BR/08/2021

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).