BR/07/2020

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