BR/08/2020 by Business Review

WHERE ROMANIA TALKS BUSINESS August, 2020 / Volume 24, Issue 7

www.business-review.eu

M&A TRENDS IN THE FIRST HALF OF 2020: WHAT CAN WE LEARN?

STARTUP MINDSET GAINING CLOUT IN LOCAL CORPORATE CULTURE

ROMANIA CAUGHT IN THE MIDDLE OF THE US-CHINA COLD WAR

WHY A BRANDâ&#x20AC;&#x2122;S RELEVANCE MATTERS AS MUCH AS ITS REPUTATION

BUCHAREST EMBRACES ITS SMART CITY FUTURE

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

EDITORIAL 3

• Editorial •

COVER STORY

Anda Sebesi • Editor-in-Chief • 6 Bucharest embraces its smart city future

ENTREPRENEURSHIP

Think big and act smart

ondon, New York, Amsterdam, Paris, Reykjavik, Tokyo, Singapore, Copenhagen, Berlin, Vienna. What do they all have in common? According to IESE Business School’s

Center for Globalization and Strategy Index, they were the top ten smart cities in the world in 2019, out of 174 cities from 80 countries

16 Startup mindset gaining clout in local corporate culture

18 Romanian market ready for new delivery startups

MACROECONOMY

around the globe. Cities were analysed across nine dimensions: human capital, social cohesion, economy, environment, governance, urban planning, international outreach, technology, and mobility

26 Romania caught

and transportation.

in the middle of the US-China cold war

Growing populations overwhelm the world’s mega-cities, urban sprawl eats up surrounding nature, congestion causes chaos, and

pollution suffocates even the most futuristic cities. While there is no cure-all for these problems, the world’s rapid digitalization may offer an answer: the smart city. Bucharest has made significant progress towards becoming a smart city in recent years, yet it is far from being ready to join the league of top smart cities worldwide. The first edition of the Smart City Index Report, released by IMD and the Singapore University for Technology and Design last year, ranks Bucharest 85th out of 102 cities. But the recent progress is important, and a step-by step approach is best in a context where rapid technological change has an increasing impact on our day-to-day lives. At the moment, the

28 Why brand’s relevance matters as much as its reputation

30 Efficient communication strategies for [today’s] financial brands

CITY

Bucharest City Hall has six major focus areas to make Romania’s capital a smart city: mobile apps, modernising public transportation, reinforcing builidings, non-reimbursable funds, infrastructure projects, and healthcare. But it doesn’t really matter how good the vision for the development of a city is. If it cannot be translated

34 What’s next for contemporary art?

36 Romania’s version of

into something practical through well-articulated strategies, failure

a staycation: Resizing the tourism business

will be inevitable. So think big and act smart!

38 Cultural calendar

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

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4 NEWS

WHO’S NEWS BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at mihai.cristea@business-review.eu

Ioana Boca was appointed Director within the Financial Advisory department of Deloitte Romania. She has 12 years of experience in financial consulting, mergers and acquisitions, and audit. She was involved in more than 100 due diligence assignments, on both the seller and buyer side, independent business reviews, due diligence engagements for refinancing purposes, and carve-out projects. In 2016 and 2017, Ioana spent a year and a half in London, working for Deloitte UK. She holds a Bachelor’s degree in International Business and Economics from the Academy of Economic Studies in Bucharest.

First phase of brand new mountain resort in Romania to open in 2021 By Oana Vasiliu

Murotti Valley will be an integrated resort with a potential of up to 1,000 villas

Alessio Karkhi and Nicu Ha-

(35 units). Two restaurants and

the region. Our objective is

givreta, two well-known local

a hotel with spa, pools, and gym

to develop a new mountain

businessmen, have started the

will also be included in the first

resort, with multiple facilities

development of the Murotti

phase of the project. All the nec-

and leisure options. We started

Valley tourist resort, located in

essary infrastructure will be also

our project from the need for

the Roman Peak (1,850 m) area,

completed in the first quarter of

an integrated mountain resort

17 km from Horezu (Valcea

next year. Overall, Murotti Valley

in Romania, a country with so

county). The first phase of

will be an integrated resort with

much natural resources and at-

the project will be delivered

a potential of up to 1,000 villas

tractions but with little tourist

starting with Q1 2021 and

and a wide range of facilities and

value from a product perspec-

will comprise 74 villas and

leisure options for every season,

tive. We want to develop the

other facilities, following an

from 50 km of ski slopes to shop-

local tourism sector and bring it

investment of EUR 10 million.

ping areas, sports facilities, and

to a western standard, to high-

The villas will be completed

children’s attractions.

light the beauties of this coun-

in the first quarter of 2021 (39 units) and at the end of 2021

Razvan Predica is the new Country Manager for Affidea Group’s operations in Romania. Predica has over 20 years of business experience, from multinational companies in FMCG, technology, retail and pharma. He spent 15 years at Unilever in finance, in executive and business management roles, followed by a CFO position at Naspers investments in CEE. Most recently, he was the Group Chief Finance Officer of A&D Pharma/Dr Max Romania. page 5

”Murotti Valley will be a unique concept in Romania and

try,” said Alessio Karkhi, one of the project’s main investors.

Global top 100 listed companies see strong recovery in market value in Q2 By Mihai Cristea The market capitalisation of the

to PwC’s Global Top 100 compa-

world’s 100 largest listed compa-

nies, updated on June 30. The

nies bounced back strongly in the

capitalisation of the 100 compa-

second quarter, almost complete-

nies rose by USD 3.57 trillion in

ly recovering the 15 percent drop

the second quarter, reaching USD

recorded in the first three months

25 trillion the end of June. ”The

of 2020 when the COVID-19

pandemic caused significant

pandemic broke out, according

distortions on the market over

Technology and Consumer Services companies provide a good sign for global economy recovery

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

NEWS 5

Sameday continues expansion in Bucharest By Aurel Constantin

Florina Seres was appointed as the new General Manager at Xerox Romania, as of July 2020. She was promoted from her previous role as Head of Marketing of the Northern & Central Eastern Europe cluster, which she had held since 2019. Florina has almost 10 years of experience at Xerox Romania, having joined the team in 2011 as an Indirect Channels Business Director. Under her guidance, the Channels team was awarded internally as the best team in the region, for 5 years in a row.

Delivery company Sameday continues to expand in Romania in the context of a constantly growing market, having recently leased a space with an approximate area of 1,200 square meters in Tunari, near Bucharest, in a transaction intermediated by the industrial department of Cushman & Wakefield Echinox. The industrial and logistics market was the most resilient in the first half of the year, when companies rented space totalling almost 300,000 sqm, amid growing demand from online and traditional retailers

The industrial and logistics market was the most resilient in the first half of the year

to establish distribution centres

property with unique features,

sqm and is largely concentrated

in locations that allow faster

which we presented alongside

in the western part of the city,

deliveries to customers and

a few other options, and the

on the A1 highway to Pitesti,

stores.

client chose the Badsi property

with about 70 percent of the

“The challenge was to

in Tunari, and they are the only

existing stock. As infrastructure

deliver to our client a space

tenant in an ideal location,” said

has improved on the north-

with easy access to Bucha-

Andrei Brinzea, Land & Industrial

ern half of the ring road, both

rest, which would meet the

Partner at Cushman & Wakefield

developers and tenants have

flow requirements of delivery

Echinox. The logistics market in

started to migrate to the north

services and feature a large

Bucharest consists of projects

and northwest areas, which of-

parking area. We identified a

with an area of over 2 million

fer easier access into the city.

a short period, and the world’s

Boualem Saidi will lead Bayer’s Crop Science Division, coordinating operations for the Romania, Bulgaria and the Republic of Moldova Country Group. Saidi is an agronomist by training and has been with Bayer for 25 years, mostly in commercial and general management roles. During this time, he has worked in different parts of the world, learning and contributing to agricultural development in Europe, Africa, and Asia.

largest companies provide relative security for investors, but there are clear distinctions in the performance of different regions and sectors. Technology and Consumer Services companies are a key driver of this evolution, providing a good sign for global economy recovery. Both sectors will continue to grow thanks to digital acceleration, e-commerce growth, and migration to the cloud,” said Dinu Bumbacea, Partner and Advisory Leader at PwC Romania.

Ciprian Dan Location Head for Timisoara at Wipro Technologies, has been elected president of the Association of Business Service Leaders. Dan has been working in the business services industry for 15 years. He currently leads the Wipro Technologies office in Timisoara, with a team of 350 employees.

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

6 COVER STORY

BUCHAREST EMBRACES ITS SMART CITY FUTURE Today’s cities are often victims of their own success. Growing populations overwhelm the world’s mega-cities, urban sprawl eats up surrounding nature, congestion causes chaos, and pollution suffocates even the most futuristic cities. While there is no cureall for these problems, the world’s rapid digitalization may offer an answer: the smart city. By harnessing a range of coordinated digital solutions, city authorities and service providers can address structural challenges, from urban planning to mobility and environmental matters. BR sat down with Bucharest General Mayor Gabriela Firea to find out about the biggest challenges in making Bucharest a smarter city. The official highlighted the ways in which the City Hall has approached the goal of turning the Romanian capital into a smart city. By Anda Sebesi

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COVER STORY 7

ant an app to involve citizens in decision-making? Need

cities in Romania right now. “In recent years, we have witnessed an

a smart traffic management system to prevent rush-

increasing interest in the smart city concept from Romania’s utilities

hour congestion? Interested in green infrastructure to

companies, especially players from the telecom and energy sectors.

lower emissions? No problem; there’s a smart city solution for each

We constantly discuss these topics with our clients and try to design

of these objectives.

bold plans together. We expect to see an increasing number of smart

According to the 2019 Smart City Strategy Index (SCSI) published by global consultancy firm Roland Berger, successful smart cities

projects in Romanian cities in the next few years,” said Andra Ioana, senior project manager at Roland Berger Bucharest, for ZF.

tend to have one thing in common: a sound strategic approach. This

“Our second year of smart city market analysis for Romania

ensures the integration of different strands and avoids ad hoc solu-

shows a mix of starting enthusiasm among several municipalities,

tions. For example, e-mobility services are fairly easy to introduce

a relative slowdown in terms of project execution, as well as new

to a city, but a smart city would also integrate them into intelligent

initiatives – a sign that municipalities are waiting for pilot projects

traffic management systems and power them via smart electricity grids. Strategies also promote cross-sectorial solutions, such as data platforms, sensor networks, and service integration. Roland Berger’s SCSI measures the comprehensiveness and ambition of urban centres against the key ingredients of a smart city. The first version of the SCSI was published in March 2017 and analysed the plans of 87 cities. But with smart cities advancing so rapidly, Roland Berger decided to release a second version of the report. Hence, the SCSI 2019 identifies 153 cities with an official smart city strategy, then analyses and ranks each one. Overall, the SCSI 2019 finds that while the number of cities with an identifiable, official smart city strategy is growing, many remain without such a strategy. For example, among the roughly 500 cities worldwide with a population of more than one million (by UN estimates), the company found that only 49 had an official smart city strategy. Roland Berger’s main finding is striking: just 15 cities (10 percent)

Top 3 smart cities worldwide in 2019: 1. VIENNA COUNTRY: AUSTRIA POPULATION: 1.7 MILLION* TOTAL SCORE: 74** DESCRIPTION: COMPREHENSIVE SMART CITY FRAMEWORK STRATEGY COMPLEMENTED BY A DIGITAL AGENDA; THE FRAMEWORK IS UPDATED BASED ON MONITORING RESULTS.

meet or exceed the 60-point score that indicates a comprehensive smart strategy. The average score is 41 points, with 40 percent of cities scoring between 40 and 60 points, and half getting less than 40 points. As in the first SCSI report, Vienna ranks at the top with a score of 74. The Austrian capital has updated its 2015 framework strategy with a digital agenda, and scores highly due to factors such as a robust performance monitoring system. This has improved coordination and cooperation between activities and individual players and has helped to sharpen smart objectives ahead of another strategy

2. LONDON COUNTRY: UNITED KINGDOM POPULATION: 8.3 MILLION* TOTAL SCORE: 73** DESCRIPTION: DIGITAL ROADMAP WITH A DEDICATED SMART CITY FOCUS AND STRONG EMPHASIS ON TECHNOLOGY AND INNOVATION IN LIGHT OF ITS BENEFITS TO THE PEOPLE; UPDATE OF EARLIER PLANS PUBLISHED IN 2013 AND 2016.

update. London in the UK and St. Albert in Canada ranked closely behind Vienna. London updated its strategy in 2018, while newcomer St. Albert recently launched a comprehensive master plan. Both cities have a strong focus on the application of technology and innovation across action fields. The same index shows Asian cities dominating the rest of the top 15. Chinese cities fare best, with five top finishers from Shanghai in sixth place to Guangzhou in fourteenth. All have five-year smart

3. ST. ALBERT COUNTRY: CANADA POPULATION: 0.1 MILLION* TOTAL SCORE: 72** DESCRIPTION: A VERY COMPREHENSIVE SMART CITY MASTER PLAN COMPRISING 22 STRATEGY FIELDS WITH STRONG TECHNOLOGY AND INNOVATION ASPECTS.

plans as part of the country’s smart city initiative. Singapore, Seoul, and the Indian city of Davanagere are also among the top 15.

tion in September last year, from public lighting to chat support

*City population measured by number of people living in urban agglomeration or city proper **Score achieved in the 2019 Smart City Strategy Index out of a total score of 100

for citizens. Bucharest, Alba-Iulia, Oradea, Cluj-Napoca, Piatra

Source: Roland Berger’s Smart City Strategy Index 2019

As for our country, according to public data cited by ZF, Romania had over 300 smart city projects in various phases of implementa-

Neamt, Brasov, Sibiu, Arad, Constanta, and Iasi are the smartest

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

8 COVER STORY

results or are even facing budgetary restraints while adapting their

social assistance (Social Alert Bucharest) or promote tourist attrac-

flows to the innovation they are attempting to introduce. There is

tions, the city is growing increasingly smarter. “We want public

also a sometimes misguided rush to categorise every initiative as a

transport in Bucharest to become more attractive. Therefore, we aim

smart city one – from server security certificates to implementing

to offer innovative, user-friendly technologies which are adapted

a simple set of video cameras or LED lighting. The market is also

to current demands and can ease the use of public transport. Along

starting to develop a need for

with other measures that we have

smart city conceptual theory and

already taken, B-Pay is part of

for a core group of specialists with

our plan for the city to become as

strictly smart city-related duties,”

smart as possible,” says the Mayor

said Cornel Barbut, CEO at Vega-

of Bucharest. As for the InfoTB app, Firea

comp Consulting, for BR.

adds that both the subway system

BUCHAREST ON ITS WAY TO BECOMING A SMARTER CITY

as well as online ticket payments

Romania’s capital has made

December last year. Additionally,

significant progress towards

the AVL Platform and Trapeze

becoming a smart city in recent

Planning System are two non-

years, yet it is far from being ready

mobile apps designed for the

to join the league of top smart

internal use of public transport

cities worldwide. According to

operators, meant to increase the

the first edition of the Smart City

effectiveness of the entire trans-

were added to the features in

port system in Bucharest. “These

Index Report, released by IMD and the Singapore University for Technology and Design last year,

two platforms are important because they assure the data collection

Bucharest ranked 85th out of 102 cities. But the recent progress is

needed for the InfoTB app to work and represent a rapid technologi-

important, and a step-by step approach is best in a context where

cal change in the way the public sector works. Furthermore, we’re

rapid technological change has an

seeing Bucharest having devel-

increasing impact on our day-to-

oped quickly from a city with

day lives. “The city’s sustainable

an extremely low level of public

development involves finding a

transport predictability to a level

balance between the current situ-

aligned to European standards,”

ation, which in many respects is

says Firea. Along with the currently avail-

unfavourable, with projects which have been started but not yet com-

able apps, the City Hall also has

pleted, and future plans. It doesn’t

some others in development. The

matter how good of a vision the

Tourism, Cultural and Spiritual

mayor has; if it cannot be trans-

Guide is one of those apps, and

lated into something practical

it is designed to better promote

through well-articulated strate-

Bucharest’s tourist attractions.

gies, failure will be inevitable,”

“Although Bucharest has plenty

says Bucharest Mayor Gabriela

of tourist attractions that could be

Firea.

included in different guides, only some of them are being promoted

At the moment, the Bucharest

well right now. We aim to make

City Hall has six major focus areas to make Romania’s capital a smart city: mobile apps , modernising

other places in Bucharest known among both foreign and Romanian

public transportation, reinforcing builidings, non-reimbursable

tourists, and even among Bucharest’s citizens,” she says.

funds, infrastructure projects, and healthcare.

PUBLIC TRANSPORTATION APPS MAKING BUCHAREST A SMARTER CITY

With 830 new public transport vehicles (400 new Euro 6 buses

From apps that allow you to pay for public transport online by card

already in circulation, 130 hybrid buses, 100 new trolley buses, 100

(B-Pay) to those that help you reach your destination more easily

new trams, and 100 electric buses), Bucharest could have lighter

using overground public transportation (InfoTB), improve traffic

traffic and lower levels of polution on its streets. “Each month

conditions (Trafic Alert Bucharest), help you find quick parking

starting July until the end of this year, 20 hybrid buses will arrive

(Parking Bucharest), notify authorities about people in need for

to Bucharest, and nine more will be available in January 2021. As

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

COVER STORY 9

for the acquisition of the 100 trolley

NON-REIMBURSABLE FUNDS

buses, the contract has been signed

The non-reimbursable funds used by

and the vehicles will be delivered over

the Bucharest City Hall focused on

16 months starting with November

several main directions: transport,

2020. Last but not least, the new trams

heating system rehabilitation, sewage

and electric buses are in the process of

treatment, sanitation system, and safe

being acquired,” says Firea. In addition,

drinking water. During Firea’s tenure,

in order to facilitate the circulation of

the Bucharest City Hall accessed funds

public transport vehicles, the five most

worth EUR 370 million (of which EUR

used tram lines have been separated

276 million are non-reimbursable) for

from car lanes, and legislation was

14 projects to acquire new transport

changed to allow buses to run on tram

vehicles and upgrade 1.1 km of double

lines where possible.

tram lines. The rehabilitation of the capital’s heating system consisting

BUILDING REINFORCEMENT

of upgrades to 200 km of pipes and

With the support of public and private funds, 1 million sqm have

estimated at EUR 330 million (of which EUR 278 million is non-reim-

been valuated and some works which had started back in 2010 have

bursable) was submitted in June. Furthermore, the Glina 2 Project,

been resumed in the last three years. “With the aim of bringing to

worth about EUR 390 million, has been resumed and involves the

light some of Bucharest’s architec-

extension of the cleaning sta-

tural jewels, we took measures to

tion and the rehabilitation of

expropriate 25 historic buildings

the main used water collection

and launched a programme to re-

plant in Bucharest, along with

furbish building facades in central

the construction of the first mud

Bucharest. In less than a year, 10

incinerator in Romania. “Last but

buildings have been refurbished,

not least, 18,000 citizens from the

some of which were historic, and

Ghidigeni, Oltenitei, Cheile Turzii,

other four will be completed this

and Henri Coanda districts now

year,” says the Mayor. In addition,

have access to safe drinking water

the City Hall continued the valua-

and sanitation thanks to a 24-km

tion and reinforcement of build-

water-supply network built with

ings with class 1 seismic risk, with

an investment of EUR 70 million,

some EUR 25.5 million allocated

of which EUR 40 million are non-

for this purpose in 2020 alone.

reimbursable,” Firea added.

6 STEPS TOWARDS THE PERFECT SMART CITY PLATFORM 1. MAP INITIATIVES. Smart city initiatives often take place at various levels, from local to international. Mapping them creates transparency about opportunities and helps demonstrate best practices. 2. CREATE INFORMATION PLATFORMS. National smart city alliances connect city planners, public companies, and solution providers, pooling resources from all involved.

3. DEVELOP GUIDELINES. Setting out the main elements and ideas behind a smart city helps cities to prepare and implement strategies.

4. ESTABLISH DATA FRAMEWORKS. National smart city data frameworks support data collection, analysis, and exchange at a local level, and they also ensure compliance with national laws. Data infrastructures can also help to pool data.

5. RUN COMPETITIONS. Laying down challenges incentivises the development of new ideas and solutions, and can also be tied to financial and technical support. Germany, the US, and India have all run successful smart city competitions.

6. PROMOTE KNOWLEDGE SHARING. Regional, national, and international events and workshops bring decision-makers and practitioners together to facilitate learning. They also promote knowledge exchange and help build capacities. Source: Roland Berger’s 2019 Smart City Strategy Index.

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

10 COVER STORY

HEALTHCARE SYSTEM According to the Mayor, besides the construction of new hospitals, investments in modernisation and new equipment for different wards, the City Hall also invested EUR 37 million in medical equipment between 2016 and 2019 alone. Investment recipients included the Foisor Hospital (about EUR 2 million), Coltea Hospital (EUR 1 million), Cantacuzino Hospital (EUR 890,000), Carol Davila Hospital (about EUR 820,000), Dr. Th. Burghele Hospital (EUR 450,000), and Panait Sarbu Hospital (EUR 225,000). In addition, some 106 new ambulances and 177 housing units for medical staff were acquired by the City Hall of Bucharest during Fireaâ&#x20AC;&#x2122;s tenure.

Infrastructure projects

FABRICA DE GLUCOZA ROAD EXPANSION Description: It is the most important investment objective in the north part of Bucharest, and will connect the city to the A3 highway Value of the project: EUR 27 mil (including expropriations). Stage: The Petricani-Barbu Vacarescu section is completed; the remaining part is to be completed by the end of this summer. DOAMNA GHICA OVERGROUND PASS Description: A project meant to streamline traffic at the Doamna Ghica Street-Colentina Road junction by building an overground pass with two lanes each way. Estimated cost: EUR 27 mil Stage: September 2020 THE PRELUNGIREA GHENCEA-DOMNESTI CONNECTION AND THE EXPANSION OF GHENCEA BOULEVARD Description: The 6 km thoroughfare will feature a double tram line, two car lanes each way, two-way bike lanes, pedestrian lanes, green spaces to separate the road from the pedestrian lanes. It will also include an intermodal node (for trams, buses, and minibuses), and a 300-space Park&Ride. Project value: EUR 122 mil (including expropriations) Stage: Awaiting final approvals PARK&RIDE CORA PANTELIMON Description: An intermodal node which includes trams, buses, and platforms for private minibuses. Value of the project: about EUR 21 mil Stage: to be completed this fall THE NICOLAE GRIGORESCU-SPLAI DUDESCU OPENING Description: Enlarging Nicolae Grigorescu Boulevard, expanding

pedestrian lanes and building a pass over the Dambovita river. The new route will be 1.3 km long, 6 lanes, and 3 bus stations. Estimated cost: RON 63 mil Stage: Project will be ready soon; the next phase to reach the VitanBirzesti Road is awaiting approvals. GRANT BRIDGE Description: Upgrading the 41 tram line; consolidating the bridge segment between Turda and Cringasi; ongoing renovation and consolidation works under the bridge. The second phase of the project will be launched after the permit to stop street traffic is obtained. CIUREL BRIDGE - VIRTUTII ROAD JUNCTION Description: The Virtutii Road Junction is 98 percent completed, and the Bridge will be functional this fall. As for the second stage, the Virtutii-Uverturii Road Junction, its technical project is in development. Estimated cost: EUR 10 million (expropriations only). BIKE LANES Description: 8.3 km have been built by the current administration as part of a project that aims to add about 48.2 km of bike lanes in areas like Victoriei Square, Aviatorilor Boulevard, Pipera Road, Presei Libere Square, Kiseleff Road, Victoriei Avenue, Constitutiei Square, and Unirii Boulevard. Value of investment: EUR 10 mil from the state budget through the Environment Ministry. Stage: 24.2 km of bike lanes are in progress, of which 9.5 km are part of the project mentioned above and 14.7 km are part of two other major infrastructure projects. Another 27.3 km will be built on Stefan cel Mare Road, Mihai Bravu Road, Unirii Boulevard, and Decebal Boulevard.

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

COVER STORY 11

Bucharest transitions to a smarter urban future After four years at the helm of Romania’s capital city, Bucharest General Mayor Gabriela Firea sat down with Business Review and told us about some of the projects which have made Bucharest a smarter city during her tenure and how important it is for local authorities to have a clear, long-term urban strategy in order to keep up with the city’s development. By Anda Sebesi Bucharest has recently been named one of the best cities in Europe in which to work from home. However, it is not yet a fully digitalized city, and the issues caused by traffic and crowding are affecting everybody in the city. How has Bucharest evolved over the last 10-20 years, what has been done so far, and what should have been done?

related concepts. The Integrated

The city’s sustainable development

long: the General Urban Plan of the

involves finding a balance between

Municipality of Bucharest. Without

the current situation – which in

a carefully planned project, the

many respects is unfavourable –

city’s development would come

projects which have been started

to a standstill. Therefore, we have

but not yet completed, and future

taken all the necessary steps and

plans. It doesn’t matter how good

given all due diligence in order to

of a vision the mayor has; if it can-

eliminate roadblocks and to give

not be translated into something

this project the boost it needs. I

practical through well-articulated

hope to be able to share it with all

strategies, failure will be inevitable.

interested parties as soon as pos-

That is why, before I even started

sible. My conclusion after these

Air Quality Plan has also been approved, consisting of a clear set of measures to reduce pollution in the city in the coming years. We have a Heating Strategy, a Smart City Strategy, as well as interconnected documents to help us determine which steps we need to take in order to reach our objectives. Last but not least is a project which has been underway for too

four years is that a single term as

implementing the bold projects I had imagined for Bucharest, I had to adopt a very methodical way of

mayor is not enough to develop the city – only to manage it. Only a

working. We looked at all the projects that had been started by my

second term can determine the skill and vision of a mayor. Things

predecessors and had been left stranded at various stages. Where

are very clear for me now. I know exactly where I’m starting from,

possible, we cleared the obstacles, and many of these projects have

what I have to do, what resources I need, but also the conditions I

either been successfully completed or are close to being finished. At

must deal with.

the same time, we have been working on strategies meant to serve as frameworks for the next 20-30 years, which have been approved by the General Council following many public debates.

What are the more detailed plans for infrastructure, consolidation, transport? Public transport was a priority of my first term as general mayor, this

What are the urban development plans for the next 20-30 years that could transform the city into a real European metropolis?

being the key to solving two major problems in Bucharest: traffic and

We have a Sustainable Urban Mobility Plan, which sets priorities for

port fleet, which no longer met the demands of a European capital.

urban development until 2030. It is a multidisciplinary plan, which

Despite the obstacles raised by cumbersome and somewhat confus-

includes infrastructure works, modernising public transport, devel-

ing legislation, we managed to renew the STB fleet with 830 vehicles.

oping alternative means of transport, and implementing smart city-

We have also continued to expand the smart traffic lights project.

pollution. In 2016, we found an insufficient, outdated public trans-

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12 COVER STORY

The smart traffic management system included only 170 out of 450

not even have a basic communication infrastructure between munic-

intersections in 2016, added over the course of 10 years, and now the

ipal institutions; investments or plans to invest in technology were at

system is operating in 236 intersections across the city. In terms of

a minimum level. Had this strategy been developed then, consid-

building consolidations, in the last 28 years, only 20 buildings had

ering the maturity of the city, it would have probably been well

been rehabilitated in Bucharest, but we have managed to start work-

below standard. Since we couldn’t afford to wait until a strategy was

ing on as many buildings in the space of just two years, of which 10

developed, and because there was a clear need to include modern

have already been completed, and the others are in advanced stages.

technology into municipal services, essential projects were started

In total, over 220 buildings were included in the seismic risk reduc-

before the strategy was actually ready. In fact, a series of project

tion programme and they are all in various preliminary stages of the

recommendations for each sector – transportation, environmental,

process: expertise, design, safety, authorisations, etc. When it comes

health, etc. - were included in other strategies, plans or documents.

to European funds, one of the first things we did was to create a Gen-

We’ve made good progress - I will list just a few apps making life

eral Directorate whose responsibility would be attracting funding of

in Bucharest easier. B-Pay is the free mobile app launched in January

any kind, especially non-refundable. Thanks to the effort and skills

2020 which allows people to pay for public transport in Bucharest

of those working in this department, we have managed to bring in

and Ilfov using a bank card. In relation to B-Pay there are two other

significant amounts of money for city development projects.

useful apps: UAT Inspect – an app for ticket controllers to scan the

Last but not least, all infrastructure projects have been restarted.

QR codes generated by B-Pay app, and InfoSTB (renamed to InfoTB

Four years ago, Bucharest had very few in-

this year), which provides real time infor-

frastructure projects, as many of them were

mation about the public transport network,

blocked. We restarted and completed a part

with over 170 urban and regional lines and

of them, such as the Sudului Underpass,

over 1,500 vehicles operating in Bucharest

while others are still in progress, nearing

and the metropolitan area. Traffic Alert

their completion deadlines, namely: the

Bucharest is an app that aims to improve

broadening of Fabrica de Glucoza Rd. and

traffic conditions in the city. Additionally,

Ghencea Blvd., the Ghencea -Domnesti Ex-

we developed Parking Bucharest, an iOS

tension, the Grant Bridge, etc. To streamline

and Android mobile app launched in 2019

traffic in a challenging area like the Doamna

to help people find a parking spot quickly,

Ghica Street and Colentina Road junction,

pay for it easily, and therefore save precious

we decided to build an overpass with two

time. Yet another helpful app we developed

lanes in each way.

is Social Alert Bucharest, whose aim is to allow people to notify local authorities

How many smart city projects have been completed so far and what are the plans for the coming period?

(DGASMB) about people in need for social assistance. We will soon

At the beginning of my term, I found a deep need for an overhaul in

guide for over 1,000 tourist attractions, which can be accessed from

the extremely complex operational structure of municipal public

mobile phones using QR codes.

complete the Tourism, Cultural, and Spiritual Guide, an electronic

services. Public services provided to citizens needed a substantial qualitative improvement. In order to achieve this we really needed

with the employees, in order to better respond to the citizens’

A Smart City doesn’t just mean a well-developed infrastructure and digital services, but also hospitals with state-of-the-art equipment and doctors connected to technology. Where do we stand in this regard and what are the goals for the coming years?

needs. Therefore, we reorganised public services into specialised

The City Hall has built two modern hospitals: the Dr Victor Gomoiu

companies for each type of service, and completed this approach by

Children’s Clinical Hospital and the Foisor Clinical Hospital for

developing a Smart Strategy. We are currently in a new development

Orthopedics-Traumatology and Osteoarticular TB. We’ve built new

stage, transitioning to a “smarter” city, which entails using more and

wards at the Ion Stoia Rheumatology Hospital, as well as the Dr Carol

more modern technology in designing public services, in order to

Davila and Ion Cantacuzino Hospitals. The integrated outpatient

increase their quality and facilitate access for the city’s inhabitants

clinic of the Dr Gomoiu children’s hospital was modernised using

and visitors. Behind this digitalization process is an entire system,

European funds. We are in the process of building a new outpatient

an infrastructure developed by a team that works tirelessly to make

clinic at the Victor Babes Hospital. Over the last four years, the City

sure progress is made seamlessly.

Hall has invested approximately EUR 37 million in medical equip-

to change the way we worked, and STB was an important example in this regard. Moreover, most services were in need of an urgent upgrade of their facilities, technologies, and processes, starting

ment and facilities alone. In addition, the Sfanta Maria Hospital has

What is the degree of digitalization in the local administration and what are its development plans?

also seen important investments, most notably in the lung transplant

When I took office, the capital was far from being a smart city. It did

team to perform 8 successful lung transplants last year.

department, which is unique in the country – allowing the surgical

www.business-review.eu Business Review | August May 2016 2020

INVESTMENTS COVER STORY 13 14

Top Investment Promotion Agencies: what Romania can learn By Claudiu Vrinceanu

The role of investment promotion agencies is becoming more important right now, and Romania could learn a lot from other countries’ governmental bodies focused on attracting Foreign Direct Investments (FDI). officials? This good practice is a regional development-oriented initiative aimed at promoting investment across Lithuania.

CZECHINVEST Motor vehicle production in the Czech The Czech Republic has created a new platform to promote innovation in mobility and transportation

Republic is down by 33 percent due to the coronavirus crisis, but a new platform from CzechInvest hopes to aid its recovery. The Czech Republic has created a new

nvest Romania, the governmental body

about the coronavirus situation and the

responsible for promoting foreign direct

state’s support measures, keeping emergency

platform to promote innovation in mobility

investment in the country, only came

phone lines free for those most in need.

and transportation – The Mobility Innova-

Developing digital tools and channels

tion Hub – which is now seeking partners

Europe regarding investment promotion

could also be a solution for Invest Romania,

in both the business and academic fields

agencies (IPAs) across the emerging Europe

which can build a tool for digitized value

to help launch creative new ideas that will

region.

propositions and an electronic investment

help jump-start the Czech economy in the

in 9th in a new top 10 ranking by Emerging

advisor. Such online platforms could do the

automotive and other sectors in the years

Enterprise Estonia, the Estonian govern-

work of several people when it comes to

following the coronavirus crisis, and respond

ment’s FDI agency, came out on top in the

distributing information and making value

to some of the far-reaching impacts of the

major new report on IPAs. Invest Lithuania

propositions to potential foreign investors in

global pandemic.

was ranked second, followed by CzechInvest.

Romania.

With a score of 92.11 out of a possible 100,

As FDI to Romania at the start of 2020 was 70 percent lower than in the same period in

ENTERPRISE ESTONIA

INVEST LITHUANIA

2019, the country’s Investment Promotion

Enterprise Estonia’s foreign investment cen-

The Parliament of the Republic of Lithuania

agency (Invest Romania) and local authori-

tre rapidly reacted after the lockdown by cre-

has adopted a package of investment and

ties should proactively work with foreign

ating platforms to host virtual business visits

corporate tax laws, providing a new instru-

investors who have plans for investments

and hold webinars. As part of the Hack the

ment aimed at attracting large investments

and speed up procedures instead of waiting

Crisis hackathon that took place during the

of local and foreign capital. The set of laws,

for the pandemic to end before doing so. Now

state of emergency, a team largely consisting

also known as the “green corridor for invest-

is the right time for Romania to further step

of Enterprise Estonia’s foreign investment

ment,” provided for much faster and simpler

up its efforts and learn from other similar

centre employees created Suve, an AI-driven

establishment procedures for investors as

governmental bodies to attract investment

chatbot helping Estonia’s citizens and foreign

well as incentives for municipalities hosting

from specific areas like the US and Western

direct investors find official information

investors. Why is this relevant for Romanian

Europe.

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

14 BUSINESS

Why we need a Board of Advisors for the post-pandemic recovery phase If you are a founder, one of the greatest advantages a board of advisors can bring to your firm is an external perspective on important issues, and this could be crucial for growth in a post-COVID-19 economic cycle. By Claudiu Vrinceanu

Why have a Board? • ONCE EVERY 1-2 MONTHS, GET OUT OF THE ROUTINE AND SEE NEW PERSPECTIVES (GET OUT OF THE DITCH) • YOU BRING SKILLS IN AREAS WHICH YOU WILL NEED IN THE FUTURE AND ARE MISSING IN THE CURRENT MANAGEMENT • YOU BRING ON EXPERIENCED PEOPLE WHO VALIDATE AND OPEN UP NEW PERSPECTIVES • YOU EXPAND YOUR FIRM’S NETWORK • YOU GIVE STRUCTURE AND DISCIPLINE TO THE COMPANY’S DECISION-MAKING

A board of advisors could add layers of expertise and informal guidance

• IN OTHER WORDS, YOU ARE ABLE TO DO MORE THAN YOU HAD PLANNED, AND QUICKER

omanian firms may want to adopt

are being forced to pivot and rethink their

in their immediate circle of acquaintances

a practice seen at multinationals –

business models. Usually, a board of advisors

and advisers. They tend to have already had

the board of directors – and form

meets constantly as a group with the founder

conversations with them about the business

an advisory board of trusted advisors and

and they debate challenges and opportunities

and have appreciated the informal support

experts to help navigate uncharted waters in

for the firms.

they offered. “A particular situation I have

the coming year, a period that could repre-

How to build a board of advisors? There

noticed is that entrepreneurs who have had

sent a recovery phase for many industries.

are several ways. If you take investment

formal mentoring relationships often choose

In rapidly-changing markets, as is currently

in your company, the investors automati-

the mentor as the first member of the Board,”

the case due to the highly volatile COVID-19

cally become members of the Board. “In my

adds Negut. The pitching approach is when

crisis, many companies are setting up a Board

experience so far, I have observed two types

you choose members of a community of ad-

of Advisors to provide fresh and experience-

of Board formation strategies: the fishing

visers and start building a relationship with

based advice to founders and CEOs.

approach and the pitching approach,” said

them from scratch. In this case, you benefit

Sergiu Negut, angel investor and co-founder

from assisted matching and a much wider

layers of expertise and informal guidance,

of Antreprenoria. In the fishing approach,

spectrum of advisors than your personal

particularly in times when Romanian firms

entrepreneurs usually turn to people who are

network.

In short, a board of advisors could add

www.business-review.eu Business Review | August May 2016 2020

COVER STORY M&A 15 14

M&A trends in the first half of 2020: What can we learn? While the Romanian mergers and acquisitions (M&A) market saw 19 deals with a cumulative value of EUR 600 million signed in the first three months of the year, the number of transactions halved in the second quarter, when fewer than 10 deals were closed. By Claudiu Vrinceanu ond half of 2020 or for 2021. In the long run, however, the impact remains uncertain,” says Georgiana Ion, senior manager, deal advisory at Mazars Romania. When can the M&A market return to normal? Only 1 in 5 respondents (21 percent) in a study conducted by Mazars said that would happen in Q3 2020, while 14 percent believed the more realistic period would be Q4 2020, and 61 percent were more cautious, opting for 2021. However, the current issues should be seen as opportunities for all parties involved. Despite the current limitations and conditions, the Romanian M&A industry has the potential to evolve in a dynamic market, with opportunities normally encountered in times of recession – such as rapid sales based on illiquidity, merger operations giving up nonessential or non-performing assets, but also a recalibration of the investment portfolio. The 7 out of 10 executives believe that the current moment is right for mergers or acquisitions

market will continue to expand, as more and more companies understand the added value a strategic investor can bring in terms of new financing and know-how.

lthough the first quarter of 2020

of withdrawing from the Romanian market

was better than the same period of

and that it could freeze the sale of local assets

2019, the mergers and acquisitions

if it did not get the desired price. Second, the

believe that the current moment is right for

market collapsed as a result of the COVID-19

pandemic has reduced Banca Transilvania’s

mergers or acquisitions in specific industries,

pandemic. The start of the year was good for

appetite for acquisitions: its recent aggressive

given that some sectors will provide the op-

the local M&A market, but after the pandemic

expansion will be put on hold for at least two

portunity to invest in quality, properly valued

began, investors became more cautious in the

years, and a possible acquisition in the future

goods, says an analysis by consulting firm AT

uncertain economic context.

will not target small players.

Kearney.

The main short-term effects of the CO-

“After a relatively active start to the year,

In this regard, seven out of ten executives

We can conclude that for companies which

VID-19 pandemic on the M&A market have

Romania was among the countries hit by the

have built a healthy financial position during

been a withdrawal of offers or a postpone-

pandemic and according to the latest EBRD

the economic boom of recent years, declining

ment of transactions, and the long-term

forecasts, its economy is expected to decline

valuations during this period create oppor-

impact remains uncertain. Companies have

by 4 percent this year. The global health crisis

tunities to conduct transactions that create

been cautious about investing in M&A and

has created uncertainty, disruption of supply

long-term value. A good example is the major

are waiting for the situation to begin to

chains, and pressure on liquidity. The short-

transaction in which the TeraPlast group sold

normalise. Let’s look at just two examples.

term effect on the M&A market was limiting

its Steel division, which includes TeraSteel

First, Czech utilities group CEZ announced

or delaying the signing of transactions, many

and Wetterbest, to Irish giant Kingspan, for

that it was not pressed for time in the process

of which were postponed either for the sec-

EUR 85 million.

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

16 ENTREPRENEURSHIP

Startup mindset gaining clout in local corporate culture Being agile and innovative are two key principles for startups, but a growing number of large companies are also harnessing the entrepreneurial spirit, with Facebook founder Mark Zuckerberg’s motto “move fast and break things” becoming increasingly popular among big corporations. By Ovidiu Posirca ship so that talented employees can deliver new products and services,” says Ionut Sas, partner at professional services firm PwC Romania. Innovation is of major interest for heads of financial departments in large companies, who can allocate funding for such endeavors. This effort is becoming critical as firms of all sizes are looking to recover after the lockdown and the COVID-19 crisis. Some 63 percent of Chief Financial Officers (CFO) surveyed by PwC cite offering new or enhanced products or services as the most important factor for business recovery. CFOs are also not very likely to cut their planned R&D investments (14 percent) or digital transformation investment (11 percent), which corresponds with findings about their plans to accelerate automation, adds Sas of PwC. Companies across the local economy are starting to internalise some of the processes championed by startups

LOCAL BIG FIRMS’ APPROACH TO THE STARTUP MINDSET

risk management policies, but this

about agile teams and mindsets within their

championed by startups, while some firms are

doesn’t mean that their corporate

organisations, which are attributes that are

working with startups directly or promoting

culture can’t promote entrepreneurship.

fundamental to startups. They are aware of

entrepreneurship inside their own industries.

These firms can have mentorship pro-

the benefits of such a vision, but the bigger

grammes and encourage entrepreneurship

the company, the more complex it is to stir,”

with many startups, aiming to support their

among their employees. A growing number

Mihaescu told BR.

development and the creation of a technology

sually, corporations have tighter

of big companies are taking part in local pro-

Companies across the local economy are “More and more companies are talking

Some large companies have their own

starting to internalise some of the processes

Professional services firm Deloitte works

ecosystem.

grammes designed to accelerate or incubate

research & development (R&D) operations

new businesses, while corporates can also

as well as strategy departments. Taking over

objectives for startups and, during these col-

source products or services from startups.

a startup that has a fresh approach in an in-

laborations, we learned and adopted a more

dustry is also a serious option for established

entrepreneurial mindset, contributing to re-

players.

inforcing Deloitte’s mission, which is to make

Innovation is not something that only startups can generate, and just as a startup can learn from a big company, the reverse

“For companies that need a new technol-

“Scalability and disruption are core

an impact that matters,” Andrei Ionescu,

is also true, says Dan Mihaescu, founding

ogy or product, the fastest way to achieve

partner-in-charge, management consulting

partner of GapMinder VC, which has ongoing

that is to acquire a startup, but large compa-

and risk advisory at Deloitte Romania and

investments in dozens of local startups.

nies need to develop internal entrepreneur-

TMT industry leader, told BR.

www.business-review.eu Business Review | August May 2016 2020

In the retail business, Kaufland has an

ENTREPRENEURSHIP COVER STORY 14 17

– take for instance the very recent example

“Samsung is not only looking at startups’

open culture of mistakes, which means that

of Dealwise in Romania. This has a direct

experiences, but also helps them grow by giv-

if you are in a management position, it is

impact in our day to day, as we need to shape

ing them access to technology and informa-

important not to feel that you are the best at

our way of working so that such innovation

tion,” Simona Panait, Samsung’s marketing

everything. The same vision applies for the

is quickly adopted. Therefore, in recent years

director for Romania and Bulgaria, told BR.

relationship with partners, according to Valer

we have created our own Agile way

Hancas, communication and corporate affairs

of working, which is now the

director at Kaufland Romania.

status quo and an innovation

“Due to the open culture of mistakes we

methodology that enables

In the e-commerce field, eMAG has recently launched a new delivery service called Tazz, which was initially meant

have at Kaufland, I can say that our de-

us to capture, prototype,

partments function as startups, with each

and then productize

expanded to other cat-

colleague being encouraged to act as a small

new ideas. Technol-

egories, ranging from

entrepreneur, who receives the space and

ogy is now lowering

books to gadgets.

resources to put their ideas into practice, no

the market entrance

matter how brave those ideas are, if they take

thresholds and rapidly

Tazz are technology

responsibility,” Hancas told BR.

blurring out the tradi-

companies with strong

Kaufland, which is the biggest retailer in

tional industry boundar-

Romania with 132 hypermarkets and over

ies,” Razvan Sighinas, chief

15,000 employees, has also teamed up with

information officer at ING Bank

local entrepreneurial initiatives in the agricul-

Romania, told BR.

ture sector. The company has created the Tara

Meanwhile, financial services firm

for food but quickly

“Both eMAG and

entrepreneurial mindsets. We are data-driven and our new projects and ideas have a strong research component. Furthermore, both eMAG and Tazz have an organisa-

Mea agricultural cooperative, which initially

Allianz-Tiriac sees continuous learning and

tional culture that encourages employees to

had about 30 small farmers. In 5 years, the

the growth mindset as some of the most

test their ideas, as we encourage a trial and

cooperative grew to more than 1,000 farm-

important characteristics of startups that

error approach. Usually, good ideas occur

ers, who can sell their products in Kaufland

large companies should also try to implement

when the team’s creativity is not inhibited.

stores.

to remain competitive. The firm is part of the

Moreover, we both have the advantage that

German Allianz Group, which has a digital

we can test our ideas and turn them to reality

helped us to have a better in-depth under-

arm for investments in innovative startups in

very quickly,” Alin Serban, the CEO of Tazz

standing on the real needs of small and

the insurance business.

by eMAG, told BR. In the consulting field,

“We can say that this collaboration has

medium farmers, to increase the number of

Samsung, which is the biggest maker of

for the last 6 years, PwC has been holding

local products on the shelf and even to diversify our product ranges, supporting farmers to produce in other categories,” says Hancas. This has also helped the retailer shorten the supply chain and guarantee freshness to its customers. In the banking field, ING Bank Romania is working with startups at multiple levels, from supporting the startup ecosystem in Roma-

smartphones and memory chips in the world,

an internal global innovation challenge that

nia through programmes like Startarium to

stays close to the tech startup community in

covers a wide array of industries ranging from

partnering up with multiple local fintechs and

Romania through its Changeneers pro-

cyber-security to machine learning and geo-

more than 160 globally to incubate innova-

gramme. The company also supports a place

spatial technology. In last year’s edition, the

tion. “In some cases, we even spin-off such

where startups can use Samsung devices to

competition recorded 4,300 participants from

businesses that then tackle the wider market

test their ideas in real situations.

36 countries and 273 inventions.

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

18 ENTREPRENEURSHIP

Romanian market ready for new delivery startups As the market for delivery services hit the EUR 1 billion mark in 2019, the industry is going through a series of challenges triggered by the ongoing coronavirus epidemic. Delivery platforms, some operated by startups, have relieved some of the pressure on firms that were worst hit by the lockdown orders, especially in the food business. Players are gradually adapting to the new market demands generated by the medical crisis, and new delivery startups might enter Romania going forward. By Ovidiu Posirca

Established players doing solely delivery services need to adopt a competitive strategy

ust in the past few months, the Uber

over US-based Grubhub in a USD 7.8 billion

the key delivery startup players in Romania.

Eats delivery platform left Romania,

merger, while Uber bought online food order-

â&#x20AC;&#x153;There is room on the local market for new

e-commerce player eMAG launched its

ing company Postmates for USD 2.65 billion.

delivery startups to ride the wave of the ondemand economy boosted by the pandemic.

quick delivery service Tazz, and ride-haling startup Bolt launched its food delivery

FROM FAST FOOD TO FAST EVERYTHING

In Romania, the pandemic accelerated the

service in Bucharest as well as a separate de-

Last year, investments in European food lo-

adoption of card payments, the increase of

livery service for companies. Some of these

gistics and delivery businesses reached EUR

on-demand goods and services, the digi-

deals have been shaped by the coronavirus

1.6 billion, according to the The Sift Report

talization of state-owned companies, the

crisis, which is already starting to change the

2020. Deliveroo is the best-funded delivery

penetration of remote education, and many

way in which Romanians choose to work,

startup in Europe, having attracted more

others,â&#x20AC;? Cristian Munteanu, managing part-

shop or spend their free time.

than half a billion euros in fresh funding last

ner of Early Game Ventures (EGV), told BR.

year. The company is not present in Romania.

In urban areas, competition is getting fiercer

and delivery market recorded two major

The second spot belongs to Glovo, the startup

on the delivery market, with large estab-

deals that had an impact on both the Euro-

founded in Barcelona. The firm got over EUR

lished players and startups looking to attract

pean and the US markets. Just Eat Takeaway,

300 million in new funding last year to boost

consumers who expect to get their favourite

which is also present in Romania, took

its expansion plans and it is already one of

products on time. Lines are starting to blur

Globally, the on-demand food ordering

www.business-review.eu Business Review | August May 2016 2020

ENTREPRENEURSHIP COVER STORY 14 19

between partner drivers of ride-sharing apps,

outdoors. We had been thinking about diver-

ment, GapMinder VC founding partner Dan

people delivering your order by bike, and em-

sifying our offer since last year, but our plans

Mihaescu told BR. The fund has invested in

ployees of traditional delivery firms.

turned into reality faster than we had initially

Frisbo, a startup that provides e-fulfillment

All the changes in the delivery industry are

planned,” Alin Serban, the CEO of Tazz by

services assisted by high-tech, becoming

taking place because incumbents have failed

eMAG, told BR.

an interface between retailers and fulfillers.

to properly service the market, suggests Munteanu of EGV fund.

GapMinder

The company

has also

will soon

provided

arms of players in other industries such as

start to de-

seed

restaurants or ride-sharing companies all

liver books,

funding

come with a new and innovative approach.

gifts, and

to another

New features, more convenience, more

DYI prod-

startup,

affordable prices, greater delivery speed:

ucts, after

which uses

everything is to the benefit of customers and

expanding

machine

all is welcome,” says the managing partner.

its offer-

learning to

Even before the onset of the coronavirus

ing with

optimise

crisis, some 38 percent of people surveyed by

electro-IT

last mile

PwC for a global consumer report said that

products

they would pay for a delivery of groceries

from eMAG but also with pharma, sport, and

retailers. “Not every shop will decide to have

that took less than two hours.

beauty products.

its own delivery service, as it is not feasible.

“New delivery startups or the delivery

delivery for

The company was able to move faster

Not all ride-sharing players that will try de-

forts to improve this situation, and the past

because it leveraged the experience of its in-

livery will be successful or become efficient

several months have seen a variety of inno-

house technology team and aims to be pres-

within a reasonable timeframe,” Mihaescu

vative, unlikely partnerships in the grocery

ent in at least 30 cities by the end of the year.

comments on the latest developments on the

segment,” Ruxandra Tarlescu, partner at PwC

“Currently, most of our revenue is gener-

local delivery market.

“We are seeing retailers making huge ef-

Romania, told BR. For instance, Kaufland inked a delivery deal with startup

ated by the food delivery segment, so we plan to continue

Glovo, while Carrefour has

investing in

relied on its own delivery

devel-

Starting to do deliveries as a side business while enhancing your core business might not guarantee success. Ciprian Gavriliu, tax

arm, Bringo. Tarlescu

partner at profes-

suggested that the home delivery seg-

sional services firm

ment will continue

Deloitte Romania

to gain a foothold

and leader of the au-

and we might see

tomotive industry,

more retailers and

says that ride-sharing companies enjoy

restaurants provid-

the advantages of an

ing these options to consumers. Three years after acquiring delivery firm Same Day, eMAG expanded its presence in this

oping our other delivery segments as well,” Serban says. He quotes a

extensive fleet of cars, electric scooters, and even bikes. But this is only one part of the story. “Nevertheless, such a network,

segment by transforming a food delivery

recent study which states that in the next 5

ensuring geographical coverage and fast

platform called EuCeMananc into a new

years, 90 percent of the urban population

mobility, does not guarantee success on the

service called Tazz by eMAG, which aims to

will no longer cook at home. Revenues for

delivery market, as was the case for Uber,

make deliveries in less than 1 hour.

online food delivery in Europe could climb to

when the company decided to withdraw its

“The growth of our business was acceler-

USD 25 billion by 2023, with annual double-

delivery services from the Romanian mar-

ated because we realised that our consumers

digit growth rates, according to professional

ket,” Gavriliu told BR.

needed our support more quickly than we

services firm Deloitte.

had predicted. Nowadays, under harsh con-

As the general trend of migration towards

He concludes that established players doing solely delivery services need to adopt

ditions like the pandemic, consumers need

the online world is here to stay, there are

a competitive strategy, without neglecting

an extended offer of delivery services which

many opportunities in the underlying layer of

customer satisfaction and the quality and

will help them spend as little time as possible

delivery that supports online retail develop-

speed of their services.

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

20 ENVIRONMENT

The state of waste management in Romania: Plenty of work remains to be done Waste recycling and the circular economy are among the most important issues in the European Union. All member states must comply with the European Commission’s policies, and Romania has yet to meet many of the requirements. As a result, the European Commission has opened several infringement proceedings against Romania for pollution, wood management, and waste management. In mid-May, the Commission sent a letter urging Romania to take several actions, including “to close, seal, and ecologically restore 48 illegal landfills and to comply with the judgement of the Court of Justice of the EU of October 18, 2018.” By Aurel Constantin

The recycling rate of municipal waste reached 13.89 percent in 2018

www.business-review.eu Business Review | August May 2016 2020

ENVIRONMENT COVER STORY 21 14

in most of Romania’s counties, investments

20 have been permanently closed so

were made in sanitation infrastructure,

collaboration agreement. OIREPs must pay

far. But for the others, the required closure,

namely in waste collection equipment –

the UAT/ADI the full amount of the net costs

sealing, and regeneration works had not

mostly bins or vans for recyclable waste

related to the separate collection, transport,

even been planned at the beginning of this

collection –, individual composting units,

and sorting of municipal packaging waste

year. Through its formal notification letter,

transfer stations, treatment plants, compost-

as well as to the financing of awareness

the Commission gave Romania four months

ing plants, sorting plants,

to address the situation (two months longer

TMB installations, and

than usual due to the COVID-19 pandemic).

compliant warehouses.

he court decision referred to 68

Through the SMID projects carried out

transported, and sorted by the Administra-

landfills in Romania, of which only

tive Territorial Unit (UAT) based on an official

As one month has already gone by since

The duties of ADIs

the EC issued the letter and no solutions

regarding SMID projects are

have yet been made public, Business Review

to implement proposals by

asked Romanian authorities to provide all the

establishing or extending,

available information about waste manage-

organising, managing, and

ment in Romania, and what has been done so

operating services for the

far in terms of collection and recycling and

common interest, includ-

where our country stands in the European

ing delegating management

context.

based on the conditions of

The Environment, Waters and Forests

delegation contracts or pub-

Ministry provided answers to our questions

lic procurement procedures,

as we tried to get a full picture of how the

in accordance with appli-

system works. There are 13 organisations in

cable law.

the country tasked with implementing the

ADIs are also tasked with

extended manufacturer liability policy for

jointly promoting, financ-

packaging placed on the Romanian market,

ing, and implementing

known as OIREPs. Among them are names

programmes to establish,

like Clean Recycle, Eco Synergy, Fepra

upgrade, rehabilitate, and

International, Greenpoint Management, and

manage public sanitation

Enviro Pack Consult.

services and related public

OIREPs work with Intercommunity Development Associations (ADIs); there are currently 39 ADI organisations established in

utility systems in their associated territorial units. SMIDs are also meant to develop the

campaigns to promote waste recycling/re-

Romania for integrated waste management

institutional and decisional capacity of local

covery. In the case of UATs, for certain types

at county level. In most counties, ADIs are set

public authorities, members of the Associa-

of sorted packaging waste which represent

up by the county councils and town halls,

tion and to coordinate planning at the local

materials with a negative market value, the

the institutions dealing with waste management in their respective areas. County councils

and county level, by preparing and approving waste management strategies. Last but not least, through

responsibility lies entirely with the OIREPs, which must provide recycling/recovery of materials, including transport logistics, at their own expense.

are the beneficiaries

their members, SMIDs

For packaging waste generated from

of Integrated Waste

must sign contracts

industrial and commercial activities which

Management Sys-

to delegate the

has a positive market value, OIREPs must

tem (SMID) projects,

operation of new

pay collectors the amount related to the cost

while ADI manage

infrastructure.

of reporting packaging waste volumes and

project implementation. At the country level, 32 integrated waste management projects have been approved to finance prevention, separate col-

ensuring their traceability, until the waste

ADI AND OIREP ORGANISATIONS While defining the roles and responsibilities of ADIs and OIREPs within the extended

enters the final recycling/recovery process. For packaging waste with a negative market value, OIREPs must give waste generators the opportunity to hand over their waste free of charge to waste carriers which are selected

lection, recovery, recycling, waste treatment

manufacturer liability schemes, OIREPs must

by OIREPs. In such cases, OIREPs must cover

and disposal, in parallel with the closure of

ensure the recycling/recovery of munici-

transport operators’ costs as well as the

non-compliant landfills.

pal packaging waste, which gets collected,

recycling/recovery costs for operators who

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

22 ENVIRONMENT

carry out such operations. The collabora-

agement Plan (PNGD) during the analysis

waste collection, and account for contribu-

tion between ADIs and OIREPs is deficient,

period, the degree of separate collection of

tions to the circular economy.

mainly as a result of the non-application or

municipal waste varied between 3.2 percent

misinterpretation of legislative requirements

and 5.3 percent. Both the ANRSC (National

and a misunderstanding of each party’s

Regulatory Authority for Community Public

HIGH-PERFORMING COUNTIES IN WASTE MANAGEMENT

responsibilities. The main issues identified

Utility Services) and the GNM (National Envi-

Integrated waste management projects carried out so far have provided financing for all waste management activities, including closure of non-compliant landfills. SMIDs are currently operational in the following counties: Arad, Arges, Bacau, Botosani, Bihor, Bistrita, Calarasi, Covasna, Giurgiu, Neamt, Olt, Prahova, Salaj, Sibiu, Teleorman, Timis, and Vaslui. Of the 32 projects, 17 required phasing out investments and continuing them within the Large Infrastructure Operational Programme, so as to provide both the amounts needed to cover the funding gap as well as to achieve project objectives

in the collaboration between UAT/ADIs and

ronmental Guard) performed checks among

OIREPs are: the separate tariffs for recyclable

UATs regarding the application of waste man-

waste management, used to calculate the

agement legislation.

net costs paid by OIREPs, are not correctly

In 2019, the GNM carried out 2,512 un-

and implement policy in this sector. The SMID master plan has been developed and approved in the following counties: Alba, Arad, Arges, Bacau, Bihor, Bistrita Nasaud,

substantiated; OIREPs only pay for the

scheduled inspections (2,380 at local public

Botosani, Braila, Calarasi, Caras-Severin,

amount of packaging waste that actually

administrations, 52 at road/railway adminis-

Cluj, Constanta, Covasna, Dambovita, Dolj,

gets recovered and not for the amount that

trators, 4 at Intercommunity Development

Giurgiu, Gorj, Harghita, Hunedoara, Iasi,

gets collected and sorted, which leads to low

Associations and 76 at sanitation operators).

Maramures, Mehedinti, Mures, Neamt,

revenues for UAT/ADIs, given the very low recycling/recovery rates;

Following these inspections, au-

UAT/ADIs do not calculate

3,837 sites

users’ separate revenues,

with

ultimately paying more

Olt, Prahova, Satu Mare, Salaj, Sibiu, Suceava, Teleorman, Timis,

thorities identified

Tulcea, Vaslui, Valcea, and Vrancea. Delays in the imple-

un-

for the management of

mentation of integrated

recyclable waste than

waste management

for the management of

systems occurred either

other types of waste.

due to the complexity

In this context, only 7

con-

of projects or to delayed

ADIs – Arges, Calarasi,

trolled

or even gridlocked tenders

Iasi, Mures, Olt, Salaj, and Sibiu – have contracts in place with OIREPs.

for such investments. Fac-

landfills,

tors that can cause problems in

with a total area of 1,384,980 square meters, and

SMID implementation are insufficient

495 cases of failure to submit mandatory

technical endowment and a lack of financial

RECYCLING IN 2019

declarations to the Environmental Fund. Fol-

means due to high tariffs or fees applied to

The recycling rate of municipal waste

lowing the inspections, the GNM handed out

users of the service. Other identified causes

reached 13.89 percent, totalling 739,384

195 warnings and 485 minor offense fines,

are the lack of correlation of duties across

tonnes, according to the Annual Report on

amounting to a total of RON 3,477,801. At the

the chain and the lack of involvement from

the State of the Environment for 2018 issued

national level, UATs have started to update

operators.

by the National Environmental Protection

sanitation contracts by introducing per-

Agency (ANPM). According to the informa-

formance indicators in order to streamline

SMID projects, there are issues related to

tion available in the National Waste Man-

operations, implement separate municipal

delays in the execution of works and compli-

As for the infrastructure created through

www.business-review.eu Business Review | August May 2016 2020

ENVIRONMENT COVER STORY 23 14

ance with contract conditions. Some of the

(formerly Arcelor Mittal Galati) (currently

permit, while Energo Tech SRL in Brasov

equipment that has been purchased is either

LIBERTY GALATI), where slag recovery

County has completed half of its shutdown

insufficient or already outdated due to the

works have been completed and reprocess-

process. There are 24 hazardous industrial

new targets, which means there is a need to

ing works are being carried out to increase

waste landfills in the country. One deposit in

purchase additional equipment to efficiently

scrap sorting rates, at a completion rate of 16

the process of closing â&#x20AC;&#x201C; SC Azomures SA in

operate the system. The quality of services

percent.

Mures County (85 percent completed), while

reflects the availability of financial resources, and these are limited.

LANDFILLS TO BE CLOSED According to the Environment Ministry, there are 12 municipal landfills that still need to be closed. Ten administrativeterritorial units (UATs) have requested funding to shut down their landfills through the designated programme, which is managed by the Environmental Fund Administration (AFM), and all these applications have already been approved. There are also 36 industrial waste landfills that still need to be closed (12 landfills with non-hazardous industrial waste and 24 with hazardous industrial

At Forever SRL in Hunedoara county, slag

two others will soon be closed as well. Two landfills are in the process of capital-

waste). Of the 12 landfills non-hazardous in-

recovery works are at 62 percent completion,

dustrial waste landfills, UATAA Motru in Gorj

while at Feral SA in Tulcea County recovery

ising their waste ahead of closing: Turnu SA

County was closed without a final inspec-

works have been 66 percent completed.

in Teleorman County, where recovery works

tion; the final validation by the construction

Somes SA in Cluj County used its own funds

are 60 percent completed, and Sometra SA in

inspection authority has not yet been issued.

to begin site organisational works to enable

Sibiu County, where works are 15.5 percent

There are also two deposits in the process of

closure works. The Carbid Fox SA deposit in

completed. Rafinaria Vega Ploiesti in Prahova

being closed: SMR SA, currently SC VESPA

Mures County is in the process of clarifying

County has started its shutdown process. However, 17 landfills have not yet started works to close down; they are at various stages such as completing technical projects, obtaining environmental agreements, setting environmental requirements, bankruptcy or insolvency proceedings, change of ownership involving additional regulatory documents, absence of a closure project, uncertain legal status of land or simplified closure applications. In 2019, the GNM carried out 39,429 inspections related to pollution control and biodiversity, biosecurity, and protected natural areas,

INVESTMENTS & CONSULTING SRL (78 per-

its legal status in order to finance the shut-

reaching a 110 percent completion rate for its

cent completed) and Celhart Donaris, Braila

down using EU funds.

initial inspection plan for the year. As a result

county, 65 percent completed.

CAROM SA in Bacau County is in the

of the checks, 1,575 warnings and 3,288 fines

For four other landfills, waste is being

process of obtaining a building permit to shut

were handed out, to the total of RON 55.6

recovered by authorised facilities to pre-

down the landfill and perform field greening.

million. Furthermore, 219 shutdown orders

pare for final closure: Saturn SA (72 percent

Elnav SA in Galati County is looking to obtain

and 44 criminal complaints resulted from the

completed); ISPAT Sidex SA in Galati County

an environmental agreement and building

inspection operations.

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

24 IT

Call for Leaders | Sergiu Zaharia (Huawei): 5G security standards are already in place Cyber security has become very important to everybody in recent years thanks to IT departments and telecommunication specialists, who had been asking for better security measures for a long time. “I could say that we are the victims of our own success,” said Sergiu Zaharia, Chief Security Officer at Huawei, during a new Call for Leaders video conference hosted by Business Review. By Aurel Constantin

“

10 or 15 years ago, the message from IT security departments was that security should be on the management’s

agenda. Now it is on their agenda. And, of course, there is also a boomerang effect, since now there is a lot of pressure on IT security teams,” Zaharia noted. But this change is normal, as all business processes need to be secured. “Security has migrated from the IT and network area to the business resilience area. We have all managed to get to the same message about the importance of security, and not just in the private sector, but also in public institutions. There is obviously a lot of work to do, with tasks coming directly from management,” he added.

already thought about implementation and

connected car there are standards for each

enough measures have already been devel-

part of the car. It’s all based on the concept of

researchers and specialists who tried to dis-

oped to protect communications, which are

zero trust, meaning I don’t need to trust the

cover its vulnerabilities, including people in

the standard for the entire industry. The prob-

security of a light bulb or another car part that

the defence sector, who looked for solutions

lem occurs in vertical industries; there we

connects to the cloud. Products must have

to every security issue. But 4G came with

each must come up with specific solutions.

their own security and communication to any

good security features compared to previ-

There will be a lot of work to adapt solutions

other device must be encrypted. Standards

ous versions. Now, 5G comes with even more

to industries such as healthcare,” he noted.

and solutions exist, now all we need is imple-

4G technology benefitted from the work of

security, with a standard level of security.

“From very small systems like the ones we

mentation,” said Zaharia.

“When we talk about 5G, we don’t think about

have at home (phones, TVs, etc.) to complex

today’s attacks, but about future attacks. The

systems like connected car infrastructures,

“technologies of the future”, like AI, cloud,

encryption algorithms implemented in 4G

which Germany is looking to implement,

virtual reality, augmented reality. “Even in

were on 128 bits. Today, the quantum com-

they all have vulnerabilities that need to be

the machine learning area, there has been

puters that will soon appear will reduce the

addressed. Maybe I’m less interested in the

research that showed that you can build a

scope of a 128-bit cryptographic system to a

home, but if I’m managing a military system,

system using a malicious “teacher” or tamper

64-bit one. A 64-bit crypto can be broken very

I have to ensure maximum security. If we talk

with the programme database so that it works

quickly now. That is why one of the measures

about connected cars, we first have the car’s

incorrectly. There are protection solutions for

was to increase to a standard of 256 bits, so

own system, then the system that allows the

these systems as well. There will certainly be

that when quantum systems appear, it will

car to connect to streets and cities, then the

new things to implement, but mixed teams of

still be secure,” Sergiu Zaharia explained.

cloud system through which it works,” the

specialists from each field will be needed to

Huawei official added.

find effective solutions,” he argued.

Huawei’s Chief Security Officer highlights

There are also security solutions for the

All these systems must follow technical

“Unfortunately, there will always be

asymmetric security systems, identification

standards at the product level to meet safety

attacks; a new type of attack appears every

through third-party devices, but those issues

requirements, and then an industry stan-

week, and specialists must keep up with new

are not specific to 5G technology. “5G has

dard will be required. “For example, in the

threats,” Zaharia concluded.

the fact that there are some issues with

www.business-review.eu Business Review | August May 2016 2020

COVER STORY HR 25 14

Employee benefits could provide glimmer of hope to local tourism industry With many countries still keeping their doors closed to tourists due to the pandemic, Romanians only seem to be left with the staycation option â&#x20AC;&#x201C; both to stay safe as well as to help the tourism sector, which has been hugely affected by the crisis. BR talked to Sven Marinus, the CEO of Sodexo Pass Romania, to find out how corporate employee benefits could make a real impact in the industry. By Oana Vasiliu The Sodexo Turist Pass was launched in 2018. How have you adapted it for 2020? We worked to further develop the Turist Pass vouchers which had been available since 2009, and in 2018 we launched the Tourist Pass card to support digitalization efforts. Holiday vouchers are a great support tool for tourism in Romania and we have done our best to make them as easy to use as possible for consumers, at our partner accommodation units and travel agencies. At the end of 2019, we upgraded the card offer with a mobile option, which can be used with Apple Pay and Android Pay, greatly improving the consumer experience. We have also upgraded the SodexoCard

munication as a tool to recognise employeesâ&#x20AC;&#x2122;

thousands of holiday locations to choose

mobile app, making it easier for users to find

efforts, while still offering compensations and

from. As for destinations, most people have

a place to stay, and also including options to

benefits in optimal cost conditions. Many of

chosen to book a holiday inside the coun-

buy online from travel agencies and guest-

our clients think that good employees need to

try and I believe that over the coming year,

houses which have a web presence. The

be rewarded at all cost, but even more so for

most tourists will continue to stay local. The

Turist Pass is a great chance to get to know

those working in difficult conditions.

most popular destination for the summer is

our country better and discover those special

Through the mobile application, which has

places and hidden spots that can become

been downloaded by almost 1 million users in

favourite destinations.

Romania, we can promote new partnerships to enable Turist Pass voucher and card users

Eforie Nord, while Tasnad is the most wanted destination.

How many cards/paper vouchers did you issue this year? Has the pandemic crisis impacted employer benefits programmes?

to book holidays in Romania and Gusto Pass rants using their mobile phones. More than

Has the number of companies offering Turist Pass benefits increased this year? How about the number of accommodation units taking this form of payment?

We had record card issuance rates in this

100 partnerships are available today and the

Both numbers have increased and we are

period, as tourism vouchers have been

more recent ones includes digital travel plat-

getting more and more requests from guest-

exclusively card-based since April, and meal

form booking.com and the mobilPay Delivery

houses and hotels who want to introduce the

cards issuance rates have also increased, with

programme (for Gusto Pass holders).

Turist Pass payment option, because consum-

card users to place and pay orders at restau-

85 percent of such vouchers being issued on cards.

ers are asking for this facility. We work with all the main travel agencies in Romania so

to encourage companies in both the public

How many accommodation units receive your Turist Pass? What is the most wanted type of holiday?

and private sectors to grant vouchers to their

We have a very large network and partner-

book or pay directly through the accommoda-

employees, and we tried to respond to this

ships with almost all travel agencies in

tion unit, we recommend that they contact us

request. We are also investing in B2B com-

Romania, which offer our holiday card users

so we can set up the payment terminals.

The Tourism minister started a campaign

they can very easily provide assistance and recommendations, but when people want to

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

26 MACROECONOMY

Romania caught in the middle of the US-China cold war In June, a new effect of the US-China trade war was felt in Romania when the agreement to build two additional units at the Cernavoda nuclear plant with a Chinese partner was cancelled by state-owned company Nuclearelectrica, due to pressures made by its main shareholder – the Economy Ministry. But this is just one chapter of a larger story. By Sorin Melenciuc still considered plausible by some analysts in the case of the Washington-Beijing cold war, but the risk is somehow mitigated by the existence of a large group of regional powers that dislike the idea of being forced to choose one side over the other. However, many analysts underline the risk that many aspects of globalisation could be stopped and that the global system may be broken into two parts. In such a scenario, global growth could slow down and small powers and developing countries would have to side with one of the two camps. Contrary to the old cold war, the new rivalry is also associated with a high level of economic inter-dependency between the US and China. This makes things complicated both for the two rivals as well as for their strategic allies. In the last two decades, Romania emerged as a strategic ally of the US in Europe. The new rivalry is also associated with a high level of economic inter-dependency between the US and China

STRATEGIC ALIGNMENT The US-Romania strategic partnership, which was mainly based on military aspects during

wo other sectors are also involved in

between China and the US is at its lowest

the last decades, seemed to be boosted last

this war and influenced by the US-

point since diplomatic ties were first estab-

year when Romanian president Klaus Iohan-

Romanian strategic partnership and

lished in 1979,” says Wang Huiyao, president

nis had a meeting at the White House with US

the US-China long-term geopolitical rivalry:

of the Center for China and Globalization, a

president Donald Trump. The discussion was

5G networks, with Huawei almost excluded

non-government think tank in Beijing, cited

focused around ways to advance and expand

from the planned tender in Romania, and

by Financial Times. In fact, this new era of

the strategic partnership. At the end of the

infrastructure, with Chinese firms losing one

geopolitical rivalry differ in important ways

meeting, Klaus Iohannis and Donald Trump

contract after another.

from the US-Soviet Union tensions between

made a joint statement.

1947 and 1991.

A NEW TYPE OF COLD WAR

The US-USSR conflict was not economic,

More importantly, during the visit, a Memorandum of Agreement was signed by the two

Most analysts think that the US and China are

but ideological in nature, and direct military

governments regarding 5G technology, “tak-

heading into a new type of cold war that could

conflict between the two main nuclear pow-

ing into account the importance of securing

be more challenging for the world compared

ers was avoided through proxy wars. The

the fifth generation wireless communication

to the geopolitical contest that started be-

war was divided into two major camps which

networks in order to ensure prosperity, as

tween the United States and the Soviet Union

included the allies of the two major geopoliti-

well as national security,” according to a press

at the end of World War II. “The level of trust

cal players. This kind of two-sided game is

release by the Romanian presidency.

www.business-review.eu August 2020 Business Review | May 2016

MACROECONOMY COVER STORY 27 14

Klaus Iohannis said at the end of his visit in

port infrastructure for military deployment.

themselves from talking about specific com-

Washington. Even without mentioning it,

Romania hosts two key military bases with

panies or countries targeted by this memo-

the statement openly targeted the agreement

American personnel – Deveselu and Mihail

randum, American officials spoke openly

between Romanian state-owned company

Kogalniceanu – and US military personnel

about an anti-Chinese agenda. “Romania is

Nuclearelectrica and Chinese firm China

is also present in some other areas of the

committed to working with the United States

General Nuclear Power Group (CGN) to build

country. Airports and the Constanta port are

to combat the cybersecurity threats posed by

two new units at Cernavoda. The Economy

of major interest for the military partnership,

Chinese vendors in 5G networks,” the White

Ministry, which owns around

House said in a press release on August 20,

82.5 percent of Nuclearelectrica,

2019.

issued a clear mandate to the

Even though Romanian officials refrained

company on June 15 to termi-

FIRST EFFECT: 5G

nate the agreement with China’s

The first effect of the memorandum was

CGN – and the company took the

quickly seen in Romania: the postponement

necessary steps to do so.

of the 5G network tender. The head of the

It is not yet clear what

telecom regulator in Romania (ANCOM), Sorin

the next steps could be. The

Grindeanu, explained the decision citing the

Romanian president suggested

need to transpose the memorandum into

in August 2019 some form of co-

national regulation. Romanian authorities

operation in developing nuclear

avoided naming a specific company in the

energy in Romania, but without

context of the memorandum, but experts say

getting into too much detail.

that China’s Huawei is the prime target. How-

“President Trump is very inter-

ever, the memorandum also creates some dif-

ested in new sources of energy

ficulties for Romania and for other American

being developed, such as those in

allies in Europe.

the Black Sea, which is particu-

“It is about time but also about money –

larly important for us too. We are

the delayed installation of new 5G networks

both also paying close attention

involves much higher costs. In Europe alone,

to civil nuclear technology and

we are talking about EUR 55 billion. Europe

we hope good, important solu-

seems to have problems adopting the new

tions will be found for Romania,

technology, and it is behind the US and even

which is for sure capable of

some Asian countries, such as South Korea.

becoming an energy provider in

Banning Huawei equipment will only increase

the region,” Iohannis said. At this

these gaps,” explains Nicolae Oaca, a local

moment, the only certainty is

telecom expert. The problem, for Romania

that Chinese firms are excluded

and other European countries, is that there

from Romania’s nuclear sector

is not much competition among 5G network

but it is not clear who (if anyone)

suppliers and Huawei has managed to be-

will replace them.

come a key player on the market. As a consequence, the 5G tender in Romania has already

ROAD INFRASTRUCTURE

been postponed three times and the current

Chinese firms are also interested in road

but rails and roads are also critical for NATO

planned term is in the last quarter of 2020.

infrastructure projects in Romania, but they

at this frontier of the alliance.

haven’t had much success so far. As Romania

However, Chinese expertise in building

SECOND TARGET: NUCLEAR ENERGY

accelerates its motorway, expressway, and rail

roads may prove useful enough to Bucharest

The joint statement signed by the US and

infrastructure using EU funds, many foreign

as it tries to boost major infrastructure proj-

Romanian presidents also stressed the impor-

companies are competing to gain access to

ects this year. Many of these projects are not

tance of cooperation in nuclear energy. “Both

this promising local market. Some Chinese

seen as strategic from a military perspective

of us, President Trump and myself, believe

companies have submitted bids to infra-

but are critical for the country’s development.

that civil nuclear technology, that is, nuclear

structure tenders in Romania in recent years

Such a Chinese company, China Railway, has

stations, have an interesting potential for the

but none of them have won a single contract

submitted a bid to build section 4 of Sibiu-

region and we have expertise with Cernavoda,

so far. Even if infrastructure is not a major

Pitesti motorway – a difficult mountain road

where Units 1 and 2 are operational, and

subject of the US-Romanian partnership,

project. If it wins the contract, it could be the

we surely have a chance to develop here,”

there is clear interest regarding critical trans-

first major Chinese project in Romania.

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

28 PR

Why a brand’s relevance matters as much as its reputation With almost three billion people registered on social media channels, news spreads quickly and companies have to adapt to this reality, making sure that any damaging content for their brand is managed as swiftly as possible. Many companies monitor their reputation daily, checking social channels constantly to ensure that they’re on top of any developing stories. By Romanita Oprea

Bogdan Tomoiaga, Graffiti PR

Catrinel Burghelea, independent communications strategist

Sorana Savu, Premium PR

ccording to the Institute for PR,

them. So how hard is it to really build a brand

sense says it doesn’t work this way. Going

from an organisation’s perspective,

reputation and how long does it take? Firstly,

back to reputation, it is a result of the way an

reputation is an intangible asset that

Catrinel Burghelea, independent communi-

organisation does business, from its products

allows the company to better manage the

cations strategist, would challenge the term

and services to the way it treats custom-

needs and expectations of various stakehold-

“reputation”, which she believes to have

ers, partners, employees, and so on. It relies

ers, creating differentiation and barriers vis-

been excessively used in PR and communi-

strongly on good leadership and transpar-

à-vis its competitors. From the stakeholders’

cations in recent years. More than placing

ency,” Burghelea argues.

perspective, reputation is the intellectual,

perception at the core of our work, we should

emotional, and behavioural response as to

refer to relationships and trust when thinking

The Public Advisors, points out that reputa-

whether or not the communications and ac-

about our mission as communicators. This

tion goes hand in hand with the business

tions of an organisation resonate with their

sets a different framework for practicing and

itself. Building reputation starts from the

needs and interests.

assessing this profession, granting a more

company’s first day and represents the value

strategic role to communicators.

of the company, which is constantly chang-

Corporate reputation accounts for 35.3

Raluca Mihalachioiu, managing partner of

“Reputation is a consequence of the

ing. Therefore, the reputation strategy is as

leading equity market indices, a figure that is

relationships one builds with stakeholders.

important as the business strategy and it’s

even higher for healthcare companies, at 39

Secondly, you cannot simply build a reputa-

embedded into all business stages. Moreover,

percent of market cap. According to PR Week,

tion through communication. We too often

reputation has tangible results. “There is a

due to today’s social and digital reality, com-

expect communication professionals to de-

very strong correlation between reputation

panies must demonstrate relevance that’s

liver on reputation just as you would expect

and the intent of purchase, recommendation,

based on their purpose and ability to connect

somebody to trust you simply because you

operational profit or the attribute of pre-

to audiences on the things that matter to

told them you were trustworthy. Common

ferred employer. In other words, if reputation

percent of the market cap of the world’s 15

www.business-review.eu Business Review | August May 2016 2020

COVER STORY PR 29 14

rises, the sales and profit of a company also

ing long-term relationships with customers.

Reputation is what others say about you

increase. Which CEO wouldn’t be happy to

According to a Nielsen survey, 59 percent of

when you are not in the room. This is why,

mathematically know how to increase share-

consumers prefer to buy new products from

when building its reputation, a company has

holder value?”

brands that are familiar to them and 21 per-

to consider all the types of people who could

cent say they had purchased a new product

be talking about it.

In turn, Sorana Savu, managing partner at Premium PR, says that a brand’s reputa-

because it was from a brand they liked.

“Step into the void, get out there, and join

tion is just like a person’s reputation. If you

“Despite the fact that reputation is a

the conversation. Why? Because at a time

have strong values and principles and you

lengthy process, there is no secret formula

of uncertainty, during a crisis when popu-

are prepared to uphold, observe, and defend

to point out the exact moment in time when

list political leaders are trying to distract us

them with every chance you get, it’s not that

you can stop working on it. A company

with fake news, businesses must act without

difficult. If you are just trying to stick around

should never stop building its reputation. ‘A

waiting for approval. It is time to take on

certain values and hope something brushes

brand is a story always being told,’ said Scott

leadership, even if it seems counterintuitive sometimes. Talk about sustainability, social problems like wages and child support, working with the authorities, and ways to get out of the crisis,” said Tomoiaga. “There is no single recipe and there are no specific ingredients that you can methodically add to a bowl and hope that at some point you’ll be able to pull a reputation cake out of the oven. Organisations, brands, and communities are so different that building a reputation will be like the man with 1,000 faces,” said Mihalachioiu. But there is an instrument that can mathematically evaluate the reputation of companies and brands: RepMeterTM is a reputation measurement tool that evaluates admiration and trust in a brand or company and is calculated based on scores for 7 attributes: familiarity, quality of services, management ethics, employer brand, financial strength, corporate social responsibility, and positive

off on you or if you abuse and misuse them

Bedbury (former Nike and Starbucks execu-

sentiment. The tool was developed by public

and you’re ready to trade them off for some

tive) and it’s as true today as it was when he

relations company The Public Advisors and

easy gains every time you see an opportunity,

said it. Trust and reputation take such a long

research institute iSense Solutions and it is

it’s not that easy. “Reputation is not a snap-

time for a corporation to build, yet they can

defined by the stability of the research model

shot. Fame is a snapshot.

be lost or damaged seriously by a momentary

and actionable results.

According to Bogdan Tomoiaga, execu-

event,” added Simona Dan, managing partner

According to Sorana Savu, relevance first

tive director at Graffiti PR, brand trust and

of The Public Advisors. Therefore, “reputa-

and foremost requires knowing and prov-

reputation are things you build over years of

tion management refers not just to the rheto-

ing that you know what planet you live on,

great and assiduous work. And we have some

ric of an organisation, but also deals with

as a brand. Which sometimes also means as

examples: from the Gods of Ancient Greece

products and services, business performance

a marketer. “With a focus on sales and the

to the new Gods of the Corporate World, trust

and practices, leadership and sustainability.

bottom line and on fluffy creative, constant

and reputation have been things you build

From this perspective, a good reputation

innovation, and with chronic FOMO, brands

over long periods of time, by staying true to

needs an organisation-wide approach and

tend to slip into narcissism and treat people

your beliefs, producing change, and being a

a coordinated effort from many areas of the

as ‘consumers’, chasing them based on

good citizen.

business,” said Burghelea.

demographics and their account balance,

Therefore, like a business, reputation is

forgetting about their hopes, dreams, moods,

not built overnight. It’s a long process which,

THE FIRST STEPS

beliefs, and emotions. Or just ignoring them.

in The Public Advisors representatives’ point

In this context, knowing what the main steps

Or replacing the real ones with some edulco-

of view, could take from 2 to 10 years. Howev-

should be and how to take those steps is very

rated versions that make a TVC more colour-

er, the ongoing effort will result in establish-

important for any company representative.

ful or an ad happier,” commented Savu.

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

30 PR

Efficient communication strategies for [today’s] financial brands Clear. Simple. Authentic. Transparent. Relevant. Contextual. Digital. A partner to the customer. Able to face reality even if it’s tough and to align the expectations of its clients with those of its shareholders. These are the main qualities a financial brand should be able to demonstrate, according to specialists consulted by Business Review. By Romanita Oprea

Attila Kelemen, OTP Bank

Nida Halit, GMP PR

he whole world is experiencing very

all businesses had focused on their employ-

ly; every decision was contextualised, every

strange and intense moments, in an

ees’ security and on business continuity, and

message, action, and project was relevant and

unprecedented situation that will test

many of them engaged in charity initiatives

adapted to the current situation. “Business-

our boundaries and ability to adapt more than

to help communities affected by COVID-19.

wise, they implemented strong, customer-

ever. Companies are learning how important

We slowly found new ways to interact with a

oriented offers and services. Going beyond

as well as how difficult it is to remain closer

captive consumer on a different frequency,”

customer care, this is, after all, a support

than ever to your brand values and clients.

said Butunoi.

measure for Romania’s economic recovery

Brands employed a more humane and

and business continuity. Moreover, as we are

have brands adapted to the pandemic?

familiar tone, with content focused on what

facing a health crisis above all else, our cus-

Cristina Butunoi, head of corporate at Golin,

they could do for others, whether it was

tomers quickly understood the need to help

saw many brands freeze, as we all did, since

employees, the community or society at large,

the local health system. Significant donations

nobody knew what to expect. Then, we saw

and less on maximising business profitability.

made a difference and supported the medical

media consumption rising as people tuned in

And this implied shelving some communica-

system to better cope with this terrible situa-

for COVID-19 updates all the time, no longer

tion projects that would now look completely

tion,” she notes.

being able to tell the difference between the

tone deaf and would immediately be rejected

days of the week. “Then we started to navi-

by the audience.

In this context, one might wonder, how

gate this new normal. We threw out most of

In turn, Nida Halit, GMP PR’s head of com-

Meanwhile, OTP Bank Romania moved quickly and launched its own programme before the lockdown imposed by the govern-

our initial objectives for 2020 and redesigned

munications, believes that brands adapted

ment. This fundamental measure allowed

communication strategies. But before that,

very well. Everything was done very careful-

the bank to have an emotional, empathetic,

www.business-review.eu Business Review | August May 2016 2020

COVER STORY PR 31 14

positive communication strategy, in line with

tion of all kinds, including on social media,”

companies – a real challenge protecting the

the mood of the moment. “Imagine you have

said Ardelean.

people, both financially and in terms of

three puzzle boxes and you have to build

Even though communication may during

health. Until the cure is found, brands and

a fourth puzzle out of the pieces that once

a crisis may have its challenges, there are

the way they communicate can become a part

made sense. Then the mood of the new image

ways for companies to overcome and even

of the global answer and solution to coping

has to mirror the truth of a cautious, calculat-

show that they can find good, long lasting

with this pandemic. They can communicate

ed, but optimistic brand. After that, suddenly,

solutions. The world is changing. Consumer

by entertaining and distracting people from

you understand that this time you cannot

behaviour and business models are changing

the difficult situation; inform using digital or

talk about yourself; you’ll miss the essence

and competition is more intense than it was

online channels and spokespersons to echo

of the moment if you put yourself first. You

before. “All these conditions are adding pres-

and display relevant information and cite

need to talk about those who are receiving

sure to the way financial services companies

trustworthy sources (thus contributing to

the message. I don’t think we had a strategy;

are expected to communicate, and even

limiting the spread of fake news); motivate people to follow government guidelines and measures; engage in relevant social causes; keep calm and help the economy and society,” added the GMP PR representative. According to Cristina Butunoi, challenges may appear at any time: for instance, particularly in this era of “fake news”, communication must be credible. In the era of COVID-19, communication should be careful and authentic, and not appear to be taking advantage of the situation for self-promotion, and so on. “In any situation, I think we should carefully identify the business pain and see how communication can help. For instance, we are all now facing the biggest challenge of our time: how to maintain our internal culture while continuing to work from home. In order to be successful, in Alexandru Ardelean’s view, brands in the financial sector should communicate in a friendly manner, because the very serious and distant tone of

the strategy was that this time we won’t have

more so in crisis situations. Over the last few

voice makes consumers lose the trust they

one,” said Attila Kelemen, marketing director

months, as the pandemic generated an eco-

may have had in the company. “I know it’s

at OTP Bank.

nomic crisis as well, the main challenges for

hard to speak with humour and familiar-

From a journalist’s point of view, Alexan-

financial companies included addressing, im-

ity about credits, interest, deposits, escrow

dru Ardelean, senior editor at Biz magazine,

plementing, and communicating in real time

accounts, and other financial products or

thinks that most financial brands quickly

all the changes resulting from the measures

services, but I believe that an out-of-the-box

changed and adapted their communication

and guidelines announced by authorities, as

approach in communication is the best way

strategies. Messages such as #stamacasa (stay

well as developing and implementing their

to win consumers’ hearts. It’s also a way for

home) or #staysafe, which were used to ad-

own solutions for employees and customers,”

them to feel closer to you and not see you

vise clients to use alternative online or mobile

said Nida Halit. She adds that the real-time

as something abstract that talks to them

channels and only visit the physical loca-

revamping of communication strategies, re-

distantly and seriously about products which

tions in case of situations that could not be

prioritising projects, wisely choosing the next

many don’t really understand,” argued the

resolved otherwise, were a good fit. “Adver-

steps in communication based on the new

senior editor of Biz.

tisements were also adapted to the situation

context, in order to stay relevant and credible,

in which we are living, so they weren’t too

as well as tackling unforeseen situations, also

touch of friendliness even to corporate com-

joyful, nor too sad, but made to reflect the

became great challenges.

munication. Even a business CEO or expert

“We generally advise our clients to add a

new normality and how we’re adapting to it.

“Internally, companies were forced to

At the same time, brand communication was

provide assistance and constantly commu-

another, and too much stiffness in their lan-

forwarded to digital solutions as well. I saw

nicate with their teams, their colleagues,

guage can be a barrier,” the Golin representa-

more efforts in terms of digital communica-

their employees. It was – and still is for some

tive concluded.

has to be viewed as relatable in one way or

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

32 TECHNOLOGY

5G phones quickly moving into lower-tier prices 5G technology is becoming affordable to the masses as mobile phone makers are launching cheaper terminals with integrated 5G connections. While 2019’s 5G smartphones were mostly flagships that had price tags of over EUR 1,000, today we’re seeing mid-range phones being able to tap into 5G networks. By Aurel Constantin that has allowed Huawei to take the first place globally in phone shipments, overtaking Samsung and Apple. Huawei has a market share of almost 50 percent in China and even as its sales in other countries slumped, the producer still managed to hold first place. 70 percent of Huawei’s sales are now coming from China, and only 30 percent from other countries; in 2019, Huawei sold about 50-60 percent of its devices in its home country. In the second quarter, Huawei shipped 55.8 million devices, according to Canalys data, down 5 percent compared to the same quarter of 2019. Samsung shipped only 53.7 million devices, dropping by 30 percent. After launching 5G with flagships like P40 Pro, in July 2020 Huawei announced the P40 Lite featuring all possible connections, including 5G. The device is priced at RON 1,700, qualifying in the mid-range phones Moto G 5G plus EU COMBO

segment, with good camera and processing power. The P40 Lite launch comes at good moment for Huawei in Romania, after the company managed to get a market share of

G technology is coming to age, at

internet speed, a performance that has helped

almost 30 percent in May, according to GfK.

least as far as devices are concerned.

employees to work from home just like they

The smartphone has a quadruple camera and

5G tenders are yet to be held in

would in the office. To maintain high perfor-

a SoC (system on chip) Kirin 820 5G by 7 nm

many countries, including Romania, so mo-

mance, Romania will need to have a good 5G

and comes with a 6.5-inch Full View screen.

bile operators have not started major invest-

network as soon as possible. Hopefully, the

ments in new networks, but the consumer

5G tender will be held soon and result in no

Google’s system and services. It is not an is-

market is getting ready to tap into 5G speeds

restrictions regarding equipment manufactur-

sue for Chinese customers, but for the US and

whenever they are ready. The COVID-19

ers so that operators won’t need to pay more

Europe, Huawei’s two other main markets, it

pandemic has already forced people and

for the new technology. Worldwide, smart-

may be. According to analysts, Huawei may

companies to use their smartphones more, for

phone sales slowed in the second quarter of

lose its top spot among manufacturers in the

both voice and data. The average increase in

the year, by 27 percent, while the forecast for

coming quarters if western economies recover

data traffic during lockdown was 30 percent

the whole of 2020 is a decrease of almost 12

and people start buying phones again, as it is

on fixed and mobile connections.

percent. However, China’s market has shown

forecasted that Samsung and Apple will get a

great resilience, keeping its sales up, a result

boost in sales.

Romania ranked seventh in the world for

Huawei’s problem is its lack of access to

www.business-review.eu Business Review | August May 2016 2020

COVER TECHNOLOGY STORY 33 14

Huawei P40 lite 5G Space Silver

NEW DEVICES FROM TOP MANUFACTURERS

quarter grew by 36

In early August, Samsung launched the

percent year-on-

new Galaxy Note line, keeping its high-end

year (YoY), so the

business phones updated. Both the Note 20

company went to

and the Note 20 Ultra come with default 5G

second place with a

connections. As Apple has yet to launch a

market share of 25

5G phone (expected sometime in the fall of

percent. Samsung

2020), Samsung managed to be the best seller

stayed in first place

of 5G phones with last year’s line-up, but

(27 percent market

didn’t keep up in the second quarter due to

share) and Huawei

the COVID-19 pandemic.

came in third (23 percent). In terms of the

CHINA IS THE BEST MARKET FOR 5G

entire European continent, Samsung again

In the second quarter of 2020, smartphone

range phone A71 5G in April, followed by

comes out on top (30 percent market share),

sales in China declined by 17 percent YoY,

the A51 5G in June. The Galaxy A series is

followed by Apple (21 percent) and Xiaomi (17

according to Counterpoint Market Pulse. But

Samsung’s mid-range line and it makes up

percent, after a 65 percent YoY growth).

compared to the first quarter or the year,

for most of the firm’s sales. Introducing 5G

Xiaomi has had affordable 5G phones

The Korean producer launched the mid-

when China was worst hit by the COVID-19

was a natural move for Samsung as it tries

since 2019. The Mi MIX 3, with 128GB of stor-

pandemic, Q2 sales went up by 9 percent,

to keep sales up and take back the no. 1 spot

age, 6GB of RAM and a 5G connection can be

showing signs of recovery. The interesting

in the world. The A51 5G is the cheapest, at

bought at RON 1,700, while the Xiaomi Mi 10

fact is that 1 in 3 phones in China is a 5G de-

around RON 1,900, while the A71 5G, the top

Lite, with the same configuration but with a

vice, thanks to manufacturers and operators’

product in the Galaxy A series, has a price tag

later launch, can be bought for less than RON

efforts to promote 5G technology. China has

of around RON 2,400.

1,700.

the highest adoption of 5G technology in the

Total sales of 5G phones in 2020 as pre-

Motorola by Lenovo is also in the 5G af-

world today.

dicted by Gartner should reach 221 million

fordable phones range. Moto G 5G, launched

units, which will account for 12 percent of

in July, is priced at RON 1,800. At the launch,

sold in Q2 had 5G capabilities, compared to

overall mobile phone sales, a total of 1.57

Motorola officials announced that they

just 16 percent in the first quarter. And 5G

billion devices globally. The Gartner forecast,

wanted to keep offering affordable phones to

smartphones are still priced in the mid-to-

published at the beginning of the year, also

everybody, so the launch of the 5G phone is

high price range, starting at USD 400, but

predicts that 5G phone sales will double in

in line with that statement.

it looks like the market is quickly moving

2021.

In the last couple of years, Motorola has

According to data, 33 percent of all phones

towards lower-tier price tags. High-end

launched several low-cost phones (around

5G smartphones are predominantly from

Xiaomi is still climbing. In Central and East-

EUR 200 or less) with good performance and

Huawei, while OPPO, Xiaomi, and Vivo cover

ern Europe, Xiaomi shipments in the second

quality cameras.

most of the mid-range segment.

Among top phone sellers in Europe,

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

www.business-review.eu

34 ARTReview | May 2016 Business

COVER STORY 14

What’s next for contemporary art? With the pandemic crisis still raging, with more and more cases every day, a legitimate question is raised: how is contemporary art going to survive these times? By Oana Vasiliu were spent on arts despite the looming finanPhoto: MNAC

cial crisis, and the Artmark report highlights some aspects of these acquisitions: the market grows organically and people wait, bid, Dont’s miss: Radu Comsa’s exhibition from MNAC

and buy; during the lockdown, people had more time to invest in research before bidding on art pieces they were interested in, while

alleries, museums, and artists are

platform for online art talks called Exhibition

art collectors have learned some business

struggling to invite the public to

Continues. Superfinite, H’art, Gaep, Mobius,

lessons and wanted to have their money in-

consume contemporary arts, as a

Sector 1, Anca Poterasu, Plan B, Possible

vested in safe assets, and art has been proven

source of relief in this confusing period. The

Gallery, Sabot, Jecza Gallery, Sandwich were

to be a safe investment.

good news is that museums and galleries

all online, communicating with the public

are mostly empty, so they are safe places to

through their artists. Still, with international

spend some time. The bad news is that this

art fairs cancelled or moved online, Romanian

INTERNATIONAL BRAND PARTNERS WITH ROMANIAN AUCTION HOUSE

sector still needs help.

contemporary art is going through hard times.

There is growing interest in Romanian arts

The decision to open museums and gal-

and heritage, and it’s endorsed by interna-

HELPING HANDS: AUCTION HOUSES

tional partnerships, as the one announced

of hate speech on social media, mostly from

Recently, the Artmark auction house

between Artmark Historical Estate and

people who do not currently enjoy or attend

launched its Art Market Report for 2020-2021

Sotheby’s International Realty Affiliate, pro-

Romanian arts. Yet, after two months of lock-

in the pandemic crisis context. According

viding the international public with access to

down, there were people who did go out to

to the report, the last ten years saw the art

the luxury, historical, and artistic real estate

enjoy this type of entertainment. The “flood”

market grow by 22 percent on average per

of visitors didn’t last long, but it was quite

year, until the end of 2019, through auctions

relieving to go out and enjoy some moments

from Artmark, Alis, Goldart, Lavacow, and

of escaping reality through art. The same de-

Quadro. In 2019, two new auction houses

mand for arts was observed all over the world

were opened: Historic, which organized 8

when top museums reopened for the public.

book auctions, and Vikart, which states that

While nobody knows yet how affected

its activity is focused on contemporary art

the Romanian cultural sector is, the Culture

and organised its first auction in December

Ministry is trying to help, offering money

2019. Although the biggest purchases were

for contemporary art acquisitions through

dedicated to classic Romanian painters like

the National Museum of Contemporary

Nicolae Grigorescu and Stefan Luchian, the

Arts (MNAC). An extra RON 2 million was

report also shows increased interest in con-

approved for MNAC’s budget to acquire

temporary arts, from 23.2 percent in 2018 to

Romanian contemporary art, following an

29.6 percent in 2019.

acquisition procedure through an art expert

Photo: MARe

leries after May 15 generated huge amounts

With the pandemic striking in Romania

commission. When the pandemic happened,

at the beginning of March 2020, auctions

a series of Romanian galleries changed their

continued to take place online. Artmark, Alis,

focus, leading to an interesting move on

and Quadro placed their art lots online and

social media: an attempt to have a single

bidding began soon after. Impressive amounts

Controlling contemporary art

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

ART 35

Photo: Artmark

Photo: Art Safari

Art Safari complete program for 2020

Art nowadays Photo: Artmark

Photo: Artmark

inviting art lovers to several spaces: the Museum Pavilion invites the public to rediscover the work of Gheorghe Petrascu, one of the biggest masters of Romanian painting, the Central Pavilion (Bucharest School) brings contemporary art from the ’90s and onwards, the International Pavillion premieres the rebellious art of the anonymous feminist group Guerrilla Girls, while the Sabin Balasa exhibition celebrates a contemporary painter who is famous for his shades of blue and fairy tale-like characters. Meanwhile, Art Safari

Dream big: Sotheby’s presence may help out the local market

Auctions still take place

Kids and the Children’s Pavilion will host artworks made by little ones during lock-

market in Romania. Luxurious penthouses,

(maybe first of all) professionally. This exhibi-

down, the Guest Country section is dedicated

historical and contemporary villas, design

tion season combines all the trends our Mu-

to Israel and represented by contemporary

buildings, castles, palaces, and manors that

seum aims to cover: retrospectives of the ‘80s

artist Gili Avissar, and the Night Tours visiting

qualify as landmarks in the Historical Monu-

(Petru Lucaci), mid-generation installations

experience includes a guided tour of the exhi-

ments Registry are currently on sale on this

in the emblematic Marble Hall (Radu Comsa),

bitions, live performances, and music.

online platform. Perhaps Romanian contem-

retrospective recoveries of remarkable artists

porary art will follow the same path, with

from the ‘70s (Iulian Mereuta), international

creators and designers, has also announced

more artists besides Adrian Ghenie being

collaborations (Filip Markiewicz),” said Calin

its 2020 edition, to take place in October. With

present in famous international auctions.

Dan, the director of MNAC Bucharest.

a focus on fine arts, architecture, and design,

OPEN INVITATIONS FOR ARTS AND MORE: MNAC, MNAR AND MARE MUSEUM

MNAR, also opened its beautiful garden to

and industry professionals for a 10-day series

the arts, not just its galleries: the Nottara

of events and an open exhibition, which high-

MNAC reopened recently with a series of

Theatre and the Ion Dacial National Theatre

lights the best graduation projects around the

outdoor live performances and indoor exhibi-

of Operetta and Musicals are hosting live

country, showing off an eclectic selection of

tions, following the lifting of quarantine

outdoor performances there for less than 200

arts, design, and architecture projects.

restrictions, with a new exhibition season

attendees. MARe, The Museum of Recent Art,

under the theme “Art as a Social Binder”.

continues its temporary exhibitions, as well

have managed to restructure themselves for

“The new season at MNAC Bucharest is an

as the museum collection, also offering other

outdoor performances based on COVID-19

unusual one. The museum’s condition is un-

types of art, such as live dancing. The lovely

restrictions and regulations, indoor contem-

der scrutiny, as is the condition of humanity.

outdoor terrace is also a great place.

porary arts are still waiting for visitors and

The National Museum of Romanian Art,

Diploma Festival, the art festival for young

this festival brings together emerging talent

While theatre, film, and live performances

a plan to save themselves, but a handful of

A biological accident forces us – through its unpredictable and stingy character – to reas-

WELL-ESTABLISHED ART EVENTS STILL ON

initiatives won’t be able to cover the entire

sess what we are and what we do, including

Art Safari continues its series this September,

contemporary art scene.

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

www.business-review.eu

36 TOURISM Business Review | May 2016

COVER STORY 14

Romania’s version of a staycation: Resizing the tourism business Tourism has been one of the most affected industries during this recent period, with huge financial problems and the inability to return the money to those who had booked holidays in advance. While we don’t know how the virus will evolve, everyone is suggesting that we stay local and embrace our country’s beauty, a concept known as a staycation. Where to, then?

All photos: Visit Covasna Initiative

By Oana Vasiliu

Try local accommodation to real escape from the hustle and bustle of the city life

he term staycation was added to the

but also charge landlords high fees, there’s a

in complete lockdown, the Romanian

2009 version of the Merriam–Web-

local online platform that is getting more and

platformed managed to gather 70 accom-

ster’s Collegiate Dictionary and is

more hits: Travlocals.

modation units from all over Romania, 700

a portmanteau of “stay” and “vacation”,

“I started travelling around the country

customer accounts and over 800 bookings,

meaning a period in which an individual or

and discovered beautiful places and hidden

with 10 percent fully booked accommodation.

family stays at home and takes part in leisure

gems that many people have no idea even

Where to? “People seem to have a preference

activities which are within driving distance of

exist, so I decided that it would be nice to

for Transylvania and I believe that is because

the home, and further developed as a holiday

create a sort of aggregator with all of the nice

it’s an area that combines a varied natural

spent in one’s home country rather than

and genuine accommodations and experi-

landscapes with both tourist cities and au-

abroad. Nearcation, holistay or daycation

ences that can be found in Romania. I started

thentic villages, as well as lots of history and

may also be used with the same meaning.

out with Wildventure in 2018, which only

tradition. Most of the accommodations on

provided ideas to those looking for an escape,

our platform are there, but we also have some

and because it was a success, I took the next

very beautiful places close to the seaside and

step and developed Travlocals at the end of

the Danube Delta, in the Apuseni Mountains

2019,” says founder Radu Fusea.

or in Bucovina, each unique and charming in

TRAVLOCALS: THE ONLINE PLATFORM PROVIDING PREMIUM ACCOMMODATION ACROSS ROMANIA While Booking and Airbnb are hugely popular

In just six months, of which three were

its own way. Going beyond location, our visi-

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

tors like rural experiences but they also appreciate modern amenities, and that’s why modern chalets and glampings are some of the most sought-after places. There is a special place for tree houses as well, either for families with kids or simply for the inner children who have always dreamed of one,” Radu Fusea tells Business Review.

THE VISIT COVASNA INITIATIVE The Covasna County Association for Tourism Development has launched a campaign to relaunch and normalise tourism through the “Visit Covasna Safe Place” programme, which grants hotels and guesthouses in Covasna County a “COVID Safe Place” certification. So far, over 60 properties in Covasna County have been marked safe, and they are all listed on visitcovasna.com. Among the additional security measures which have been proposed to accommodation units in Covasna County who wish to obtain the safety certificate are: partial use of occupancy capacity, online check-in forms, placement of disinfectant mats and hand sanitizer dispensers, measuring body temperature on arrival or upon entry into the wellness areas, wearing masks and gloves, frequent disinfection of common areas, ventilation at short intervals, allowing meals to be served in room service mode and enforcing the 1.5-metre recommended social

TOURISM 37

Accommodation in Romania*

8,402 353,800 2,821 1,709

TOURISM STRUCTURES

ACCOMMODATION PLACES

AGRO-TOURISM GUESTHOUSES

GUESTHOUSES

*SOURCE: NATIONAL INSTITUTE OF STATISTICS, 2019

distance.

Cozy interior to enjoy family meals

Traditional interior design to make you feel comfortable

Meet the locals

Enjoy local handcraft activities

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www.business-review.eu

38 CITY Business Review | May 2016

COVER STORY 14

Cultural calendar

By Oana Vasiliu

September 3-6, Peasant Museum, Elvira Popesco outdoor cinema, Linotip and CNDB

The sixth edition of the BuchaThe courtyard of the Peasant Museum has become open air cinema for niche film festivals

rest International Dance Film Festival (BIDFF) will include

Undercloud Theatre Festival August 11-18, Peasant Museum

One World Film Festival August 21-30, Verde Stop Arena, Peasant Museum, Cinema Elvira Popesco, Contego - The Coffee Factory

meet the festival’s special guests

three competitive sections dedi-

there every day over coffee.

cated to short dance films – the international competition and

Bucharest International Film Festival August 27 - September 3, Peasant Museum and Children’s Comic Opera

the Romanian competition – and music films, along with dance film workshops, conferences, and other surprises for filmgoers. The theme of this edition is Utopia/Dystopia. “EMA,” directed by Pablo Larrain, will run at the beginning of the festival, on September 3, at Elvire Popesco.

At the core of this new edition is the Man without a clear identity in the eyes of the majority,

CINEVARA Every Thursday, Fundatia9

neither rural nor urban – in short,

Fundatia9 announces the second

the foreigner, the minority, the

edition of CINEVARA, the out-

margin, the periphery; every-

door film screenings series that

Independent theatre festival Un-

thing that is not included in

will take place until September 3,

dercloud will take place outdoors

the majority. Depending on the

in the garden of the BRD Scena9

this year. In the #BestOf section,

context, it can be a Roma, as well

the public will get to see a selec-

as a homosexual, a poor person,

The 16th edition of the Bucha-

borhood (32 I.L. Caragiale Street).

tion of the most popular per-

a refugee or an immigrant. The

rest International Film Festival

This year’s edition is a very spe-

formances awarded at previous

films in the main competition –

will feature eight films in the

cial one, carried out in partner-

editions of the festival. The event

which will provide a panoramic

competition section and 10 other

ship with the Film Foundation,

programme will also include a

view of contemporary documen-

prize-winning films, awarded in

an organisation founded by fa-

series of reading performances,

tary cinema in its most formally

Berlin, Cannes, and Venice. Films

mous director Martin Scorsese to

an online section dedicated to

and conceptually ambitious form

for children (5-16 years old) will

recover and preserve the world’s

productions created by indepen-

and will be evaluated for the first

also be screened, and the section

film heritage. For the second

dent artists during the pandemic,

time by a jury that includes Ro-

will also include other filmmak-

year in a row, the CINEVARA film

and a section for children, with

manian and international profes-

ing education activities. South

selection is signed by Richard

workshops and shows created by

sionals – will be screened every

Korean cinema will get a special

Peña, a professor at the Columbia

actor Marian Ralea. Tickets for

night at Contego - The Coffee

section in the festival.

University School of the Arts and

the #BestOf section can be pur-

Factory. This location will also be

chased online from Eventbook or

the nucleus of the 13th edition of

MyStage.

the festival, and we’ll be able to

Residence in the Icoanei neigh-

a former programme director at

Bucharest International Dance Film Festival

the Lincoln Center Film Society in New York, US.

BR/08/2020

Articles inside

Bucharest transitions to a smarter urban future

BUCHAREST EMBRACES ITS SMART CITY FUTURE

STARTUP MINDSET GAINING CLOUT IN LOCAL CORPORATE CULTURE

WHERE ROMANIA TALKS BUSINESS ROMANIA CAUGHT IN THE MIDDLE OF THE US-CHINA COLD WAR

M&A TRENDS IN THE FIRST HALF OF 2020: WHAT CAN WE LEARN?