HOME BUYING AND RENTING COSTS CONTINUE TO RISE
August, 2021 / Volume 25, Issue 7
www.business-review.eu
6
DIVERSITY AND INCLUSION RANK LOW ON LOCAL STARTUPS’ LIST OF PRIORITIES
16
ROMANIAN DESIGN INDUSTRY PUSHING THROUGH CHALLENGING TIMES
20
EUROPEAN STARTUP FUNDING SKYROCKETS IN FIRST HALF OF 2021
24
GENERATION Z:
FULLY AUTHENTIC AND DIGITAL NATIVE
www.business-review.eu Business Review |August 2021
EDITORIAL 3
• Editorial •
REAL ESTATE
Anda Sebesi
6 Home buying and renting costs continue to rise
• Editor-in-Chief •
8 First semester sees dynamic M&A market, but fewer real estate transactions than last year
COVER STORY
Gen Z reaches maturity in age of uncertainty
G
enerational shifts are occurring at a fast pace, and the world will soon experience the rise of Generation Z, which
10 Generation z: fully authentic and digital native
14 Gen Z facing a challenging future
ENTREPRENEURSHIP 16 Diversity and inclusion
will represent the largest consumer base through to 2030,
says Euromonitor International. Despite their young age and
rank low on local startups’ list of priorities
limited incomes today, Gen Z will shape the ways businesses create
18 Enhancing links
and market their products tomorrow. According to the National In-
between Romania’s foreign investment and startup funding
stitute of Statistics, the number of individuals born between 1995 and 2000 (Gen Z's) in Romania is estimated at about 3.6 million, while worldwide, a United Nations study shows that 32 percent of the 7.7 billion global population was represented by Gen Z last year.
DESIGN
Generation Z is the next wave of employees, consumers, entrepreneurs, and employers, and it is starting to attract attention for this reason. They are a digital native, hypercognitive generation, and they’re very comfortable with collecting and cross-referencing many sources of information and integrating virtual and offline experiences. Gen Z is having a potent influence on people of all ages and incomes, as well as on the way those people consume and relate to brands. Gen Z’s belief in dialogue combines a high value for individual identity, the rejection of stereotypes, and a considerable degree of pragmatism and realism. They are highly analytical and are
2o Romanian design industry pushing through challenging times
CITY 27 What's on at the
as more important than a high salary. People in this age group are
Jubilee Edition of the Enescu International Music Festival
known for seeking their own values in all the relationships they
28 Romania’s version of
keenly aware of the need to save for the future and see job stability
develop, so both employers and brands should become highly adaptable and flexible in the future in order to meet this genera-
Tuscany invites visitors to discover great local wines
tion’s needs and expectations as adequately as possible.
30 New in town
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: 82-98 Calea Grivitei, 1st floor, Hotspot Workhub, District 1, Bucharest, Romania SALES MANAGERS: Radu Fireteanu, Alexandra Rosca MARKETING & SALES MANAGER: Luiza Luca PRODUCTION: Dan Mitroi DISTRIBUTION: Eugen Musat EXECUTIVE DIRECTOR: George Moise GENERAL MANAGER: Catalin Alistari USA MANAGER: Oana Molodoi FOUNDING EDITOR: Bill Avery EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu SUBSCRIPTIONS on Manpres Distribution Business Review is a member of Fwei
Publicație auditată pe perioada Apr 2015 - Mar 2016
ISSN NO. 1453-729X
www.business-review.eu Business Review | August 2021
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
Huge development potential for e-learning platforms By Mihai Cristea digital education platforms and educational institutions are not yet ready to use on a large scale to facilitate the learning process for students. 2020 was a year of exploration and one
Claudiu Ghiurluc has been promoted to Audit Partner at Deloitte Romania. With an 18-year career in professional services, he joined Deloitte in 2010 and, prior to this promotion, held the position of Audit and Assurance Director. Over the years, he has been responsible for coordinating audit and advisory teams in the financial services industry and brought a substantial contribution to the organisation, consolidating the FSI audit practice and assisting key Romanian players in the industry.
of accommodation with the online environment and all the interactions we can have with digital platforms, but we expect these things to become the norm in the future, with over 50 percent of digital platform users saying they had no difficulties using them, and almost
E-learning market is estimated to double by the end of 2026
page 5
needed little help. This is also
In 2020, Romanians’ spending
spending, and Romanians are
due to people’s growing desire
on education amounted to USD
looking to invest even more in
to connect from various places,
1.8 billion, and by the end of
their training. According to the
thus giving up traditional of-
2025 the figure will exceed USD
same study, while the global
fices or classrooms,” says Elena
2.2 billion, according to the
e-learning market was estimated
Gheorghe, Country Manager at
global report titled “The Next
at USD 200 billion in 2019, it is
PayU Romania.
Frontier” by PayU, the leader
forecast to double by the end of
of the local online payments
2026.
market. The report also shows
Silviana Petre Badea, the managing director of JLL Romania, has been appointed Deputy Head of CEE Capital Markets, alongside her role as Romania country head. Silviana has over 15 years of experience in real estate, and since 2017 she has been leading JLL's local operations. Her appointment comes in the context of the implementation of a new organisational structure at JLL in the Central & Eastern Europe region in response to customers’ increasingly complex strategic and regional needs.
30 percent saying that they
“Although investment in
The most popular digital platforms among students in Romania are Moodle, Zoom,
that Romania is among the top
education is growing and there is
and Google Classroom, the lat-
15 countries in the European
huge potential on the local digital
ter attracting over 41 percent of
Union in terms of education
education (e-learning) market,
all users in the country.
PeliPartners assists Portland Trust in sale of largest PV park under development in Romania By Mihai Cristea PeliPartners assisted Portland
area of over 165 ha. The process
Trust in the sale of the largest
is structured as a share deal
park of photovoltaic (PV) panels
transaction, and the closing is
being developed in Romania, in
expected to occur by the end of
Ratesti, Arges County. The park,
October 2021.
which was sold to Econergy and
“We are very much look-
Nofar Energy, has an authorised
ing forward to working with
production capacity of over
Econergy and Nofar Energy to
153 MW and an estimated total
bring this project to fruition and
The park has an authorised production capacity of over 153 MW
www.business-review.eu Business Review | August 2021
NEWS 5
Stanleybet Capital completes RON 20 million private bond placement By Mihai Cristea
The bonds will mature by 2024, with a 10 percent annual debt Stanleybet Capital, a supra-
ended early on August 5, as it
mise the online sports betting
structure of the Game World
reached the maximum subscrip-
and gambling platform, to ex-
group – one of the leading
tion threshold in short amount
tend and digitalize Stanleybet
sports betting and gambling
of time. During the subscrip-
agencies, implement mobile
operators in Romania – closed a
tion period, 133 investors were
phone apps, and develop the
bond offering with a total value
registered in the total volume of
premium Stanleybet Plus
of EUR 20 million (approxi-
200,000 bonds, reaching a total
agencies. These investments
mately EUR 4 million). The in-
value of RON 19.8 million. The
will sustain the group’s growth
termediary in the process was
average subscription value was
over the next three years, as
brokerage company SSIF Gold-
RON 149,000.
Stanleybet Capital management
The bonds will mature by
aims to reach RON 600 million
three-year maturity and a fixed
2024, with a 10 percent annual
in revenue and a net income of
interest rate of 10 percent per
debt which is payable half-yearly,
RON 83 million in 2024. For this
year, payable half-yearly.
and will be listed within the Mul-
year, Stanleybet Capital expects
The investment was sup-
tilateral Trading System managed
turnover to be around RON
posed to take place between
by the Bucharest Stock Exchange.
418 million, far exceeding last
July 27 and August 30, but it
The funding will be used to opti-
year’s total of RON 200 million.
ring. The bonds issued have a
Aurelia Luca is the new Executive Vice President of Operations in Hungary and Romania for Skanka’s CEE commercial development division. With more than 20 years of expertise in real estate development, Aurelia has been with Skanska for almost 10 years, having joined the team in 2012 as Leasing Manager. In 2020, Aurelia joined the Executive Management Team of Skanska’s business development division in CEE.
Vincent Arnault will be Carrefour Romania’s new Merchandise & Supply Chain Director, starting with September 1, 2021. With over 15 years of experience in sales and purchasing, Vincent will also become a member of the company’s Executive Committee.
make a significant contribution to renewable energy generation in Romania,” said Portland Trust representative Timothy Duffill. “The complexity of such transactions lies in the granularity of regulation in the energy field, which requires special attention to duly accommodate the contracting parties’ commercial requirements and legal obligations. We are honoured to have had the opportunity to assist the client in this project,” said Carmen Peli, Partner and Head of Corporate M&A at PeliPartners.
Manuela Gogu is Golin's new Creative Director. With over 15 years of experience in communications and advertising, Manuela is returning to Golin, the agency where she started her career back in 2007. Throughout her professional journey, Manuela has coordinated more than 20 creative teams and signed dozens of campaigns that won over 40 awards, both locally and internationally.
www.business-review.eu Business Review | August 2021
6 REAL ESTATE
Home buying and renting costs continue to rise Prices of new dwellings on the Romanian market increased by 3.1 percent in 2020 compared to the previous year, reaching an average of EUR 1,322/sqm. Romania ranks fourth among the 24 countries analysed in the Deloitte Property Index 2021 report, in increasing order of prices, after Bulgaria, Bosnia and Herzegovina, and Portugal. As for the affordability of housing, calculated based on the number of average gross annual salaries needed to purchase a new standard dwelling (70 sqm), Romania ranks in the middle of the list. By Aurel Constantin countries reported unprecedented demand for new housing shortly after pandemic restrictions were lifted, and likely also due to the rising construction costs and higher accessibility of financing. For the second half of 2021, the majority of survey participants (73 percent) estimated that prices would continue to rise in a general inflationary climate,” said Alexandra Smedoiu, Partner at Deloitte Romania and Real Estate Industry Leader. The 2021 Deloitte Property Index also analysed 61 European cities, with Paris topping the list for the most expensive housing, with an average price of EUR 12,917/sqm for a new dwelling, followed by Tel Aviv (EUR 10,332/ sqm), Munich (EUR 8,700/sqm), and London (EUR 7,916/sqm). Three Romanian cities were included in the ranking: Cluj-Napoca (EUR 1,800/sqm), Bucharest (EUR 1,440/sqm), and Timisoara (EUR 1,270/sqm). Paris also leads the ranking for cities with Paris leads the ranking for cities with the highest rent prices, with EUR 28.6/sqm/month
F
the highest rent prices, with EUR 28.6/sqm/ month, followed by London (EUR 26.1) and Oslo (EUR 24.7).
or the first time, Austria took a leading
12.3 percent compared to the previous year,
position in 2020 as the most expen-
followed by the Netherlands and Germany
sive of all analysed countries, with an
(with 10.8 percent each). Overall, house prices
analysed markets, the study also calculates
average price of EUR 4,457/sqm, followed by
rose last year in 21 out of the 24 countries
the affordability of housing based on the
France with EUR 4,421/sqm. Average prices of
analysed. Price declines were recorded in
number of average annual gross salaries need-
over EUR 4,000/sqm were also recorded last
Norway, with a 4 percent decrease, Bosnia
ed to purchase a new standard dwelling of 70
year in Germany, the United Kingdom, and
and Herzegovina (-1.54 percent), and Italy
sqm. A Romanian needs seven annual salaries
Israel. At the opposite end, with the lowest
(-1.24 percent). Romania, with an annual
to make such a purchase, which represents
average transaction prices for new dwellings,
increase of 3.1 percent in prices, ranks sixth in
an average affordability level. The hardest-
are Bulgaria (EUR 578/sqm) and Bosnia and
the ascending order.
to-reach dwellings are in Serbia, where 15.2
Herzegovina (EUR 881/sqm).
“Despite the uncertainty surrounding the
To conduct a relevant comparison of the
gross average annual salaries are needed for
European economy in 2020, in most cases,
a new home, while the most affordable are in
was recorded in Hungary, where the average
the residential market experienced price
Portugal, Belgium, and Ireland (3.1 average
transaction price of new dwellings rose by
growths. This is due to the fact that most
annual salaries).
The highest price growth during 2020
www.business-review.eu Business Review | August 2021 May 2016
COVER REALSTORY ESTATE14 7
for the private rental sector, particularly as
adopted or are heading towards. Advances in
sive mortgage loans, with an average interest
central banks have taken some steps to limit
modern technologies (PropTech) are making
rate of 5.3 percent per year. Portugal is at the
the expansion of mortgages in the CEE in
this factor increasingly efficient and easy to
opposite end, where interest rates fluctuate
recent years. This has been most apparent in
manage,” Blanita adds.
around 1 percent per year.
the Czech Republic, with over 50,000 units of
In contrast, Romania has the most expen-
Yields in the private rental sector depend
private rental sector stock, but Poland is just
on the location and vary between 3.5-4 per-
PRIVATE RENTAL SECTOR
starting to catch up, with more than 10,000
cent in the Czech Republic and 5-5.5 percent
The Private Rental Sector (PRS) is expected to
units planned or in development, adding to a
in Poland. The best estimates place the aver-
grow in the CEE region, as construction costs
stock of 5,000 units.
age yield level for the Bucharest residential
and inflation are rising and overcrowding
“We have seen prices across CEE, includ-
sector in the 6-6.5 percent range, but they can
rates are higher compared to the rest of the
ing in Romania, rising quickly over the past 5
vary slightly depending on location, accord-
European Union (EU), Colliers reveals in its
years, partly driven by a shortage of sup-
ing to Colliers consultants.
report titled “The Private Rental Sector: Has it
ply as well as the relative ease and low cost
found a home in CEE?”, created in collabora-
of debt. Moreover, people have a desire to
is a relatively new phenomenon in CEE, and
tion with Greenberg Traurig and Kinstellar.
invest in order to earn more money on their
you certainly see less and less of it as you
Romania has the highest overcrowding rate in
savings than they would by keeping them in
move farther east. Part of it is legacy-related:
the EU, and even though private ownership
the bank. All these have acted as vectors for
home ownership was always extremely high
is very high, rising home prices and construc-
rising prices and costs, a trend that will force
in CEE and reflected a mentality that said
tion costs are making it harder for people
many Romanians, over the long term, to head
people needed to own their homes. That is no
to own bigger homes, leading to a notable
towards private renting,” said Gabriel Blanita,
longer necessarily the case. As demographics
Bucharest, a monthly mortgage is on average
Associate Director for Valuation & Advisory
are changing and prices are steadily rising for
12 percent cheaper than monthly rent, a level
Services at Colliers Romania.
development in congested areas, with oppor-
“The private rental sector as an asset class
growth of the private rental sector. Housing ownership in Romania is at the highest level in the EU. According to Eurostat data, approximately 96 percent of people in the country own the property in which they live, but some estimates cited by the Development Ministry place the share of rented apartments at up to 20 percent of the total stock in big cities like Bucharest and Cluj-Napoca. There is a cultural bias against this choice as much as there is an economic reason. For a very long time now, mortgages have been more affordable than rents. In
comparable to Warsaw or Sofia. By compari-
From a developer’s standpoint, in order
tunities becoming scarcer, and many people
son, rents in Prague, for example, are more
for residential rent to make financial sense,
being priced out of the market for home
than 40 percent cheaper than a mortgage.
projects need to be conceived, designed, and
purchases, we expect this asset class to take
built specifically for the rental market. As a
hold in CEE,” explains Victor Constantinescu,
on the availability of rooms per person and
result, a great deal of time and planning goes
Managing Partner of Kinstellar Bucharest and
the average household size, was 45.8 percent
into these projects, particularly in terms of
Co-head of Firm-Wide Real Estate practice.
in 2019, above Latvia’s (42.2 percent) and
the unit mix and the services or amenities
Bulgaria’s (41.1 percent). Data suggests that
relevant to the location and target customer
building new residential units in the EU
the majority of households in Central Europe
group.
increased by 15 percent during the 2010-2019
The overcrowding rate in Romania, based
are more overcrowded than the EU average,
“The private rental sector also requires
According to Eurostat data, the cost for
period. Among CEE member states, the larg-
but the long-term European trend shows
significant attention to tenant services.
est rises were seen in Hungary (+47 percent)
a gradual decline in overcrowding as CEE
Implementing a professional platform where
and Romania (+46 percent). In this context,
markets continue on a convergence path, ac-
tenants can speak to someone, register is-
many developers across the region are not
cording to Colliers consultants. The continu-
sues, and get timely feedback or resolutions
tempted to deviate from the build-to-sell
ous increase in sales prices is another driver
is something that many players have already
model of individual units.
www.business-review.eu Business Review | August 2021
8 REAL ESTATE
First semester sees dynamic M&A market, but fewer real estate transactions than last year The total value of transactions with commercial real estate assets in Romania reached EUR 298 million in the first half of 2021, a 23 percent decline compared to the same period of 2020, with the market primarily supported by the return of Austrian investors’ appetite for office buildings, according to the Romania Investment Marketbeat, launched by real estate consultancy Cushman & Wakefield Echinox. By Aurel Constantin
T
Romania still has some of the most attractive yields in the region
he three most important transactions
spaces, a sector in which CTP and Global-
tracted a new investor on the local market:
of the first semester were closed by
worth have expanded their portfolios by
Swiss company Visionapartments. The retail
Austrian investors, who expanded
acquiring buildings in the western part of the
sector was the least active in H1 2021, with
their presence on the Bucharest office market
country, while Swedish group Oresa Ventures
only individual commercial units included in
by acquiring the Campus 6.2 & 6.3 (S Immo),
purchased the Solo Parc project, the largest
transactions. In total, 24 income-generating
The Light One (Uniqa RE), and Bucharest
logistics park in Iasi. In total, the industrial
properties with an average value of EUR 12
Financial Plaza (Immofinanz) buildings.
and logistics segment attracted 24 percent of
million were transacted in the first semester.
The three transactions, with a total value
the capital.
of around EUR 189 million, represent a 63
The hotel sector recorded two transactions
“Market liquidity held impressively throughout the most difficult phases of the
percent share of the total volume transacted
in Bucharest, with a total value of around
pandemic in 2020 and it has also remained
in the first half of the year.
EUR 21 million (7 percent of the total), the
quite healthy in H1 2021, as Romania still
most important being the sale of the Ramada
has some of the most attractive yields in the
Majestic hotel on Calea Victoriei, which at-
region. Looking ahead, yields are forecasted
The next asset class preferred by investors was represented by industrial and logistics
www.business-review.eu Business Review | August 2021 May 2016
COVER REALSTORY ESTATE14 9
to remain stable this year for standard
activity may see surprising developments in
RETAIL PARKS PROVE RESILIENT
properties, while a compression is expected
this regard, also resulting from the mul-
Retail parks were not among the most at-
for premium properties in landmark loca-
tiple angles from which investors will look
tractive investment targets in the first half of
tions, which attract a larger pool of potential
at those companies. 2021 looks promising
the year, even though they were some of the
buyers,” said Mihnea Serbanescu, General
from an M&A perspective, given the wave of
most profitable.
Manager at Cushman & Wakefield Echinox.
enthusiasm surrounding the local business
Retail parks in Romania proved to be much
environment,” said Radu Dumitrescu, Finan-
more resilient during the pandemic than
M&A MARKET REMAINS DYNAMIC
cial Advisory Partner-in-charge at Deloitte
shopping centres, with the turnover of com-
Romania’s mergers and acquisitions (M&A)
Romania. Four transactions with a disclosed
panies that owned such properties decreasing
market recorded 54 transactions in the first
or estimated value of at least EUR 100 million
by 9.5 percent during 2020, compared to a
half of the year, compared to 42 for the same
were announced in the first half of 2021. A
20.6 percent decline in the case of shopping
period of 2020. Deloitte estimates total mar-
similar figure was recorded in H1 2020.
centres, according to an analysis by Cushman
ket value for both disclosed and undisclosed
“Although the covid-19 pandemic has had
& Wakefield Echinox, which took into account
transactions at around EUR 1.2 - 1.4 billion,
an unprecedented humanitarian impact,
the financial results of over 60 modern retail
while the value of disclosed transactions
a surprising level of optimism is currently
projects. The results illustrate an average
totalled EUR 485 million. In comparison, the
governing the M&A market. The flooding
turnover drop of 18.5 percent compared to
of money markets
2019, the last year with no operating restric-
coupled with the
tions, from EUR 607 million to EUR 495 mil-
pressure on strategic
lion – therefore the pandemic had a negative
capital decisions are
impact of EUR 112 million on the revenues of
favouring a dynamic
retail projects (shopping centres and retail
M&A situation. We
parks) in Romania.
expect a positive
The pandemic’s stronger impact on shop-
future evolution
ping centres can be explained by the long last-
amid increasing
ing shutdown of indoor non-essential stores,
certainty,” said Iulia
as well as that of cinemas and restaurants,
Bratu, Corporate
two categories of tenants that usually have a
Finance Director at
strong presence in shopping centres.
Deloitte Romania. The largest deals
Preliminary data from the Finance Ministry shows a turnover decrease of around 35
of H1 2021 were:
percent for restaurant operators, while total
London-based
cinema attendance decreased by 75 percent
Novalpina Capital
in 2020, according to the Romanian Film Cen-
acquired MaxBet
tre. The two segments have therefore been
Romania for an
among the most affected by the government’s
estimated value of
restrictions, which subsequently impacted
EUR 250 million;
shopping centres’ results.
Glovo’s acquisition
“Our analysis confirms the market senti-
total transaction market value in H1 2020 was
of Delivery Hero operations in the Balkan
ment regarding the performance of modern
approximately EUR 1 - 1.2 billion, of which
region for a disclosed value of EUR 170 mil-
retail projects, more specifically that of retail
EUR 572 million were disclosed transactions.
lion; Hungarian private equity fund Adven-
parks, which have managed to significantly
tum bought Hermes Business Campus from
reduce the losses caused by the pandemic
that have excelled during the pandemic,
Atenor, a deal estimated at EUR 150 million;
and by the measures adopted against it.
whether they were operating in the technol-
Hidroelectrica’s takeover of Crucea Wind
Moreover, if we look at projects that are
ogy field or they adapted and developed
Farm and Steag Energie had a EUR 130 mil-
currently under construction or in various
new technologies to maintain or increase
lion disclosed value.
planning stages, we’ll notice that retail parks
“We note investors’ focus on companies
performance. Besides technology companies,
The most active sectors by volume of
will continue to dominate the market, as this
the industries in which we expect investors
transactions were real estate (including
type of development is preferred due to lower
to continue to be very active are renewables,
construction), technology, and the financial
construction costs and to the type of tenants
real estate, and healthcare. An increasing
sector. Together, they generated 24 transac-
it attracts, as they are generally less affected
number of investors are factoring in the ESG
tions. From a deal value point of view, the
by special economic or health situations,” said
(environmental, social, governance) impact
most active sector was real estate, followed
Vlad Saftoiu, Research Analyst at Cushman &
of target companies and therefore M&A
by energy and financial services.
Wakefield Echinox.
www.business-review.eu Business Review | August 2021
10 COVER STORY
GENERATION Z:
FULLY AUTHENTIC AND DIGITAL NATIVE Generational shifts are occurring at a fast pace, and the world will soon experience the rise of Generation Z, which will represent the largest consumer base through to 2030, says Euromonitor International. Despite their young age and limited incomes today, Gen Z will shape the ways businesses create and market their products tomorrow. By Romanita Oprea
www.business-review.eu Business Review | August 2021
COVER STORY 11
Sources ranging from Merriam-Webster and Oxford to the
G
of earlier generations. Reflecting broader national trends, post-
Urban Dictionary now include this name for the genera-
Millennials overwhelmingly reside in metropolitan as opposed to
tion that follows Millennials, and Google Trends data show that
rural areas. Only 13 percent of post-Millennials are in rural areas,
“Generation Z” is far outpacing other names in people’s searches for
compared to 18 percent of Millennials in 2002. By comparison, 23
information.
percent of Gen Xers lived in rural areas when they were ages 6 to 21,
For analytical purposes, Pew Research Center believes 1996 is a
as did 36 percent of early Boomers.
en Z has taken hold of popular culture and journalism.
The geography and mobility of post-Millennials differ from those
meaningful cutoff between Millennials and Gen Z for a number of reasons, including key political, economic, and social factors
DIGITAL NATIVES
that define the Millennial generation’s formative years. A new Pew
Generation Z have lived with the technology boom since the begin-
Research Center analysis of US Census Bureau data finds that the
ning on their lives. The iPhone launched in 2007, when the oldest
“post-Millennial” generation is already the most racially and ethni-
Gen Z's were 10. By the time they were in their teens, the primary
cally diverse generation, as a bare majority of 6- to 21-year-olds (52
means by which young Americans connected to the web was
percent) are non-Hispanic whites. And while most are still pursu-
through mobile devices, WiFi, and high-bandwidth cellular service.
ing their K-12 education, the oldest post-Millennials are enrolling
Social media, constant connectivity, and on-demand entertain-
in college at a significantly higher rate than Millennials were at a
ment and communication are innovations to which Millennials
comparable age. In the US, the high school dropout rate for the old-
adapted as they came of age. For those born after 1996, these are
est post-Millennials, named this way by the Research Center, (ages
largely assumed. “The implications of growing up in an ‘always on’
18 to 20 in 2017) is significantly lower than that of similarly aged
technological environment are only now coming into focus. Recent
Millennials in 2002. And among those who were no longer
research has shown dramatic shifts in youth behaviours,
in high school in 2017, 59 percent were enrolled in
attitudes, and lifestyles – both positive and concern-
college – higher than the enrollment rate for 18- to
ing – for those who came of age in this era. What
20-year-old Millennials in 2002 (53 percent) and Gen Xers in 1986 (44 percent).
we don’t know is whether these are lasting generational imprints or characteristics of adolescence that will become more muted over
COMPARING GENERATIONS
the course of their adulthood. Beginning to
According to the same research, the oldest
track this new generation over time will be of
Gen Z's are less likely than their predecessors to be in the labour force. Only 58 percent of today’s 18- to 21-year-olds worked in the prior calendar year; this compares to 72 percent of Millennials of similar ages in 2002. And employment among Gen Z's is less likely to be full-time compared to earlier generations. This is likely due, in large part, to the fact that
significant importance,” Pew Research Center specialists wrote. They are a digital native, hypercognitive generation, which is very comfortable with collecting and cross-referencing many sources of information and integrating virtual and offline experiences. Young people are having a potent influence on people of all
these young adults are more likely to be enrolled in college. The
ages and incomes, as well as on the way those people consume
median household income of post-Millennials exceeds that of ear-
and relate to brands. In Brazil, Gen Z already makes up 20 percent
lier generations when they were young. The typical post-Millennial
of the country’s population. McKinsey recently collaborated with
in 2018 lived in a household with an annual income of roughly USD
Box1824, a research agency specialising in consumer trends, to
63,700 after adjusting for household size. That is slightly higher
conduct a survey investigating the behaviours of this new genera-
than the income for the typical household in which Millennials
tion and its influence on consumption patterns in Brazil. They
grew up – USD 62,400 in 2002 in inflation-adjusted dollars – and it
profoundly believe in the efficacy of dialogue in solving conflicts
far surpasses the income of Gen X and Baby Boomer households
and improving the world. Finally, they make decisions and relate
when they were growing up. This is consistent with the relatively
to institutions in a highly analytical and pragmatic way. That is
high education of the parents of post-Millennials.
why, for McKinsey, Gen Z is considered “True Gen.” This generation
One in four are Hispanic, significantly higher than the share of
feels comfortable not having only one way to be itself. Its search for
Millennials who were Hispanic in 2002. The share of post-Millen-
authenticity generates greater freedom of expression and greater
nials who are black (14 percent) is nearly identical to the share of
openness to understanding different kinds of people. For Gen Z's,
Millennials who were black at a comparable age (15 percent). Black
the key point is not to define themselves through only one stereo-
representation among the nation’s youth has changed little since
type, but rather for individuals to experiment with different ways of
the early Boomers in 1968. Asians account for 6 percent of Gen Z, up
being themselves and to shape their individual identities over time.
slightly from the 4 percent of Millennials in 2002 who were Asian.
Moreover, according to McKinsey’s research, 76 percent of Gen
The remaining 4 percent of Gen Z's are non-Hispanics of another
Z's say they are religious. At the same time, they are also the genera-
racial identity, mainly youth of two or more races.
tion that is most open to a variety of themes not necessarily aligned
www.business-review.eu Business Review | August 2021
12 COVER STORY
with the broader beliefs of their declared religions. For example,
come of age, retail brands are already feeling the impact. Not only
20 percent of them do not consider themselves to be exclusively
does this young generation have its own money to spend, but its
heterosexual, as opposed to 10 percent for other generations. Sixty
economic influence extends over both family members and wider
percent of Gen Z's think that same-sex couples should be able to
communities. They want reliability and consistence whether they
adopt children—ten percentage points more than people in other
shop in a store, through an app or on a website. Product choice,
generations do.
availability, convenience, and value are top priorities when deciding where to make purchases.
CONNECTION AND INCLUSIVITY
Moreover, 68 percent of the Gen Z's surveyed said a wide choice
Gender fluidity may be the most telling reflection of “undefined ID,”
of products was the most important factor when choosing where to
but it isn’t the only one. Gen Z's are always connected. They con-
shop and 55 percent would like the ability to design products that
stantly evaluate unprecedented amounts of information and influ-
no one else owns.
ences. For them, the self is a place to experiment, test, and change.
They are “always on,” with 24/7 access to YouTube, Facebook,
Seven out of ten Gen Z's say it is important to defend causes related
WhatsApp, Snapchat, and WeChat—as well as any other apps or
to identity, so they are more interested than previous generations
channels they want to use for interactions, and 60 percent of
have been in human rights; in matters related to race and ethnicity; in lesbian, gay, bisexual, and transgender issues; and in feminism. Gen Z's are radically inclusive. They don’t distinguish between friends they meet online and friends in the physical world. They continually flow between
surveyed Gen Z's will not use an app or website that is too slow to
communities that promote their causes by exploiting the high level
load. Gen Z's have little patience for technology that is unresponsive
of mobilization made possible by technology. Gen Z's value online
or prone to errors; often balancing the use of multiple devices at
communities because they allow people of different economic
once, they become frustrated quickly if the user experience lags. In
circumstances to connect and mobilise around causes and inter-
fact, 62 percent said they will not use apps that are hard to navi-
ests. At the same time, they believe in the importance of dialogue
gate. What’s more, despite their superior technological abilities,
and accept differences of opinion with the institutions in which
they tend to care more about retail basics than about the “bells and
they participate and with their own families and can interact with
whistles” of shiny apps and capabilities.
institutions that reject their personal values without abandoning those values. Gen Z's belief in dialogue combines a high value for individual
OFFLINE-ONLINE UNITY Gen Z's expect to move seamlessly between physical and digital
identity, the rejection of stereotypes, and a considerable degree of
worlds and they are less tolerant of technical glitches than Mil-
pragmatism and realism. They are analytical and are keenly aware
lennials. Growing up with the answers to their questions only a
of the need to save for the future and see job stability as more im-
few clicks away has enabled them to be more self-reliant. Access
portant than a high salary.
to product information—such as peer reviews, product specifications and vendor ratings—empowers them to be smarter shoppers.
SHOPPING AND CONSUMPTION HABITS
In addition to shopping with their mobile phones, 73 percent of
Disruptive and distinctive, Generation Z shoppers are growing
respondents said they used them for interacting on social media—
up. Despite their young ages, they already hold unprecedented
especially to chat and communicate with friends and family. Brands
influence over family purchasing decisions and wield enormous
have an opportunity to interact individually with Gen Z's using this
economic power of their own. To better understand how they prefer
channel, similarly to how Gen Z's interact with their friends. The
to engage with brands and prioritise purchase decisions today, the
full potential for doing so is currently untapped: while 39 percent of
IBM Institute for Business Value (IBV) conducted a global survey of
Gen Z respondents said that it was important or very important for
15,600 Gen Z's between the ages of 13 and 21, as well as interviews
brands to engage with them on social media, 45 percent of global
with 20 senior executives. This research shows that Gen Z's already
respondents said they had never connected with brands to contrib-
display characteristics and preferences different than those who’ve
ute, collaborate or complain. What’s more, the tumultuous times
come before. To prosper tomorrow, retail and consumer products
they’ve been raised in have given them a pragmatic perspective on
brands must engage Gen Z's today. More than 98 percent still prefer
what’s really important. To engage this upcoming group of consum-
to make purchases in brick-and-mortar stores. As Gen Z's begin to
ers, it’s vital that retail executives understand how Gen Z's spend
www.business-review.eu Business Review | August 2021
COVER STORY 13
their time, what devices they use, and what they expect from their
personal information, Gen Z's may not be as likely to provide it.
brand experiences.
In that case, brands will miss out on the customer data they need
In fact, 51 percent of respondents said it was either important
for personalising shopping experiences— a key differentiator in a
or very important to be able to switch among channels easily when
highly competitive landscape. Leading companies should have a
researching, browsing or shopping for goods and services. Gen Z
data strategy that will prepare them to develop business insights by
shoppers want brands to make it easy to find products quickly, de-
collecting and interpreting information about individual consumers
cide where to shop, access information on product prices, transact
while protecting data privacy.
the way they want, and use their preferred payment methods. Knowing and understanding digital maybe better than any other
For this generation, consumption means having access to products or services, and not necessarily owning them. As access
group category, fewer than 30 percent of surveyed Gen Z's are will-
becomes the new form of consumption, unlimited access to goods
ing to share health and wellness, location, personal life or payment
and services (such as car-riding services, video streaming, and
information. At the same time, they get involved in decisions as
subscriptions) creates value. Products become services and services
over 70 percent of surveyed Gen Z's by IBM said they influence fam-
connect consumers. As collaborative consumption gains traction,
ily decisions on buying furniture, household goods, and food and
people are also starting to view it as a way to generate additional
beverages.
income in the “gig economy.”
Whether Gen Z's are online or off, socialising is important to them. When asked what they did with their free time, the top response—cited by 74 percent of survey respondents— was spending time online. There was a three-way tie for the second most popular response, with 44
According to McKinsey, consumption therefore becomes a means of self-expression, as opposed to buying or wearing brands to fit in with the norms of groups, for example. Led by Gen Z and Millennials, consumers across generations are not only eager for more personalised products,
percent of participants selecting each of the
but also willing to pay a premium for products
following: TV and movies, hanging out with
that highlight their individuality. Fifty-eight percent of A-class and 43 percent of C-class
friends, and spending time with family.
consumers say they are willing to pay more
The amount of time Gen Z's spend online is considerable. Twenty-five percent of
for personalised offerings. Seventy percent
respondents said they spent more than five
of A-class and 58 percent of C-class consumers are willing to pay a premium for products
hours on their mobile phones every day. And they use their phones for much more than shopping and buying. When asked, 73 percent of Gen Z's cited texting and chatting as their primary mobile phone activities, followed by entertainment at 59 percent and gaming at 58 percent. Furthermore, according to IBM, companies that can’t meet Gen
from brands that embrace causes those consumers identify with. At the same time, 48 percent of Gen Z's said they valued brands that don’t classify items as male or female. Moreover, according to IBM, another key element is individualisation, as they express a strong desire for shopping experiences that
Z's’ extremely high expectations risk rapidly falling out of favour
are uniquely their own. Respondents revealed that direct value pro-
and leaving the way open to competitors. It is therefore vital that
vided at an individualised level—such as value delivered through
brands recognise and respond to this pragmatism in Gen Z's and
promotions and offers that match individual Gen Z's’ specific needs
to their maturity as shoppers. Targeting Gen Z consumers with
and desires—was more important to them than personalised experi-
sophisticated, value-add services such as in-context, personalised
ences shaped by the brand. In keeping with their preferences for
messages is key. Without the fundamentals in place, however, it’s
individualisation, 64 percent of respondents said tailored price or
unlikely that brands can secure Gen Z's’ continued loyalty and pur-
service loyalty rewards were important to them, while 59 percent
chasing power. By understanding and addressing Gen their evolving
said having their birthday remembered was important. What’s
behaviours and preferences, including the devices and social media
more, 65 percent of respondents said that rewards programs influ-
channels they prefer, retail executives and advertisers can work to
enced where they chose to shop.
cultivate long-term, mutually beneficial relationships. When expressing themselves online, Gen Z's post comments,
Another characteristic of the group is the fact that retargeting in campaigns works best among them. “Youngsters do a lot of
photos, videos, and opinions via social media. These preferences
multi-tasking between their responsibilities and passions and the
vary in different types of markets—25 percent of Gen Z's in growth
notion of attention span gets another perspective. “The best thing a
markets are willing to share reviews of products and restaurants
company can do is to repeat the message and make sure the target
publicly, compared to only 14 percent in mature markets. Establish-
is sufficiently exposed to it. At the same time, they must find an
ing trust with Gen Z's is vital when engaging with them as future
empathetic manner in which to do it in order not to become repeti-
customers. Before they share, they expect brands to be transparent
tive, and also to avoid getting the exact reverse effect of persua-
about how their personal data will be stored and used. If the brand
sion,” said Diana Angheluta, Business Unit Director at INTERAC-
does not demonstrate sufficient diligence in protecting sensitive
TIONS, for IQads.ro.
www.business-review.eu Business Review | August 2021
14 COVER STORY
Gen Z facing a challenging future Generation Z, meaning individuals who were born after 1996, represents the next wave of employees, consumers, entrepreneurs, and employers, and it is starting to attract attention for this reason. People in this age group are known for seeking their own values in all the relationships they develop, so both employers and brands should become highly adaptable and flexible in the future in order to meet this generation’s needs and expectations as adequately as possible.
A
By Anda Sebesi
ccording to the Deloitte Millennial
WHAT DOES GEN Z MEAN FOR THE LABOUR MARKET?
Survey 2017, millen-
According to the National Insti-
nials (born between 1981 and
tute of Statistics quoted by ZF,
1996) generally have a positive
the number of individuals born
opinion of Gen Z, believ-
between 1995 and 2000 (Gen
ing the group to have strong
Z's) in Romania is estimated at
information technology skills
about 3.6 million, while world-
as well as the ability to think
wide, a United Nations study
creatively. The study finds
shows that 32 percent of the 7.7
that six in ten millennials (61
billion global population was
percent) believe Gen Z will
represented by Gen Z last year.
have a positive impact as their
Mihaela Feodorof, executive
presence in the workplace
coach and business consultant
expands. This increases to 67
at Performanceway, told Ziarul
percent among millennials in
Financiar (ZF) last year that
senior positions and is higher
Gen Z professionals tend to
in emerging markets (70 per-
ask for flexible work arrange-
cent) than in mature markets
ments, want constant feedback
(52 percent). However, while
from their employers, are less
millennials see great potential
organised than previous gen-
within Gen Z, they also believe
erations of workers, and bring
these younger employees will need a lot of support when they enter
more creativity and willingness to explore. In addition, they have
the workforce.
a different way of communicating with their employers. According
The same study shows that millennials have many useful tips to
to Feodorof, as cited by ZF, the new generation of professionals is
pass on to their future colleagues. When asked what sort of guid-
rather emotional, which means they tend to perceive, consider, and
ance they would give the next generation—based on their own early
filter reality according to their own feelings.
career experiences—the main areas of advice were: learn as much as possible; work hard; be patient; be dedicated; be flexible. Millennials believe that Gen Z's will especially need to develop
This spring, Catalyst Solutions launched a study about Gen Z with the aim of creating a favourable environment for understanding the needs of students and graduates around career develop-
softer skills rather than technical or specific industry knowledge in
ment, work preferences, and payment expectations. According to
order to meet their expectations. Further, they don’t think Gen Z’s
the study, young people aged between 19 and 25 tend to start to
primary strengths align well with the skills or attributes considered
think about their future careers from their first year of university,
to be the most valuable in driving long-term business success. Mil-
so they choose to follow various programmes meant to streamline
lennials in senior positions (those increasingly involved in decisions
their first professional steps. The study also shows that a majority
over strategy and direction) consider Gen Z to be underprepared in
of students at different universities go into internship programmes
terms of professionalism and personal traits such as patience, ma-
or part-time jobs either in their first two or last two years of higher
turity, and integrity. These are things that come out of experience,
education. In addition, 23 percent of them look towards fields like
though, so they can be learned over time.
marketing, advertising, IT and software as potential sectors in
www.business-review.eu Business Review | August 2021
COVER STORY 15
which to pursue an internship or an entry level position, followed
professional development and supports them in choosing the best
by fields like human resources, engineering, management, hard-
way to use these individual traits in their future careers.
ware, sales, administrative, and design.
“Telekom Romania has always stood by young people and has used its initiatives, programmes, and strategic partnerships to sup-
WHAT ARE COMPANIES DOING?
port the development of the new generation of professionals. Now
According to recent research conducted by Telekom, 61 percent of
more than ever, we want to support Gen Z with digital instruments
European Gen Z's are concerned about their post-pandemic futures,
meant to help them identify opportunities for professional develop-
with over half being anxious about their future jobs and career pros-
ment and turn their passions and individual skills into advantages
pects. In addition, 54 percent are not sure what types of careers will
in the future,” says Andreas Elsner, chief commercial officer for
exist in the future, while 43 percent say they are not sure whether
residential marketing and national sales at Telekom Romania.
they have the necessary skills to succeed professionally.
SOCIAL INVOLVEMENT
The world of work will
Gen Z tends to look at the
continue to be transformed by
world with a side-eye, which
rapid digitalization, and hence
stems from having grown up
we have a collective responsi-
amid recessions, fractured po-
bility to support the younger
litical environments, and often
generation as they make their
unexpected job transitions for
way through an uncertain
their Gen X parents, leading to
future.
decreased trust in businesses.
For example, the Future-
As for the Romanian Gen
proof project launched this
Z, the first study about this
year by Deutsche Telekom in
generation’s interest in the
ten of the countries where it
social involvement of brands
operates, including Romania,
in the country was conducted
aims to support Gen Z and
at the end of 2018 by Reveal
capitalise on the power of digi-
Marketing Research, showing
tal tools to support the young
that 96 percent of people aged
generation on its way towards
between 18 and 24 knew of at
a successful professional fu-
least one company in Roma-
ture. Futureproof is a support
nia that had been or was still
platform developed with a
actively involved in solving
clear purpose: demonstrating
problems with high social
Gen Z’s huge potential and in-
impact.
spiring its members to identify
Businesses can reach wary
opportunities for their future
Gen Z consumers by embrac-
careers and discover skills they
ing strong CSR as part of
haven’t yet explored. Future-
competitive growth strategies,
proof was developed in partnership with representatives of Gen Z
and not just half-measure initiatives trotted out a few times a year
and a group of HR experts.
or designed to distract from a crisis. According to a young Gen Z
“Gen Z is stepping into a labour market that was and will con-
student cited in a PRDaily article, whether it’s a specific issue or
tinue to be changed dramatically by the covid-19 pandemic as well
larger company values, Gen Z knows when a company isn’t being
as by digital innovation and transformation. We think that we are all
sincere. “What I understand is actual commitment to something,”
responsible for supporting them in capitalising on the opportunities
said the 22-year-old student from New York City. “One thing I get
they may come across and the challenges they may face. We want to
really turned off by is when it appears that what [companies] are
show them that if they have a passion, they certainly have a future,”
trying to promote or what they are saying is not aligned with their
says Ulrich Klenke, chief brand officer at Deutsche Telekom.
actions. Commitment, action, follow-through, and transparency
At the core of the Futureproof project is a free digital tool that
matter to me.”
helps Gen Z's better understand their abilities and the way they are
Gen Z’s CSR preferences align with those of millennials, who
connected to future professional opportunities. The platform uses
expect to see more gender equality in business leadership, want to
the vocational personality model to inspire the young users to iden-
witness ethical practices in fashion, and generally favour compa-
tify such opportunities. In addition, the tool helps them understand
nies that incorporate CSR into their corporate cultures and business
how their hobbies, skills, talents, and personality contribute to their
models.
16 ENTREPRENEURSHIP
www.business-review.eu Business Review | August 2021
Diversity and inclusion rank low on local startups’ list of priorities The existence of diverse teams and founders is one of the areas investors will investigate when deciding which startup to fund. While topics like diversity and inclusion are becoming mainstream inside the boards of large firms, in the case of startups this kind of discussion is still in its early stages, but with a good potential to grow in the coming years. By Ovidiu Posirca
Diversity covers a wide array of factors, including nationality, sexual orientation and ethnicity
www.business-review.eu Business Review | August 2021 May 2016
C
ENTREPRENEURSHIP COVER STORY 14 17
ompanies that focus on treating
in the top and middle management of large
women hold senior investment roles. Also,
workers well and creating a diverse
companies and multinationals as well as in
in VC funds based in Central and Eastern
and inclusive environment for
small and medium enterprises.
Europe (CEE), 85 percent of team members
everyone may perform better financially and
“In terms of startups, we often encounter
are male.
earn the trust of consumers and investors,
teams that include a good level of gender di-
“They invest in companies with all-male
according to studies carried out by organisa-
versity among the co-founders. In GapMind-
founders, who received 94 percent of all the
tions such as Bank of America/Merrill Lynch
er’s portfolio, 20 percent of all investments
capital invested, with no significant change
and the Peterson Institute for International
(both Seed/Series A and Pre-Seed) have such
over the last 5 years. All-women teams also
Economics.
diversity at the level of managing founders or
raise less capital but are much more effective.
co-founders, and the figure in the Seed/Series
They outperform male-founded companies
FEW WOMEN IN INNOVATIVE STARTUPS
A portfolio is around 30 percent,” Mihaescu
by 96 percent when looking at the revenue to
Research has found that companies ranking
tells BR.
funding ratio. In women, there is more of the
in the top quartile in terms of diversity on
In the European tech sector, 91 percent
four-leaf clover than the mythical creature,”
their executive teams were consistently more
of total capital investment went to all-men
said Małgorzata Walczak, investment direc-
likely to financially outperform their peers.
founding teams in 2020, according to data
tor at PFR Ventures, in the Funding in the
from dealroom.co. Despite the discouraging
CEE region report.
“Although most of the domestic funds are co-financed via the European Investment
statistics, female founders are starting to
The report further points out that just 3
Fund, a champion of diversity and inclusion
raise more money for their startups, espe-
percent of CEE funds have all-women general
among European institutions, we have no
cially in the early stages.
partners, while 90 percent of fund capital
clear evidence that local funds might have specific benchmarks for backing diverse startups in Romania. We do expect both the public
In 2020, startups with women founders closed the largest number
is raised by funds with only male general partners.
of funding
Emília Mamajová, founding
deals in
partner at Espira Invest-
the
and private sectors in
ments, says that there are over 150 funds
Europe to follow venture firms – such as
investing in gender
SoftBank, Andrees-
diverse companies,
sen Horowitz, and
mostly focusing on
many others – which
the VC stage. How-
have set up growth
ever, only 15 funds
funds dedicated to
are based in Europe. USD
backing diverse startup founders,” Marius Nicolae, head of technology in strategy and transactions at professional firm EY Romania, tells BR. Meanwhile, the European Union recently launched a new funding scheme supporting deep-tech startups led by women. EU data shows that around 5 percent of venture capital goes to mixed teams, while only 2 percent goes to all-female teams across
“Central Europe is
10-50 million bracket, according to dealroom.co
the least developed region – so due to a lack of dedicated investors there is a significant un-
data. However, women-only teams did not
tapped market opportunity,” said Mamajová,
close any funding deals over USD 50 million.
according to the report.
Pam Kostka, chief executive of nonprofit
The current picture points to a small
All Raise, suggested that focusing on early-
amount of funding activity going to women-
stage funding rounds can help build a pipe-
led startups in the wider CEE region. But the
line of future female-founded unicorns.
improving figures for early-stage deals can
“Entrenched behaviours like risk aversion
represent a starting point for new compa-
European startups. Furthermore, only 15
and pattern recognition,” as well as “inves-
nies that have diversity embedded into their
percent of innovative startups are founded
tors going back to repeat entrepreneurs…
founding spirit.
or co-founded by women, and just 6 percent
inherently excludes women and people of
have all-women founding teams.
Analysing startups’ diversity initiatives is
colour, who have traditionally not had the
also a market that is in the early development
However, diversity covers a wide array
same opportunities to found and scale com-
stages. For instance, nonprofit Diversity VC
of factors, ranging from age to nationality,
panies,” Kostka was quoted as saying by the
is among the first organisations evaluat-
sexual orientation, ethnicity, and socioeco-
Wall Street Journal.
ing workplaces, investment strategies, and capital allocation. The market for diversity
nomic backgrounds. Dan Mihaescu, founding
certifications is growing as VC funds want to
der diversity situation in Romania is actually
FEW WOMEN WITH LEADERSHIP ROLES IN INVESTMENT FUNDS
one of the best in Europe. This can be seen
In venture capital firms, data shows that few
in which they invest to do the same.
partner of GapMinder VC, says that the gen-
join this process before asking the companies
www.business-review.eu Business Review | August 2021
18 ENTREPRENEURSHIP
Enhancing links between Romania’s foreign investment and startup funding The pandemic caused a drop in foreign direct investment (FDI) in Romania in 2020, while a similar pattern was recorded in the amount of funding attracted by startups. While an increasing FDI volume could help local startups gain more visibility in the eyes of international investors, innovative businesses that are scaling up could generate a snowball effect of growing funding rounds. By Ovidiu Posirca
European B2B startups produce more output relative to their funding levels
T
he health crisis triggered a dramatic 60 percent decline in FDIs last year, to EUR 1.92 billion, according to data
the fresh flows of foreign investment. Growth is back on with GDP set to expand by 7.4 percent this year compared to 2020,
billion in the first five months of this year, compared to EUR 758 million in the same period of last year. “FDIs in local startups and technology
from the National Bank of Romania. How-
which will help Romania fully cover last
ever, the swift economic recovery of the first
year’s economic contraction. This is already
companies could play a big role towards the
half of the year has led to improvements in
evident for FDIs, which climbed to EUR 2.4
growth of the local economy, especially since
www.business-review.eu Business Review | August 2021 May 2016
COVID-19 has been a game changer for digital
ENTREPRENEURSHIP COVER STORY 14 19
“The local availability of talent is key for
In late spring, Bunnyshell, a startup devel-
transformation. We are witnessing increased
attracting high-tech startups. This makes it
oping technology for cloud infrastructures,
activity in the equity capital component
important to position the location not just
got EUR 1.1 million to expand its devops-as-a-
of FDIs, where investors are looking to
as an attractive place for investors, but also
service solution.
consolidate or acquire new assets to expand
as an attractive place to live for an educated
their business towards digital channels,” says
workforce.” Another recommendation is to
Marius Nicolae, head of technology in strat-
focus on building the network with local
NEW INVESTMENT POTENTIAL IN B2B STARTUPS
egy and transactions at professional services
universities, talent centres, venture capital
Some Romanian startups that got new fund-
firm EY Romania.
funds, and corporate partners looking to
ing this year are developing products that can
cooperate with startups.
be used by other companies (B2B). In fact,
The State of European Tech report notes that funding in the startup field fell by 60 percent to USD 315 million in 2020 compared to the previous year. Startups are one way to attract fresh invest-
“Startups are a target group that feel at home online, so use the time when international travel is down to conduct digital marketing and online events aimed at startups.
this is a trend of the European market that can help startups gain a competitive edge over those in the US and Asia. A McKinsey report points out that European B2B startups produce more output relative to their funding levels—revenue and valuations per invested
ment and create
Lastly, they typically
dollar are higher than in the United States—
new jobs. Tradition-
move faster in their
and Europe’s mature, regional ecosystem is
ally, investment
business decisions
fertile ground for B2B startup innovation and
promotion agencies
than larger corpo-
success. One of the secrets of this success is
rates, so be prepared
Europe’s cost base for relevant skills which
(IPAs) and economic development organisations (EDOs) in each state can boost their efforts to increase FDIs during periods of downturn like the COVID-19 health
to provide support quickly at the pace required by this important target group,” add representatives of FDI Center.
shock. Nonetheless, attracting a startup before
are critical for startups. “For example, several professional skill profiles critical to B2B startups (such as software developers) are often less costly in Europe than in many regions in the United States. Additionally, office rents in metropolitan locations in Europe are often lower
it grows big can have a significant impact on
LOCAL FINTECH PLAYER ATTRACTS BIGGEST FUNDING ROUND OF THE YEAR SO FAR
the local economy.
FintechOS, the tech startup developing digi-
the United States,” according to the McKinsey
tal solutions for banking, financial services,
report.
For instance, advisory firm FDI Center points out that Berlin-based fashion e-commerce company Zalando grew to become the 10th biggest employer in the city over the last 12 years.
and insurance players, got USD 60 million in a Series B funding round. The additional funding from local and international sources
compared with the startup hot-spot regions in
Another one of Europe’s advantages is the fact that businesses across the continent still tend to follow similar and predictable rules. This means that a venture can be grown more easily regionally or even globally
will support the
without having to spend so much time and
startup’s accelerated
resources adapting the product to specific
expansion plans just
local markets. McKinsey analysts added that
corn with Romanian
three years after the
the need for innovation in Europe’s economy
roots, had 727 em-
founders secured
will further improve B2B startups’ conditions
In Romania, UiPath, the first uni-
ployees in Bucharest
a seed investment
for growing into innovation champions. Ro-
at the start of 2021. The
round.
mania’s favourable conditions for the acceler-
company’s total head-
Since the beginning of
ated growth of B2B startups could be another
count reached 2,863 across the world, according to data submitted for its Initial Public Offering (IPO).
2021, other Romanian startups have raised funds to the tune
engine for attracting foreign investment. Following the success of UiPath in the
of around EUR 1 million each. SeedBlink, an
US, the local startup ecosystem got a dose
equity crowd-investing platform for startups,
of optimism and awareness regarding the
investment opportunities inside the country
got EUR 1.2 million in a series A funding
potential of entrepreneurship to create a new
could make use of some of the recommen-
round from Catalyst Romania II.
generation of millionaires. As more startups
Romanian organisations that promote
dations from the FDI Center, which can
Meanwhile, property management
have ambitious targets to become the next
ease the process of attracting more foreign
startup Milluu was able to raise nearly EUR
unicorn, the FDI landscape could also get a
startups.
900,000 in just three months on SeedBlink.
boost.
www.business-review.eu Business Review | August 2021
20 DESIGN
Romanian design industry pushing through challenging times The design industry in Romania is relatively young, and it certainly needs support, as well as a good context that can foster development. Event organisers aren’t standing idly by, but powering through the difficulties and proving that creativity and innovation always win. By Romanita Oprea graduates since 2010. For David Sandu, this pandemic has confirmed the importance of interaction for most of us. “Anticipating the needs of the creative communities which we represent was the main force behind them and behind the launch of the Romanian Jewelry Week project, even before the pandemic. The first edition in 2020 was a marathon of finding new logistic, legislative, organisational, and public safety solutions in order to be able to hold a live event. We very much wanted it to happen, despite the huge effort it entailed, and we had great results. 6 days in 7 locations in Bucharest, over 150 designers who sent in their works from all over the world, and over 2,000 visitors. We hope the
I
Andrei Bortun, The Institute
numbers in 2021 will be even higher and that soon we will be able to talk about a whole
n the 9 years since the team at The
projects, and in the future, considering all the
community that comes together during this
Institute has been organising Romanian
challenges and limitations of the local con-
week dedicated to jewelry,” Sandu said.
Design Week and Diploma, its representa-
text, I expect the multidisciplinary approach
tives have certainly noticed a development:
to become more widespread, as
the product design scene has been more
it can turn these shortcomings
clearly defined and outlined, growing in a
into development opportuni-
rather conceptual area, fashion and graphic
ties,” Bortun said.
design have also experienced major evolu-
In addition, in the context of the opportu-
The Romanian design indus-
tion, while architecture has always had a
try is experiencing continuous
strong guild around it. However, according
growth, as all the organisers of
to Andrei Bortun, CEO at The Institute, there
art and contemporary design
are still many unmet needs and aspects
events have significantly con-
that could be improved: from the dialogue
tributed to the education and
between producers or large companies and
growth of an audience that was
independent studios and designers to the ed-
almost non-existent 15 years ago,
ucation system and the relationship between
believes David Sandu, founder
the academic environment and the labour
of Assamblage and curator of Ro-
market, as well as issues related to production
manian Jewelry Week. This constant growth
nities and contexts mentioned above, Bortun
or distribution.
was the result of the public’s ever-increasing
would like to mention Diploma, the only festi-
appetite for quality design, originality, and
val in Romania dedicated to the new genera-
dialogue between the different disciplines of
the talent of emerging artists in the creative
tion of artists, architects, and designers. This
design, a network that is beginning to trans-
industry. For example, the Assamblage
fall will mark the eighth edition, and Bortun
late into collaborations and interdisciplinary
Art and Design Institute has had over 750
and his team are delighted with the large
“I believe that today there is a closer
www.business-review.eu Business Review | August 2021 May 2016
COVERDESIGN STORY 21 14
number of registrations so far: more than 500,
that can cope with unforeseen situations. “I
local market, as it has the chance to return to
from 7 cities. The main rationale behind this
also expect to see more and more designers
the craft, to the processes, to designers’ direct
event is providing a launch pad for emerging
concerned about sustainability and resources,
involvement in production, to small series
talents, who sometimes find it difficult to af-
about the impact of products and processes
and conceptual design in general (which
firm themselves and their work and to shape
on the environment in general, as well as
asks questions and raises problems), in the
a clear, strong voice to communicate with the
about the importance of specific tools in
attempt to find good solutions. But even that
public.
shaping a more equitable future and more
can be a form of adaptation, according to
inclusive public policies,” added Bortun.
Bortun. And if we refer to graphic design, he
According to Andrei Bortun, the pandemic was a break, a period of paralysis for the
Moreover, as David Sandu noted, one
thinks that in recent years we have witnessed
entire industry, but probably also a period
mustn’t forget that this period has generated
the emergence of a new, fresh generation,
of calibration and re-evaluation of priorities,
important insights and new communication,
which has offered many pleasant surprises.
promotion, and on-
“Overall, the Romanian design market does
line sales solutions.
not necessarily have specific features, but in
All these useful tools
an increasingly globalised world, I think that
must be used on
the only valid trend will be this alignment
a larger scale, and
with the international dialogue and approach,
they will definitely
to global concerns and themes,” said Bortun.
change the manner
Meanwhile, the Assamblage representa-
in which creative
tive noted that Romanian designers who are
industries structure
entering the international market are now
their strategies.
dealing with the same issues faced by emerg-
Has any good
ing designers and creatives from all over the
come out of the
world. Besides creativity and originality, it’s
pandemic though?
very important to be constantly present at
David Sandu thinks
industry events, specific to every niche. The
with a focus on processes, resources, and ob-
that looking for advantages in disadvantages
big challenge being part of the international
jectives. Through discussions he and his team
is an attribute of those who are constantly
cultural and business environment. Since
have had with many designers and studios,
looking to learn, to adapt, and continue what
they’ve learned a lot about how this period
they are already doing.
has helped, in the sense that it represented or
In turn, Bortun believes that any crisis or
was perceived as a period of incubation, as a
obstacle can also generate positive outcomes,
period of returning to processes, to essential
but it is also important to see how we can
elements, to discourse. “I believe that creative
overcome it together or go through it (pro-
people have the great advantage of possess-
ductively or not). “I think we have a chance to
ing a remarkable capacity for adaptation in
rethink systems and to question our priori-
general, more noticeable among designers, as
ties and the things we want – from objects or
they are inclined to turn limitations and con-
products we might buy, from the people in
straints into solutions, as their discipline itself
our field or from society as a whole. However,
entails specific thinking in this regard. So, I
I believe that this exercise of looking towards
think their adaptation process has involved
the future can only be done through dialogue
a creative search and a return to their own
and interdisciplinarity,” The Institute’s CEO
practice,” said The Institute’s CEO.
argued.
On the other hand, Bortun thinks that the great challenge raised by the pandemic was one of a financial nature, because of the
ROMANIAN DESIGNERS ON THE INTERNATIONAL MARKET
acute lack of professional associations, of a
What are our defining features in the inter-
sincere and open dialogue between creative
national industry? Can one easily identify
2015, through Assamblage, Sandu has been
entrepreneurs and public administration
Romanian design nowadays? If we’re talking
trying to do exactly that, aiming to create a
representatives and between the public and
about the product design market, the fact
visible presence of Romanian designers at
private sectors. Bortun also believes that
that we have a few decades to compensate
the most important global events for contem-
we all understand better than ever the role
for compared to more developed markets and
porary jewelry: London Fashion Week, Joya
of solidarity, long-term strategies, systems,
industries (see western or northern countries)
Barcelona, Prague Design, and Fashion Week,
and a healthy local cultural creative scene
is probably the biggest opportunity on the
Milano Jewelry Week, etc.
www.business-review.eu Business Review | August 2021
22 MARKETING & PR
Sports event communication during a pandemic Even though the covid-19 pandemic is still present, 2021 is an important year for sports worldwide, with the Olympics taking place in Tokyo and, for Romania specifically, as it hosted several football games from EURO 2021, while the Women’s European Volleyball Trophy toured the country’s most important cities, giving fans a chance to see it up close and take pictures. Euro Volley 2021 will be co-hosted by Romania, Bulgaria, Serbia and Croatia. By Romanita Oprea
Simona Otel, sports industry freelancer
A
Iulia Niculae-Cuciurean, Romanian Football Federation (FRF)
Alina Galeriu-Olteanu, Galeriu & Partners PR
s Romania has made changes to its
influenced all aspects related to the planning
Digital channels were obviously the way
legislation in order to begin recognis-
of sports events. This is why sports organisa-
to go. “We were forced to re-evaluate our
ing esports (electronic sports) and
tions have decided to cancel fan zones and
marketing strategy and rapidly adapt to
even organised the Esports Summit Bucharest
fan activations, rethink pre-match ceremo-
the new context. Messages were no longer
in July, we should take a closer look at the
nies and the player escort concept, remap sta-
focused on the energy and vibe of a competi-
communication of a sports event, especially
dium access and ticketing distribution, limit
tion. The core of communication was about
during a pandemic: from strategy, ideas, and
the number of suppliers, media, and staff for
empathy, support, and the need to stay strong
implementation to choosing the right chan-
some areas during matches (players’ areas,
as we were all going through this together.
nels and measuring results. Communication
press conference spaces, etc.), introduce
Meanwhile, competitions were taking place
in sports marketing helps sports organisers at-
disinfection hours or new access procedures
without spectators and, perhaps contrary to
tract participants and spectators to their sport
for the public, and so on.
initial expectations, live sports TV viewer-
or venue and helps raise revenue through sponsorship or investment.
Sports industry freelancer Simona Otel
ship went down compared to previous years.
thinks that 2021 was a very challenging year
Sports consumers are driven by emotion. If
for sports. Many competitions were either
you can’t live it and feel it from the stands, it’s
communicating a sports event in 2021? Ac-
rescheduled or held without spectators. The
all in vain,” Otel explained. She is currently
cording to Iulia Niculae-Cuciurean, marketing
pandemic had an obvious impact on ath-
a project manager at the U-BT Cluj-Napoca
manager at the Romanian Football Federation
letes, sports organisations, and fans. As an
Basketball Club, but also has broad experi-
(FRF), the pandemic period turned safety
organiser, the main challenge was keeping
ence working in basketball communication in
into the main concern, and this layer has
the fans close to the team from a distance.
Spain and Romania.
What are the challenges of organising and
www.business-review.eu Business Review | August 2021 May 2016
For Alina Galeriu-Olteanu, managing
MARKETING COVER STORY & PR 23 14
focus on sports values and education and pay
sonalised content and integrating technology.
partner at Galeriu & Partners PR, the biggest
special attention to sports beneficiaries and
TV is still king, but streaming platforms are
challenges were related to the uncertainty
to their partners, so they shifted to 365-day
expanding with every year that passes.
as well as the constant need to be ready to
communication versus only communicating
hit the restart button and reshape the entire
in the proximity of sports events, creating
ALL ABOUT THE PUBLIC
plan. Now more than never, you simply need
more digital content, allowing the public to
But is the target audience more or less
to operate with multiple scenarios right up to
see more behind the scenes, and focusing
demanding than others? According to Alina
the date of the event and take all the variables
on fan engagement through campaigns like
Galeriu-Olteanu, in a way, sports fans are
into account. “Planning a successful event
“Cupa vine la tine” or “Peluza Tricolora.”
more demanding. There is a blend of national
of any kind has always been a dance with
This year, the FRF launched 3 important
pride and emotional investment in a long-
uncertainty and has always relied on the
platforms: Academia Nationala de Fotbal
term relationship supporting certain VIP play-
organiser’s ability to find a clever way to pre-
and Academia powered by
pare for everything that might go wrong, but
FRF (educational platforms
lately the overall context has generated even
that contain courses and
more pressure to operate with a thorough
specialisation programmes
analysis of worst-case scenarios. Health and
for both professionals as well
safety regulations are much stricter now, to
as those who want to work in
the point where meeting fans has turned into
the industry and the general
a highly challenging and problematic chapter
public) plus the relaunch
as you need to keep everyone safe and limit
of impreunasuntemfotbal.
interaction according to official regulations.
ro – a platform dedicated to
Fans’ access to matches is also a highly
grassroots competitions that
questionable element in the strategy, since
also contains lots of useful
the situation can shift so abruptly that predic-
information for parents and
tions do not seem to be enough every time,”
kids who practice football.
Alina Galeriu-Olteanu noted.
“Another good aspect is the fact that the pandemic
THE POSITIVE SIDE
context allowed the public to
Looking at some of the positive aspects,
look more towards eSports, as the eFootball
ers from the national team, which makes fans
Simona Otel believes that the best thing that
National Teams raised their profile with a
feel entitled to harshly criticise any mistake
happened for Romanian sports was the fact
consecutive qualification at eEURO (the PES
and take ownership of each victory. “This
that they were forced to make a huge digital
National Team reached the semifinals of
puts heavy pressure on the players’ shoul-
step. Everything around us is going digital,
eEURO in 2020, and this year it managed to
ders, and I would be very grateful if we could
but sports seemed to be doing so very slowly,
reach the quarterfinals) and the FIFA National
find a way to balance out all this energy com-
taking small steps in this direction. “Dur-
Team qualified for the 2021 eNations Cup
ing towards them from the public. Perhaps
ing the pandemic, fans wanted to see more
(equivalent of World Cup in football), a tour-
over time the Romanian public will manage to
of their favourite team and have contact
nament scheduled for August,” said the FRF
find some maturity on this matter, because at
with their favourite players, while parents
marketing manager.
times, fans seem to behave like little children
wanted to watch their kids playing, so sports
At a general level, there has been an evolu-
being denied their favourite toy,” she said.
organisations had to find ways to deliver
tion in the way people consume sports over
the required content. Many clubs started to
the past few years, something that is well
more emotionally involved, and this has
livestream games for the first time, explor-
supported by digitalization and technology.
many consequences. Sports marketing plays
ing new digital platforms, extending their
Now, audiences tend to not just watch the
with strong emotions, and this is why the
means of communication, and significantly
match (either on TV or at the stadium), but
association with brands is so powerful. It
growing their online presence. Home workout
to also stay connected with their friends,
also depends on who we are talking about:
and video trainings using telecommunica-
comment on different social media groups
active fans, occasional fans, passive fans or
tion technologies were also quite popular,
or platforms, and check statistics apps in
fanatics. For instance, an active fan or fanatic
especially in the first few months of the
real time. A small part of the audience is also
may easily forget about a nice activation from
pandemic,” Otel added.
using artificial intelligence to get the latest
the beginning of the match if their favorite
updates, watch replays or find out interesting
team is losing, while an occasional fan might
that this period gave her and her team more
things about the players or the teams, and
always remember the positive vibe, activa-
time to develop strategies and look into the
this with the help of streaming platforms that
tions, and choreography of a match,” said
essence of things. As a result, they chose to
have become more creative in delivering per-
Niculae-Cuciurean.
Moreover, Iulia Niculae-Cuciurean said
“I would say that the target audience is
www.business-review.eu Business Review | August 2021
24 FINANCE
European startup funding skyrockets in first half of 2021 Most European countries experienced a solid rise in capital deployed to local startups in the first semester of 2021 based on the amount of funding raised compared to the total raised in 2020. Romania is no exception, as it has also seen an increase in funding, even though the value of investments is much lower than that of more advanced European countries. By Claudiu Vrinceanu rounds for startups based in Romania or with most of their employees in the country (even if the company is incorporated elsewhere), and about EUR 878.4 million were invested in foreign startups with Romanian founders (10 rounds), counted separately. By comparison, in the first half of 2020, there were 30 deals totalling approximately EUR 20 million. Despite the uncertain times, Romania’s tech startup sector is growing as expected
E
Most investments this year stood between EUR 200,000 and EUR 1 million. EUR 1.5 million went into 12 rounds of up to EUR
uropean funds raised USD 6.9 billion
startups in Spain raised EUR 800 million in
200,000, EUR 14.1 million in 28 rounds
in the first half of the year, much more
6 months, also 60 percent above 2020 levels
between EUR 200,000 and one million, EUR
than they did in 2020, according to
(EUR 500 million).
16.4 million in 9 rounds between EUR 1-3 million, and a single USD 60 million round was
Refinitiv data. The first half of 2021 was great
marked by FintechOS.
of financing raised. According to Overlooked
ROMANIAN STARTUPS GET MORE FUNDING BUT VALUES REMAIN LOW
data, in this period, French startups managed
Despite the uncertain times, Romania’s tech
nian entrepreneurial businesses was driven
to raise EUR 5.1 bn, above the total amount in
startup sector is growing as expected, as un-
by the growing number of investment funds,
2020. German startups raised EUR 7.7 billion
derlined by the total capital attracted by such
by new crowdfunding campaigns, and by
while in Sweden, tech startups took EUR 6.2
startups this year. Based on public announce-
business angel investors’ increased interest
billion from investors in just 6 months, more
ments, in the first six months of 2021, 60
in companies with high growth potential.
than double the amount raised in all of 2020.
investment rounds were closed by Romanian
In terms of sectors, health, gaming, deep-
for most tech ecosystems in Europe in terms
In general, the financing offered to Roma-
startups and by a few foreign startups which
tech, SaaS, and marketplaces were the most
of funding deals for startups and scaleups in
have Romanian founders but operate abroad,
sought-after by investors, but businesses in
the Netherlands: financing rounds of EUR 3.2
according to Activize data.
sectors that experienced problems during the
There has also been a surge in the number
billion, an 60 percent increase over the whole year of 2020 (EUR 2 billion). Moreover, tech
The total investment volume for this period was roughly EUR 82.2 million across 50
pandemic – such as hospitality, prop-tech or transports – have also started to recover.
www.business-review.eu Business Review | August 2021 May 2016
COVER STORY FDI 25 14
Romania’s FDI inflows should be booming amid this year’s huge economic growth The covid-19 pandemic has had an impact on foreign direct investment (FDI) worldwide. In 2020, investors were interested in target countries’ management of the pandemic as well as their social and political stability, labour supply, and cost competitiveness.
Korea, and Lithuania) were the only ones to
By Claudiu Vrinceanu
performance was recorded by China, whose
record economic growth after the outbreak of the pandemic. Romania's economy in the first quarter of this year was almost 1 percent higher than pre-covid levels, similar to the cases of Australia and Lithuania. The highest economy is 7 percent above pre-pandemic levels, followed by Chile, with 3 percent. Moreover, the Romanian government is betting that economic growth will exceed the 10 percent threshold in 2021. But will foreign direct investments be able to keep up with the rapid economic recovery? So far, the answer remains unclear. Direct investments from non-residents in Romania amounted to EUR 2.43 billion, having increased by EUR 1.67 billion, from EUR 758 million in the first half of 2020. Moreover, the number of companies with new foreign capital established in Romania increased in the first six months of 2021 by 53.7 percent compared to the similar period of 2020, to a total of 2,573.
To generate sustainable and healthy economic growth, Romania must be perceived as a stable and attractive investment destination
R
Romania now faces a trade challenge. FDI inflows in Romania decreased to USD 202 million in 2020 from USD 363 million
omania recorded the highest GDP
ing disparities with other countries in terms
recorded in 2019, according to the World
growth in the European Union in the
of attracting foreign investments. According
Investment Report 2021. By comparison, FDI
first quarter of 2021, but it still has
to studies, a 1 percent rise in FDI should
inflows in Poland remained steady at USD
challenges to overcome. The pandemic has
increase economic growth by 0.015 percent.
10.1 billion in 2020 from USD 10.8 billion
had a substantial impact on global economic
However, in recent history, there have been
recorded in 2019.
trends, causing changes in investment plans
countries where higher GDP did not translate
and changing factors that business leaders
into more FDI, and where rising FDI did not
Romania far outstrip investments flowing out
would take into account when assessing
result in economic growth – hopefully this
of the country. According to UN data, Roma-
investment destinations. To generate sustain-
will not be the case for Romania, a country
nia attracted more than USD 28.6 billion in
able and healthy economic growth, Romania
with an impressive pace of economic recov-
foreign investments between 2015 and 2020,
must be perceived as a stable and attractive
ery this year, following a 3.9 percent contrac-
significantly more than the USD 1.8 billion
investment destination.
tion due to covid-19 restrictions in 2020.
that Romanian companies invested abroad
Generally, there is a reciprocal relationship
According to calculations made by Deloitte
Foreign direct investments flowing into
during the same period. The recovery of this
between economic growth and FDI, and Ro-
Access Economics, Romania and five other
gap can also be achieved through a sustain-
mania should speed up the process of reduc-
countries (Australia, China, Chile, South
able economic recovery.
www.business-review.eu Business Review | August 2021
26 ONLINE PLATFORMS
Romania needs better online platforms to attract foreign workers and investors While Romania is about to experience a tremendous economic recovery, its growth plans might get stuck due to a complex problem that has been going on since well before the pandemic: adapting the labour force to the country’s economic needs. By Claudiu Vrinceanu Poland also has an official webpage which is part of the EU quality network: Your Europe. The page contains simple information like the fact that in Poland, you may look for a Romania should have a more friendly attitude towards foreign workers and launch online platforms to streamline communications
I
mporting workforce from non-EU countries is a phenomenon that will get more
job independently by submitting a CV together with a cover letter to selected employers or through organisations and entities providing
investing in the country or in working here. Things are different and much more
professional job placement services. The platform also promotes punctual information for
professional in other countries. For example,
international citizens in Poland: job offers are
Romania has a significant shortage of quali-
France has a newly refurbished website aim-
published mainly by district labour offices,
fied labour.
ing to inform all sorts of foreign citizens will-
the Voluntary Labour Corps, private employ-
ing to pack up and move to the country.
ment agencies, the press, and web portals.
intense in the coming years, because
Over 91,000 foreign citizens from countries outside the European Union or European
“Helping you to settle in” is the central
In the absence of other ideas, the lo-
Economic are currently living in Romania. In
message of the Welcome to France platform,
cal government could also take inspiration
the first half of the year, employment notices
developed by Business France with the aim of
from business models launched by Roma-
were issued for almost 20,000 citizens from
attracting international talent to the country.
nian entrepreneurs. It can even work with
these states by the Inspectorate for Immigra-
The platform’s message is smart and straight-
recruitment and promotion platforms in the
tion.
forward: "Talents are the core of businesses'
field of mobility. One example is tech startup
strategies. Talent mobility is a key factor for
3minutesjob.com, a platform that connects
during this period is felt in the hospitality
the economy of States to measure their at-
employers with users aged 18-25 looking for a
sector. The construction sector is also facing a
tractiveness."
job internationally with the help of three one-
The most acute need for additional staff
Romanian officials could also design a
minute videos. The platform is being used
of the recent rise in new housing prices. In
similar webpage to help deliver information
in over 100 countries. According to founder
this context, through strong government in-
to a range of different groups: company man-
Andrea Adamo, the covid-19 pandemic has
stitutions and a coherent promotion strategy,
agers, staff who take up international mobility
significantly impacted the labour market.
Romania should have a more friendly attitude
opportunities, investors, human resources
Employers had faster access to employees,
towards foreign workers and launch online
departments, startups, lawyers, reloca-
the recruitment process was more straight-
platforms to streamline communications, in
tion companies, etc. Interestingly, potential
forward in many cases, and wage demands
order to become more competitive among Eu-
expatriation candidates to France can contact
fell. Another good private sector example is
ropean countries. Currently, the country lacks
the Welcome Office's mobility specialists with
Undelucram, the largest online community
an English-language online platform provid-
any questions, at any time, through an online
of employees in Romania. Undelucram is a
ing all the necessary information to foreign
request form, and they will receive an initial
regional network of online employer brand-
citizens who might be interested in either
reply within three working days.
ing and recruitment platforms.
shortage of labour, which is one of the causes
www.business-review.eu Business Review | August 2021
FESTIVAL 27
What's on at the Jubilee Edition of the Enescu International Music Festival The jubilee edition of the George Enescu International Festival will bring 32 of the most globally acclaimed orchestras from 14 countries of origin to Bucharest between August 28 and September 26. By Oana Vasiliu Moreover, the Festival programme will also include famous Romanian musical ensembles, the George Enescu Philharmonic Orchestra and Choir, the Radio Academic Orchestra and Choir, the Philharmonic Orchestras from Iasi, Timisoara, Sibiu, ClujNapoca, and Bacau, as well as the Bucharest Symphony Orchestra, the National Youth Orchestra, and the Radio Chamber Orchestra. The George Enescu Philharmonic Orchestra will perform at the Festival Opening Gala
Photo: Andrei Gindac
under the baton of conductor Paavo Järvi.
INDIVIDUAL TICKETS AND SUBSCRIPTIONS ON SALE A subscription for the Romanian Athenaeum includes tickets to all 29 concerts in the Music afficionados will return to one of the greatest halls of Europe, Bucharest's Athenaeum
T
Concerts and Recitals series and costs RON 4,900 for Category 1 seats and RON 3,900 for Category 2 seats. For the Grand Palace Hall
he London Symphony Orchestra, the
der the baton of artistic director Lahav Shani,
concerts, the subscription includes tickets to
London Philharmonic Orchestra, the
as well as the Arpeggiata Ensemble, together
the 30 concerts in the Great Orchestras of the
Royal London Philharmonic Orches-
with Christina Pluhar and countertenor
World series. Prices vary from RON 4,900 to
Philippe Jaroussky.
RON 1,500. Access to the Grand Palace Hall
tra, the Academy of St Martin in the Fields, the London Philharmonic, as well as the Ber-
London Mozart Players, the Hungarian
will be permitted according to the health
lin Radio Symphony Orchestra conducted by
Broadcasting Symphony Orchestra, the Za-
standards in place, up to 70 percent of the
Vladimir Jurowski and the Munich Philhar-
greb Philharmonic Orchestra, and the Athens
hall’s full capacity.
monic conducted by Valery Gergiev will all go
State Orchestra will all be performing for the
on stage at this edition of the festival.
first time in Romania.
Given the extremely high demand for tickets, organisers have decided that the
One of the most interesting appearances
Romanian Athenaeum would be filled to its
Del Teatro Alla Scala Orchestra from Milan,
of this edition, also coming to the Festival for
full capacity, and for this reason, audience
with a special programme, and a conduc-
the first time, will be the Baltic Sea Philhar-
access to the hall will only be granted based
tor coming to Romania for the first time,
monic, conducted by Kristjan Järvi. Recog-
on a photo ID and official proof of vaccina-
Andrés Orozco-Estrada; the Orchestra of the
nised for its spectacular concerts, as well as
tion against SARS-CoV-2, a negative result of
Santa Cecilia National Academy in Rome
for the fact that its musicians come from the
a PCR test taken in the 48 hours before the
with conductor Danielle Gatti; the National
entire Baltic Sea region, the orchestra will
concert, a medical document to confirm the
Orchestra of France, with its new conduc-
perform two special concerts in Bucharest,
fact that they are between the 15th and 90th
tor Cristian Macelaru; Les Dissonances, with
alongside two top soloists: pianist Maria João
day from testing negative after a confirmed
David Grimal as artistic director and soloist;
Pires (August 30) and violinist Viktoria Mullo-
infection with SARS-CoV-2 or a negative
the Royal Concertgebouw Orchestra with two
va (August 31). The Baltic Sea Philharmonic’s
result of a rapid antigen test certified by a
conductors, Daniel Harding and Alan Gilbert,
programme will also feature Symphony no. 2
medical unit and taken in the 24 hours before
the Rotterdam Philharmonic Orchestra, un-
in A major op. 17 by George Enescu.
the event.
The Festival programme also includes the
www.business-review.eu Business Review | August 2021
www.business-review.eu
28 TOURISM Business Review | May 2016
COVER STORY 14
Romania’s version of Tuscany invites visitors to discover great local wines Almost one hour north of Bucharest, the Dealu Mare (Great Hill) region features almost 70 wineries and winemakers. At the end of 2019, 12 experienced and renowned wineries from the region came together around the idea of deliberately creating a higher quality standard for their production, to highlight the distinguishing features of this area. By Oana Vasiliu
T
Jardine Hills
Casa Timis
he Dealu Mare viticultural area has 11
French, the author of the article on The Drink
started mutual consultations to identify other
approved Romanian grape variet-
Business platform.
aspects that they could improve throughout
ies, of which five are white: Fetească
To help out both the region and the wine
the region. They plan to collaborate with
alba, Fetească regala, Tamaioasa romaneasca,
brands produced here, some of the winemak-
authorities to establish a new and improved
Grasa de Cotnari, Cramposie selectionata;
ers established the Dealu Mare Association
standard for certain wines in Dealu Mare, similar to a DOCG.
the rest are red or pink varieties:
According to official informa-
Busuioaca de Bohotin, Feteasca neagra, Novac, Negru de Dra-
tion, as of today, the Dealu Mare
gasani, Negru aromat, Babeasca
Association means 1,500 hect-
neagra.
ares, 13 producers, 34 grape varieties, 8.5 million litres of wine,
According to International Organisation of Vine and Wine data
and 14 vineyards: Apogeum,
from 2019, cited by The Drink
Aurelia Visinescu, Budureasca,
Business platform, Romania is
Dagon Clan, Davino, Domeniul
Europe’s sixth- and the world’s
Aristitei, Gramofon Wine, The
13th-largest wine producer,
Iconic Estate, Lacerta Winery,
yielding 4.9 million hectolitres
Licorna Winehouse, Domeniile
in 2019. “The majority of this
Prince Matei, Serve, Tohani Ro-
wine, however, does not leave
mania, and Viile Metamorfosis.
Romania. In 2018, the country exported just 3.5 percent of total
TOURISM IN DEALU MARE
production. To put this in context, Romania
(DMA) and a general framework to promote
Dan Burlacu, commercial director at Viile
makes more wine than New Zealand, Greece,
the highest quality wines, which carry the
Metamorfosis and the executive director of
and Hungary, but exports less than Denmark,
unique characteristics of the terroir.
the DMA, defines wine tourism in Dealu Mare
Austria, Slovakia, and Bulgaria,” notes Phoebe
With this in mind, Dealu Mare winemakers
as being “in progress and in full development,
www.business-review.eu Business Review | August 2021
All photos: Dealu Mare Association
TOURSIM 29
View over Dealu Mare hills
Domeniul Aristitei is recently opened for the public
(…) and increasingly aligned behind this desire to promote tourism in Dealu Mare.” Proximity, diversity, and quality are the three main ingredients of a trip to Dealu Mare. “We’re talking about the region’s proximity to Bucharest and the small distance between the wineries. We are only an hour away from the city, on a non-congested route. The diversity of the wineries and the history, culture, nature or activities available here. And last but not least, the quality of the wines but also the quality of the landscapes, the tastes, and the people here,” Dan Burlacu explains. In terms of wine touring etiquette, DMA “wants to democratise people's relationship
Best wines can be bought from the each winery shop
Some wineries have impressive cellars
with wines. We want and can't wait to be
ACCOMMODATION IN DEALU MARE
and body of this Romanian wine with those
discovered at home, because we like being
Though it’s a great region, Dealu Mare
of a Cabernet Sauvignon from Bordeaux, but
hosts. I would go further with the reasoning
doesn’t have many accommodation places,
also with the fineness of a Pinot Noir from
and I would say that the etiquette of wine
but the available ones are truly impres-
Burgundy, it also bears a clear fruity imprint,
tourism is the same as that of tourism in gen-
sive. The recently-opened Crama Apogeum
with a dried plum aroma and spicy notes,
eral, meaning that you like to be a guest and
in Gura Vadului has a garden, terrace, free
velvety secrets and elegance. These are some
be spoiled by your hosts,” says Dan Burlacu.
WiFi throughout the property, free parking,
of the qualities that give the Feteasca Neagra
And furthermore, it’s about the joy of sharing.
and a restaurant serving European cuisine,
the potential to become a representative
“The pleasure of being guided in discovering
with prices from RON 350 per night. Ferma
variety for the country, placing Romania on
the beauties, the treasures, the work of our
Dacilor is also nearby and offers several types
the international wine map.
colleagues from Dealu Mare,” Dan adds when
of accommodation from RON 250 per night.
Recently, Tohani Romania crossed the
asked about what the Dealu Mare Association
Jardine Hills is more intimate, with an entire
production threshold of 1 million bottles of
can offer that a single producer couldn’t.
bungalow available to rent with prices start-
Feteasca Neagra, the best-selling red wine
ing at EUR 380 for two people for two nights,
variety in Romania. The investment in the
“bike rides, off-road rides, home visits to
while Casa Timis is also a good option, with
production of this wine amounts to 6 million
craftsmen or food producers in the area,” Dan
prices starting at EUR 120 per night.
euros. Tohani has the largest cultivated area
And the region has more than just wines:
Burlacu notes. On the last Saturday of every month, the
of Feteasca Neagra in the Dealu Mare area,
WHAT’S FETEASCA NEAGRA?
with approximately 100 hectares.
Dealu Mare Association hosts an event called
As Business Review has written before, with
“Open Bottles Saturday” (Sambata Sticlelor
qualities that make it comparable to the most
Apogeum Feteasca Neagra, one of the wines
Deschise), when vineyards open up to the
famous international varieties, the Feteasca
made by the Tohani Romania team, ranks
general public and offer wine tasting sessions
Neagra variety has an unmistakable original
among the top 1 percent of the best wines in
and winery tours.
note. While some experts compare the colour
the world.
A holder of multiple international medals,
www.business-review.eu Business Review | August 2021
30 CITY
New in town
By Oana Vasiliu
With festivals allowed to take place with up to 75,000 people, as long as they are vaccinated or show a negative PCR test, the last month of summer is looking unusually busy. MUSIC
ARTS Discover how design meets nature and explore the way the four primordial elements (fire, water, earth, and air) communicate with the four essential elements of design (point, plan, line, and form). On August 11, at 8 PM, One Night Gallery will be presenting this year’s first outdoor art show. The experience and the exhibition’s journey are created by RIZI, the artist duo
Summer Well Festival is going to happen at
who will merge the two worlds by showcas-
the Stirbey Domain in Buftea between August
ing architectural installations throughout the
12-15, with a line-up that includes Woodkid,
gardens on Molière Street (entrance located
Balthazar, Golan, L'Imperatrice, and many
on Amiral Constantin Balescu street). The international competition. The story takes
exhibition is hosted by Gradina TVR Moliere
place in a small town in Romania and talks
with an important historical background and
Festival will take place between August 28 -
about the private balance existing in each one
a story spanning across 65 years, which began
September 26, bringing some of the world’s
of us, a balance that is much less stable than
with the very first professional TV broadcast
greatest orchestras to the Bucharest stage.
we might imagine. Emanuel Parvu, Bogdan
in Romania.
others. Tickets are still available. As previously announced, the Enescu
Expirat Halele Carol, Quantic, Gradina
Farcas, Dragos Dumitru, Vasile Muraru,
Urbana, and Teatrul de Vara Mihai Eminescu
Ana Popescu, Olimpia Malai, Kira Hagi, Ion
will continue to stage weekly live perfor-
Bechet, Ioana Bugarin, Cezar Antal, and An-
mances, with a special focus on Romanian
drei Aradits play the main characters.
alternative artists.
FOOD
"Intregalde" directed by Radu Muntean will also be released on August 6, having had
ROMANIAN CINEMA
its official premiere at the Cannes Film Festi-
"Unidentified", directed by Bogdan Apetri,
val, in the Quinzaine des Réalisateurs section.
professor of directing at Columbia Univer-
The film tells the story of three friends who
sity in New York, will be released on August
are on a year-end humanitarian trip. Traveling
6. The film premiered at the Warsaw Film
in a jeep on the unpaved mountain roads of
Festival, where it won the Jury Prize in the
the Intregalde village, they meet a lonely old man who needs to go to a sawmill where he claims to work. When their car gets stuck in
Chef Marius Tudosiei has opened another Ba-
the woods, the sawmill turns out to be aban-
cania Veche restaurant - Delicatese & Gradina
doned and they are forced to spend the night
- this time in the Romana Square. Check it out
with the old man, and their ideas of empathy
when you want to indulge yourself with some
and generosity begin to be questioned.
Romanian delicacies.
"No Rest for the Old Lady” (“Dupa 40 de
Gelato seems to be a keyword of this sum-
zile”), the fourth feature film by director An-
mer, with another great place recently added
drei Gruzsniczki, will be released on August
to the best-in-town list: Saint Gelato (26
20. It focuses on the friendship between Emil
Regina Elisabeta Boulevard).
Daravat, an old man who does not believe in
Get a taste of a new interpretation of Ro-
spirits (played by Mircea Andreescu), and Titi
manian cuisine at Soro Lume (the former Blid
(played by Valer Dellakeza). The action takes
restaurant - 33 Fluierului Street) with Chef
place in a village in the Oltenia region and the
Mihai Toader in charge.
story begins at the 40-day memorial service of Emil's wife, Smaranda.
Finally, enjoy some decadent cheese experiments at Forager (16 Nerva Traian).
