of a parking lot are also structured under the umbrella of safety and comfort. 9 out of 10 Romanians say ensuring their
47 percent of respondents fear that parking in undeveloped places is not safe
car is protected is among the
(those up to 30 years old), mod-
ficulty of finding a free place on
most important aspects. The
ern facilities (use of the latest
the street (77 percent) or walk-
number of parking spaces,
technologies) is a criterion that
ing a long distance from their
being able to quickly find a
weighs significantly for them in
car to where they need to go
parking space, and the avail-
the evaluation of a parking lot
(49 percent), so a car park first
ability of vending machines are
(66 percent compared to 58 per-
and foremost provides benefits
criteria considered impor-
cent across the entire surveyed
related to comfort. Another
tant or very important by 87
population). The study conclud-
important advantage is safety –
percent of respondents, and
ed that paid parking lots in shop-
47 percent fear that parking in
multiple payment methods
ping centres are preferred by 1
undeveloped places is not safe
(card, cash, SMS) are relevant
in 3 respondents when visiting
or that it would block a place
for 84 percent of Romanians.
this type of space. They want to
belonging to someone else (26
For the youngest respondents
avoid problems such as the dif-
percent).
Radu Dumitrescu was named Partner-in-Charge of the Financial Advisory practice at Deloitte Romania. Dumitrescu has almost 20 years of experience in financial analysis, audit, mergers and acquisitions, due diligence, project funding advisory, and litigation assistance. He joined Deloitte Romania in 2011 as a senior manager and in 2016 he became Transaction Services Partner, in charge of mergers and acquisitions and reorganisation services.
and third quarter in 2020, with drops of 35 percent and 20 percent respectively as compared to the same periods in 2019, while the fourth quarter is seen with moderate optimism with drops of 10-12 percent. Compared to the effects of the economic crisis of 12 years ago, when the media market in Romania experienced a 36 percent drop, translated in losses reaching a cumulated value of almost EUR 200 million in 2009, the estimated impact of the COVID-19 pandemic is significantly lower.
Vlad Boeriu was appointed Partner-inCharge of the Tax and Legal practice at Deloitte Romania. Vlad Boeriu joined Deloitte in 2004 as a Tax Consultant and has moved up the ranks to Partner-in-Charge. Since 2015, he has been a Tax Partner. He is a certified tax consultant, holds a bachelor’s degree from the Bucharest Academy of Economic Studies, and completed the University of Sheffield MBA.
www.business-review.eu Business Review | July 2020
6 REAL ESTATE
Residential market showing resilience in the face of COVID-19 crisis The pandemic has slowed down the residential market due to the restrictions imposed by the government. In April 2020, the number of real estate transactions was almost 34 percent lower than the one recorded in April 2019, and the situation was similar in May. However, apartment prices did not follow the same trend. By Aurel Constantin
Ateneo Timisoara will include a supermarket, nine sports fields, a commercial centre and spaces for 120 shops
F
Ateneo Timisoara will include 1,300 apartments
ewer than half of employees have re-
other types of properties (5 percent). Of those
planning to use the services of an agent,� said
turned to their offices since the end of
planning to buy or rent a home, 44 percent
Mihai Sava, Real Estate Business Manager at
the state of emergency, therefore the
said their plans would not be affected in any
OLX Group.
demand for homes where employees can set
way by any new information about COVID-19.
up an office is still high, and it will remain at
However, 27 percent were thinking of choos-
CHANGES IN THE BUYING PROCESS
high levels as 60 percent of employees believe
ing a cheaper property, while 14 percent were
Asked how the pandemic had affected their
that working remotely would be useful for at
considering giving up buying and renting
plans to buy, 30 percent of respondents said
least 1-2 days a week, while 10 percent would
instead. Most Romanians surveyed believed
they were not looking to postpone their pur-
like to work from home for 3-4 days a week
that prices could go down in the next period,
chase. Only 8 percent were thinking of giving
in the coming period, according to a survey
while a smaller share thought this was too
up the purchase, while 31 percent of respon-
conducted by Colliers.
difficult to estimate at this point.
dents wanted to postpone it for a maximum
The search for a home that is better suited
“The period we are going through has led
of 3-6 months. Meanwhile, 8 percent of
for remote working thus continues. 74 per-
people to reconsider and reorganise several
potential buyers even wanted to speed up the
cent of respondents in a study by Storia.ro
aspects of their lives, so we wanted to find
process.
were planning to make a real estate transac-
out if and to what extent Romanians’ inten-
When asked how they were planning to
tion this year, with most of them being inter-
tions, expectations, and decisions regarding
finance the upcoming real estate acquisition,
ested in selling or buying (63 percent). The
real estate activity have changed. We found
53 percent of Romanians said they would
study was conducted in May 2020, through an
out that they were still interested in buying
choose to take out a mortgage loan, while 35
online questionnaire among Storia.ro visitors.
and renting properties and that most of their
percent said they already had the necessary
The sample included 2,565 respondents.
decisions had not been influenced by the pan-
amount. In the near future, 49 percent of
demic, but some were thinking of postponing
Romanians who want to buy a home are plan-
the pandemic could change their plans, 56
their decisions for three months to a year. A
ning to explore offers online, while 37 percent
percent of participants answered affirma-
common point we saw among many of the
are willing to go to house viewings.
tively, with the most affected properties
respondents referred to the choice of working
being apartments (43 percent), houses (41
with a real estate agent. Among respondents
decision easier when buying a property, 50
percent), followed by land (11 percent) and
who wanted to buy or rent, 59 percent were
percent said it would be helpful to see the
Asked whether new information about
As for the factors that would make the
www.business-review.eu Business Review | July May2020 2016
COVER REALSTORY ESTATE14 7
property through a virtual tour, while 22
compared to 2019, investors are still optimis-
and we are also looking at new investment
percent said they would like a video presenta-
tic about the future. FRI-EL Buildings, part
opportunities,” stated Luca Cainelli, the CEO
tion.
of Italian group FRI-EL Green Power, one of
of FRI-EL Buildings Romania. Ateneo Ti-
the largest renewable energy producers from
misoara will have the largest list of amenities
Italy, will invest over EUR 80 million in devel-
and facilities for residents of any residential
make their decision easier are similar to those
oping Ateneo Timisoara, the biggest residen-
complex in the west of the country.
mentioned by potential buyers – 52 percent
tial project under development in the western
said it would be useful to view the property
part of Romania, projected to have 1,300
In terms of the rental process, only 43 percent of Romanians said that the pandemic did not influence their decision in any way. At the same time, 22 percent of respondents wanted to speed up the rental process and 31 percent were thinking of postponing it – 20 percent for three months, 6 percent for six months, and 5 percent for up to a year. In the near future, 40 percent of Romanians who are looking to rent are planning to explore online offers and another 40 percent are willing to go to house viewings, while 12 percent are ready to sign the final documents. The factors that would
through a virtual tour and 19 percent agreed that it would help to see the house through a video presentation.
apartments and a vast list of amenities and facilities.
UNCHANGED PRICES At the country level, housing prices went down by 1.7 percent in April and 1.4 percent
Ateneo Timisoara is located in the Torontal area,
SELLING OR RENTING A PROPERTY About 30 percent of
one of the most dynamic areas devel-
those who wanted
oping in the
to sell a property had
city, close to
already published an online ad, 19 percent were renovating the property to increase its value and 14 percent were looking for an
the Agronomy and Veterinary Medicine University and approximately one kilometer away from
in May. The average price thus fell to EUR
agent to take charge of the process.
the future IKEA Timisoara store. The first
1,348 per square meter at the beginning
Owners who want to sell are planning to
phase of the project will include 153 apart-
of June 2020. But this is the same average
publish an online ad (54 percent), while
ments in three buildings, after an investment
price per square meter as in the beginning
another 31 percent will meet with potential
of approximately EUR 10 million, entirely
of the year, which means that prices remain
buyers for house viewings. When asked what
from company equity. Construction works
unchanged.
factors would make the sale easier, 35 percent
are being undertaken on the 5th floor of the
The situation will continue until the last
of respondents said they would like to create
first two buildings, set to be delivered in the
quarter of the year, when a pickup in transac-
a virtual tour while 23 percent believed it
spring of 2021, while the third building will be
tions is expected. That will be the moment
would be possible to sign a contract without
delivered by the end of next year.
when prices go either up or down, depending
leaving the house, using only digital means.
“We started the development of Ateneo
on confidence in the market and the develop-
Timisoara at the end of 2019 and we haven’t
ment of the COVID-19 pandemic. If the health
ONGOING PROJECTS
slowed down over the last three months, and
crisis continues, affecting the economy,
New apartment buildings are still under
we have full confidence in the local residen-
housing prices may drop due to the lack of
construction in several cities. Even if the
tial market. The development of the entire
confidence and the decreasing number of
number of new homes will probably be lower
Ateneo project will last for many years ahead
transactions.
www.business-review.eu Business Review | July 2020
8 COVER STORY
MISSION: A SAFE RETURN TO WORK
With companies making significant efforts to get back to normal after they’ve dealt with the impact of COVID-19, the next step for them is to set up a plan for their employees to return to the office. But as experts say and companies confirm, this return will be a gradual one, as the evolution of the coronavirus pandemic is still unpredictable. The main focus now for both landlords and their corporate clients is to ensure a safe working environment by implementing measures and clear protocols for how everything in the office operates while managing health and safety risks for employees. BR sat down with landlords and companies and found out how they were preparing for their employees’ return to the office. By Anda Sebesi
www.business-review.eu Business Review | July 2020
T
COVER STORY 9
he reopening of commercial spaces and the return to offices
electrical equipment and LED lighting, contribute together with the
following the lifting of coronavirus-related restrictions
additional hygiene measures implemented to a conducive environ-
involves a considerable administrative effort for companies,
ment for returning to the office, while ensuring social distancing.
who must meet the criteria and implement the measures that will
We are pioneers in this area with Bureau Veritas and at the same
provide the green light to resuming business. Given the diversity
time we can assure our tenants that Timpuri Noi Square offices are
of issues and the complexity of the current context generated by
a safe place to carry out their daily activities,” says Antoniu Panait,
the pandemic, from epidemiological considerations and health
managing director at Vastint Romania.
and work safety to topics related to authorisations, approvals, and
According to Panait, from the very first moment the virus was
management liability, Reff & Associates - Deloitte Legal Romania
detected in Romania, the company’s property managers started all
and Waltmann A.B., Architecture and Consulting Design Office
the procedures required to maintain the safety of its projects, imple-
have launched an integrated solution for the assessment of office
menting a great number of measures to make everyone feel safe
buildings and shopping centres
in the common spaces, lobbies,
and the preparation of a coher-
and elevators, in both Timpuri
ent set of measures and actions,
Noi Square and Business Garden
verified from a technical, medical,
Bucharest.
and legal perspective, in order to
The sanitization measures
guarantee a safe return of employ-
translated into additional cleaning
ees and customers inside these
and disinfection of all common
premises.
areas, changing air filters, extra
Reopening office buildings in-
sanitizer dispensers, social dis-
volves a rethinking of the daily ex-
tancing measures meant limiting
perience and setting clear protocols
access to no more than four people
for how everything in the office
in one elevator, access through
operates while managing health
revolving doors limited to one
and safety risks for employees.
person, placing sleeves on door
How the return to work is managed
handles and foils on door contact
will be critical for employee health
areas, manufactured with a special
and well-being but also for the
technology that does not allow
confidence they have in their em-
the transfer of microparticles onto
ployers and landlords, according to
hands, adding transparent screens
the latest data from CBRE, the real
on reception desks to limit contact
estate consultancy market.
and implementing a new package
For example, Timpuri Noi
collection point to a singular space
Square has obtained the Safe Guard
that could be under strict sur-
certification, following an audit
veillance – these are some of the
by Bureau Veritas which certified
measures Vastint took in order to
the safety of the health and safety
become a safe place for its tenants.
measures implemented during this
Panait also mentioned the sig-
period, supporting the tenants in
nage measures the company has
the process of returning to the of-
taken, such as applying limitation
fice, in a suitable environment that
strips and information posters to
falls in line with current requirements. The Safe Guard label meets
maintain social distance, information regarding hand washing in ev-
the demands of the new normality of our society, in terms of health,
ery bathroom and in common areas, and stripes to limit the access
safety, and hygiene. The certification will cover common areas,
to revolving doors and other entrances.
receptions, and lobby lifts and will establish the sanitary standards
As for Immofinanz Romania, country manager Fulga Dinu says
applicable to all the buildings in Timpuri Noi Square, a 53,000-sqm
that the company has prepared its premises to provide the safest
commercial area consisting of the first 3 buildings delivered so far in
and best working conditions for all its partners. “As a responsible
the project.
landlord, we have equipped all our buildings in order to ensure a
“Timpuri Noi Square offers a healthy and welcoming indoor work
healthy environment for our tenants and employees. To increase the
environment and has all the favorable characteristics to safely re-
supply of fresh air, we have overhauled the AHU systems, replaced
turn to the office. Technical details such as healthy air conditioning
or cleaned the filters, and supplemented the operating time by at
and a superior ventilation system, which offers 100 percent fresh air,
least four hours. We have installed UV lamps and Plexiglas screens
combined with Vastint’s standard 3m floor heights, energy-saving
and we frequently disinfect and clean all areas and surfaces with a
www.business-review.eu Business Review | July 2020
10 COVER STORY
high risk of transmitting the virus using alcohol-based solutions.
modern office space stock is estimated at 250,000 sqm, while Cluj-
We have also stopped running hand dryers in toilets,” Dinu says. In
Napoca’s is around 320,000 sqm.
addition, the company has placed disinfectant mats and body tem-
A gradual return to work, with cleaning policies and procedures,
perature checking systems at the entrances of all its buildings. “We
will help employees feel safe, therefore a clean desk policy, whether
have applied self-disinfecting foils on every door handle, panic bar,
that desk is assigned or unassigned, will be essential. In the short-
and elevator button, we have installed signage to remind everyone
term, seating could be managed in a rotational manner so not only
of the importance of maintaining social distance, and suspended the
will remote work be supported and trusted by more organisations in
transportation services,” adds the country manager of Immofinanz
the future, but it may be employed as a strategy leading to profound
Romania.
workplace transformation.
According to Dinu, the properties owned by Immofinanz in Ro-
“We’re seeing people setting a high bar in terms of their own
mania currently have an occupancy rate of 94.6 percent. “We have
criteria for going back to work, which is normal in a health risk situ-
signed long-term partnerships with our tenants and do not expect
ation. Every aspect of office life will be scrutinised: getting there
significant variations
safely on public trans-
in the occupancy rate.
portation, making it
In general, recent
through the lobby, the
months have accentu-
desk routine, meeting
ated the workforce
setup, navigating
mobility trend and
once-mundane rou-
office landlords will
tines such as going to
have to pay much
the restroom, getting
more attention to their
coffee and lunch. A
customers’ needs. The
simple question like
workplace is definitely
how to get a cup of
evolving and more
coffee will imply a
and more compa-
new routine. Personal
nies have started to
discipline will be of
recognise the fact that
the utmost impor-
a thoughtful, progres-
tance,” added Tudor
sive work environ-
Ionescu. Both occupiers
ment can reflect brand value, while improv-
and landlords should
ing the health and
give serious consideration to new levels of
productivity, innovativeness, and collaboration of a workforce. It is not so much about
service, materials and activities needed to facilitate a return to the
working spaces anymore, but about living spaces,” she concludes.
workplace. Examples of areas that may require advanced sourcing activities and increased funding include enhanced cleaning,
A THREE-STAGE REOPENING
introduction of new access protocols (e.g. temperature screening),
It is obvious that in a context dominated by uncertainty and cau-
increased supplies of products such as hand sanitizers and wipes,
tion, the return to work must be a gradual process, as experts say.
but also a reconfiguration of work environments and the associated
“Our experience supporting clients in Asia suggests that reopening
technology and equipment, such as touchless technologies. Many
workplaces and commercial establishments is not so straightfor-
tenants will choose to work in shifts and alternate flexible hours
ward. From an occupier’s perspective, we encourage the reopening
so the building may be fully operational for longer periods of time,
of workplaces to be considered in three stages: planning for the
meaning that the operational costs of buildings are expected to
return, bringing employees back to work, and most importantly, on-
raise.
going management and workplace evolution,” says Tudor Ionescu, Head of Advisory & Transaction, Office, CBRE Romania. In Bucharest, the modern office stock is estimated at 3.27 mil-
“Property managers have a crucial role to play in enhancing safety, creating a trustworthy but also pleasant work environment, while also keeping everything under control, such as resources,
lion sqm, a total space where about 330,000 – 400,000 employees
long term plans, and costs. At this stage the focus is on services like
are working, according to CBRE Research data. Most of this space,
enhanced cleaning and building operations, as health and safety are
around 28 percent, is located in the north of Bucharest, in the vicin-
top priorities both for tenants and landlords. In the medium term
ity of the Aurel Vlaicu and Pipera metro stations, 14 percent is in the
however, we expect the focus to be around new technologies, such
Aviatorilor and Victoriei Square metro stations area, while another
as touchless entry, energy efficiency tools, automated maintenance
13 percent in the centre-west area of Bucharest. In Timisoara, the
software or off-site security solutions,” said Luiza Moraru, Head of
www.business-review.eu Business Review | July 2020
COVER STORY 11
Property Management, CEE, CBRE. Technology can mitigate some
lation.As schools in Romania won’t reopen until September, we will
concerns. Before COVID, tenants and landlords were beginning to
continue to witness a dominance of remote and flexible working
track office usage with sensors that determined whether the space
in the next few months, experts warn. “Trends like de-densifying,
was being occupied efficiently.
flexible hours, extended office
Post-COVID, that same technology
hours, rearranging office space,
can identify which heavily traf-
and health and safety measures
ficked areas need deep cleaning,
are on everyone’s agenda,” says
where density is too high, and
Razvan Iorgu, managing director
which workstations are both free
at CBRE Romania. Furthermore, according to
and sanitized.
Colliers International consultants,
According to CBRE, we will also witness a preference for build-
after the transformations compa-
ings with “healthy” credentials
nies are currently carrying out to
related to indoor air quality and
ensure a safe return to the office,
ventilation, as fresh air reduces
the office market will have to
the spread of airborne germs. In
continue to redefine itself in the
the longer term, health and well-
next period, to provide spaces that
ness will play a more prominent
promote innovation and collabora-
role in informing building design.
tion in the new context. The office
Currently, buildings are required
will remain the central element
to comply with a minimum 20 per-
for companies, given that the
cent fresh air intake, while some
need for intense collaboration and
choose to exceed this requirement
social interaction in the profes-
by going up to 30 percent.
sional sphere is difficult to meet in a virtual environment, but the
According to the Romania Flash Call organised in April by real estate consultancy company CBRE,
effects of this period are expected to impact working habits and the
the immediate impact of the COVID-19 pandemic on the real estate
setup of workspaces.
market will be felt during the second quarter of the year, while in the medium and long term the focus will be on health and safety measures as well as on technology. “We expect operating hours of
“The office of the future will focus on promoting social interaction and collaboration. We expect a new way of working, which will involve a mix between working from the office and from a dis-
office buildings to be longer going
tance, from home or other spaces.
forward. Many tenants will choose
Employees will most likely prefer
to work in shifts as well or have
to carry out activities that involve
flexible hours. As such, building
focused work remotely and will go
operational costs are expected to
to the office for collaborative work
rise at a time when cost efficiencies
– customer meetings, brainstorm-
are essential,” Moraru said. While
ing sessions, project meetings, and
the focus on operational costs will
so on. In this context, we believe
remain relevant for occupiers in
that the office will go through a
the next couple of years, property
process of redefinition, and the
managers will need to come up
emphasis will be on space quality
with creative solutions to incor-
and employee experience, pro-
porate the Health & Safety costs in
moting the identity and culture of
their current budgets and to make
the space,” said Daniela Popescu,
the best use of this opportunity to
Associate Director Office Advisory
create an emotional bond between
at Colliers International Romania.
occupiers and their workplace, according to CBRE. The consultancy firm is working on redefining
A NEW WAY OF THINKING Florin Godean, Cluster Manager
common areas and their servicing by creating clear traffic corridors,
at Adecco Romania and Hungary, says that rethinking the dynam-
specific health and safety measures such as UV filters, door handle
ics of human capital investment has never been more relevant.
covers, lifts buttons protections, HVAC servicing, and natural venti-
“2020 started with a disruptive pandemic, forcing countries into
www.business-review.eu Business Review | July 2020
12 COVER STORY
deep lockdowns amid efforts to save lives and prevent healthcare
will not be an option for 33 percent of respondents versus the 38
systems from collapsing. There are already indicators – at least in
percent who are intending to ask their companies to allow them to
the short term – of an economic downturn and a rise in unemploy-
work from home at least once a week. According to official data,
ment. However, we are still only learning about how deeply the
our country has the smallest rate of working from home, below 1
pandemic will affect daily life. It’s a good time to look at empower-
percent. “The option to work from home for more employees might
ing the workforce. It’s the right moment to rethink investments in
challenge companies to reshape the workplace in order to make it
workforce from the point of view of environment flexibility, work
more attractive and efficiently blending new concepts such as hot-
contracts, and lifelong learning programmes,” Godean says. A
desking and activity-based working, making pre-lockdown layout
recent report published by Adecco Group, shows that we turn the
trends become history. We expect the demand for office reconfigu-
conversation to investing in re-skilling with a call for an increase
rations to grow in the next 12 to 24 months considering the new
in flexibility, with a focus on ‘flexicurity’. This means improving
legislation and the physical presence at the office,” said Iorgu of CBRE.
flexibility with improved
As for the work from
social security. In order for flexicurity to really work,
home approach, Mihaela
it needs to happen in the
Ionita, HR manager at
context of a larger reshap-
Coca-Cola HBC Romania
ing of existing social secu-
says that the company’s
rity and other systems.
employees could already take one day per week to
WORK FROM HOME: A DOUBLE-EDGED SWORD
work from home even be-
According to the Work-
It is a benefit Coca-Cola
ing from Home study
HBC Romania offers to all
on 1,200 employees in
employees whose job al-
Romania, the CEE and the
lows it. In addition, trends
SEE regions, conducted
were already increasingly
by CBRE Research, the
pointing to remote work.
things respondents miss
“The new generations
most are communicating
are somehow promoting
with colleagues, the clear
these ways of working
separation between work
and we had plans to tackle
and leisure time, and see-
this need. The pandemic
ing others working around
forced us to push our-
them.
selves to the point where
The average share of people working from home is 3.9 percent
fore the pandemic started.
all employees worked remotely for months. And the transition was
of the total employment volume, meaning about 9 million employ-
made in one week. So, we know it is possible and we are still 100
ees, considering the Eurostat data for the countries belonging to
percent functional,” she says.
the CEE & SEE regions that took part in the CBRE Research survey.
In addition, the company conducted an internal survey in order
The country with the largest share of people who are used to with
to see how its employees perceived this matter after 3 months of
working from home is Austria, with 9.9 percent from total employed
working from home. The results were surprising: more than half of
individual, in contrast with countries such as Bulgaria and Romania,
them would promote remote work as the way forward, and more
where there are rates of 0.5 percent and 0.8 percent respectively.
than 80 percent want the flexibility of choosing their work location
“It is interesting to notice that even though Austria has the largest
(2-3 days per week from home, or even one week from home and
share of people who were familiarised with working from home
the next from the office). “Still, we know for sure that face to face
before the COVID-19 situation, almost 80 percent of respondents
interactions are still essential. They help us function better and
were confronted with the lack of a work-life balance. The office
build up team spirit and trust,” she concludes.
space as we know it will be more clearly envisioned as a separator
Asked whether work from home had the potential of becoming
of work and personal life and the place to meet with colleagues
the main form of work in the future for companies, Godean of re-
and business partners, as these two aspects were the ones respon-
cruiting company Adecco warns: “To put it simply: no, I don’t think
dents missed the most. A greater prevalence of working from home
so. Not the main form of work at least. I think companies had an
policies does not translate into occupiers taking up less space,”
epiphany during these three months about what functions can be
explained Andreas Ridder, managing director for CEE at CBRE.
managed from home. Keeping in mind that costs can be saved with
The same study says that in Romania, working from home
this solution, companies will certainly keep remote those activi-
www.business-review.eu Business Review | July 2020
COVER STORY 13
ties that proved productive while people were working from home.
(such as recruitment, onboarding or training). During this period,
As for the extent to which this will happen, it will differ from one
we continue to invest in learning and in the development of existing
industry to another. It’s hard to imagine healthcare, retail, heavy
skills, and even more importantly in emerging skills, relevant to
industry or agriculture workers doing their job remotely,” he says.
the new reality,” says Andreea Voinea, executive director within the
Keeping in mind that Twitter recently announced that all its staff
BCR HR Division.
would work from home forever, Godean says that Twitter, along
Asked about the moment when the lender’s entire staff would be
with many other digital & IT giants (even local companies), already
able to return to the office, Voinea says that the company will adjust
had the infrastructure in place to tackle such scenarios. Working
its plan based on the evolution of the pandemic. “In the meantime,
remotely was included in the benefits package at such companies.
only 33 percent of us will be present in the office at a time. We will
Nowadays, depending on the pandemic’s development, companies
be working in the office for 5 days every two weeks, until the end
must adapt accordingly and working from home will be a necessity.
of summer. Starting in September, we will have weekly rotation.
“Given the fact that com-
Each employee will work
panies that were 100 per-
1 week from the office and
cent office-based switched
1 week from home. Every
to fully remote work in
decision on this matter
a matter of days proves
will be balanced by the
that both employees and
COVID-19 situation,” she
employers are ready to
says. She adds that during
adopt it on a larger scale,”
lockdown, 85 percent of
he says.
BCR’s employees worked
On similar lines, Panait
from home. Though the
of Vastint says that despite
bank did use teleworking
the fact that we cannot
as a flexible working prac-
predict the evolution of
tice before the coronavirus
this virus, we can only
outbreak, it was not used
hope for the best and take
at a large scale. “Since
all the possible measures
flexibility is highly appre-
to continue our activ-
ciated by our colleagues,
ity. “It’s obvious that the
it will probably become a
number of employees
way of living in the new
and companies that have
normality. Therefore, we
started working from the
are surely considering
office again has increased
keeping some of these
in the last month since the
good practices in the long
state of alert has replaced the state of emergency, and this number
run. As a matter of fact, we’ve just launched an internal survey that
will grow due to the fact that the majority of us can no longer work
will help us understand how we can create a better workplace for
from home. The need to socialise and draw a line between our
the future,” Voinea says.
professional and personal lives is driving us back to the office, more
For Coca-Cola HBC Romania, choice and flexibility are at the core
than one study conducted during the pandemic period showed the
of its back-to-office strategy: each employee who has been working
importance of socialising and feeling a sense of belonging to the
from home throughout the pandemic can choose whether to return
community,” says Panait.
to the office or not. The company still encourages working from home, and it offers the support needed for its employees to perform
WHAT ARE COMPANIES DOING?
well at their job, regardless of the location they are doing it from.
Many companies operating in Romania have decided to slowly
“The new rules for returning to work are designed in a way that
resume their activity and the process of returning to the office is
protects workers’ health first. At Coca-Cola HBC, an entire team is
definitely a gradual one. For example, from mid-June until the
working to re-design office spaces and create the safe environment
beginning of September, employees from the BCR headquarters will
in which we want our employees to work,” says Ionita of Coca-Cola
spend one week at the office and two weeks at home, in a tele-
HBC Romania.
working regime, while in the branches, two thirds of staff will be
According to Ionita, pandemic-proof offices are the sole option
permanently present. “We also take from this experience the idea
for returning to work, and a gradual increase in the number of em-
of capitalising on the good things we have been doing during this
ployees coming back to the office will ensure business continuity.
period. For example, using teleworking to a greater extent and mak-
“All the actions we are implementing now are part of a long-term
ing it part of our way of being or moving some HR processes online
workplace planning, with hygiene and employee safety being at the
www.business-review.eu Business Review | July 2020
14 COVER STORY
heart of our strategy. Additionally, we always have in mind that all
media messaging is based on three indicators: relevance, features,
plans we are making should be quickly adaptable, due to the unpre-
and empathy. “The understanding of the level of empathy the user
dictable context,” says Ionita.
perceives makes the difference, especially in highly emotional
She adds that the workplace was a familiar, well-equipped and private place for employees to carry out their professional activi-
contexts,” he says. So far, total investments made by large shopping centres in all
ties. Now it can be described as a physical separation between col-
equipment, supplies, and staff needed to implement the measures
leagues. “The atmosphere in our offices was always very animated,
meant to prevent the spread of coronavirus exceeded EUR 500,000,
and we just love face to face interactions, whether we are on a Coke
according to Colliers International consultants. “For the safety of
break or discussing our plans. The new working patterns are very
shoppers, malls and shopping centres have taken all the necessary
different; they require physical distance and little interactions and
safety measures during this period and have established clear proce-
we assume they will linger for some time,” Ionita notes.
dures for disinfecting common areas and ensuring social distancing,
However, she warns that it is very difficult to estimate a date
and many retailers have also come up with additional measures in
when the company’s entire workforce will return to their offices.
their own spaces,” says Simina Niculita, Partner & Head of Retail
According to her, a gradual return and shifts are the concepts at
Agency at Colliers International.
the core of Coca-Cola HBC Romania’s back-to-office strategy. “A
Among the measures taken by large shopping centres are gates
maximum of one third
or special rooms to
of our total number of
measure visitors’
employees simulta-
body temperature or
neously in the office
systems that monitor
and organising shifts,
the total number of
allowing employees to
visitors inside the cen-
have at least 2 weeks
tre at any given time,
working from home,
so as to limit access to
are all part of our
others when the maxi-
starter pack.”
mum limit set by the authorities is reached.
WITH AN EYE ON RETAIL…
At the same time,
The same rule applies
ready to constantly
for the retail sec-
disinfect common
tor, where property
areas and escalators
managers play a vital
with specialised sub-
role going forward in
stances or UV lamps
taking the right steps
and provide visi-
to slowly rebuild con-
tors dispensers with
sumer trust and give
disinfectants, and as
shopping centers back
an additional measure
shopping centres are
to the clients. Hence, managers have already implemented safety
opt for the introduction of fresh air from outside instead of relying
and social distancing measures while not infringing upon the feel-
on previous procedures for recirculating air inside the centre.
ing of freedom and excitement, and this will redefine all areas of the
For example, Mega Mall became the first shopping centre in
malls. “The way we do marketing will be fundamentally changed
Romania to obtain the COVID-19 Certificate of Conformity. This
as we will redefine the customer journey, both physical and digital.
means that Mega Mall meets all the international sanitary standards
The level of technology in shopping centres has to increase with
and is able to provide a safe shopping experience to its customers.
a wide range of tools available. Operations will change with the
The certificate is issued by the independent Swedish company Safe
integration of technology and new health & safety standards,” says
Shopping Centres (SSC) specialised in the accreditation of the safety
Moraru. She adds that those malls that communicated even during
of shopping centres worldwide. The measures taken by Mega Mall
the lockdown and adapted their communication to the new normal
in order to prevent the spread of the coronavirus focus on two major
gained more trust from the public. “However, the consumption
pillars: ensuring a minimum of 2 meters social distancing and con-
habits built over the last months don’t have to be ignored or mini-
stantly disinfecting the commercial centre. Since the mall reopened
mised. Malls have to deliver messages where the consumer is now
on June 15, the safety measures taken to prevent the spread of coro-
used to get them, meaning online and on social media,” Moraru
navirus have been promoted on LED displays within the mall.
argues. On similar lines, Razvan Marincoi, marketing director for retail & office at CBRE Romania, says that the performance of social
The Vivo! centers in Pitesti, Constanta, Cluj-Napoca and Baia Mare, developed by Immofinanz Romania, are also following the
www.business-review.eu Business Review | July 2020
COVER STORY 15
measures recommended by local and national authorities. Cleaning
In this context, we have worked on developing and implementing
staff is mobilised at all times and works to sanitise and disinfect all
several policies and measures. For our employees, we have adopted
common spaces (halls, toilets, elevators, locks, handles). The com-
remote work and travel restrictions as primary measures, allow-
pany has started general disinfection actions by nebulization on
ing only necessary physical interaction, while of course following
common spaces, through the ventilation & acclimatization system,
all social distancing recommendations and very stringent hygiene
and has disabled air recirculation function in the centre to ensure
rules,” she says. The company also ensured that the working flow in
100 percent fresh air. Communicating safe shopping measures and
P3 Bucharest A1 park could continue smoothly and, in this context,
instructions for proper hand washing and sanitization throughout
together with the facility management provider, the company has
the visitors’ journey in audio, digital and print media, installing dis-
tailored a complex scheme to secure and guarantee the uninter-
pensers with hand sanitizer solutions at entrances and in the toilet
rupted provision of maintenance services and the good functioning
and restaurant areas, establishing
of its warehouses.
one-way traffic paths to ensure the
As for the level of investment
two-metre distance between visi-
made to ensure a safe environ-
tors are some of the measures that
ment for both its employees and
Immofinanz Romania has taken
its partners, Pardhan says that it
for its shopping malls.
is very difficult to measure the
“At the same time, we are
actual financial impact of these
working closely with shops and
measures as there are a lot of in-
restaurants to ensure safe op-
direct costs involved. “In this par-
eration. Management teams are
ticular unprecedented situation,
on-site daily to respond promptly
the short-term cost impact was
to requests from tenants and au-
not our focus. What was really im-
thorities. We are connected with
portant for us, as a private entity
our visitors on our social media,
and as humans, was to make sure
where they see information about
that the measures and policies
the additional measures they must
we adopted were protecting our
take in order to limit and prevent
team, our tenants, as well as their
coronavirus contamination. We
employees,” says Pardhan.
are also in permanent contact with
Asked about how the pandem-
authorities to promptly imple-
ic had influenced the volume of
ment any further measures and
activity of P3 Logistic Parks, Pard-
recommendations,” Dinu explains.
han says that the global outbreak of the novel coronavirus had cre-
….AND LOGISTICS
ated significant challenges for the
As for warehouses, the CBRE
business environment. Nonethe-
Romania Flash Call found that
less, the impact of the pandemic
stocking and transport (midstream
was experienced differently by
companies) have been privi-
each business, depending on the
leged during the COVID-19 crisis.
industry sector. “When talking
“Imagine warehouses being like
about the real estate market, in
Netflix: production is rather limited, cinemas are closed, but we are
a short and medium term, the industrial-logistics segment is the
all watching Netflix. Ecommerce has filled up the void generated
least impacted, as most of the businesses that have and continue
by traditional retail being closed through logistics, thus providing
to thrive during this period are e-commerce operations, which rely
a strong foundation for the long-term evolution of the sector. In
heavily on good quality warehousing space,” she says. With the
principle, the perspectives for this sector are optimistic going fur-
coronavirus triggering lockdowns and mandatory work-from-home
ther, yet distinctions between the future of each industry need to be
policies worldwide, generated-commerce adoption is now seeing
made, as the future will not be the same for everyone,” Iorgu stated.
accelerated growth. “On the leasing side, we have observed ten-
According to Sinziana Pardhan, managing director for Romania
ants generally acting more cautiously during this period. Some of
at P3 Logistic Parks, the past months have been exceptional. “Nev-
the expansion or relocation plans that were envisioned before the
ertheless, in our market segment, adaptability paves the road to
pandemic are now put on hold. Though not at the same levels as 4
business continuity and sustainable development. From the onset
months ago, there is still healthy demand from prospective tenants
of the coronavirus, the health and safety of our employees and
and we remain optimistic for the second part of the year,” Pardhan
business partners were, and will continue to be, our top priority.
concludes.
www.business-review.eu Business Review | July 2020
16 VENTURE CAPITAL
Movers and shakers in Romania’s VC market: Lessons from the first half of 2020 It is difficult to know how long the economic downturn caused by the coronavirus will last, but the amount of venture capital funding for Romanian tech startups during the first four months of pandemics looks decent. By Claudiu Vrinceanu risks not to be hidden, but communicated to others and understood. Besides healthtech, education, and RPA, cybersecurity is one field with major VC investments closed in 2020. “In the last few years, the complexity of cybersecurity threats has been on the rise. All analyses point to it increasing even more in the future. Clients of all sizes, small and medium enterprises especially, need solutions that are both effective and simple to use, manage, and understand. The complexity of the problem needs to be balanced by the simplicity of the solution,” said Cristian Munteanu, Managing Partner at Early Game Ventures. Such small businesses use managed service providers (MSPs) for all their digital needs, from Internet access to cloud storage, processing, and hosting. One example is CODA Intelligence, Early In the tech area, companies seem to be less affected by the current situation
M
Game Ventures’s latest investment, which adds value to small companies that have security or compliance issues by proactively
ore than 10 tech startups raised a
managers have been close to the startups in
signaling risks and threats. This approach
total of EUR 4.5 million in March
which they have invested and have sought
simplifies the management of computer
- June 2020, a level comparable
solutions. In a tight market situation, profit-
vulnerabilities in a process that becomes easy
to pre-pandemic times, but negotiations for
ability becomes more critical when evaluat-
to understand and may be prioritised by busi-
almost all the investments had their roots be-
ing current portfolios as well as potential
ness people without a technical background.
fore March 2020. Is the current situation quite
investments. Obviously, some solutions have
as gloomy as previous crises were for Ro-
been related to cost cutting, others have been
demic, investment funds focused on Roma-
manian tech fundraising? To have a realistic
attempts to take care of companies, founders,
nian tech want to continue what they started
assessment of the venture capital landscape,
and people in companies, and other solutions
to do a few years ago: investments in deep-
we should look to the evolution of deals in the
have been related to opportunities that may
tech companies, mainly companies based on
next four months.
arise.
services and products in the enterprise and
Who are the movers and shakers of VC
In the tech area, companies seem to be less
Despite the crisis generated by the pan-
B2B area, with great potential for internation-
funds in pandemic times? For many compa-
affected by the current situation, but it is very
al expansion. Of course, new verticals have
nies with growth potential, the pandemic
clear that we will see a resettlement of the
now appeared as opportunities generated by
can be “an academy” to reinvent themselves,
market. Investment fund managers predict
the current situation – we have an explosion
and the high-potential business verticals are
that in the near future – but not the very near
in e-commerce and investors have started
now healthtech, cybersecurity, edu-tech, and
future – we will see founders trying to tell
to look to this area as well. Perhaps these
agritech, according to VC fund managers in
their stories in a different way, addressing
verticals will be the next movers and shakers
Romania. Since March, venture capital fund
risks that may arise. It is important for these
of VC funds.
www.business-review.eu Business Review | July May2020 2016
COVER STORY FDI 17 14
How can Romania attract the FDI it needs to recover? As Romania posted a negative foreign direct investment (FDI) inflow in 2020, we should look at solutions for recovery in the short and medium term. Romania must act decisively to retain its attractiveness. By Claudiu Vrinceanu
R
omania had registered a decline of EUR 454 million in FDI by the end of April this year, compared to a posi-
tive figure of EUR 2.16 billion during the first four months of 2019. Foreign direct investments are projected to plunge by 40 percent in 2020 due to the recession caused by the COVID-19 pandemic. “Developing and emerging economies are expected to be the worst affected, with exportoriented and commodity-linked investments projected to be severely impacted. The decline in FDI may transform international production and increase sustainability,” said the United Nations Conference on Trade and Development (UNCTAD). The projections are based on UNCTAD’s 2020 World Investment Report, which estimates that FDI will decline below USD 1 trillion for the first time since 2005. FDI is expected to further decline by 5-10 percent in 2021. An alarming number
The decline in FDI may transform international production
of executives are pessimistic about Romania’s prospects post-COVID-19, with many believing that Romania is at risk of being less
intensive sectors is not guaranteed. The local
tion that should be on the map for potential
or much less attractive for investment. Of
economy needs a robust digital infrastruc-
investors,” said the president of the Foreign
course, all countries are likely to be less at-
ture, with fast and reliable connectivity.
Investors’ Council (FIC), Ramona Jurubita.
tractive for cross-border investment, not just
COVID-19’s impact on market demand
In this framework, what should be the role
Romania. One way Romania could act deci-
and operational capacity varies significantly
of Invest Romania, our investment promo-
sively to retain its attractiveness would be by
by sector and this influences FDI as well. A
tion agency, especially in the context of
investing in the technology, health care, and
global survey of investment promotion agen-
COVID-19? The focus should be on aftercare
environmental industries.
cies conducted by the World Bank revealed
to secure the portfolio of actual investors,
that supply chain disruptions were hitting
but government representatives should also
ogy and sustainability sectors in economic
production and revenues. This is resulting in
scout for potential investors, identify their
growth is not lost. Investors rank CleanTech
Capex and employment reductions in invest-
concerns, and facilitate their access to sup-
first in terms of its potential for economic
ment plans, particularly impacting manufac-
port services offered by local authorities.
growth across Europe in the coming years.
turing investments in the transportation and
Another priority could be the digitalization
The digital economy sector ranks second,
textile industries. “We need to have a much
of certain marketing services and creating a
and the health care and well-being sector is
more proactive approach to attracting foreign
new online platform to promote Romania.
third,” said EY representatives. But contin-
investment in the country and, at the same
This might be a good way to cope in the post-
ued investment in Romania’s technology-
time, work on Romania’s image as a destina-
lockdown recovery.
“The importance of Europe’s technol-
www.business-review.eu Business Review | July 2020
18 ROBOTICS
New trend to watch in post-pandemic Romania: Robotics By Claudiu Vrinceanu
The COVID-19 pandemic will accelerate new trends in Romanian business environment, including robotics. Whether we are talking about robotic process automation (RPA) or the automation of certain production processes, the post-COVID-19 reality in Romania will be based on new business models. The COVID-19 crisis has also created the context for an increase in automation across Romania. The main arguments for automation start from the need for companies to protect their employees, so that they are less vulnerable, and are based on Europe’s The global average is 74 industrial robots per 10,000 employees
A
intent to consolidate sustainably through local production facilities. What are the areas expected to see growth in the coming years?
s an example, the pandemic has gen-
Romanian entrepreneurs have offered robots
“First of all, robotics, especially in industries
erated a lot of demand for UiPath’s
to hospitals in Bucharest. The technology
still lagging behind in terms of the adoption
software robots to assist hospitals
used by the robot is effective in fighting
of robots, like the food, pharmaceutical,
with processing medical tests. Health care is
bacteria, viruses, and other pathogens. The
lighting industries,” said Costin Borc, Director
predicted to have a 36 percent automation
autonomous UVD disinfection robot, created
for Central Europe at SNEF. For example, ac-
potential. This means more than a third of
by Bucharest Promo Robots, the first startup
cording to IMSAT Groupe SNEF, the develop-
health care tasks—especially managerial and
in Romania addressed to the humanoid
ment potential of projects with industrial ro-
back-office functions—could be automated,
service robots market, destroys up to 99.99
bots is very high in Romania, which currently
allowing providers to offer more direct,
percent of resistant bacteria. “We are having
has 15 industrial robots per 10,000 workers,
value-based patient care at lower costs and
discussions with the Romanian authorities.
below the levels seen in Poland or Hungary.
higher efficiency rates.
Together with the Support Association, we
The global average is 74 industrial robots per
contacted representatives in the Internal Af-
10,000 employees, according to the Inter-
the physical kind, we have the example of
fairs Ministry’s Emergency Situations Depart-
national Federation for Robotics. Therefore,
autonomous disinfection robots using ultra-
ment and offered to make the robot available
in order to become more competitive at the
violet light to disinfect large and crowded
in some of the Bucharest hospitals that were
European level, Romanian industrial produc-
spaces. Normally, hospitals are very difficult
treating coronavirus cases,” said Ana-Maria
ers need new investments and projects in
to disinfect with traditional methods, so
Stancu, the CEO of Bucharest Promo Robots.
automation and robotics.
Also in the area of robotics, but this time
www.business-review.eu Business Review | July May2020 2016
COVER TECH TRADE STORY 19 14
Three strategies for tech trade in Europe: What Romania can learn The tech industry is keeping jobs and business going, but it is also keeping trade going at this really difficult time for the economy. We can learn from other states when we’re considering the best ways to promote Romanian tech around the world and working with partners across the globe to really boost our presence in overseas markets where we know there’s a rapidly growing demand for IT services and products. By Claudiu Vrinceanu
W
hether it’s edtech, cybersecurity, medtech or fintech, there are some good practices available
for governments willing to help founders get their products and services to global markets.
UK MODEL: FUTURE TECH TRADE STRATEGY One example of good practices for Romania comes from the United Kingdom, where The Department for International Trade (DIT) has launched the Future Tech Trade Strategy, a series of policies aimed at increasing tech trade with countries in the Asia Pacific region. One new tool for firms is the Tech Exporting Academy, which will provide advice to companies to help them expand. This is a
Japan is among the countries which will benefit by investments made in a network to help businesses go international
pro-bono service which will include information on regulation, compliance, legal, tax, and intellectual property. It will be carried
STARTUP SWEDEN: A BOOTCAMP PROGRAMME
out in partnership with professional services
Another good example for Romania is Startup
THE NETHERLANDS LAUNCHES TECHLEAP. NL RISE UNDER THE TECHLEAP.NL PROGRAMME
firms including Deloitte, KPMG, BDO, EY,
Sweden, a governmental initiative that ac-
With this new programme, Techleap.nl and
and Clifford Chance. All of these consulting
celerates the country’s most promising tech
top entrepreneurs are helping the most prom-
firms have offices in Bucharest as well, so
startups, helping them on their journey to
ising scaleups in the Netherlands to grow
the Romanian government could learn from
enter the global market. Striving to create
faster internationally. What is relevant for the
this practice in order to help tech entrepre-
environments where business flourishes, the
Romanian government is that the number
neurs, as well from the new DIT Platform
government offers several national and in-
of beneficiaries is very limited, with only 10
that will help firms attend international
ternational activities —all tailored to support
scaleups participating in the first batch. As
industry events and investor meetings. This
entrepreneurs. For example, the accelerator
part of the programme, entrepreneurs will be
virtual events platform will include virtual
programmes are free of charge and open to
put on the international map with corporates,
trade shows and provide online buyer/seller
tech companies across Sweden. During the
investors, and media. Founders are encour-
meetings and company/investor introduc-
Bootcamp, entrepreneurs will meet some 30
aged in groups of ten participants to also learn
tions. Moreover, a Digital Trade Network is
investors ranging from business angels to in-
from each other about the challenges of scal-
being set up by DIT and DCMS. £8 million
vestors as well as leading tech media houses.
ing up a company. They receive support and
will be invested in a network to help busi-
What is new and important for Romanian au-
feedback from top Dutch entrepreneurs who
nesses internationalise, focusing on Japan,
thorities is the fact the Swedish government
share their own insights and lessons learned
South Korea, Thailand, Singapore, Indonesia,
chooses entrepreneurs who have global ambi-
with the new batch of promising scaleups.
and Australia. This will involve tech experts
tions and want to share their experiences and
The Dutch government will help a new group
located in embassies and high commissions.
knowledge with others.
of entrepreneurs every quarter.
www.business-review.eu Business Review | July 2020
20 INFRASTRUCTURE
2020 could see restart in Romania’s infrastructure projects despite pandemic Romania has an historic problem in managing infrastructure projects, with long delays in signing contracts and difficulties in managing their implementation. But 2020 could be a turning point: a high number of contracts for motorways and express roads have already been signed, and state company CNAIR is preparing more major contracts for this year. By Sorin Melenciuc tween Wallachia and Transylvania – the SibiuPitesti section – has even poorer perspectives: there is only one small section under construction, another with a signed contract and three other subsections – the most difficult ones – still not even contracted. The Sibiu-Pitesti section is a difficult one as it crosses mountains, and experts forecast that this major project has little chance of being completed by 2030. But the worst situation in terms of infrastructure is in Moldova. Despite the fact that Parliament passed a law forcing the government to begin the construction of the Iasi-Targu Mures motorway, aiming to end the historical isolation of the province, the government has done little to speed up the project as it has no money to finance such expensive endeavours. Road infrastructure is usually a long and highly bureaucratic process before the real start of construction takes place
I
NEW MOMENTUM This year, as usual, the CNAIR manage-
f these projects are implemented, the
slow advancement of major motorway proj-
ment was changed, following the change of
next decade could forever change the
ects in Romania is the poor management of
the country’s ruling party. This change has
way this eastern European nation looks
state-owned road company CNAIR and the
unexpectedly had some positive effects over
politically unstable position of the Transport
the last couple of months, namely a surge in
minister.
the company’s activity. Currently, 164 km of
and moves.
GRIM REALITY
One relevant example is the new A10
motorway and expressway are under con-
Romania currently has 866 kilometers of
motorway, projected to connect southern and
struction in Romania, and at least 40 km will
motorway, a very poor record at the European
northern Transylvania and initially sched-
be completed this year.
level, as many smaller countries have man-
uled to be completed in 2016, is still under
aged to build much larger networks of mod-
construction, with works due to be completed
project implementation. Road infrastructure
ern road infrastructure. Despite the growing
this year (according to the Transport Ministry)
is usually a long and highly bureaucratic
public pressure and generous EU funds, the
or in 2021 (according to NGOs).
process before the real start of construction
government has made little progress with
Another significant aspect is the fact that
However, what really has changed is
takes place. To build a motorway section, you
infrastructure projects over the last few years.
Transylvania will still be cut off from the
need a feasibility study, a technical project,
In 2019, only 43 km of new motorways were
rest of Europe due to a 13 km interruption – a
and expropriations. These procedures were
completed.
missing link between Banat and Transylvania
accelerated this year, with new contracts
that will not be finished until 2023, accord-
signed for construction, but also for studies
to be completed will bring little comfort to
ing to most independent experts. In fact, for
and technical projects.
local and foreign drivers travelling around
this missing link, there is no official term of
Romania. One of the main reasons for the
completion. The other major missing link, be-
In fact, in 2020, the few motorway sections
In fact, two new contracts were signed for the A3 motorway in Transylvania, as well as
www.business-review.eu July 2020 Business Review | May 2016
INFRASTRUCTURE COVER STORY 14 21
one contract for a major section of the Sibiu-
already seen in the first quarter of 2020, when
data. Meanwhile, the member states with
Pitesti motorway. At the same time, more
Romania ranked among the few EU countries
the best road safety scores were Sweden (22),
important contracts for other important road
that recorded economic growth.
Ireland (29) and Malta (32).
projects (e.g. the Pitesti-Craiova expressway)
The detailed figures released by the Na-
But experts say the figures are disguising
tional Institute of Statistics (INS) showed that
an even bleaker picture. “In fact, the situation
Major steps forward were also made for
Romania’s gross domestic product (GDP), the
is much worse because the resident popula-
projects in Moldova, where three motorways
index widely used to measure the size of na-
tion is at least a million inhabitants below the
(A7, A8 and A13) are planned. Contracts have
tional economies, rose by 2.7
been signed for feasibility studies for most
percent in the first quarter of
of these roads, while expropriation proce-
this year compared with the
dures are more advanced than ever. Despite
same period of 2019, and by
this progress, Romania also needs structural
0.3 percent quarter-on-quar-
reforms to advance its infrastructure projects.
ter. The sector that triggered
Experts say that the missing link between
this increase was construc-
Transylvania and Wallachia, the Pitesti-
tion, which increased by
Sibiu motorway section, has little chance of
more than 32 percent year-
completion within the coming decade, and
on-year and contributed to
the main reason is incompetence.
about a third of the country’s
are in the final stages.
“Some sections of the Sibiu-Pitesti motorway could be completed within eight years,
GDP growth. According to experts,
but the entire project could take at least 15
infrastructure works have
years,” Pro Infrastructura Vice-President
had a major impact on
Ionut Ciurea told Business Review. Pro Infra-
these numbers. “From the
structura, an NGO that monitors infrastruc-
perspective of aggregate
ture projects in Romania, constantly criticises
supply, the growth of the
government-appointed administrators of
construction sector by 32.6
motorway projects.
percent year-on-year in Q1
“There is a lot of incompetence on the auc-
is outstanding, an evolution
tion side, with many weak task books. It takes
that reflects continued in-
a year just to launch an auction in Romania.
vestment flows in the econ-
Generally speaking, there is a lack of admin-
omy, especially before the
istrative capacity to manage large infrastruc-
incidence of the pandemic,”
ture projects,” Ciurea said. This unexpected
Andrei Radulescu, senior
surge in new projects and contracts is usually
economist at Banca Trans-
associated with public pressure but this year
ilvania, wrote in a recent
there is another clear reason: the coronavirus
report. This new momentum
pandemic.
for infrastructure projects is a necessity for Romania, and
PANDEMIC PUSH
not just in terms of facilitat-
With many economic sectors having expe-
ing transport. In fact, the
rienced a sharp collapse during the state
number of cars and trucks saw a quick rise
figure used by Eurostat (19.7 million),” Pro
of emergency, as they did in many other
in Romania during the last decade – and the
Infrastructura said of the EU data. “Statis-
countries, Romania needs to stimulate those
increase was associated with a surge in road
tics show that although the construction of
sectors that seem to be less affected by the
fatalities.
motorways is crucial, without radically improving safety across the existing infrastruc-
pandemic. Construction works in a country that desperately needs infrastructure could
DEADLIEST ROADS IN THE EU
ture, especially in places where people live
bring that much needed boost to a declining
According to official data, the poor state of
(building bypasses, eliminating black spots
economy, especially since many projects are
Romania’s roads has a huge cost in terms
and taking pedestrian and cyclist protection
financed through EU funds.
of lost lives. In 2019, the EU countries with
measures), Romania will remain in the last
the highest road fatality rates were Romania
place in Europe in terms of road safety,” the
investments in the development of transport
(96 road deaths per 1 million inhabitants),
NGO added. The European Commission esti-
infrastructure in Romania,” prime minister
Bulgaria (89), Poland (77), and Croatia (73),
mates the socio-economic cost of road deaths
Ludovic Orban recently said. This push was
according to the latest European Commission
in Romania at EUR 3 billion a year.
“The government aims to make massive
www.business-review.eu Business Review | July 2020
22 ENTREPRENEURSHIP
UiPath IPO set to boost local startup power UiPath, the automation startup with Romanian roots, may go public in 2021 in a move that would enhance the image of local entrepreneurs as generators of innovative companies that can quickly rise to valuations above USD 1 billion, reaching unicorn status. A successful Initial Public Offering (IPO) by UiPath would create a new generation of tech millionaires who could invest some of their wealth in the Romanian entrepreneurial ecosystem. By Ovidiu Posirca
The next big question for the startup valued at USD 7 billion is selecting the best stock exchange
A
software robot for every person: this
developed by UiPath is also used by corporate
startup could go in the black this year and
is the future envisioned by UiPath,
behemoths such as Google, Amazon, and
head for the IPO in 2021, the executive sug-
whose Robotic Process Automation
Bank of America.
gested. “That said, we are not putting pres-
(RPA) platform is already being used by 6,300
“There are many advantages of being a
sure on ourselves to accelerate plans to go
customers worldwide. The company is work-
public company, including easier access to
public. We do not feel like we are in a position
ing with half the Fortune 20 companies in the
capital, more acquisition opportunities, and
where we have to hurry,” says Dines.
US, as well as with government agencies such
new means to attract and retain talent. As a
as NASA, the European Medicine Agency, and
public company, we would certainly plan to
ued at USD 7 billion is selecting the best stock
several municipalities across Europe, accord-
utilise these benefits,” Daniel Dines, the CEO
exchange, where it could generate the most
ing to company data. Now, the startup wants
and founder of UiPath, told BR.
value for the business. The CEO has hinted
to reap the benefits of going public on an international stock exchange. The technology
Dines says that UiPath’s listing strategy has always been linked to its profitability. The
The next big question for the startup val-
previously that the NASDAQ could fit the bill. “When deciding on the stock exchange we
www.business-review.eu Business Review | July May2020 2016
ENTREPRENEURSHIP COVER STORY 14 23
will list on, we’ll give precedence to those
which would be excellent, because we are
stay as a technology. This could also bring
where a large part of our business is located,
talking about people with experience, money,
more attention from international investors
as well as our headquarters,” Dines told BR.
and with a startup mentality,” Ghenea tells
who could direct their funds to this region,
BR. UiPath is already providing the commu-
adds Litescu of Plant an App.
Local entrepreneurs questioned by Business Review suggested that UiPath was very
nity edition of its platform for small business
likely to carry out its IPO in the US instead of
and offers free access to RPA training via its
year, it would join a plethora of other unicorn
the European Union or Asia, because that’s
own academy. Dines says that more than
startups in the US, including Airbnb and
the market that generates a lot of its business
750,000 people around the world use UiPath
Palantir. One of the risks entrepreneurs have
and has covered most of its funding needs so
Community to learn RPA best practices while
to take into account is the ongoing medical
100,000 use UiPath Academy to learn core
crisis generated by the coronavirus. The
far. “That is a simple one, really:
RPA skills.
it will obviously be the NAS-
A success-
DAQ, as UiPath is already
ful IPO
If UiPath decides to carry out the IPO next
pandemic is still wreaking havoc across the world and the emergence of a treatment
so connected with the
is unlikely in the short
US tech environment
term. The US stock
and the appropriate
exchange has already
investors for such a
been battered by the
company are there
effects of the crisis
already,” says Marius
and a resurgence of
Ghenea, managing
the coronavirus might
partner at Catalyst Romania. Most of the tech giants are listed on the NASDAQ, so it would be a surprise if UiPath picked
spook investors. It’s not could
clear to what extent the
feed more
uncertainty surrounding
confidence to entrepreneurs that are just
the medical situation is going to impact the listing share prices for
another stock exchange, added Bogdan Lites-
starting a company or looking at ways to
cu, the founder and CEO of startup Plant an
scale it faster. “We believe that a successful
App. Meanwhile, Mihai Rotaru, the founder
IPO would send a positive message to B2B
different industries in different ways – some
of Neobility, suggested that the NYSE or even
enterprise software startups – in Romania and
are heavily affected while others are growing.
Asian markets could be an option.
beyond. Our hope is that it would send the
The tech industry is the biggest beneficiary
message that if you take a great idea, turn it
overall,” says Rotaru of Neobility. The leaders
tinue their journey with UiPath as managers,
into a best-in-its class product, and surround
of these companies also need to assess the
but they might invest in other Romanian tech
yourself with the best talent you can find, in-
diverse and somewhat contradictory impact
startups, ‘recycling’ the money in the same
vestors will see your potential and customers
of this crisis on their specific segment. This
Romanian startup ecosystem that they are a
will trust you with their business,” says Dines.
means that all future IPOs in the US and
these firms. “The current medical crisis has impacted
OPPORTUNITIES FOR THE ROMANIAN STARTUP INDUSTRY The founders and the core team of employees with stock options who have been on board from the start could get rich once UiPath goes public. The startup currently employs around 3,000 people. “Some of these millionaires will con-
part of, while others might decide to cash out and start their own entrepreneurial ventures,
The CEO of UiPath adds that the IPO could reaffirm the idea that automation is here to
elsewhere will need to take that into account, Ghenea concluded.
24 ENTREPRENEURSHIP
www.business-review.eu Business Review | July 2020
Coronavirus could be a gamechanger for Eastern European startups The ongoing medical crisis caused by the rapid spread of the coronavirus has led to dramatic short-term changes in the way we approach work, home, and leisure activities. In the wider Eastern European region, including Romania, the question is whether the current crisis will force a change in entrepreneurs’ mindset and pave the way for a new wave of innovation. By Ovidiu Posirca
Emerging competitors in Central and Eastern Europe are starting to challenge the dominance of Western European companies
www.business-review.eu Business Review | July May2020 2016
F
ENTREPRENEURSHIP COVER STORY 14 25
ixing some of the biggest problems in
internationally, but some new startups are
cording to the Financial Times. Meanwhile,
the world is among the most common
taking the global route and raising money
the European Commission, the executive
visions among startups looking to
from international investors.
arm of the European Union, has awarded
“They will pave the way for others to
around EUR 166 million to 36 companies
is already a problem keeping many decision
follow. To me personally, it doesn’t feel like
set to combat the coronavirus pandemic.
makers awake at night, while companies are
we’ve reached critical mass for this path to
Another EUR 148 million will be granted to
competing to find a cure for this disease as
become mainstream. At the same time, the
36 more companies set to contribute to the
quickly as possible.
coronavirus situation has added very strong
recovery plan for Europe.
disrupt a market or industry. The coronavirus
A record number of around 4,000
The coronavirus remains a problem for
elements to the foundation. In the Digital
business in general, but it’s not a gamechang-
Economy and Society Index (DESI), Roma-
startups and small and medium businesses
er, suggests Marius Ghenea, managing part-
nia ranks second to last. Without digital
(SMEs) applied to the EIC Accelerator pilot in
ner at Catalyst Romania.
competencies, entrepreneurs lack the basic
March, of which over 1,400 proposed inno-
tools to expand internationally. COVID-19
vations that were relevant to the coronavirus
very positively impacted by their clients’
has definitely changed that, both in terms of
outbreak.
behavioural changes, so we could see some
technology adoption as well as in planning
Another EUR 150 million was recently
of these startups quickly rising to fame and
ahead while taking digital transformation
allocated to this funding round, bringing the
fortune, but this relies on these changes in
into account,” says Litescu of Plant an App.
combined total to over EUR 314 million. The
“Conversely, some startups are being
behaviour being long-lasting and not just temporary adjustments due to the lockdown, for instance. On this one, only time will tell, but we are
Entrepreneurs who have been struggling
startups and SMEs selected for support come
for years and have built up resilience will
from 16 countries, including 12 EU Member
make a name for themselves on the
States, the UK, and 3 associated countries, according to
international market
already seeing some
once they
trends transcending
get the
the EC. Although it’s hard to tell how
the lockdown, so we are starting
many startups
to understand
will survive
what could be
the disruptive
the long-term
effects of the
changes,”
coronavirus,
Ghenea told
a survey by Paris startup
BR.
campus Station
Some 10,000
F, which polled
Eastern European startups have raised their first funding over the past 5 years, while 10 startups in Central and
investors about
miss-
the impact of the CO-
ing ingredi-
VID-19 crisis, brings some
ent, says Litescu.
good news, as it found that 94
This will happen despite the
Eastern Europe (CEE) have become unicorns,
medical crisis or any other daunting chal-
percent of VC-backed startups would survive
which means their valuation has topped USD
lenge a business owner faces at some point in
the next six months. “It’s a solid ecosystem
1 billion.
their activity.
that’s made changes, but really hasn’t been shaken up to the point of in-depth soul-
The coronavirus crisis presents a unique combination of opportunity and risk. “There will be a lot of market changes
EASTERN EUROPE STANDS OUT, EU BOOSTS HELP FOR FIRMS
searching,” said Roxanne Varza, director of Station F. Some 1,000 companies across Europe —
as large companies will either fail to adapt
Emerging competitors in Central and Eastern
or invest heavily in pivoting – so we might
Europe are starting to challenge the domi-
in France, Germany, and the UK — as well
soon see either acquisitions or market leader
nance of Western European companies, ac-
as in the US and Israel were represented in
swaps, with consumer trends changing
cording to a Financial Times ranking of the
the survey. Despite the crisis, almost half of
for the medium-to-long term. In any case,
1,000 fastest-growing companies. “We have
respondents said that they would maintain
Eastern Europe has a chance, but only if
seen a democratisation of startups — they can
their plans to expand into new markets.
entrepreneurs are brave enough to step up
be anywhere,” said James Wise, partner at
Moreover, startups continue to raise money.
and act fast. Time will tell, and we will see
London-based venture capital firm Balderton
Fundraising rounds were delayed for 40
that soon,” Mihai Rotaru, the founder of Neo-
Capital. “The access to capital and ability to
percent of startups during the crisis. That’s
bility, told BR. Few businesses in Romania
run off cloud infrastructure means the range
the share of companies that are trying pitch
are attempting to expand in the region or
of startup hubs has grown immensely,” ac-
investors for money now.
www.business-review.eu Business Review | July 2020
26 OPINION
OPINION Murielle Lorilloux, CEO Vodafone Romania
Digitalization has a big part to play in the economic recovery, to build a more resilient and inclusive society
The outburst of the COVID-19 pandemic has
ployees to work from home and took all the nec-
With the increase in traffic that we
raised up huge and numerous challenges for
essary measures to protect the health and safety
experienced on both the mobile and fixed
families, businesses, authorities, and society
of our field teams (network and operations), as
networks, we have accelerated investments in
at large.
well as our employees in retail locations.
a number of areas to boost network capacity in order to meet the growing demand. Our
At Vodafone Romania, we took rapid
For sure, in such unprecedented times, fixed
engineers have worked hard to maintain the
actions to ensure that our own business con-
and mobile communications have become vital
best network quality and increase capacity so
tinues to operate at full strength under these
infrastructures, supporting everything we need-
that mission critical and other essential com-
exceptional circumstances, while being able
ed to do. It became very clear that our mission,
munications during this period, such as voice
to fully support our customers and society in
more than ever, was keeping all our customers
and digital access to health and education or
general.
connected and providing them with all the com-
people’s ability to work from home, would not
munication services they needed to work, learn,
be impacted.
With the world under pressure and with
stay connected to family and friends, and have For our customers, whether businesses
constant uncertainties around us, we really
access to healthcare and emergency services. In
had to act fast and smart, while keeping in
a matter of days, we adjusted many of our flows
or residential, we focused on implementing
mind our top priority: protecting our team, our
and processes and implemented initiatives that
relevant offers which could benefit them in a
partners, and our customers. As an immediate
in normal circumstances would have probably
meaningful way, while widely applying a pro-
measure, we moved over 80 percent of our em-
taken weeks or months.
active approach in supporting them on a case
www.business-review.eu Business Review | July May2020 2016
COVER OPINION STORY 27 14
by case basis. We put all our efforts in sup-
can benefit from equal opportunities in a digital
dialogue with authorities regarding the legal
porting authorities, government departments
world. Through the COVID-19 crisis, education
framework for infrastructure, with special fo-
and healthcare institutions by providing the
systems around the world faced an unprece-
cus on legislation regarding the authorization
communications services they needed. The
dented challenge, leading to a sudden and large-
process for construction projects and regu-
Vodafone Romania Foundation immediately
scale switch to digital education tools. However,
lated tariffs for access on private property,
got involved in supporting priority healthcare
this shift has exposed vulnerabilities and gaps,
enabling faster construction and adoption of
and online education initiatives.
which risk leaving too many students behind.
new technologies countrywide. Also, including
According to Education Ministry officials,
telecom infrastructures in the European and
250,000 students in Romania have no electronic
national road construction plans as well as in
in kind during the first phase of the cri-
equipment allowing them to participate in the
county road and urban modernization proj-
sis through both Vodafone Romania and
remote education system and only 60 percent
ects is an essential step forward enabling and
Vodafone Romania Foundation initiatives
of the students have participated in online
supporting more efficient ways of deploying
amounted to approximately 1 million euros
courses during the lockdown. Connectivity and
our networks.
and exceeded 100 million euros across Europe
digital tools alone are not enough; people must
and Africa at the Vodafone Group level.
have the appropriate skills to take advantage of
Our donations of money and benefits
While our sector has been (and is likely
the digital society. The latest DESI 2020 Report
to be) less impacted by the crisis than some
start to rebuild our society, we realise that we
revealed that Romania lags far behind its EU
other industries, we are far from immune.
can only make this effort together and much
peers (ranking second to last), with less than one
In addition, COVID-19’s impact adds to the
more will be required from everyone. There
third of people aged between 16 to 74 having
poor industry performance in terms of return
are difficult weeks and months behind us and
basic digital skills, compared to the EU average
on capital and returns for shareholders, a
we all hope that the pandemic’s worst belongs
of 58 percent.
situation seen across the European telecom
For us, this is just the beginning. As we
sector for many years now. Considering the
to the past. However, we have significant challenges ahead, which economic forecasts just
BUSINESS ENVIRONMENT RESILIENCE. It’s
key role in 5G will play in the digitalization of
come to confirm. The European Commission
becoming clearer that digitalization is key for
the entire society, while also involving high
anticipates that the EU economy will be hit
companies of all sizes to continue to operate
investments from operators, government
this year by the deepest economic recession in
and to survive, and we need to improve the level
support is critical to ensure an efficient and
its history. Romania’s GDP is predicted to de-
of digitalization for SMEs especially, as they will
effective deployment of new technologies.
cline by 6 percent in 2020, while the unemploy-
be the engine of our economic recovery. Digital
License and spectrum fees should be rescaled
ment rate is forecast to reach 6.5 percent.
technologies not only enable businesses to be
and aligned with the Romanian ARPU, along
more competitive, improve their services, and
with a sustained co-investment programme
gain new markets, but also make them more
as a healthy public-private partnership. Very
equally exposed vulnerabilities in society,
resilient and adaptable to future challenges.
high capacity networks require a significant
business, and public services that we cannot
Looking again at the DESI 2020 Report, Romania
amount of network elements to be widely
ignore. It is vital for recovery plans to be fun-
ranks at the lower end of the EU in terms of inte-
available, therefore it is essential to take
damentally aimed at building a more resilient,
grating digital technologies in business.
advantage of the existing infrastructures by
At the same time, the COVID-19 crisis has
ensuring effective access to passive facilities
inclusive, and digital society for a better and more sustainable future.
PUBLIC SECTOR. While digitalizing the public
and wholesale fiber.
sector has been on the agenda for a long time, Accelerated digitalization must play a
the COVID-19 crisis has further revealed its ur-
These are important times for resilience
central role, recognising the essential contri-
gency, but also its potential. In just a few weeks
building. We must act quickly and decisively.
bution that digital infrastructure, services,
we have seen several positive changes and deci-
We must take this opportunity to enhance our
and tools have played for the vast majority of
sions enabling an extended digital interaction of
digital infrastructure, reduce the gaps and
people and businesses during the health crisis.
citizens and businesses with public institutions.
accelerate the digitalization of all our citizens,
We need to act with determination and set a
We need to make sure that this is not a revers-
businesses, and government services, to the
more comprehensive and ambitious digital
ible process and efforts must continue in order
benefit of society and for a more resilient and
agenda for Romania to create the necessary
to accelerate the provisioning of critical public
sustainable future.
legislative framework and to quickly imple-
services. eHealth and eEducation solutions
ment solutions for the use of digital tools. In
should be integrated into the “new normal”
my view, there are four key areas to focus on:
public service frameworks.
INCLUSION. Resilience must benefit everyone.
DIGITAL INFRASTRUCTURE. While being commit-
Every student and every citizen must have
ted to delivering our digital promise, we re-em-
digital access and digital skills so that they
phasise the need for a constant and constructive
Achieving this depth of transformation will require much closer collaboration between government, businesses, and citizens. Vodafone Romania is ready to play its part.
www.business-review.eu Business Review | July 2020
28 INTERNET
Internet and mobile data traffic grew by a third during the first two months of the pandemic During the 60-day state of emergency, data and internet traffic increased on average by 26 percent, i.e. by 30 percent on fixed networks and 5 percent on mobile networks, while voice traffic grew on average by 11 percent, compared to the 60 days preceding the introduction of the state of emergency, according to Romania’s National Authority for Management and Regulation in Communications (ANCOM). By Aurel Constantin
I
n the March 16 – May 15 2020 period, Romanian users consumed 1,800 PB (petabytes) of internet and data traffic (+30
percent compared to the previous period) on fixed networks, and 200 PB (+5 percent) on mobile networks. The bigger increase in data traffic on fixed networks may be related to the fact that most users were at home during the state of emergency, using Wi-Fi connections from fixed internet routers rather than mobile internet, including for the consumption of voice or data on mobile devices. “As we estimated since mid-March, the demand for electronic communications services registered exceptional upward trends in the 60 days of the state of emergency in Romania. However, the increases were tempered by European Commissioner Thierry Breton’s call for a responsible transmission and use of video streaming services such as Netflix, Youtube
By the end of 2019, Romania had 5.3 million fixed internet connections
or Facebook, so that the share of this type of traffic on mobile networks decreased from 55 percent to 49 percent during this period,” said
in the 2 months of the state of emergency,
fixed and mobile communications (internet
Eduard Lovin, the vice president of ANCOM.
I think that it is only now, in the aftermath
and telephony) consumption were from 6 to
of such a straining period, that we all realise
7 PM on March 22, 2020 – when the highest
emergency, call traffic increased by 11 percent,
the essential role that communications have
internet and data consumption was regis-
exceeding 13 billion minutes (97 percent on
in our lives and how important it is to have
tered on fixed networks, at 2.3 PB. It was the
mobile networks).
a sustainable infrastructure. Romania can
moment when the first restrictions imposed
As for voice traffic, during the state of
“In the context of the state of emergency
be proud of the way in which its operators
by Military Ordinance no. 2 on measures to
and social distancing requirements, com-
managed networks during this entire period,”
prevent the spread of COVID-19 were estab-
munication networks allowed us to keep in
stated Sorin Grindeanu, the president of
lished (closing malls and dental clinics and
touch with our loved ones, to work safely
ANCOM.
forbidding the entry of foreign citizens and
from home, to learn online; in short, to stay
stateless persons to Romania). The highest
connected to each other. Seeing that over
PEAK HOURS DURING THE PANDEMIC
voice consumption was on March 23, from
2,000 PB of data were transferred through
ANCOM estimates show that, during the state
11 AM to 12 PM, with 35 million call minutes,
communications networks in our country
of emergency, the busiest hours in terms of
when the Romanian president delivered a
www.business-review.eu Business Review | July May2020 2016
COVER INTERNET STORY 29 14
There were also 22.7 million active mobile
major statement. A similar consumption peak
HIGH-SPEED INTERNET CONNECTIONS
was recorded on April 19 (from 11 AM to 12
By the end of 2019, Romania had 5.3 million
SIM cards, of which 58 percent were sub-
PM), a traditionally busy time on the first day
fixed internet connections. Three quarters of
scription-based and 42 percent were prepaid
of Easter. Another peak was from 8 to 9 PM
those allowed very high data transfer speeds
cards. The average mobile telephone traffic
on March 25 – the highest internet and data
exceeding 100 Mbps. The connections and
per inhabitant was 4 hours and 44 minutes
consumption on mobile networks: 0.25 PB,
networks were heavily tested during the
per month, while the average SMS traffic was
when restrictions on people’s circulation outside their homes and the cancellation of some flights were imposed through
state of emergency, and they are now regarded as utility services and high-importance infrastructure.
Military Ordinance no. 3.
In 2019, the number
The data provided
of fixed internet connec-
44 units per month; these values are on a slightly downward trend, due to the growing usage of instant messaging apps and social networks. Orange had a market share of 39 percent and Vodafone had 30 percent, with the rest of providers totaling 31 percent. Fixed telephony maintained its downward
by operators show that
tions rose by 4 percent.
they generally com-
The average fixed inter-
trend in 2019, with 8 minutes per month as
net data per inhabitant
the average for fixed telephony traffic per
plied with ANCOM’s recommendation not to suspend services for bill payment defaults, so that even users with outstanding invoices and whose services should have
was 29 GB per month, up
inhabitant, down 17 percent. Telekom Group
14 percent compared to
is the leader of this market with a 40 percent
2018. The penetration rate of
share, followed by RCS&RDS with 35 percent.
fixed internet per 100 households was 64 percent at the national
There were also 7.6 million TV subscriptions, of which 5.4 million were cable TV
been suspended under normal conditions
level in 2019, i.e. 75 percent in urban areas
subscriptions. RCS&RDS had a market share
could have access to internet and telephony
and 49 percent in rural areas. Considering the
of 53 percent, Telekom Group had 17 percent,
services during the state of emergency.
number of fixed internet connections at the
and the rest of providers totaled 30 percent.
end of 2019, RCS&RDS had a market share of
Revenues in the telecom sector increased
DATA TRAFFIC DURING LOCKDOWN
53 percent, followed by Telekom Group with
by 3 percent in 2019, amounting to EUR 3.5
The first days of restrictions, in March, were
a market share of 21 percent, with the rest of
billion.
the busiest for companies trying to comply
providers totaling 26 percent.
with the new rules and to keep employees
On the mobile internet market, at the end
The mobile telephony sector generated 39 percent of all revenues in the market, the
working. For most companies, the change was made in 3 days, at the start of the restrictions, during which they made efforts to find ways for employees to work from home. But data communications didn’t move entirely from offices to homes. Even with empty or mostly empty offices, companies used their own servers to establish communication platforms and databases for their employees. “Many of the remote connections went through the companies’ servers, so the traffic was registered on their behalf, even though employees were connecting from
of 2019 there were 12 million 4G connections,
fixed and mobile internet segment accounted
home, using their internet lines,” said Vladan
up 4 percent from 2018. Of the total 19.9
for 30 percent, TV channel retransmission for
Pekovic, Technology & IT Director at Telekom
million active mobile internet connections in
14 percent, and the other services made up 17
Romania.
Romania, 4G covered 61 percent. The average
percent. The average monthly revenue from
mobile internet data traffic/inhabitant was
the telecom sector was RON 71 per inhabit-
traffic increased by 25 percent during the
3.7 GB per month, 41 percent above the previ-
ant. Considering the revenues obtained
lockdown compared to the period before the
ous year. According to ANCOM data, Orange
in 2019, Orange had a market share of 26
pandemic. Voice consumption went up by 24
had a market share of 39 percent, followed by
percent, Vodafone Group and Telekom Group
percent, with calls longer by 20 percent on
Vodafone with a market share of 25 percent,
of 24 percent each, and the rest of providers
mobile and by 50 percent on fixed lines.
with the rest of providers totaling 36 percent.
totaled 26 percent.
At Telekom, the fixed and mobile data
www.business-review.eu Business Review | July 2020
30 DIGITAL
Pandemic builds up companies’ appetite for digitalization Romania has been ranked among the last countries in the European Union when it comes to digitalization by several different studies, but this doesn’t mean that the country can’t move quickly towards higher rates of digitalization and catch up with the rest of EU, said Mihnea Radulescu, Enterprise Business Unit Director at Vodafone Romania, during the first Call4Leaders video conference, hosted by Business Review. By Aurel Constantin
T
he COVID-19 pandemic has affected many companies, some to a larger extent than others. “What we saw
during the state of emergency was that those companies that were more advanced in terms of digitalization were able to adapt more easily to the new reality,” said Mihnea Radulescu, adding that there were companies that found ways to continue operating and thrive in online sales even in the hotel and restaurant industries. One of the few good things that have come out of the COVID-19 crisis is that most companies are actively thinking about digitalization, online presence or automation. “At Vodafone, we have a large client base, from small and very small companies to large corporations. Sure, there are different levels of training, but the important thing is that we are seeing this desire for digitalization in all of them as they have understood what technology can do for them,” said Radulescu. The power to adapt was proven in the state of emergency when thousands of employees were switched to a home-working environment within a matter of days. It was not easy, work-from-home for many companies doesn’t mean just having a laptop and an internet connection to start working. For employees in call centers or those who still use a desktop computer at the office, setting
www.business-review.eu Business Review | July May2020 2016
COVERDIGITAL STORY 31 14
up at home was not an easy task. But the
ers, which ensure round-the-clock backup.
for IoT solutions, with sensors connected
results were incredible and companies whose
We even offered free data traffic to custom-
through mobile networks, which ensure not
employees could work from remote places
ers who were most affected by the crisis,”
only connectivity, but also business solu-
didn’t experience any pause in activity.
explained Mihnea Radulescu.
tions, increasing efficiency and productivity.” Radulescu noted. From automation to healthcare, there are IoT solutions for everything. “There are solutions that allow doctors to perform ultrasounds on patients online! Before the crisis, such things may have sounded like science-fiction, but now they can become a reality,” said Mihnea, explaining that the same types of automated solutions have also found their way into agriculture. By means of sensors and connected equipment, IoT can bring value to the business of any company, valuable information and data for their activity. “5G technology will allow us to make a leap in the machineto-machine (M2M) connectivity zone, with a latency that is close to zero. That will change the future, we will experience a new reality much sooner than we might expect,” he added. The challenge for all providers, including Vodafone, the leader of the Romanian IoT market, will be to bring these solutions to small companies. “SMEs are the backbone of the
“Connectivity or communication infra-
Vodafone was also asked for solutions for
structure has become a utility like water or
temperature screening in companies and in-
economy and we should help them when
electricity. Like us at Vodafone, all internet
stitutions, making sure that in case someone
they are in need, we should move the tech-
and communications providers saw their
had a fever when entering a building action
nology closer to them. Vodafone already has
data traffic rapidly increasing, especially on
could be taken quickly. The main opportuni-
solutions than can be customised to a certain
fixed lines, but the networks worked without
ties today are from Internet of Things (IoT)
level, but we need to offer even more,” con-
any problems,” noted Radulescu. Unsurpris-
solutions. “I see great appetite and potential
cluded Mihnea Radulescu.
ingly, Bucharest and Romania in general are among the best prepared places in Europe when it comes to working from home, mainly due to the quality of the communications infrastructures.
TECHNOLOGY FOR EVERYONE Companies’ requirements and needs related to the digital solutions have evolved during the pandemic crisis. “After a good setup for a home office, companies started to ask for more sophisticated things, like secure online environments or backup connectivity for remote employees. We already had backup solutions with mobile-connected Wi-Fi rout-
“CONNECTIVITY OR COMMUNICATION INFRASTRUCTURE HAS BECOME A UTILITY LIKE WATER OR ELECTRICITY. LIKE US AT VODAFONE, ALL INTERNET AND COMMUNICATIONS PROVIDERS SAW THEIR DATA TRAFFIC RAPIDLY INCREASING, ESPECIALLY ON FIXED LINES, BUT THE NETWORKS WORKED WITHOUT ANY PROBLEMS.”
www.business-review.eu Business Review | July 2020
32 COMMUNICATION
Podcasts taking over in business & entertainment From banking to e-commerce, marketing, retail or deco, any company can have a podcast these days, regardless of its size or international or local reach. Right now, there are more than 850,000 active podcasts and more than 30 million podcast episodes worldwide, in more than 100 languages. By Romanita Oprea
Diana Serban, D Communication
W
Silvia Mihailescu, ING Bank Romania
hy are podcasts a trend among
own blog page. Every journalist had a blog
not just entertainment. “Active people don’t
companies today? According to
as a side project and within a few years they
have time to consume active content (video
Robert Katai, content and com-
had turned it into a business worth millions.
or text). Active people love passive content,
munication manager at Bannersnack, the en-
Then the video revolution began, so compa-
the one that lets you do something else
tire content marketing ecosystem is based on
nies started to also look at video marketing.
while you are listening to your favourite new
two important elements: content creation and
YouTubers became the new celebrities of the
episode. And when brands know how to serve
marketing strategy. And when we think about
internet and video consumption was on the
their consumers’ interest in an audio format,
content creation, we should keep in mind that
rise,” said Robert Katai.
they will win in the podcasting world,” Katai
there are four types of content: text, photo, video, and audio. “There was a time when blogging was on the rise. Every company had started their
As he notes, we are now witnessing an audio revolution. Between video and text, audio
added. Andreea Vrabie, the host of DoR’s “Pe
is giving the consumer a sense of belonging.
bune” podcast, knows how to put things into
People love to consume podcasts because it’s
perspective and reminds us that podcasts
www.business-review.eu Business Review | July May2020 2016
COMMUNICATION COVER STORY 33 14
have been trending globally for some years
podcasts trending in our country,” said Pe
have higher incomes. And that makes them
now. It was the investigative journalism pod-
bune’s creator.
a great audience if your marketing strategy
cast Serial launched in 2014 that opened up
In turn, Silvia Mihailescu, marketing and
is aimed at this kind of segment. “The fourth
podcasts to the mainstream audience through
communications director at ING Bank Ro-
reason is that podcast consumers are a holy
the compelling story of Adnan Syed, a teen-
mania, says that in the “right now” context,
grail when it comes to advertising – around
ager who might have been wrongly accused of
namely the COVID-19 pandemic and the
70 percent remember brands and products
murdering his girlfriend in 1999.
lockdowns we’ve had all around the world,
from podcast ads and a similar number make
podcasts have become a hot trend, includ-
a purchase after hearing an ad in a podcast,
can listen to them while doing other activi-
“What makes podcasts unique is that you
ing due to the fact that it is so much easier,
according to IAB.com. So as a brand, although
ties: commuting to work, jogging, cleaning
cheaper, and quicker to produce audio ads.
you’d pay more to get to a podcast audience
the house. You don’t have to allocate time
And many brands – especially those outside
when it comes to CPM, you would reach a
to them like you do for books or TV series;
Romania – have chosen to produce podcast
very engaged audience, who is very loyal to
the time is already there and you can fill it
ads in a maximum of two days rather than go
the show’s host and to the topic,” said ING’s
up with information. I think this is what has
for TV campaigns that would have required
representative. According to Diana Serban, owner of D Communications, podcasts are a trend because they exploit a sense we haven’t used very much in marketing until now: hearing. It is a communication channel that can be accessed anytime and anywhere, and the attention span is huge. Moreover, the content is engaging and convenient for listeners, there is a mobile-friendly content option, with audiences that are very loyal (podcast listeners are 20 percent more likely to connect with a brand on social media). In other words, podcasts are a very good tool to create awareness and engagement. “Last but not least, I’d say brands are also doing more
made podcasts trend internationally: people
several weeks. Therefore, in terms of easily
around podcasts because they trust them
realised that they could use the time they
adapting to a crisis and producing something
more – we’re seeing more investment on this
already had to learn something, to listen to a
quickly, podcasts worked like a charm.
side from both a content and a measurement
good story or just to entertain themselves,”
“Looking at the bigger picture on why
perspective,” Silvia Mihailescu explained.
explained Vrabie. She believes that pod-
podcasts in general are becoming more rel-
casts in Romania are still in the beginning,
evant for companies, there is another simple
THE CREATION PART
although they have been picking up traction
reason: people nowadays watch and listen
There is a long distance between knowing
in the past year. “There are lots of shows, I
rather than read and write. So, in addition to
how and why podcasts work to actually
think over 150, but the audience is still small,
the existing “easy to watch” channels, we are
creating one. Building real storytelling is not
in the thousands. Most Romanian podcasts
now going for the ”easy to listen” one – which
easy and requires some steps and inspiration.
(about 90 percent) are interview podcasts, so
is a podcast, both for internal and external
First of all, one has to define the message or
we still lack diversity. When we have more
communications,” said Silvia Mihailescu.
messages they want to deliver, as a brand,
narrative or fiction or investigative journal-
The third reason, and something that it
through the podcast. Diana Serban recom-
ism shows, that could draw a larger and more
is important for every brand, is that podcast
mends that the message not be extremely
diverse audience, then we could talk about
listeners are in general better educated and
commercial because people feel when you’re
www.business-review.eu Business Review | July 2020
34 COMMUNICATION
voice (a laugh, a sigh, a pause that tells you
trying hard to sell them something. Listeners
In Robert Katai’s mind, it’s very impor-
will tune out quickly if you treat your podcast
tant to have your own voice and have a story
something) and it creates a sense of intimacy
like a 30-minute sales spiel. “Telling stories
to tell. “Other podcast creators are always
because you can’t see that person, it’s just you
that involve your products or brand values
asking me why they should create a podcast,
and the story they are telling thorough your
is more efficient that explicitly talking about
and I tell them it’s because no one can tell
headphones and it’s more easy to connect
your products. Because in this way you man-
your story the way you tell it. We need more
with them and their story,” Andreea Vrabie
age to get people’s attention in a noninvasive
stories in our lives. And guess what, there is
concluded. How does one create high quality
way. While paying attention to the story, they
a story at every corner, in every discussion,
content with a podcast? In Serban’s opinion,
are in touch with the brand too. The purpose
every day. All you have to do is go out, find
there is nothing more creative than authentic-
is not necessarily to sell through a podcast,
them, give them a voice and let people know
ity. The key is to avoid reading text, because
but to be inside the consumer’s mind almost
about them. Just think about how a story
people will get bored. They want to listen
all the time or as much as possible,” said
was told back in ancient times. It was word of
to your true opinion on a topic, they like to
Serban.
mouth marketing, right? Well, that’s exactly
feel when you have doubts about something,
what podcasting is today. You will hear a
when you laugh… this is the way you can
good story and you will make sure to tell
spice up your podcast. “Don’t be afraid to
“To me, it is the overall Listener Experience (LX) that matters. And yes, there is a
stutter; it is so normal and human that nobody will take it as a bad point. The most creative podcasts are those that get the listener very close to a raw experience. Sound effects make a huge difference. For a professional podcast, I recommend that you work with a professional team who can help you properly record and edit your podcast,” said Serban. Coming back to the Listener Experience, ING’s representative reiterates some very important aspects: knowing the audience, showing empathy, running your research (and having that data), being consistent, fun, and keeping that red thread across your episodes. “What I’d say could make it or break it is understanding how audio works name for it nowadays, because it is really
everyone about it. Because it’s helping you
as a medium. And here I see radio people
important. Keeping the audience hooked
have a better position in your community,”
and agencies who have worked with audio
and engaged takes a lot of work. As usual,
said Katai.
publishers as having both an advantage and
a great experience starts with empathy,
“You want to put in all the ingredients
the responsibility to educate everyone else.
understanding the audience and its needs,
that make a good story: you want to hear and
Because audio content is more immersive, it’s
not just trying to do something “because you
“see” (describe) the characters, to imagine
right there between your ears, it needs to be
think it’s important” or “because you have to
the place where they are, you want details
addressed differently than TV and social me-
sell it”. Then obviously, like with video, you
about the events they are talking about, you
dia. And I am not just talking about exploring
need your data to build the story – and this is
want action that moves the story along, you
3D audio, but also about understanding how
a bit of a challenge, because podcast & audio
want them to convey emotion and to impart
our brains are wired to listening to informa-
data is both all over the place and nowhere.
knowledge, and as a listener, you also want to
tion in a certain sequence, how low and high
But the audio industry is getting a bit better
feel transformed after listening to the story.
tones help us remember things and more. One
at this. Other important aspects are that you
So, from this point of view, podcasts are not
of the first things I’d probably recommend
need to think a bit in terms of episodes, and
that different from any other media (text,
to someone who’d love to start a podcast
envision the red thread for your audience,”
film, TV shows). But audio has the advantage
would be to understand how audio works in
Mihailescu argued.
that you can hear the emotion in a person’s
general,” Silvia Mihailescu argued.
www.business-review.eu Business Review | July 2020
ENVIRONMENT 35
Waste management, recycling, and the circular economy at the 2020 Environmental & Sustainability Summit Waste management, clean water, forest protection and restoration, recycling, and the circular economy are among the most important topics in the European Union today, and they were all discussed at Business Review’s recent Environmental & Sustainability Summit, which brought together representatives of the European Commission, Romanian authorities, and large companies. By Aurel Constantin
T
he coronavirus crisis has shaken the world to its core and has tested healthcare and welfare systems as
well as the entire society. But, as Marius Vascega, the European Commission’s Head of Cabinet for Environment, Oceans and Fisheries, says, “we cannot lock ourselves into obsolete technologies and business models from the past.” He pointed out that the EC was putting forward a two-fold response: the Next Generation EU, a EUR 750 billion recovery instrument from 2021 to 2024, and the long-term budget for 2021 – 2027, worth EUR 1.85 trillion. In Romania, the environmental fund’s budget for 2020 is the largest in history at
In Romania, the environmental fund’s budget for 2020 is the largest in history
RON 2.8 billion, as Mircea Fechet, State Secretary at the Ministry of Environment,
STEPS IN THE RIGHT DIRECTION
and vegetables, but for health-safety reasons,
Water and Forests pointed out at the Sum-
Over the last 2 years, many companies have
many goods must be packaged, so we ended
mit. “Romania joined the group of European
adopted sustainability as a business model.
up using more plastic,” said Emanuel Par-
Union states which have accepted the fact
“There are certain measures that we take for
vulescu, Head of Environment at Cora.
that the coronavirus pandemic should be a
a sustainable model that will reduce the neg-
driver for the economic recovery of the Green
ative impact on society,” said Valer Hancas,
for efficient recycling, which could lead us
Deal. “The fact that we have accepted this
Corporate Affairs & Communication Director
to a circular economy,” said environmental
political decision at the government level
at Kaufland Romania & Moldova. Last year,
expert Ionut Georgescu. But as the crisis has
and that ministers understood that it was
the retail chain introduced the measure of
given us a new perspective on life and we
very important to join these states is some-
selling food bags instead of giving them out
have realised that we can be just as happy
thing that will help us a lot in the future,”
for free and decided to get rid of disposable
while consuming less, it has also given us
said Mircea Fechet. But the Green Deal is not
bags. “The consumption per customer was
reasons to trust technology. “I believe that
and the recovery plans are not yet finalised.
about 80 bags per month and we hoped to
technology and digitalization can change this
“The recovery plan has several loopholes that
reduce the number of disposable bags by 30
industry much faster than local authorities
need to be remedied. For example, there is no
percent. The surprise was that 2 months after
can. That is why, within the FWEI group, we
approach to pollution with toxic substances,
implementation, the use of disposable bags
focus on technology,” said Ionut Georgescu.
which is a major threat to our health. Also, the
was down by 65 percent,” said Hancas.
“In Romania, we still don’t have a system
He also announced a new educational
loss of biodiversity through habitat destruc-
Unfortunately, the pandemic has forced
project, called The Movement for Recycling, a
tion is not mentioned, although it is listed as
some environmentally damaging measures
project developed for social media and meant
the main cause for new types of diseases,”
to be taken. For example, retailer Cora said
to convince as many people as possible to
said Raul Pop, Program Manager at ECOTECA
that, for health-safety reasons, they had to
take action, to be responsible, and to change
Association, a member of the European Envi-
pack more fruits and vegetables than usual.
their perception of selective waste collection.
ronmental Bureau.
“We wanted to sell more unpackaged fruits
www.business-review.eu Business Review | July 2020
www.business-review.eu
36 CULTURE Business Review | May 2016
COVER STORY 14
Reshaping cultural businesses With all major events cancelled, cultural businesses have had to resize and reinvent themselves for both the public’s safety as well as for the creative act. So, who is reshaping cultural experiences? By Oana Vasiliu old musical traditions in the Balkans is the Vasko Atanasovski Adrabesa Quartet, which brings together musicians from Slovenia, Italy, and France. (…) This is just a part of the line-up. Other musicians will confirm their participation,” says Marius Giura, director of Garana Jazz Festival.
Rocanotherworld vibes
FILM MUSIC
a few hours. (…) For this edition, we wanted
TIFF is going to take place in Cluj-Napoca
Rocanotherworld Festival decided to stay on,
to bring some of the most valuable music
between July 31 - August 9. “The public
and the event took place on June 25-28 in Iasi.
projects currently available in European
should expect a TIFF-boutique festival,
“The biggest challenge would have been can-
jazz. I invited the David Helbock Trio from
which will have an adapted programme but
celling this year’s edition of the festival alto-
Austria, the Quadrivium quartet from Ger-
will keep the characteristics the TIFF brand
gether. We have decided to carry on, to show
many, whose leader is the trumpeter Markus
has demonstrated in its 18 years so far. Of
ourselves and our audience that, regardless
Stockhausen, one of the best in the world.
course, the festival will look different because
of the context, we will keep this time and this
(…) Also from Germany, a duo formed by Ger-
of the safety measures we must take for
place that are very special to us. Besides that,
man pianist Edgar Knecht and the holder of
the audience, so there will no longer be the
it is obvious that reducing a 40,000-visitor
two ECHO Jazz awards – trumpeter Frederik
same crowds, there will be fewer guests and
event to one with just 2,500 attendees, with
Köster. (…) Another project that started from
parties, and some concerts will not be able to
just one stage and only 3 bands performing each day, leaving out the art, food, and many of the other aspects we had developed over the years weren’t easy decisions to make, but we had this opportunity and we decided to seize it, with all the safety measures required,” Patricia Butucel, Rocanotherworld Festival Director, told BR. Garana Jazz Festival is also due to take place between August 6-9. “We had to rethink everything. (…) We gave up two of the three stages: the Catholic Church in Valiug and the courtyard of the La Rascruce inn, which had too little space to allow us to maintain the required distance. Then we had to limit the number of attendees to 500, and that meant that the tickets were sold out within
Garana Jazz Festival outdoor accommodation
www.business-review.eu Business Review | July 2020
CULTURE 37
Drive-in cinema experience in Snagov
Ideo Ideis outdoor activities
NEW EXPERIENCES: DRIVE-IN CINEMA Bucharest residents can attend outdoor events in two locations – Event Park Snagov and Romexpo – which were redesigned as drive thru cinemas. “Event Park Snagov is a brand and concept which was developed and created during the lockdown and launched on June 1. It was meant to be a highly adaptable concept, ready to be turned into a location where you could organize all kinds of outdoor events, not just a drive-in cinema, but also concerts, stand-up comedy shows, outdoor parties, and many more. As for the screen, it was built during the lockdown, at the beginRomexpo offers drive-in cinema experience
ning of May. DriveIn Romexpo is the second outdoor event space, created by UNIVERSUM
take place. But the TIFF spirit will be there, it
located in any of Romania’s big cities, but
in partnership with Romexpo and Arena
will be an authentic edition, with many good
in Alexandria, a city that’s infamous for not
Events, which will initially have 183 seats
films, including Fellini’s most famous pieces,
having a library nor a theatre. For this year’s
available and a large FULL HD LED screen. It
screened from restored copies. We will make
edition we decided that since it would be
is a new experience at the heart of Bucharest
the closing more informal, in Unirii Square –
impossible to bring everyone together for the
and it is the largest space built for drive-in
the public can certainly expect warmth and
festival, we could be the ones going to them,
events in the city. The drive-in features a wide
familiarity,” says Tudor Giurgiu, the president
as a way of saying thank you for being a part
range of films, from new releases to old clas-
of TIFF.
of IDEO IDEIS for 15 years, by bringing the fes-
sics, as well as live concerts on the big screen.
tival to the participants’ home towns. Instead
Both DriveIn Romexpo and Event Park
THEATRE
of one big anniversary event, the festival will
Snagov were conceived as escape options
IDEO IDEIS Festival, which celebrates its 15th
take place in 9 cities in Romania at the same
from the urban bustle. At a drive-in, one
anniversary this year, will take place as usual,
time, and instead of having a few larger ven-
can have privacy and a feeling of freedom;
between August 5-9, but in a new version,
ues, we will have several small venues where
from inside the vehicle, they can adjust the
happening not just in Alexandria (Teleorman
small groups of people will get together. We
volume, air conditioning and heating to their
County) but also in Baia Mare, Botosani, Bu-
are happy that the festival atmosphere is so
own preference. It is a truly an alternative
curesti, Buzau, Campina, Roman, Sibiu, and
effervescent that we are reasonably confident
form of entertainment: cinema plus dinner in
Timisoara. “We haven’t resized the festival as
that the 9 festival capsules will be able to rec-
the same place, with comfortable and quick
much as we’ve “decentralised” it. It’s all the
reate part of the atmosphere in each of these
access, while keeping the distance recom-
more interesting because IDEO IDEIS wasn’t
cities,” explains Oana Furdea, the director of
mended by the authorities,” added Cristian
a very central festival to begin with; it’s not
IDEO IDEIS.
Hossu, managing partner at UNIVERSUM.
www.business-review.eu Business Review | July 2020
www.business-review.eu
38 TIFFReview | May 2016 Business
COVER STORY 14
The state of TIFF: On screen with Mihai Chirilov The Transylvania International Film Festival (TIFF) has managed to resize and yet still offer the cinema experience to cinephiles, as it has been doing for the past 19 years. While details were still being worked out for the July 31-August 9 period, Business Review talked to Mihai Chirilov, TIFF’s artistic director, about the state of cinema during the pandemic. By Oana Vasiliu in the darkness of a movie theatre and adapt to the new reality and rules in order to take this tradition further. It remains to be seen whether the drive-in experience turns out to be satisfactory – in my opinion, I think that you can only see a certain kind of film from your car, which has to be technically adapted to this limiting viewing mode.
What’s not to be missed this year at TIFF? Federico Fellini’s retrospective, 100 years after the birth of one of the most special filmmakers who ever existed. The opportunity to see Fellini’s masterpiece La dolce vita on a giant outdoor screen seems unmissable to me – and the kind of ironic but therapeutic counterpoint to the immediate reality, in which life is not necessarily as sweet as it was before. There are also the new films by cinema mae-
You are going to resize the TIFF. What should we expect in terms of the film selection?
main competition (open to young directors at
stros Roman Polanski, Arturo Ripstein, Ale-
their first or second film), and the classic sec-
jandro Amenabar, Marco Bellocchio, but also
tions Supernova, Full Moon, No Limit, What’s
this year’s Berlin Golden Bear, There Is No
Inevitably, the TIFF budget has suffered,
Up, Doc?, 3x3, Hungarian Day, Film Food,
Evil. The Barefoot Emperor, a sequel to King
and some sponsors have withdrawn as they
EducaTIFF, spotlight on national cinema,
of Belgium, which opened at TIFF a few years
reviewed their priorities. The restrictions in
retrospectives, Fellini homage, cine-concerts,
ago, is a welcome infusion of humour and so-
place and the anticipated maximum capac-
and special screenings.
cial comment on today’s Europe. The Hungarian film Eden is a limiting, visually splendid
ity of 30-50 percent in cinemas require not
experience, about life in isolation. Screenings
including the disinfection of spaces and the
What is cinema going to look like after the pandemic? Are we moving online or is the movie theatre experience still the preferred option? Is drive-in cinema returning?
longer time intervals between screenings in
I have no idea what the post-pandemic cin-
50 years ago, to which most of the essential
order to lower the risks for the public. Many
ema will look like. Maybe some will take this
filmmakers of Romanian film contributed, are
of the planned new sections of this year’s
as a challenge and rethink the production pro-
all unmissable events for any film lover. I’ll
TIFF will be carried over to the next edition,
cess and the stories as they happen. Others
also mention the cine-concert with Murnau
while the number of films in each existing
may continue to tell their stories as if nothing
Faust’s masterpiece, the 3D documentary
section has also been reduced – but we have
happened. Some may move online while
about choreographer Merce Cunningham, the
tried to maintain the basic structure of the
others will prefer to stick to the general idea
Costa Gavras mini-retrospective, and last but
festival, which is familiar to our fans: the
that a movie can only really be experienced
not least, Cristi Puiu’s new film, Malmkrog.
only a reduction in the number of films (by about 25-30 percent) and cinema-goers, but also a reconfiguration of the programme, to facilitate the introduction of safety measures,
in restored versions with Lucian Pintilie’s Libra (Balanta), David Cronenberg’s Crash or Water as a Black Buffalo, the documentary about the devastating floods that happened
