ROMANIA’S OFFICE MARKET, THE WORKPLACE FOR 330,000 PEOPLE
August, 2018 / Volume 22, Issue 7
www.business-review.eu
LOCAL BANKS LOOKING TO GROW IN FINANCIAL SECTOR RIPE FOR DISRUPTION
26
BUSINESS REVIEW #MAKEITHAPPEN CAMPAIGN
32
BLOCKCHAIN GOES LARGE ACROSS EU
38
Pushing the pedal on sustainability
Photo: Dreamstime
6
www.business-review.eu Business Review | August 2018
EDITORIAL 3 REAL ESTATE
• Editorial •
Anda Sebesi • Deputy Editor-in-Chief •
6 Romania’s office market, the workplace for 330,000 people
COVER STORY
We need to go sustainable
I
10 Pushing the pedal on sustainability
n the not-too-distant past, a CFO’s attention rarely diverted
BANKING & FINANCE
from hard numbers around revenue, earnings and budget. But today, executives take on increasing responsibility for impacts
24 Hard times for borrowers: ris-
well beyond financial performance. Among the notable areas within this broadened mandate is sustainability – the environmen-
ing inflation, interest rates could boost insolvencies, NPLs
tal, health, safety, and social impacts of the business. Companies
26 Local banks looking to grow
no longer focus on their financial performances alone; the non-
in financial sector ripe for disruption
financial audit is even more important in a world where sustainability has become the new paradigm for businesses.
COMMUNICATION
The local market is no exception in this regard and has made moves towards sustainability. An increasing number of companies
28 How to communicate with a
have started to conduct an internal audit of their sustainability
niche target
indicators and made public the results.
30 There is an increasing
Along with this, the private sector in Romania has made prog-
need for a holistic approach to reputation management and risk prevention
ress in implementing measures designed to protect the environment, but more education is needed to make people aware of the impact they have on their surroundings. At least, these were some of the pronouncements during the Environmental and Sustainabil-
CITY
ity Summit organized by Business Review in early June. Still, although education is crucial in creating responsible behaviour towards the environment, such an approach is closely allied with purchasing power when it comes to buying sustainable goods or services. From eco-friendly cars to sustainable homes, they are part of a lifestyle that comes with higher costs. But beyond this, it lies within our powers to protect our environment by recycling or using natural resources as effectively as possible.
40 Electrifying the festival experience
42 Delta winning hand: celebrating art movies at the ‘end of the world’
43 Expat eye 46 Cultural calendar
FOUNDING EDITOR: Bill Avery EDITOR-IN-CHIEF: Ioana Erdei DEPUTY EDITORS-IN-CHIEF: Sorin Melenciuc, Ovidiu Posirca, Anda Sebesi JOURNALISTS: Anca Alexe, Aurel Dragan, Georgeta Gheorghe, Romanita Oprea, Oana Vasiliu COPY EDITOR: Debbie Stowe PHOTO EDITOR: Mihai Constantineanu ART DIRECTOR: Raluca Piscu PUBLISHER: Bloc-Notes Media Network ADDRESS: 58 Stirbei Voda Street, 3rd Floor, District 1, Bucharest, Romania LANDLINE: 031.040.09.31 EXECUTIVE DIRECTOR: George Moise BUSINESS DEVELOPMENT DIRECTOR: Oana Molodoi SALES DIRECTOR: Ana-Maria Nedelcu SALES MANAGER: Alexandra Rosca EVENTS DIRECTOR: Alina Moldovan EVENTS MANAGER: Mara Dragoiu MARKETING: Eugenia Pupeza PRODUCTION: Dan Mitroi DISTRIBUTION: Eugen Musat EMAILS: editorial@business-review.ro, sales@business-review.ro, events@business-review.ro
Publicație auditată pe perioada Apr 2015 - Mar 2016
ISSN NO. 1453-729X
www.business-review.eu Business Review | August 2018
4 NEWS
WHO’S NEWS
launched. This has helped close the investment gap left
BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at anca.alexe@business-review.ro
as a result of the financial and economic crisis. A total of 700,000 small and mediumsized companies are set to benefit from improved access to finance. “We have financed projects which without the EFSI would not have been possible, and all
Stephane Barbazan was named tourism & hospitality chief operations officer at Alexandrion Group. He has more than 25 years’ experience on the international hotel market, working in countries such as France, Cuba, the US and China. Having studied at the Hotel & Tourism Business School VATEL in Paris, he has undertaken various hotel and economics training, being responsible over time for the growth strategy of premium hotel brands in the Accor portfolio such as Novotel Beijing, Mercure Coralia Varadeo Cuba Hotel, and Grand Mercure Oriental Ginza Shenzhen.
Bogdan Ion has been named chief operating officer (COO) of the new EY region – CESA, which combines Central and South-East Europe and Central Asia and comprises 31 countries. Ion joined EY in 2006 and became the country managing partner of EY Romania in July 2011. Ion is a member of the Association of Chartered Certified Accountants (ACCA) in the United Kingdom, of the Chamber of Financial Auditors of Romania (CAFR) and of the Romanian Chamber of Expert Accountants and Accountants (CECCAR). page 5
EFSI operations have already supported more than 750,000 jobs across the EU
Romania gets EUR 430 mln through Juncker plan, mobilizing EUR 1.8 bln of investments
without creating new debt: two thirds of the investment comes from the private sector. From financing job-training for refugees in Finland to renewable energy in Greece to farming in Bulgaria – we will continue to use the EU budget for what it does best: to catalyze growth,”
By Georgeta Gheorghe
said Juncker. According to estimates by
Romania has received EUR 430
Bank (EIB) Group have met their
million of funding through the
target to mobilise EUR 315 billion
the EIB’s economics depart-
Investment Plan for Europe:
in additional investment under
ment and the Commission’s
the Juncker Plan, according to
this program.
joint research center (JRC),
the European Commission, the
Backed by a budget guaran-
EFSI operations have already
executive arm of the European
tee from the European Union
supported more than 750,000
Union.
and own resources from the EIB
jobs with the figure set to rise
Group, 898 operations have been
to 1.4 million by 2020 com-
finance is set to trigger in
approved, which are expected to
pared to the baseline scenario.
Romania sums of up to EUR 1.8
trigger a total of EUR 335 billion
In addition, calculations show
billion, which puts the country
in investment across the 28 EU
that the Juncker Plan has al-
22nd out of the 28 EU member
member states. This exceeds the
ready increased EU GDP by 0.6
states. The European Commis-
original goal of EUR 315 billion
percent and is set to increase it
sion and European Investment
set in 2015 when the EFSI was
by 1.3 percent by 2020.
The investment EFSI
White House nominates Adrian Zuckerman as new US Ambassador in Romania By Anca Alexe US President Donald Trump has
Bucharest, replacing the incum-
nominated Adrian Zuckerman,
bent Hans Klemm, who has held
a lawyer who emigrated from
the position since September
Romania to the US at the age of
2015. According to a statement
10 and speaks fluent Romanian,
by the White House, Zuckerman
to be the next US ambassador in
is a New York attorney who was
Adrian Zuckerman is set to replace US ambassador Hans Klemm
www.business-review.eu Business Review | August 2018
NEWS 5 per second – the audit mission found that it was visited by only 250,000 users and has 892 registered users with rights assigned by the ministry, who did not use the business intelligence resources made available to them. “At present, the project ‘eRomania 2’ is just a portal with information about all towns
The controversial website was last updated five years ago
Romania spends EUR 12 million on building useless site, says Court of Accounts
in Romania, but (…) the portal is in fact only loaded with information from 2013 by the provider and not updated at the moment,” the report points out. The audit team found that “the financial burden borne by the state budget is not justified by the results obtained by users
By Sorin Melenciuc
following the implementation of this project”.
The Romanian government
the project ‘e-Romania 2’, but
spent RON 52 million (EUR 12
its realization and implementa-
According to the Court of
million) to build a web platform
tion was not done in compliance
Accounts, other websites – like
called eRomania which has 892
with the principles of economy,
Wikipedia or the up-to-date
users and has not been updated
efficiency and effectiveness in
websites of Romanian local and
since 2013, according to an
the use of the financial resources
central authorities – contain
official report published by the
allocated for this purpose,” the
more useful information and
Court of Accounts.
report said.
make e-Romania completely
“The Ministry of Com-
Laurentiu Luca has been named managing director for South-Eastern Europe at Synevo. He will coordinate the work of the chain of medical laboratories in five markets, namely Romania, Bulgaria, Moldova, Serbia and Georgia. Since 2016, he has been general manager of Synevo Romania, part of the Medicover diagnostic services division. Luca joined the company in 2010 as regional and development director in the Balkans.
According to the audit team,
useless. The portal, developed by
munications and Information
while the portal solution was
Society benefited from funds
built to be accessed from the in-
local IT developer Omnilogic,
allocated from the state budget
ternet by a large number of users
was launched in 2013. It could
in the amount of RON 52.057
– up to 10 million users, 3 million
not be accessed as BR went to
million for the realization of
registered users and 50,000 users
press.
Stana Moisescu has been appointed general director of Teva Pharmaceuticals in Romania. Since 2010 she has been one of the key members of the company. Before joining Teva, Moisescu was financial director at Ness Romania, an IT company. She is a graduate of the Faculty of Medicine at Ovidius University in Constanta and holds a master’s degree in Business Administration from the Open University, UK.
admitted to the New York bar in 1984 and is a partner in the international law firm Seyfarth Shaw LLP. He has previously worked for other law firms in the US. He received his undergraduate degree from the Massachusetts Institute of Technology and his law degree from New York Law School. In line with procedure, Zuckerman will be subject to a hearing in the Foreign Affairs Commission in the US Senate, and if his nomination is approved, the Senate will take a vote.
Cristian Secosan will become CEO of Siemens Romania starting October 1, replacing George Costache. He will also manage the company’s operations in the Republic of Moldova. Throughout his career, Secosan has held management positions at major energy and engineering companies. He was Siemens CEO from July 2009 to August 2012.
www.business-review.eu Business Review | August 2018
6 REAL ESTATE
Romania’s office market, the workplace for 330,000 people Romania’s modern office stock stands at around 3.3 million sqm, with most of it, 2.58 million sqm, in Bucharest. The capital is followed by ClujNapoca with around 270,000 sqm, then Timisoara and Iasi with 180,000 sqm each. By Razvan Zamfir
International Romania. The first semester saw Orhideea Towers will deliver 37,000 sqm in Basarab area, Bucharest
A
the volume of real estate investments reach just over EUR 400 million, up 18 percent compared to the same period in 2017, a year which
ccording to Colliers International, de-
deliveries comparable to those in the capital.
saw the best post-crisis level. For the time be-
velopers and investors have become
They therefore have a stock of modern
ing, investments are mostly concentrated in
attracted to regional cities, and the
office space almost four times lower than
Bucharest, but in the medium term, attention
market will probably change in the coming
Bucharest’s, while polls suggest that internal
will be turned to regional cities as well.
years.
migration will be concentrated in these cities.
For some foreign investors, regional cities
According to the World Bank, over 730,000
have already become attractive due to good
ment by far, regarding investments, trans-
people could come to live here in the next
yields and potential for capital growth. UK
actions and prices, but the market is also
five years, almost three times more than in
fund First Property Group’s acquisition of
developing in the regional cities, Cluj-Napoca,
Bucharest.
the Maestro Business Center in Cluj-Napoca
For now, Bucharest leads the office seg-
Timisoara, Iasi and Brasov.
“When talking about the Romanian real
is proof that Romania is starting to follow
estate market, investors’ most frequent
the Polish model of development through
Romanian employees work in modern office
concern is the lack of liquidity. While this
regional cities, a much more sustainable
buildings.
can be a drawback, there should be a shift in
growth pattern considering that they can
perspective, because real estate is per se illiq-
influence the evolution of satellite towns and
THE REGIONAL CITIES OFFENSIVE
uid. It takes time to market and complete the
communes.
In recent years, job creation has accelerated
sale of a property, but the situation is slowly
considerably at national level. Therefore, em-
changing,” said Anca Svoronos, senior associ-
elements that can create and build up liquid-
ployers, potential tenants of office buildings,
ate, investment & debt advisory, at Colliers
ity in an office market: job growth, especially
In total, 330,000 of around 6 million
are looking for almost as many employees in Bucharest as in Cluj-Napoca, Timisoara, Iasi and Brasov together, according to a Colliers International study. However, over the last ten years, these four cities – the biggest regional office markets – have not benefited from
“The focus, in the end, should be on the
www.business-review.eu Business Review | August May 2016 2018
COVER REALSTORY ESTATE14 7
Mapping Romania’s office market
BUCHAREST
CLUJ-NAPOCA
TIMISOARA
BRASOV
IASI
The capital is, obviously, the most important office center in Romania, with more than double the stock of the other big Romanian cities together, supported by its size and around than 2 million population, of which more than 15 percent works in office buildings.
Ought to remain the star of the show, being the biggest university hub outside the capital (and having the largest student density in the country, at over 200 students per 1,000 inhabitants, more than twice that of Bucharest’s). It is also the fastest growing region in Europe for hi-tech services, according to Milken’s Institute analysis.
With a relevant foreign language skills and a high number of university graduates with a technical background have created a strong demand from more industrial corporates than in most other parts of the country.
Has been held back by the lack of an international airport, although the public authorities are working on one. Like Timisoara, it offers an interesting mix of graduates with an engineering background with strong language skills, meaning that this can be both an option for manufacturing and office operations.
Probably the youngest large city in Romania, which itself should form a strong argument for a bright future. Indeed, it has a smaller student population than the other two large regional magnets – Cluj-Napoca and Timisoara – but Iasi makes up for this with better labor force availability than the other two as well as lower wages.
Office stock – 2.58 million sqm. Deliveries for 2018 – 197,000 sqm. Companies leased around 135,000 sqm in the first half of the year. Estimate for the whole year of leased office surface – 330,000 sqm. The highest rent EUR 18.5/ sqm/month. Vacancy rate is around 8 percent and decreasing in the last year.
Office stock – 180,000 sqm. Deliveries for 2018 – 20,000 sqm.
Office stock – 100,000 sqm.
Office stock – 284,000 sqm. Deliveries for 2018 – 37,500 sqm.
Office stock – 180,000 sqm. Companies leased around 9,400 sqm in the first half of the year.
Companies leased around The highest rent around EUR 10,800 sqm in the first half of 13-14/sqm/month. the year. Vacancy rate – 11 percent. The highest rent around EUR 13-14/sqm/month Most important office buildings – Isho Offices, from MulVacancy rate – 7 percent. berry Development, 50,000 sqm, under construction, The most important office and United Business Center project in the city is The Of- of Iulius, part of Openville fice, 60,000 sqm, developed project, also under construcby Ovidiu Sandru and NEPI tion and the tallest office Rockstle. building in Romania, with 27 stories and 155 meters high.
Deliveries for 2018 – 8,500 sqm. Companies leased around 6,400 sqm in the first half of the year.
Deliveries for 2018 – 12,000 sqm. Companies leased around 3,800 sqm in the first half of the year.
The highest rent around EUR 11-12/sqm/month. The highest rent around EUR 12-13/sqm/month. Vacancy rate – 7 percent. Vacancy rate – 5 percent. The most important office The 70,000 sqm United Busiproject is Coresi Business Park from Ceetrus, under ness Center, part of Iulius’s Palas Iasi, is the most impordevelopment, with a final surface of 100,000 sqm. tant project in the city.
Sources: JLL, Cushman&Wakefield Echinox, Colliers International.
in industries that are heavy users of office
first half of the year were between Portland
this year, the interest may switch to offices.
space, such as IT services, new space supply
Trust and Lion’s Head Investment fund for
He thinks that there is enough activity going
versus demand, which is still imbalanced in
Oregon Park in spring, and Campus 6.1, the
on to see many transactions in the second
regional cities, and the population growth
first building of Campus 6, Skanska’s project
half of the year.
that, for example, Cluj-Napoca is witnessing.
in the Militari area, acquired by Austrian CA
So, current income, capital appreciation and
Immo for EUR 53 million.
hedging inflation are all strong reasons for
Another interesting deal involved the
“The volume of investment in the different asset classes will depend on the source of where new funds actually emerge from.
real estate investment in regional cities. The
6,845 sqm office building Maestro Business
We anticipate offices being the leading asset
new real estate heavyweights have just come
Center in Cluj-Napoca, bought by UK invest-
class in 2018 in terms of transaction volume,
under the spotlight,” said Svoronos.
ment fund First Property Group.
slightly ahead of retail. There is evidence of
According to Tim Wilkinson, capital
an increasing appe-tite from Western inves-
DONE DEALS
markets partner with Cushman & Wakefield
tors (European & US) across all asset classes,
The biggest office building transactions in the
Echinox, last year the focus was on retail, but
especially offices,” added Wilkinson.
8 COVER STORY
www.business-review.eu Business Review | August 2018
Photo: Dreamstime
PUSHING THE PEDAL ON SUSTAINABILITY
www.business-review.eu Business Review | August 2018
COVER STORY 9
S
By Anda Sebesi
With more and more companies embedding sustainability in their business strategies, Romania has made some significant steps in this direction. Today, more organizations are managing sustainability to improve processes, pursue growth, and add value to their companies, rather than focusing on reputation alone. They are actively integrating sustainability principles into their businesses, and they are doing so by pursuing goals that go far beyond earlier concern for reputation management – for example, saving energy, developing green products, and retaining and motivating employees, all of which help companies capture value through growth and return on capital.
ustainability aims to optimize the environmental, health, safety, and social impacts of enterprise activities while realizing operational efficiencies, cost savings, risk mitiga-
tion, increased cash flow, and other benefits. For most executive teams and boards, the drivers of these programs and practices have advanced from those rooted solely in good corporate citizenship to include significantly more emphasis on operational, financial, legal, and regulatory concerns. These concerns include resource availability and costs, compliance requirements, and potential risks (including reputational risk) and revenue impacts, in addition to environmental, health, safety, and social factors. Increasingly, they also extend to the concerns of shareholders and other stakeholders, which include optimizing growth and enterprise value. In the not-too-distant past, a CFO’s attention rarely diverted from hard numbers around revenue, earnings, budget, and the like. Today, these executives may look back nostalgically on those times, as they take on increasing responsibility for impacts well beyond financial performance. Among the notable areas within this broadened mandate is sustainability – the environmental, health, safety, and social impacts of the enterprise. It’s a challenge that CFOs – and the organizations they serve – will continue to grapple with. In addressing sustainability issues many organizations tend to be reactive, susceptible to shifting priorities, and insufficiently aligned with strategic business considerations. Reactive approaches lead to start-and-stop initiatives, which waste resources and undermine organizational commitment. Lack of alignment with strategy leaves sustainability out of sync with business objectives, which can place programs in continual jeopardy or at cross purposes with business goals. CFOs are uniquely positioned to correct these deficiencies and help set their organizations on a steady course. With greater involvement in sustainability, CFOs can provide a broad viewpoint informed by deep financial expertise while further shaping their executive roles. In the traditional roles of steward and operator, the CFO preserves assets, minimizes risks, and manages an effective, efficient finance function. In expanding to the complementary roles of strategist and catalyst, CFOs can assist in setting strategy and direction and instill a financial approach in all organizational activities – including sustainability. This calls for the CFO to play a role in making and reviewing the business case, and in most other financial aspects of sustainability. Back on the local market, Dragos Tuta, founder and managing partner at The CSR Agency, says that the responsibility of an organization has now started to be perceived correctly in Romania, with companies asking how they influence the external environment through their activities and decisions. “In a perfect world we shouldn’t talk about two different strategies: a business strategy and a sustainability one. It is natural to talk about a management strategy of an organization that includes the ethical responsibilities of its business too,” says Tuta. Theories about corporate responsibilities say a company’s main responsibilities are economic (meaning to be profitable), followed
www.business-review.eu Business Review | August 2018
10 COVER STORY
by legal (to respect the rules imposed by law), ethical (to do what is
rights, they often have little or no understanding of the impact of
right and to avoid a negative impact) and philanthropic (to con-
the entire value chain. Moreover, most companies do not actively
tribute to the life of the local communities where it operates). “If
seek opportunities to invest in any area of sustainability and there-
economic and legal responsibilities are mandatory, ethical ones
fore miss potential growth opportunities.
represent an expectation of the stakeholders while philanthropy is a wish of the community,” adds Tuta.
The same study shows that opportunities to create or preserve the most value vary greatly among industries. An extractive-
But the local market has made significant steps towards sus-
services company, for example, could significantly reduce its costs
tainability, with an increasing number of companies starting to
through better management of energy and water. A retail company
implement an internal audit of their sustainability indicators and
could reduce its resource intensity and costs by revamping its sup-
publically communicating the results. “It is about those companies
ply chain, since the biggest environmental impact within that sector
that published their sustainability reports. No team management
can often be traced to raw materials, such as the agricultural prod-
can progress without knowing the current status of their business.
ucts used in food or apparel. An energy company may have more
Thus, when we talk about the integration of ethical responsibilities
opportunities than companies in other industries to create value
and sustainability within the business strategy, an audit of these
through new products – for example, by commercializing invest-
non-financial indicators (which highlight what and how big is the
ments in smart grids.
general negative impact from the economic, social and environmental perspective) is needed,” says Tuta. According to him, in Romania there are companies that have al-
RETAILERS FIGHT FOR A HEALTHIER ENVIRONMENT At the beginning of July, Kaufland started a 360 degree strategy
ready passed this stage and plan or implement within their manage-
on plastics that will be implemented worldwide, within the entire
ment team projects with the aim of reducing the impact or footprint
group. It includes principles on avoiding the consumption of plastic,
of their economic activity. “In Western economies, the audit and the
improving recycling and supporting the adoption of eco packag-
projects for improving non-financial performance are as important
ing. As a result, Kaufland will reduce its plastic consumption in all
as the projects meant to increase economic performance. Sustain-
the countries in which it is present by at least 20 percent by 2025
ability is the new paradigm in the management of any business,”
and will ensure 100 percent recycling of the plastic packaging used
says the representative of The CSR Agency. Last year, he decided to launch the Embassy of Sustainability, a platform dedicated exclusively to the promotion of sustainability in the Romanian economic and social environment. It aims to spread the culture of sustainability in Romania by promoting this concept at the political, economic and social level. “We intend to encourage, inspire and motivate companies to develop investments in sustainability in Romania and to offer many more responsible products and services – including the idea to encourage demand from final consumers
for its private labels, while it will eliminate some plastic items by
for sustainability,” says Tuta. According to him, in the first stage
the end of 2019. “At present we are in the process of reducing the
of the initiative, the main objective is to create a community and
plastic packaging. For example, our K-Bio private label bananas are
encourage collaboration. The Embassy includes seven dedicated
bunched with a piece of cardboard instead of plastic bags. We have
areas: multimedia gallery, the first library with specialized books
eliminated about 32 tons of plastic packaging per year by adopting
in the world, conference room, training room, interview studio, a
this measure alone. Ensuring the total recycling of the rest of the
dedicated area for informal events and a garden. “All the projects
plastic packaging of our private labels, we will manage to re-intro-
and activities of the Embassy of Sustainability aim to contribute to
duce the raw materials within the circuit of resources and reduce
meeting all the United Nations’ 17 objectives of sustainable develop-
significantly the impact on the environment,” says Valer Hancas,
ment,” concludes Tuta.
communication and corporate affairs director at Kaufland Romania.
However, according to a recent McKinsey global survey, captur-
Elsewhere Carrefour Romania has recently introduced 100 per-
ing sustainability’s full value potential is complicated. In essence, a
cent biodegradable bags, a product that is made of natural polymers
company must first determine its baseline performance on sustain-
by Biodeck. In addition, the implementation of an LED lighting sys-
ability issues and then decide on a portfolio of initiatives to create
tem has allowed the retailer to reduce its energy consumption by 35
value in those areas. But while many firms understand the impact
percent, while the adoption of the full refrigeration system reduces
of their own operations on issues from carbon emissions to human
carbon emissions by up to 900 tons/year.
www.business-review.eu Business Review | August 2018
ADVERTORIAL 11
FEPRA International starts an eco-friendly trend for Romanian festivals, collects packaging waste and teaches young people how to care for the environment
FEPRA International, a company special-
two types of waste could be deposited: Plastic
which 270 were PET/aluminum and 70 kg
ized in the takeover of waste management
and Paper/Cardboard. In total, 560 kg of packag-
paper/cardboard.
responsibility for packaging waste placed
ing waste were collected.
on the Romanian market by producers and
FEPRA will continue to carry out these
importers, is conducting a campaign this
“We mainly focus on changing perceptions
actions throughout the summer, and, for
summer to raise awareness, inform and edu-
among participants, where necessary, and
example, will be present at AwakeFestival in
cate the public attending festivals regarding
improving the knowledge of those who want to
August to ensure the selective collection of
the selective collection of waste, as well
collect waste selectively, but aren’t using the in-
packaging waste there, too.
as actually collecting the packaging waste
frastructure correctly. We rejoice when we find
generated during these events in order for it
openness among participants and we are equal-
Through its campaigns, FEPRA offers a social
to be recycled.
ly disappointed when we see others’ reluctance.
responsibility model for citizens and for the
But in the end, all that is needed to change men-
clients in its portfolio, ensuring them that
Through these events, FEPRA aims to change
talities is an exercise in perseverance. Therefore,
the company’s efforts are directed towards
paradigms among festival organizers as well
we are certain that in the coming years, through
durable actions, on changing mentalities
as citizens regarding the need to separately
such actions, citizens will become more involved
and improving the collection rate at the
collect waste, considering that Romania’s
in selective collection,” said Roxana Sunica, Di-
national level.
target is to recycle 50 percent of packaging
rector of Marketing, Communication and Public
waste by 2020, but that it has only achieved
Affairs at FEPRA International.
11-12 percent in 2017. By organizing such ac-
FEPRA International is a joint stock company authorized to take over waste management
tions, FEPRA considers that it can contribute
ECO-WEEKENDS AT ARTMANIA FESTIVAL IN
responsibility for producers and importers
to improving the collective mindset of citi-
SIBIU AND AWAKEFESTIVAL IN GORNESTI,
who place packaging and packaging waste
zens who must understand how important
TARGU MURES!
on the Romanian market, in order to contrib-
it is to collect waste separately at home, at
ute to the fulfilment of the country’s legal Between July 27 and 29, FEPRA conducted
waste recycling and recovery targets. The
another selective collection action during the
extensive producer’s responsibility system
The first campaign was carried out in Blaj, on
ARTmania Festival in Sibiu. With the help of
is the way through which Romania tries
the Field of Liberty, during the Blaj aLive Fes-
volunteers from Let’s Do It, Romania!, who were
to achieve the country targets as agreed
tival. For two days, over 12,000 participants
actively involved through their presence at col-
by signing the European Union Accession
had the opportunity to use the selective
lection points and offered participants useful
Treaty.
collection infrastructure provided by FEPRA.
information on how to correctly separate waste,
For more information about the company,
Four collection points were installed, where
FEPRA managed to collect 340 kg of waste, of
please visit the website www.fepra.ro.
work and even during leisure activities.
www.business-review.eu Business Review | August 2018
12 COVER STORY
Local municipalities explore development under smart cities principles By Ovidiu Posirca
Over 20 cities in Romania have implemented projects under smart city principles, ranging from smart parking, to traffic monitorization and smart metering for utilities, with Alba Iulia developing the largest pilot for smart city development in the country.
T
projects in Romania.
here are ongoing
Gavril says that pilot
investments across
projects in this field are
the country and
Cluj-Napoca, Arad and Sib-
useful because municipali-
iu are among the 24 cities
ties can understand better
that have implemented the
what cities’ needs are. For
most projects, according to
instance, Axis Communi-
the Romanian Association
cation provided equip-
for Smart City and Mobility.
ment for a pilot project in
Meanwhile, the Roma-
Tulcea measuring traffic
nian capital has had some
flow. The data collected
pilot projects in smart
by the municipality included the total number of
lighting and traffic management and the municipality commissioned Deloitte to work on
vehicles in three areas, the average time between vehicles in traffic
Bucharest’s development strategy under smart city principles.
and the average speed of cars. The video feed went into a database
“Cities and towns should be the ones that decide when to start the transformation process and ask for the government’s support,
alongside information about the air quality. The mayor of Alba Iulia, Mircea Hava, told BR in an interview that
meaning that of the team formed at the Ministry of Communication.
the pilot project had helped the municipality to build a use case for
For this objective, the EU has offered financing that Romania has not
smart lighting. He says that 33 private companies have joined the
yet been capable of really using,” telecom analyst Dr. Nicolae Oaca
project in Alba Iuliua with 80 smart solutions in the testing, opera-
told BR.
tion or planning stages. The estimated value of these projects is EUR
The analyst says that the move to bring broadband to rural communities is also included in the smart development efforts. The country has an ongoing project called RoNET to connect 700 towns and villages to high-speed internet using EU funding. Oaca says that by increasing broadband coverage, it will be easier for Ro-
1.5 million. At present, the economic effects from the implementation of smart projects in Romanian cities are not clear due to insufficient research. In Alba Iulia, the German engineering conglomerate Siemens
mania to implement various smart projects related to traffic, lighting,
estimated that if the city were to invest EUR 227 million in smart
and parking.
technologies, it could reap more than half a billion euros in benefits in 35 years. The payback period for the investment would stand at
BROADBAND AND 5G FOR SMART DEVELOPMENT The rollout of 5G wireless technology will also enhance the con-
ten years. Meanwhile, 78 European cities have undertaken smart city devel-
nection of smart devices, helping the IoT (Internet of Things) era to
opment initiatives and the Smart Cities and Communities European
become a reality. The government said that in 2019 it will organize
Innovation Partnership (EIP SCC) aims to reach a critical mass of 300
the first tender for radio spectrum needed to implement 5G technol-
smart cities by the end of 2019, said Andreea Strachinescu, head of
ogy in Romania.
unit for new energy technologies, innovation and clean coal at the
“In designing a smart city system, it is important to have a perspective image that integrates both the basic components needed now and the prospect of integrating future components for the best scalability,” Bogdan Gavril, sales engineer & trainer, Axis Communications, CEE region, told BR. The company supplies network cameras and video management systems, working on several smart city
European Commission’s Directorate-General of Energy, in an interview with Energy Post.
24
the number of Romanian cities developing projects under smart city principles
www.business-review.eu Business Review | August 2018
COVER STORY 13
Alba Iulia seeks to expand smart city pilot initiative By Ovidiu Posirca
Alba Iulia mayor Mircea Hava says that 33 private companies are currently involved in the pilot for the smart development of the city, adding that the authorities are looking at ways to enhance the partnership with various companies in a bid to spur investments in the area. What is the value of projects implemented to date in Alba Iulia under smart city principles?
city projects, but we are following the pilot
Alba Iulia Smart City is a pilot project, and
taining the smart city. Vienna, Amsterdam,
pilot is the term that has to be perceived
Seoul, and Dubai are among the most suc-
accordingly. The good side for the local
cessful cities.
path to learning to digest the sums that are needed later for buying, using and main-
budget is that the costs of the pilot are practically zero. The concept relies on closing ment from the municipality’s side. Why?
What are the objectives of the municipality in developing Alba Iulia under the smart city concept?
Because at the moment companies are
With the smart project, we want to open
testing smart solutions in Alba Iulia, which
new perspectives, both for citizens and
doesn’t mean that they will ultimately
potential investors.
partnerships free of any financial commit-
remain the city. However, there is a big ‘but’
Right now we are implementing high-
in the positive sense: being the city with the
tech solutions, but also spending money
biggest absorption of EU funds in Romania,
on the city’s infrastructure. The most im-
with the most hard-working and involved
portant thing is that we are active players.
team, we are doing all we can to avoid these
In Alba Iulia, investors have the terrain pre-
solutions leaving Alba Iulia. We, in Alba
pared, literally and for free. If we also add
Iulia, have never missed a train. We won’t
all the smart solutions and the proximity to
miss it this time either. For example, we are
the highway, the biggest historic stronghold
testing several solutions for smart lighting,
and the biggest golf resort, I can say that
together with Orange, Philips and Schreder.
Alba Iulia is becoming, through the smart
Recently, we submitted a draft plan for
city project, a business-friendly city.
public lighting worth EUR 5 million. The value of the projects stands at over EUR 1.5 million, but companies are not obliged to tell us how much they spend in
We were the first city in Romania to organize public transport for a conurbation with almost 100,000 inhabitants. Many of them work in Alba Iulia and neighboring
the city. What is for sure is that each company does its own financial
rural areas; others study in the city. We are a city where transport
evaluation before implementing solutions in a pilot project.
has been fully accessed through e-ticketing since 2007.
Which smart city inspires Alba Iulia? mania super specialists in smart cities. We see what others have been
How many companies are involved in this project? Is there a strategy to continue the collaboration with private players after the implementation of the pilot projects?
doing and we specialize. It’s a process. Each dialogue with represen-
At present, 33 private companies are involved in our smart city
tatives of companies and their specialists represents for us a course
project, with 80 smart solutions that are in the testing phase, are
from which we learn as much as we can. It’s a mix of people, very
functional or are going to be implemented.
We don’t have and can’t afford to have in any administration in Ro-
well coordinated, some with the experience of tech multinationals,
The strategy for future collaboration, after the Alba Iulia Smart
others with technical experience in administration, but young cre-
City pilot is concluded (somewhere in 2019), will be to use each
atives, full of energy, that have chosen to support the development
advantage, piece of knowledge and additional benefits and results
of Alba Iulia instead of leaving their country.
obtained in order to know what to ask private companies when we
There are great successful models in implementing intelligent
effectively buy smart solutions and services.
www.business-review.eu Business Review | August 2018
14 PARTNER CONTENT
Lidl’s sustainable headquarters: from being green to being good to future generations
The way we drive the growth and develop-
business is to project long term efficiency, by
innovative and complex project, the central
ment of our communities determines the
using technologies that optimize the resource
headquarters is one of the most ambitious
way our natural environment is preserved
consumption in the construction process of new
initiatives of Lidl’s sustainability strategy
for future generations. Even the construc-
stores and warehouses, by improving the logistic
and one of the most important green build-
tion, design and operation of the buildings
standards and by creating eco-friendly facilities
ings in Romania. Sustainability is deeply em-
in which we live or work have a great impact
for customers.
bedded in the company’s DNA, so building a
on the natural resources consumption. For
headquarters using state-of-the-art construc-
a better future, Lidl Romania is constantly
For example, when building new stores, Lidl
tion technologies and including facilities at
developing measures to reduce its negative
uses a standard project that optimizes the re-
European standards was a natural step for
impact. With great leadership in sustain-
sources’ consumption and energy management.
the long-term development. The purpose
ability, demonstrated ever since entering the
Everything from using LED lighting, ecological
was not only to reduce the impact on the
Romanian market, Lidl developed 5 strategic
Freon, automated installation, presence, motion
environment and contribute to sustainable
pillars, each dedicated to a representative
or rain sensors, and low energy consumption
communities, but to ensure a green, sustain-
business segment: Assortment, Society,
equipment, helped Lidl to reduce its negative
able environment for employees as well.
Environment, Employees and Partners. All
environmental impact and reduce costs over its
measures taken in each pillar are guided by
entire network. Moreover, Lidl has in its portfolio
Innovative solutions and technologies for a
the same principle: efficiency. For Lidl, this
3 stores with green roofs (i.e. roofs covered in
better future
represents a responsible way of doing busi-
vegetation), in Bucharest (Pantelimon neighbor-
Built in partnership with Skanska, the green
ness and also a responsible way to be a part
hood), Constanta and Brasov. The unique concept
headquarters of Lidl was designed to meet
of society, long term.
contributes to reducing the greenhouse effect
the highest requirements of the UK BREEAM
in the store’s proximity by absorbing dust and
assessment system, the world’s leading
Environment is an important pillar in Lidl’s
carbon dioxide and also by lowering the air
sustainability assessment method for
sustainability strategy, as the business
temperature.
master planning projects, infrastructure and
model itself, the development and expansion
buildings. With a surface of more than 12,500
require a significant amount of resources.
But the peak of green and cost-efficient build-
square meters, the project consists of two
In this case, a responsible way of doing
ing is the new Lidl Romania’ headquarters. An
separate, but interconnected buildings: the
www.business-review.eu Business Review | August 2018
PARTNER CONTENT 15
they can train with the help of a fitness instructor or attend aerobics classes, 4 times a week, free of charge. Employees can have breakfast and lunch in the ground floor cafeteria, which offers a variety of menus , prepared with Lidl products and ingredients. Moreover, throughout the day, employees can prepare coffee or tea at any time, using the modern kitchens located next to their office or can buy coffee from the café set up on the 4th floor of the building. In this modern relaxation area, which also includes a large terrace, they can enjoy coffee and can also use the space for meetings with colleagues or business partners.
first one has four floors and comprises the
time, the headquarters uses a highly efficient
areas with facilities for employees, while
sensor-controlled LED lighting system. With an
the second one has six floors and consists of
eco-friendly concept and sustainable design, the
The new Lidl headquarters has 234 parking
two symmetrical buildings with offices. The
newest Lidl HQ is a best practice for increasing
spaces, located underground and above
ensemble houses many ample office spaces,
the efficiency in using resources and for reducing
ground, 7 electric car charging stations and
as well as modern amenities designed for
environmental impact. The efficiency principle
40 spaces for those who choose to come to
the convenience of Lidl’s employees.
extends beyond the walls of the building and
the office by bicycle. Also, an additional be-
takes into account the company’s impact on its
nefit offered by Lidl is the express minibus
employees, but also on the community.
that provides rides between the headquar-
The project has used certified, recycled
ters and the nearest metro station, “Aurel
and recyclable construction materials, while also incorporating some of the most
Facilities for employees: Comfort is the new
Vlaicu”, at the beginning of the work day
advanced technology solutions available in
green
and at the end of it.
the construction field. Therefore, only sus-
Lidl’s green headquarters also contributes to the
tainble building materials were used in the
wellbeing of the team that works in it. The proj-
Lidl’s sustainable headquarters are more
construction process: FSC-certified wood
ect has a unique concept, “Surprising Romania”
than an energy efficient building featur-
(the only global forest management certifi-
(“Romania Surprinzatoare”) that integrates both
ing an effort towards protecting natural
cation system), BES6001 certified concrete,
the company’s commitment to sustainability and
resources savings or towards more comfort
and other ISO 14001 certified materials, with
its goal of engaging its employees with modern
for employees. It is part of a business model
guaranteed source of provenance. More-
facilities for increased workplace comfort.
that aligns with the mission of creating a
over, 50% of the thermal insulation used for
One of the main facilities for employees is the
better environment and society for genera-
the building is made of recycled materials.
230 sqm fitness studio, open from Monday to
tions to come, of ensuring the health and
Sunday, between 6:30 am and 11:00 pm and
well-being of employees and the long-term
equipped with state-of-the-art equipments. Here,
development of the economy.
The high energy efficiency standard of the new headquarters is also possible thanks to innovative, sustainable solutions. The smart façade of the building incorporates an automated shading system equipped with smart shutters that can be adjusted according to the intensity and position of the sun. Moreover, the windows of the building have a triple glazing, ensuring minimal heat transfer. Regardless of the season, the heating and cooling of the entire building are provided exclusively by a system of 78 geothermal wells and heat pumps, complemented with 6 air treatment systems, for an optimal indoor atmosphere. At the same
www.business-review.eu Business Review | August 2018
16 COVER STORY
Electric and hybrid cars move up a gear on the local market By Anda Sebesi
Although electric and hybrid cars have increased their importance in Romania, they are still a niche. The sector could develop in the future by implementing a multiannual strategy with a gradual reduction of state support.
O
ver 2,800 electric
Norway and California regis-
and hybrid cars were
tered an explosion of electric
sold last year on the
car sales due to government
Romanian market, up by 136.7
support. In the Netherlands,
percent compared with 2016,
where the plug-in support has
according to data released by
started and stopped several
the Automotive Manufactur-
times, the market mirrored the
ers and Association (APIA).
same evolution. “In our opin-
Of the total, 514 were electric
ion, state support is needed in
cars while 2,297 were hybrid
order to incentivise and start
vehicles. But as data show,
electric car sales, to encour-
electric and hybrid cars are
age the adoption of the new
still an emerging segment in
technology. This can come in
Romania, as they reached just
several forms, not only pur-
2.2 percent of the total number
chased subsides, for example
of new cars sold on the local
special lanes, free parking, tax
market last year. According to
incentives and many oth-
APIA, over January-December
ers,” says the representative of BMW. “However, what is
2017 BMW posted the highest sales on the electric cars segment (166 units) followed by Renault
also very important, we do not want the electrified car market to
(98), Volkswagen (83), Mercedes-Benz (64), Mitsubishi (32), Volvo
become dependent on state support; we see this as a necessity to
(20), Audi (14), Porsche (12) and Kia (7), while Toyota had the highest
help the market develop. Therefore, alongside a strong program, a
sales on the hybrid segment (2,063), followed by Lexus (154), Kia
multiannual strategy with a gradual reduction of state support and
(22) and Mercedes-Benz (2).
a normalisation of the market is needed.”
“In the coming weeks we will become the first brand that has de-
So how can electric and hybrid cars become a mass market
livered 250 electric cars in Romania. We have a wide range of clients,
product here? “As a starting point, I believe it is important to make
from transport companies to private customers, a fact that shows
a clear differentiation. Electrified cars those that have an electric
electric cars make are a very interesting product also for our market.
range of over 20 km and are plug-in vehicles that can be charged
Electric mobility works in Romania too. Furthermore, plug-in
from a plug. On the other hand, hybridisation doesn’t have the goal
hybrid cars are becoming a mature product as well,” says Alexandru
of electrification, but efficiency, and these technologies are becom-
Seremet, corporate communication manager, BMW Group Romania.
ing main stream.”
He adds that a very encouraging fact is that the charging infrastruc-
He adds: “From 2025 we expect most of our cars, if not the
ture is developing at a constant pace and maturing with the market.
complete range, to be mild hybrid cars, meaning they will feature
“We have committed players that invest in city charging stations
an electric motor for brake regeneration and for acceleration assist
(medium power) and there are several high-power charging points
(but not for electric driving alone). In addition, electrified vehicles
due to be launched by 2020. With all these development, electric
are growing in importance, as we diversify our electrified vehicles
driving is becoming increasingly convenient,” he adds.
range. Until 2025, based on a flexible architecture for all its cars,
Examples from world markets show us that electric car market development is strongly driven by state support. Electric heroes like
BMW Group will offer 25 electric and plug-in cars, so we expect sales in Romania to increase significantly.”
www.business-review.eu Business Review | August 2018
COVER STORY 17
The sustainable home, a novelty that became a trend By Anda Sebesi & Razvan Zamfir
The concept of a sustainable home is relatively new, not only on the Romanian residential market, but on all markets, in Europe and elsewhere. British-certified BREEAM launched a scheme for homes only in 2016, and Romania’s first residential project in the process of achieving green certification is Impact’s Luxuria Residence, in Bucharest. United Properties
M
tainable homes will evolve
uses the Romanian
in the Romanian residential
Green Building Council (RoG-
market, say players, mostly
BC) system – Green Homes to
on the medium-high segment,
certify its residential projects.
not only because some devel-
The RoGBC green certifica-
opers try to adopt trends, but
And the principle of sus-
eanwhile, developer
tion system was launched in
because most buyers want to
2014 and was for several years
live in clean, green homes, and
the only option for develop-
keep their living expenses as
ers who wanted to develop a
low as possible. “The demand for sustain-
residential project with green
able homes has increased
certification. “There are also individuals, tenants, for example, who know
mainly when it comes to large projects which involve both engi-
what certification means and ask for it. BREEAM has just launched,
neers and foreign investors with international expertise. It is about
in 2016, a scheme for the residential market. That’s why many
residential areas or collective buildings,” said Ioana Oncea, architect
projects did not have certifications. Only now, with a valid scheme,
at Cubicular Design Studio. According to her, individuals with high
will things change. I think there will be more projects certified in the
and very high incomes are the main target for such homes at pres-
near future, because this is a trend,” Ravan Nica, owner of Build-
ent in Romania. As for the costs, Oncea says that if for a traditional 160 sqm home
green, told BR. Green certificates measure carbon footprint and energy efficien-
the investment starts from EUR 90,000, a more responsible attitude
cy, which account for about 40 percent of the final report. They also
towards the environment, health, recycling and the effective use
evaluate the level of pollution generated by the building, drainage
of natural resources increases the sum by at least 55 percent. “The
and water treatment systems and so on.
price of a 160 sqm sustainable home can start from EUR 190,000 and can exceed EUR 500,000. It is difficult to estimate a maximum
GREEN SHOOTS
value of investment for such a home because everyone has their
Amber Gardens is one of the residential projects whose developer,
specific way to define the concept of luxury and furnishing,” added
Alesonor, pays attention to green requirements. The project in-
the architect.
cludes remote control of temperature, lights, surveillance cameras,
Principles of a sustainable home:
solar panels for hot water, photovoltaic panels, an innovative LED lighting system, anti-freeze protection system, 90 percent reduced energy consumption compared to a conventional house plus other facilities that are expected to save EUR 50,000 in long-term maintenance costs. Another example is Cartierul Solar. Developer Ad Astra Partners
• • • •
is building the first residential complex in Romania equipped with photovoltaic solar panels, which will help to reduce the living costs and carbon footprint of the buildings.
•
Energy autonomy of up to 100 percent by using renewable sources: geothermal, solar, wind, and minimizing the losses; Improving the quality of the air by natural ventilation of the home and cutting costs by using a heat recovery system; Using local recycled materials like wood or stone; Minimum impact on the local environment, encouraging walking by making connections with the public transportation network; The orientation of the building depending on the cardinal points, natural lighting and planting broad-leaved trees.
www.business-review.eu Business Review | August 2018
18 COVER STORY
Circular economy, driven by private sector, awaits authorities’ input By Aurel Dragan
Romania’s recycling system is beset by issues. The country has the second lowest rate of recycling in the European Union, at only 3 percent of the 5.8 million tons of waste produced every year, according to the latest report by the European Environment Agency (EEA), exceeding only Bulgaria on 0 percent.
T
he EEA report
and availability of second-
found that 18 of
hand construction materi-
33 reviewed waste
als, which is currently
prevention programs have
used by countries such
explicit objectives for the
as Austria, Bulgaria and
reuse of products, but
Greece. Another simpler
measures to promote reuse
example of what can be
are most often voluntary.
introduced is reduced VAT
Only 10 percent of the pro-
on repairs, a measure used
grams include regulatory
by several countries in-
measures and 8 percent
cluding Sweden, Belgium,
cite economic instru-
Poland and Slovenia. One of the programs
ments. The big picture of the waste hierarchy in the
in Romania was created
EU is based on five steps:
by the non-governmental
prevention, preparing for
organization (NGO)
reuse, recycling, recovery
Ateliere Fara Frontiere,
and disposal. It is like a
which provides work
reversed pyramid, with the
for formerly unemploy-
latter the least used.
able people that includes preparing WEEE (waste of
So far, the most prominent method that
electrical and electronic
EU states use is waste
equipment) for reuse. The
management (including
refurbished appliances are
recycling), which accounts
then donated to schools, kindergartens and other
for 53 percent of the reported national policy approaches to closing material loops. Waste
needy institutions.
prevention stands at only 17 percent and ‘reuse, repair, redistribute, refurbish and remanufacture’ at 3 percent. The five ’Rs’ are one of
PRIVATE SECTOR STEPS UP
the most important parts of the circular economy, meaning different
Romania has a waste collection rate of only 82.3 percent, the third
processes through which products are returned to a good condi-
lowest in the EU, after Bulgaria with 81 percent and Estonia with 79
tion and brought back into use. There are many people in Romania
percent. Of the total of 5.8 million tons of waste per year, the capital
repairing or reconditioning their products in order to prolong their
is responsible for 1 million tons, according to City Hall data.
usage (including the second-hand sale of textiles or other goods, like
While the country lacks a significant program, the good news
a program started in Sweden), but the country lacks its own program
is that there are several projects in the making. Bucharest recently
in this area, so there is no data from Romania.
saw the launch of the Master Plan of Integrated Waste Manage-
Among the common approaches is creating and maintaining a national website incorporating regional information on the location
ment which is meant to introduce the circular economy into waste management.
www.business-review.eu Business Review | August 2018
COVER STORY 19
The mayor of Bucharest, Gabriela Firea, announced that 50 automated waste collection stations will be inaugurated in the six sectors of Bucharest. “We have no time to waste, because we are all aware that only by a joint effort will we be able to reach the target we have set: for 50 percent of waste to be recycled by 2020,” said Firea. Currently, only 10 to 15 percent of waste is recycled. “To reach this target, we need to work together, central authorities, local public authorities and the private sector – which is of particular importance in this area, and investments are extremely necessary and need to be encouraged,” said Firea. The private sector is already doing its part. Most retailers have introduced measures to use biodegradable packaging or eliminate plastic products. Carrefour was the first to introduce 100 percent biodegradable bags, an innovative national product. Created on that basis by a Romanian producer, the new bags are available in all the retailer’s 320 stores in Romania. Lidl also announced that by the end
Source: European Parliament
of 2025 it will reduce the quantity of plastic used by 20 percent. In the first phase, by the end of 2018, the company will give up the use
invented and patented, and deliver the dishes to restaurants and
of disposable plastic articles such as glasses, deep and wide dishes,
festivals all over the country. Another company, Foldo, is deliver-
spoons and forks. The measure will be taken in all 225 Lidl stores in
ing furniture and decorative products made from cardboard and
the country. A similar measure was announced by Kaufland, which
other light materials, which are 100 percent biodegradable. And an
will ensure the 100 percent recyclability of the plastic used for its
entrepreneur from Constanta, Ioana Matei, was among the final-
own brands, and by the end of 2019 it will stop selling certain plastic
ists of Young Champions of Earth, organized by the United Nations
articles.
Organization Environment, with a project taking recycled cooking
And there are examples from smaller firms too. A startup from Cluj, set up by Maria and Lukasz Lichtenberg, has started making
oil and turning it into an eco-friendly cleaner. The implementation of a circular economy requires the efforts of
biodegradable and edible plates, made of wheat, sugar cane, bam-
all authorities, civil society and citizens. So far, just civil society and
boo or apple. They got the idea from Poland, where the plate was
some citizens are doing their part.
www.business-review.eu Business Review | August 2018
20 COVER STORY
Every Lidl helps: retailer focuses its efforts on sustainability By Anda Sebesi
Cristina Hanganu, communication and CSR director at Lidl Romania, tells Business Review about the company’s vision of sustainability and the main projects it has implemented on the Romanian market. What is Lidl Romania’s approach to sustainability and what are the main actions you have taken in this regard on the local market?
Moreover, an integrated part of our sustainable actions is the selective collection of waste. Every year we aim to increase the amount of waste selectively collected
We are a growing business, above the
in the company’s stores, warehouses, head-
market average, and in order to continue
quarters and regional offices. As a result, in
the same growth pace, it is vital for us to
2016, the total quantity collected selectively
act responsibly in every area in which we
and sent to recycling centers exceeded
are present, to build and develop ourselves
23,360 tons.
in a sustainable manner and to contribute
Lidl’s impact on society is an important
to a stronger society. Above anything else,
pillar of our sustainability strategy. So far,
it is a responsible way of doing business,
we have supported NGOs with more than
connecting all the areas of influence of
EUR 4 million. We constantly invest in edu-
sustainability: economic, social and envi-
cational projects and continuously support
ronmental. The entire strategy is reflected in all of our operations
initiatives reducing the negative impact on the environment. For ex-
and is built around five pillars of responsibility: assortment, society,
ample, last year, we launched the Lidl Community Grants platform
environment, employees and partners.
which aims to support projects with long-term impact implemented by NGOs. In 2017, we donated EUR 770,000 to 18 projects. The plat-
Can you share some best practice examples of sustainable initiatives that your company has implemented? The efficiency of our business model drives sustainability in all of
form is now on its second round of financing, currently funding 20 NGOs, with an investment of EUR 650,000. In addition to the Lidl Community Grants platform, our clients’
our five pillars. We launched our first sustainability report in May this
involvement in social actions is very important to us and this is why,
year to present in detail the most important responsible measures
every year, we support four different NGOs by organizing donation
and results that we have registered in each pillar.
campaigns at cash registers, in all Lidl stores across the country.
For example, we extended our stores and logistics network using only eco-friendly technologies and solutions with reduced impact
We also invest in developing facilities for our employees, in line with our sustainable business model.
on the environment. Lidl’s central headquarters is the latest result of our sustainable initiatives in construction, becoming one of the most important green buildings in the country. In addition, although we have increased the number of stores, we have succeeded in reducing energy consumption per square meter, through all the energy
In your opinion what are the main differences between the Romanian market and more developed ones when it comes to sustainable businesses? We strongly believe that sustainability should be an integrated
efficiency measures taken to obtain the highest international energy
part of every business, driving solutions and measures so that it
management standard, ISO 50001.
can have a positive impact not only on the short term, but on the
Moreover, the development of local suppliers had always been
long run, with relevant results for the future generations. We have
a priority for us. One of our biggest commitments is to increase the
noticed that, increasingly, businesses are more open to implement-
number of local suppliers and consequently the number of products
ing responsible management practices and have understood the im-
made in Romania. In the analysis period of our first sustainability
plications of unsustainable performance. This comes as stakeholders
report (March 1 2016 – February 28 2017), we managed to increase
are all prioritizing sustainability more and more as an essential as-
the number of products purchased from local suppliers by 29.1 per-
pect and demanding more efficiency in the economic performance.
cent and the number of local suppliers that became our partners by
This is why sustainability reports will become a proactive initiative
11.2 percent.
present more often on the market.
st
th
www.business-review.eu Business Review | August 2018
22 LEADERSHIP
‘Change in leadership starts with those who are led’ Mihaela Berciu, leadership breakthrough specialist at Essential for Excellence Ltd tells Business Review about the most significant differences between leadership in Romania and abroad and highlights what bosses should do to meet the needs of Millennials. By Anda Sebesi the interactions I have had with leadership in Romania, I have noticed that there’s still a strong tendency to micromanage both people and tasks, to control and direct. What I found quite surprising is the fact that even professionals coming from Western Europe have a tendency to act the same way, which I find alarming, to an extent.
What are the main differences between the styles? There are quite a few, but I will cover the three that I believe differentiate most inspirational leadership from dictatorial leadership. First, it is about empowerment and balance versus command and control. Probably one of the key attributes of an inspiring leader is the ability to empower people and support their professional growth. The focus is to inspire your teams to communicate and increase employee engagement. By removing fear as a means to control and command, you replace it with the desire to excel and, as a result, your team is more engaged, energized and committed to your company’s success. Second, it is about instructions versus commands and requests. The difference between giving instructions as opposed to commands and requests is trust and empow-
How do Western European countries approach leadership now compared with Romania?
participate in the development and running
erment. When you give instructions, you trust
of a task.
the other person’s ability to fulfil the task
In Western Europe, the notion that leadership
operations and focus more on understand-
goes beyond the title is now a fact. All efforts
ing what are the blind spots, how they act as
versus exposure. The feeling of safety is one
go into developing leaders who inspire, who
limitations and how to best overcome them.
of the strongest bonds between people. An
lead by example and who are part of the team.
They have processes to encourage the team
inspiring leader creates a culture of safety in
Their aim is to create an environment for
to take responsibility and to collaborate, to
which all stakeholders feel safe to express
the team to act at its most effective capacity
share skills and knowledge and to remove the
their thoughts, to take responsibility for their
by encouraging team members to actively
desire to compete against each other. From
actions and to actively and willingly engage
They tend to be less involved in the daily
successfully and on time. Last but not least, it is about protection
www.business-review.eu Business Review | August 2018
LEADERSHIP 23
in the growth of the company in innovative
sign of authenticity and follow substance as
great value to the team and decrease the time
ways.
opposed to ego.
needed to finish a task successfully.
Is there a need for change in the leadership style in Romania? If so, what would generate it?
How do you intend to change this attitude from Millennials?
they think out of the box and that makes
My aim is not to change their attitude, but, to
ability and flexibility to adapt ideas to align
Absolutely! The way I see it, the change, to be
the contrary, empower them to understand
with the company rules and processes.
successful and with long-term effects, needs
their strengths and support them to learn
The term that describes them very well is
to start with the people who are led. They are
how to communicate in a way that gener-
Intrapreneurs. Millennials like belonging to
the ones who can ask to be led in a different
ates positive responses rather than negative
a “tribe” and take pride in being active and
way, to be respected and appreciated for their
reactions. One of the actions I’m taking in
valuable members of their tribe. They only
knowledge and abilities. In order to achieve
this direction is running a series of leadership
search for a new one when they feel their
that, they need to understand their true
seminars called Leadership Inside Out (LIO).
skills and attributes are no longer valued.
value, act with confidence and learn to com-
The focus of these seminars is to help par-
municate positively.
ticipants understand the role the leadership
conscious: one of the biggest misconceptions
of self plays in one’s life, most importantly
about Millennials is the belief that they only
How do Romanian Millennials respond to the leaders of the companies they work for or hope to work for?
from a personal growth aspect, which of
care about themselves. Couldn’t be further
course influences professional development.
from the truth! They are very aware and
Apart from these seminars, we are organis-
concerned about the bigger picture, but they
After speaking to young professionals, I can
ing workshops and talks, and will eventually
do understand their role in this system. Fur-
confidently say that they do not feel positive
move towards online courses and webinars.
thermore, as the most ethnically and racially
and fulfilled by the way they currently inter-
We are looking to develop partnerships with
diverse generation in history, Millennials
act with the leadership. It’s a chain reaction,
universities, companies and other platforms
have learned to embrace the differences in
of course, but one that needs to be broken in
to grow the LIO community.
one another, which makes them open minded
Second, Millennials are entrepreneurial:
Third, Millennials are civic-oriented and
and good team players.
order to progress towards inspirational leadership and capitalize on its benefits. Millennials
them an amazing asset. They also have the
cannot be managed, that has a mind of its
What are the main features of Millennials today and what should be adjusted to meet the needs of their leaders?
Given that, what should leaders do to meet Millennials’ needs?
own which acts on its own rules; they are con-
First, Millennials are technologically savvy:
To communicate clearly and directly using a
sidered to lack loyalty, to be only interested in
their ability to navigate technology like
calm and confident tone of voice, ask ques-
instant gratification and seem to have a sense
no other generation so far puts them at a
tions and encourage team members to come
of entitlement.
great advantage. They can access and scan
up with answers, be open to the fact that
information much faster, which can make
they have knowledge that can help gener-
experience with Millennials is very different.
them much more effective and efficient. They
ate success faster and more effectively, give
They are loyal as long as they feel respected,
also have the ability to evaluate the potential
them freedom to find solutions and be open
appreciated and empowered. They respect
and validity of a piece of information due to
to integrate them, empower them to take
authority in the sense of knowledge and
their natural ability to segregate the content
responsibility for their actions and listen with
confidence; they embrace vulnerability as a
they read. If encouraged, this skill could add
the intent to learn, not to judge and dismiss.
have been and still are treated as a group that
I personally disagree with that view. My
www.business-review.eu Business Review | August 2018
24 FINANCE
Hard times for borrowers: rising inflation, interest rates could boost insolvencies, NPLs The business environment is changing quickly in Romania, as the age of cheap credit is gone, and rising inflation and interest rates erode the profits of companies and the purchasing power of indebted households. By Sorin Melenciuc
O
n March 31, Victor, a 30-year-old middle-class Romanian living in Bucharest, received a short message
from his bank informing him that his monthly mortgage repayments would be RON 1,053 (around EUR 226) in the next quarter. “On March 31, 2018, ROBOR 3M was 2.08 percent,” the bank said in a message sent to Victor’s brand new smartphone. Three months later, the message was significantly different. “On June 30, 2018, ROBOR 3M was 3.15 percent. Your total monthly payment for your Prima Casa mortgage loan is: RON 1,182,” the equivalent of EUR 254, the bank said. In just three months, Victor’s monthly payment had increased by 12 percent (or RON
Compared to the end of 2017, the 3-month ROBOR has climbed by 1.34 percentage points from 2.05 percent
129), and this is a good illustration of how complicated concepts like money market
Iancu Guda, president of the Romanian
harder the borrowers on the edge, the riski-
rates – ROBOR in Romania – influence every-
Financial Analysts Association, told Business
est for banks. This is the first group to fail
day life in such a short period of time.
Review.
to meet their loan repayments. In 2019, we
But the bad news is far from over. In July,
Compared to the end of 2017, the 3-month
could see two-digit NPL rates,” Guda warned.
the ROBOR 3-month, the main indicator that
ROBOR has climbed by 1.34 percentage points
sets the interest rates for RON currency bor-
(+65 percent), from 2.05 percent. But versus
will peak somewhere close to 3.5 percent this
rowers, reached a record high over the last
December 2016, the same index has increased
year if the inflation rate begins to deceler-
four years and five months of 3.39 percent.
more than threefold, from 0.9 percent.
ate, but it could reach 4 percent if inflation
In Victor’s case, this translates into monthly payments of over RON 1,200. While Victor can afford this additional cost, other Romanian borrowers could soon experience difficulty due to a higher debt burden, experts warn.
“The most vulnerable borrowers are those
Experts forecast that the 3-month ROBOR
continues to rise.
individuals with volatile incomes, because the economic cycle is decelerating,” Guda
STRUCTURAL VULNERABILITIES
added.
And rising borrowing costs could hit Roma-
Experts estimate that some vulnerable borrowers will become unable to meet their
nian companies even harder due to structural problems.
payments, and this situation will translate
According to a recent analysis by Guda, in
monthly payment for Prima Casa has in-
into higher non-performing loans (NPL) in
a moderate scenario, one in three companies
creased by 20-25 percent (since the beginning
2019, from the current 6 percent level – the
in Romania faces the risk of becoming insol-
of 2017), while the payment for consumer
lowest since the financial crisis.
vent due to rising borrowing costs.
“In the case of individual borrowers, the
loans has risen in some cases by 50 percent,”
“The (higher interest rate) shock will hit
The main reason is the low level of operat-
www.business-review.eu Business Review | August 2018
FINANCE 25
ing profit, coupled with the aggressive policy
lion, or 0.88 percent of GDP, compared with a
growing exposures to the real estate market
of paying dividends.
public deficit of RON 2.17 billion (0.27 percent
at variable interest rates, exposures to an in-
of GDP) in the same period of 2017.
crease in NPL, both on domestic and foreign
“In the context of rising financing costs, some companies will find themselves in a
But experts are particularly concerned
very difficult situation, as operating profit
about the rapid increase in the government’s
will become insufficient to cover interest on
interest expenses. Official data show that in-
loans,” Guda cautioned.
terest costs rose by 35 percent during the first
to-income limit on mortgages, and a gradual
five months of this year, to RON 5.6 billion,
scaling back of the Prima Casa program,
higher inflation, which hit a five-year high
from RON 4.1 billion in January-May 2017.
which would mitigate risks of housing sector
of 5.4 percent in May and June, and wage
And the future looks grimmer, data
imbalances and support the effectiveness of
The situation worsened in 2018 due to
pressure, translating into higher expenses for
suggest. European Central Bank (ECB) and
firms.
Eurostat data show that Romania pays the
“In addition to increasing insolvencies, companies will be tempted to extend supplier payouts using the rise in lending rates as an
currency loans, and growing lending by nonbanking financial institutions. The report recommends a debt-service-
the existing loan-to-value limits. Such measures limit the risks in the event
higher interest rates every month to finance
of an economic downturn. But many warn
its public deficit.
that Romania risks a hard landing, similar to
This means that a Romanian company
that experienced in 2009-2010.
excuse, and Romania already has the highest
faces major difficulties to remain competitive
payment terms in the region,” Guda told Busi-
compared to firms from abroad, which have
and fiscal consolidation, Romania’s buoyant
Currently, Romania’s government, companies
access to cheaper credit and have lower bor-
economic growth risks setting the stage for
and citizens pay by far the highest interest
rowing costs. However, higher interest rates
a hard landing,” National Bank of Romania
rates among the 28 European Union member
could have some positive effects by improv-
(BNR) governor Mugur Isarescu recently said.
states, and the interest payment burden is
ing investment choices.
“In the absence of structural reforms
ness Review. In this scenario, Romanian companies could enter into a vicious cycle of commercial credit, using suppliers as creditors. Goods or services are received on deferred payment terms, so suppliers face higher risks of nonpayment. In an optimistic scenario, companies will be forced to clean up their balance sheets to cope with higher borrowing costs. In Romania, business owners often charge their personal expenses to the company, and these costs are estimated at 22-23 percent of total expenses, on average. The effect of this business behavior is lower profit declared by the companies – and lower taxes to pay to the state budget.
HIGHEST INTEREST RATES IN THE EU
worsening every month, according to official data. At the end of June, Romania’s sovereign 10-year bonds yield, a barometer for the cost
Strangely enough, “the most profitable investments made in Romania are those initiated when capital costs were high and access to finance more difficult,” Guda said.
In such a scenario, the debt burden is a vulnerability, not only to borrowers, but to the whole society. “Currency and banking crises (whatever their trigger) – particularly against the background of a high debt burden and overlap-
of financing in the economy, reached a fresh four-year, two-month high of 5.26 percent
RISING THREATS
ping weak institutions – lead to capital flight
(mid-price or average of the bids and asking
But the real threat is for individuals and
(both financial and human), increased pover-
prices), amid growing concerns regarding
companies alike. Many experts forecast an
ty and marginalization, and mounting social
domestic political tensions and the health of
economic downturn in Romania, and such a
tension and insecurity,” Isarescu warned.
the public finances.
scenario means higher risks for all borrowers.
After the first five months of this year, Ro-
A recent report by the International
Some analysts estimate that the Romanian economy will grow by 3.5-4 percent this
mania’s general consolidated budget, which
Monetary Fund (IMF) has revealed four main
year, compared to 6.9 percent in 2017. Some-
includes the government’s fiscal and social
vulnerabilities in the Romanian financial
thing for Victor to bear in mind as he tries to
budgets, registered a deficit of RON 8.14 bil-
sector: banks’ exposure to the government,
plan his financial future in his new home.
www.business-review.eu Business Review | August 2018
26 BANKING
Local banks looking to grow in financial sector ripe for disruption With unicorn fintechs and digital banks raising financing and growing at an accelerated speed across the world, lenders in Romania are also feeling the pressure. Bankers are starting to recognize the transformative powers of tech startups and have begun to invest more in core banking infrastructure and their employees’ digital skills to adapt to consumers that are always online. By Ovidiu Posirca
Several internatonal fintech startups launched operations in Romania this year
L
7
ocally, banks have mapped out digi-
aggregation platform. Elsewhere, Raiffeisen
parent of BCR – the largest bank in Romania
talization strategies and some lenders
Bank International has a fintech acceleration
by assets – has developed its own digital
are starting to invest in fintechs in
program called Elevator Lab, while Banca
banking platform called George based on the
order to gain a competitive edge and access
Transilvania is among the founders of Spherik
group’s in-house fintech.
to new technologies. For instance, Banca
Accelerator based in Cluj-Napoca.
Transilvania invested EUR 300,000 in Ebriza,
Marius Ghenea, investment director at
Moreover, ING has an Innovation Studio
3TS Capital Partners, the technology-focused
a startup developing a digital platform that
in the Netherlands and Fintech Village in Bel-
private equity and venture capital firm, says
eases business management. The same lender
gium, and backs entrepreneurship initiatives
the financial ecosystem only stands to gain
also became an investor in Pago, a payment
in Romania as well. Austrian Erste Group, the
from the emergence of fintech startups.
www.business-review.eu Business Review | August 2018
BANKING 27
HOW CAN BANKS SECURE THEIR BUSINESS FUTURE?
traditional banks. We see this model popping
necessarily being a competitor to the traditional banks; in fact, in most cases, coopera-
Banks are starting to replicate some of the
aggressively in Romania; however, I believe
tion between the two sides is inherent, and
models that help fintechs grow their custom-
this will be a consolidation game and large
the result could be win-win: banks cannot
er base rapidly, while continuing to allocate
traditional banks will start acquiring such
really be as agile as startups in developing
bigger budgets to technology.
startup digital banks, created with exit strat-
“I don’t see general fintech innovation as
these new technologies, while startups do
Pita of ING Bank says that in the past five
up quickly all around Europe, maybe less
egies in mind by their founders, anyway,” said the venture capitalist.
need the customer base and larger resources
years, the lender has invested an average of
of the banks when launching disruptive new
EUR 10 million annually in digitalizing its
technologies on the market,” Ghenea told BR.
services on the local market. Going forward,
need to continue to automate processes,
the executive says that the amount of invest-
remain agile and provide instant services,
totaled around USD 4.7 billion last year, with
ments might grow as the bank needs to adapt
to reduce or even eliminate the commission
blockchain projects being increasingly well
quickly in digital to meet customer expecta-
they charge their clients and to expand the
funded, according to a report by KPMG, the
tions.
type of services they currently provide.
Across Europe, fintech investments
Popescu of EY Romania adds that banks
professional services firm. In the second half
“Every day new mobile capabilities are
of 2018, there were 27 fintech unicorns valued
invented. They represent a great opportunity
THE ADVANTAGES OF FINTECHS
at USD 81.8 billion at global level, says CB
to discover new ways to create value for our
Fintechs are able to expand their capac-
Insights, the consultancy group.
customers. We will keep investing in them to
ity and scape up rapidly as they are highly
always offer our customers the best service.
specialized in a limited number of services
Additionally, core systems also require big
which allow them to continuously innovate
“Digitalization is breaking entry barriers (lower investments required), causing this explosion of
investments to get rid of
fintech startups. They
legacies and pre-
focus on niche needs
pare them
and provide great
for the
customer experi-
new
and improve, while keeping their marketing costs at a minimum due to their wordof-mouth strategy, said the EY expert. The
ence to create a
challenge for them is
difference and
to consolidate their
gain traction.
brand and increase
They prioritize
the conversion rate
growth rather
from just curious to
than short-term
stan-
profitability,” Javier
dards
Montes Pita, head of
in terms of
retail at ING Bank Romania, told BR. In Romania, Revolut and Ebury are two of the international fintech startups that have
volumes, speed, availability and security,” outlined Pita. Meanwhile, Raiffeisen Bank Romania has
regular customer. Due to tighter regulatory demands in Europe, banks have had little time and few resources to consider disruptive innovation from within, says Ghenea. He adds that there is a huge addressable market
opened offices locally, while Monzo has also
its own digital transformation process that
for many fintech models, but the biggest
entered the market in the past 12 months.
is carried out at group level. The lender said
challenge for these startups is that “client
it has invested in new core banking systems
and in general partner acquisition is very
the digital bank Revolut said it had handled
that offer flexibility and in omnichannel
costly in the beginning and, without scale,
over 750,000 transactions with a total value
platforms. Since 2017, the bank has a team
most of them would remain irrelevant.”
of more than USD 25 million. The startup
focused on digital transformation. According
“So the dilemma is that the market is
already has 50,000 users locally and over 2
to Raiffeisen Bank, “investments in technol-
huge, but unless you can tap into that huge
million at international level.
ogy are investments in business develop-
market with very high initial marketing
ment.” Representatives of the lender told BR
costs, such a startup will never achieve
demanding, has access to multiple mobile
that they believe fintech startups and banks
success. The back-door for many fintech
devices, is online 24/7 and prefers virtual
can “collaborate, because they are comple-
startups is of course to partner from an early
interaction to entering a physical branch, so I
mentary”.
stage or even from the outset with a large
Two months after launching in Romania,
“The new generation of clients is very
am expecting to see more and more innova-
However, Ghenea of 3TS Capital Partners
traditional bank or another large financial
tive solutions from banks,” Razvan Popescu,
believes that digital banks have the potential
institution – let’s not forget Visa, MasterCard
coordinator of the Center of Excellence for
to disrupt traditional banks.
and the like; they all want to have a part of
Robotic Process Automation (RPA) and Smart Automation, told BR.
“As for digital banks, these indeed create a direct competition and a real threat to more
this game,” said the investment director of 3TS Capital Partners.
www.business-review.eu Business Review | August 2018
28 COMMUNICATION
How to communicate with a niche target Molecule F, Murmur, Radio Guerrilla, Pegas, Origo, Zaganu, Sloop & FruFru, Maize, Ivan Pescar. These are some of the Romanian niche brands applauded for the way they have been communicating on the market. By Romanita Oprea
Stefan Chiritescu, Kubis Interactive
A
Catrinel Burghelea, independent communication and PR consultant
ccording to marketing expert Seth
“specific” and “new”, it is essential to first
emerging needs. Moreover, the company
Godin, “Everyone is not your custom-
identify the answer to some questions: does
must know if it has the right people on board
er.” Depending on your product or
the product or service address a real need?
to address a challenging niche market, since
service, niche marketing is a tactic deployed
What is the target market? How does the tar-
you need guts, determination and instinct to
to target a specific market segment which
get market respond to the value proposition?
be able to grow an emerging territory.
is unique. So what should one know before
“Also, keep in mind that ‘new’ usually
“The most important question for a com-
one’s company goes after a niche market?
demands a consistent communication effort
pany considering a niche is: are you ready to
According to Catrinel Burghelea, independent
in order to inform, explain or educate and
cope with it? A niche requires a very well-
communication and PR consultant, niche
that the product adoption process might be
defined value proposition of your product/
marketing has been a global trend over the
lengthier,” added the consultant.
service, a compelling knowledge of your
past three to five years and for good reason:
At the same time, Ioana Manoiu, manag-
while we live in a growingly complex world,
ing partner at GMP PR, believes that one has
munication. If any of these three dimensions
our needs and expectations have become very
to analyze whether the niche 7 is relevant, to
is incorrectly approached, the value of the
specific. Also, younger generations tend to
see if there is business potential, if there is a
company business inside that niche will be
choose products or services as means of self-
gap that you can fill. And that it is useless to
hit,” said Stefan Chiritescu, strategy director
expression. “One size fits all” is a less and less
discover an unexploited niche if it does not
Kubis Interactive.
suitable approach nowadays, in terms of both
have the necessary income to make your busi-
products and communications.
ness grow.
While developing a niche brand can be
In her turn, Adina Vlad, managing partner
audience and strong consistency in com-
Just as prior to building a house one needs a plan and a strategy, the same applies at the beginning of the communication, especially
very appealing to both entrepreneurs and big
at Unlock Research, thinks that a company
if one is entering on unfamiliar territories
businesses, one needs to consider several fac-
should first identify where consumers are
and avoiding mass-market communication.
tors, says Burghelea. Moreover, since “niche”
heading to, the trends in lifestyle and the
The importance of research is essential in
doesn`t necessarily mean “small”, but rather
most efficient solutions to answer these
this stage and an aspect that shouldn’t be
www.business-review.eu Business Review | August 2018
COMMUNICATION 29
Adina Vlad, Unlock Research
Ioana Manoiu, GMP PR
forgotten. “Research is very important in
cial media presence. “Secondly, make use of
just like in day-to-day life, being interesting
any marketing step when you need feedback
the benefits of niche brands: employ refined
is as important as being relevant. “Digital is
and reassurance. Of course, lots of market-
targeting, show your brand personality, build
probably the best channel for growing a niche
ing actions could be taken without research,
communities, encourage word-of-mouth and
market. Also experiential marketing and com-
but then you really should admit the fact
referrals, develop real relationships. Then,
munity marketing should play an active role
that you’re relying just on your instinct. So,
keep up to date with changing consumer
in changing behaviors and growing an alter-
research is important before choosing a niche
needs and expectations – you might need to
native territory,” added the Unlock Research
market, mainly in the sense that it refines
adapt or get inspired for new approaches!
representative. Moreover, added Manoiu,
your direction and gives you the courage to
Last, plan for success and for a possible scal-
when working in niche areas, you need to
act with no compromise”, said Vlad.
ing up of the business and the communica-
use influencers a lot. They connect with each
tion,” outlined Burghelea.
other and attend events together. “You need
STICKING TO YOUR VALUES AND STRATEGY
According to Vlad, the most important
to know who the opinion leaders are for the
What are the main things one needs to consid-
thing is to stay as close to consumers as
people who are of interest to you and make
er when communicating for a niche market?
possible and find alternative ways to com-
them the ones who use your product first.
That, according to Manoiu, your company’s
municate with them, in order to be able to
You have to be consistent and patient”. And
target is limited and you must have extensive
grow together with your target. Meanwhile,
social media is really important to include in
knowledge of it before starting the commu-
Chiritescu advises being consistent with the
the communication mix, as it allows you to
nication. You have to know everything about
niche expectations. Be brave with your fears,
communicate to a niche audience more than
them, their lifestyle, where they go out, what
and be interesting in your communication, as
any other communication channel.
they like, what they don’t like. “Compared to brands that have a wider target, you have
Biggest DON’Ts
a bigger advantage with companies belonging to niche markets because you can get an in-depth knowledge of them. When we work for a niche brand, we surround ourselves with people from that area. Whether we hire them or we only meet them regularly, what matters is to test the messages and see which ones they react to,” says the GMP PR representa-
By Ioana Manoiu • Don’t spend money on wider exposure that you don’t need. This is a trap: you want to be well known and therefore you might be inclined to plan an extensive communication program, which will cost you money and additional resources, but reach an irrelevant target. • Do not start a campaign before you have a very good understanding of the target’s mindset. You have to understand what happens on the inside to realize what the target reacts to and how to plan the selling process. Surround yourself with people from that target, live around them, go out with them. Live their lives for a while.
tive. After fully getting to know the target you are addressing, you should define your value proposition and stick to it. As Burghelea points out, as a niche brand, your asset is your uniqueness, a fact that needs to be clearly stated and embedded in everything you do, from your product, to customer care and so-
By Adina Vlad • Not knowing your public, the people behind the consumers • Not knowing what people feel about your competition • Not knowing how relevant and appealing your proposition is • Creating a product for yourself alone. Instead, build a product for the people you’re addressing, which might be completely outside your comfort zone • Not being ready to be surprised and challenged. The “know it all” attitude!
www.business-review.eu Business Review | August 2018
30 INTERVIEW
‘There is an increasing need for a holistic approach to reputation management and risk prevention’ With over 18 years of corporate communication experience, including 10 in crisis communication, Ana Maria Diceanu believes that every challenge is a doorway to a better her. BR met with Diceanu to discuss the launch of her agency – Brain 4 Strategy – and the organization Global Women in PR Romania.
ABOUT ANA MARIA DICEANU, BRAIN 4 STRATEGY She Has 50-plus PR awards won with her coordinated teams and 30 crises managed. ana maria diceanu has worked for clients such as: SAB Miller, FrieslandCampina, PepsiCo, Henkel, GSK, AVIVA, Omniasig, BCR Erste Bank, Banca Transilvania, HP, OMV Petrom, E.ON Ruhrgas, Sensiblu, Boots, Urgo, Pierre Fabre, Holcim, and Rompetrol.
By Romanita Oprea
need for PR consultancy. PR is mostly seen as a profession where everybody writes press releases, does some Facebook and talks to journalists. When clients come to a PR agency they are mostly looking for media visibility and community growth on Facebook. What I would like to see happen in Romania is an increased need for PR strategic consultancy and for consultancy to be properly remunerated. My other wish is to help companies get over the idea that crisis planning is something difficult or something we do after a crisis hits. To survive the times we live in, companies must be immunized against any type of crisis, any type of issue that might leave them without the trust of their clients and partners. Consumers are constantly struggling with what brand to trust. Trust is like the currency of reputation; brands buy trust from consumers who are so reluctant to sell their confidence. And, at the same time, trust is expensive. Companies must think more about how to make the consumer sell their trustcoin, and less about selling their products. Reputation is key. A strong reputation is
What are the hardest decisions you have taken professionally so far and why?
things you are good at. I missed the window of opportunity of 30-40, so I am doing
the lifeline of a brand, especially now when
All decisions prove to be difficult when they
something that I am good at but with energy
everybody can attack and promptly accuse a
involve change. The hardest decision I have
because I feel 30 years young, not old. I’ve
brand at any given time with great ease.
made was starting a consultancy agency in
been working in this industry for almost 19
my forties. I strongly believe that everything
years, I love doing it and I really believe that
which crisis communication is pictured,
is possible, especially when you have a strong
PR is both the queen and king of any com-
mostly reactive. Therefore, we bring a 360-de-
mind, a reputation you can be proud of and a
munication strategy for any brand, company,
gree range of services in this field – from
good network.
person etc.
crisis manual development, crisis simula-
I would like to change the paradigm in
tions, crisis management procedures to crisis
I often listen to Jack Ma speeches (Alibaba),
impact measurement. With the help of a
said that between 30 and 40 you can start
What are your main wishes and goals for your new professional road?
something on your own. After 40, just do the
The main goal is to grow the reputation and
a digital tool to measure, in real time, aware-
and one thing he said stuck in my mind. He
market research company we have developed
www.business-review.eu Business Review | August 2018
ness among consumers during a social media crisis.
INTERVIEW 31
Have you seen any changes in recent years in this regard? Why?
How is Brain 4 Strategy positioned in the local PR industry scene?
There have been some positive changes in
We can be a good partner for companies and
You are specialized in crisis management. Do clients in Romania understand better the importance of this sector and the importance of prevention?
crisis planning because the number of crisis
agencies alike. Perhaps it sounds unrealistic
situations, especially with social media, has
for the Romanian market, where everybody
increased. The fake news phenomenon has
is competing against everybody, but I really
also “helped” in this regard; it has added a
believe that the expertise and consultants we
I have seen some changes in the prevention
new scenario in the crisis plan. So compa-
can bring to the table can benefit a company
area, but not as many as I would like. Most
nies have started to wake up and do some
and at the same time can help any given
companies invest in crisis prevention after a
training and write some crisis manuals. But
agency to deliver additional strategic services
crisis happens or if they receive a specific task
this is valid only for big brands, international
to its clients.
from HQ. I have looked at the recent crisis sit-
companies; if we look at Romanian entrepre-
uations of some brands, most of them unfold-
neurs, crisis prevention is the last thing on
ing in social media… And I strongly believe
their minds.
that a crisis consultant involved sooner in the situation would have made a huge difference.
What advice would you give Romanian entrepreneurs, when it comes to their communication?
How has your experience so far helped you in putting the basis of your agency?
An entrepreneurial business is like a baby…
Companies are not used to asking for help in crisis situations and, unfortunately, some
Bringing a vision to life is never easy, but it is
babies have a higher rate of survival if they
still think that if they don’t communicate the
therefore very rewarding. During my career
are vaccinated against different diseases.
situation will go away and be forgotten. But
I have worked for a big corporation, for a
Investing in crisis prevention is not a nice
Google has a very good memory.
regional PR agency and for the last 12 years
thing to do, it is a must. PR helps build trust
After a crisis the company should look at
So I say to them what we all know: that all
at an entrepreneurial PR agency… So I have
and reputation with investors, with banks,
what started the crisis in the first place and
seen all the angles of PR consultancy at work.
with business partners, with employees and
build a plan, do training with the employees,
All these experiences will help me overcome
customers. We must not forget that people
communicate to front desk employees the
anything I will encounter.
trust more information from a journalist than
importance of a correct relationship with cus-
At the same time, I know that if I deliver
what they read on a company website or see
tomers etc. Although we can see some plan-
to clients the same value and expertise I
in an advert – and by the way, over 50 percent
ning here and there, the after-crisis strategy is
have shown in the past, the agency will see
of internet users have ad blockers, but they
almost nonexistent.
growth.
most certainly read news online.
www.business-review.eu Business Review | August 2018
32 #MAKEITHAPPEN
Business Review brings to the forefront inspirational entrepreneurship stories through #Makeithappen campaign #vision
Business Review magazine has kicked off a new editorial campaign designed to promote local entrepreneurs in a bid to start a broader conversation in the economy about the central role of Romanians in creating innovative and successful companies and getting over various challenges. By Ovidiu Posirca
#entrepreneurship
#makeithappen
T
Dorina Codarin, Disofa
Ioan Iacob, Qualitance
he #Makeithappen campaign kicked off
were about serial entrepreneurs, while other fea-
online in early July and BR journalists have
tures focus on people that risked everything to turn
already published dozens of stories about
their idea in a business after working for years for
entrepreneurs who turned passion, hobbies and
other companies.
knowledge into successful businesses. The journalists aim to present the stories of en-
#doingbusiness
#performance
fields, underlining the diversity and creativity of
SOME OF THE STORIES PUBLISHED UNDER THE #MAKEITHAPPEN BANNER GATEWAY VR STUDIO
the local business environment. By starting this
After spending close to a decade in the gaming
campaign, BR is strengthening its commitment to
industry, Andrei Stefan (30) wanted new motiva-
be the go-to source for inspiring stories of Romanian
tion and thought that the nascent Virtual Reality
entrepreneurship.
industry could provide a fresh challenge. In 2016,
trepreneurial initiatives of all sizes in all economic
The campaign has already covered various
Stefan started the business on his own and was later
businesses ranging from small family companies
joined by a colleague from his former job. Now, they
controlled by spouses to large companies that have
are thinking about expanding their business on
been on the market for more than two decades and
other markets. In hindsight, he says the first months
employ hundreds of people. The common denomi-
of the business were the hardest, but he was able to
nator of the stories is the drive and courage of the
break even in less than a year.
business-owners to succeed no matter the challenges.
Andrei had been working for global gaming giant Electronic Arts for eight years, and in the last year
Some entrepreneurs were pioneers in certain
he had started to feel that he needed a fresh chal-
fields and had to educate the market while making
lenge. Although he graduated from law school, he
sure their business would survive. Others had to
was fascinated by the technology field and eventu-
face failure before striking big. Some of the stories
ally went on his own in this industry.
www.business-review.eu Business Review | August 2018
#MAKEITHAPPEN 33 “Silicon Valley has been for years and continues to be the place on earth with the biggest concentration of tech solutions, innovation, knowhow for product building and for attracting funding from investors. It is also the place with most money per square meter right now in the Venture Capital and overall funding area,” says Iacob. “That is why Silicon Valley remains for us a place where we get our energy from and where most of our
#vision #innovation
clients are based. That is where we look to see what Andrei Stefan, Gateway VR Studio
new companies and products are being created. Besides our clients, the most important resource we get
“I decided to take a risk. As I was spending more time inviting friends over to try VR experiences in-
from Silicon Valley is design and business knowhow,” he adds.
stead of actually using it myself, I figured this would
The company adopted rapid prototyping as a
be a thrilling experience for many others as well and
way of work. This means the team brings the idea to
decided to open up a location just for this purpose,”
prototype in two days, and within ten weeks the pro-
says Andrei.
totype becomes a Viable Minimum Product (MVP).
To get the initial financing of EUR 25,000 for in-
#entrepreneurship
“Ever since, our methodology has been based on
vestments, Andrei tapped into his personal savings,
the open source methodology at the Stanford design
and was also helped by his mother, while getting a
school, such as rapid prototyping,” says Iacob.
small bank loan. “When we opened up Gateway there were only
DISOFA
about ten other locations like ours across the west-
While working in the furniture industry for more
ern world. Now that number has extended to hun-
than 15 years, Dorina Codarin (44) noticed that
dreds, and if we look at China and Asia, thousands,”
imports were flooding Romanians’ homes, as most
said the entrepreneur.
couches, beds and chairs being sold were ‘made else-
This year, Gateway VR Studio is set to record
where.’ Building on the comprehensive experience
revenues of EUR 200,000, running with a team of
she had gained in several positions such as sales rep-
five and a few collaborators and freelancers.
resentative and roles in companies that provided raw
#makeithappen
materials for the wood industry or provided design
QUALITANCE
services, she took a leap of faith and started making
Created in 2007 by Ioan Iacob and Radu Constanti-
her own furniture using local talent and materials.
nescu, Qualitance is today one of the major home-
Having launched Disofa this year, the Brasov-
grown tech companies. Constantly working for the
based entrepreneur has already makes products
world’s biggest businesses, the company builds for
poised for export. By year-end, the furniture created
its clients digital products and services that use
exclusively by local designers will enter homes in
emerging technologies, such as ML, blockchain,
the UK and Nordic countries. Funded via a mix of
IoT. With 200 employees, and an established pres-
personal savings and funds provided by the Start-up
ence on three continents (Bucharest, San Francisco
Nation program, the business aims high and expects
and Sydney) it is looking to expand by next year to
to post a EUR 250,000 turnover in its first year of
another European location.
operation.
With an innovation-driven business model,
Currently, Disofa’s clients are mainly from Brasov.
which, co-founder and CEO Ioan Iacob explains,
Next, the company is planning its expansion at a na-
was fine-tuned over the past decade, Qualitance is
tional level and, by year-end aims to export to the UK
one of the few Romanian companies that managed
and the Nordic markets. “Our customers are mostly
to get a foothold in Silicon Valley and acquire a US
designers and architects who need custom-made
company.
products for each project. We have the flexibility to
According to Iacob, the idea to set up a technol-
#doingbusiness
make customized products and we have started to
ogy business with Constantinescu started off from
integrate high-tech elements into our products, such
the realization that technology was going to change
as sound systems, Wi-Fi chargers for phones, motion
things irreversibly. As he puts it, “We knew we were
sensor lights and more,” she says. Participation in in-
about to witness a change in the way business is
ternational events is also a priority for the company,
conducted.”
the entrepreneur adds.
#performance
www.business-review.eu Business Review | August 2018
34 INTERVIEW
Kent Orrgren, World Class Romania CEO: Healthier population, healthier economy Romania’s health and fitness industry is expected to grow by 30-40 percent annually over the next three to five years. For Kent Orrgren, CEO of market leader World Class Romania, that makes it one of “great development and business growth opportunities with enormous potential”. BR spoke to the Swedish-born executive about the way cultural differences influence fitness routines and how to make Romanians exercise more. By Georgeta Gheorghe for Romanians to understand the benefits of exercising and those of a healthy lifestyle. Regular exercise reduces stress, restores energy, builds strength, endurance, balance and concentration, encourages positive thinking and promotes happiness. Moreover, it reduces the risk of numerous diseases such as coronary heart disease, stroke, diabetes and obesity. The benefits are enormous and to make more and more people aware of that is our top priority, as a health & fitness services provider.
Very few Romanians exercise regularly. In the Nordic countries, however, the figures are quite impressive. How can that be explained, from your point of view? It’s all about education. Education can save people, can give them back their health and longevity. In order to motivate and inspire, we need to educate and that means presenting and explaining to people the true benefits of active living and exercising. In Nordic countries, sport education starts at an early age. The states support non-profit associations and there is a long tradition of exercise started by the non-profit organization Friskis & Svettis and Scandinavian health & fitness chains. Moreover, there are lower taxes on health & fitness services, which makes it more attractive to invest in this industry, and corporate companies enjoy full deductibility
Can one be healthy without exercising, given the demands of modern working life?
people on the crucial importance of physical
of their employees’ fitness club membership
exercise for healthy living. The World Health
costs.
Modern life is an advantage and a challenge at
Organization (WHO) recommends at least
the same time. We were born for movement;
300 minutes of moderate aerobic activity
therefore we need to exercise on a daily basis.
per week, but vigorous aerobic and muscle
What are the main objectives that define your efforts?
Inactivity and lifestyle related illness are on
strengthening activities are also part of the
#BeHealthy is a “movement for more move-
the rise and it is our duty to do everything in
weekly recommendations.
ment” designed to bring active living closer
our power to motivate, inspire and educate
Going back to your question, it is important
to Romanians, inspire them to be more active
www.business-review.eu Business Review | August 2018
INTERVIEW 35
and adopt a healthy lifestyle. World Class
grow, invest and improve the accessibility to
offering new members five personal trainer
aims to partner with all organizations that
more gyms in strategic locations.
(PT) sessions, when they join, in order to support them to start a healthy routine and keep
want to join the movement and support our efforts in turning fitness into an everyday health routine. We share our knowledge – people need
How would you assess the impact of World Class Romania on the local fitness market, given your long-term presence?
it up over the long term.
specifics. Knowing that you should eat
World Class Romania is the market leader
What are the cornerstones of the business growth strategy of World Class Romania?
healthier and move more is different than
and to us this is definitely a success but also
Our business growth strategy is to grow in
knowing how to eat healthier and move more.
a responsibility. We know that we count, we
Bucharest and Cluj, where we have a strong
World Class will share the knowledge of how
know that we can influence and we work
network. We are present in high-traffic areas
to get a healthy routine and healthy lifestyle.
every day to show people the benefits of
close to where people live or work. We also
Once people know the exact steps they
health and fitness. We continuously innovate,
want to offer the most efficient training solu-
need to take to improve their health or the
we create original training routines and also
tions. World Class boasts the most diverse
health of their family or community, they can
bring to Romania exclusive international
and modern portfolio of top health & fitness
then take action. Tell others what you know
training programs. We have a strong team of
services, facilities and amenities on the mar-
and spark a movement through knowledge.
specialized trainers and instructors in major
ket, presented by highly skilled health and
Our health and fitness experts inform and
Romanian cities and the capital. We also have
fitness professionals.
inspire our members on how to get and stick
an educational company – Move On – that pro-
to a healthy routine.
vides specific industry education and training. Our impact is constantly growing, as we keep
Why did you choose Cluj as the next city to expand to?
care. Most people are aware that they need to
opening new World Class clubs. The fact that
We have three clubs in Cluj and we have
make healthy change in their schools, homes,
we have been here for such a long time means
boasted a strong presence in the city since
or communities, but without that spark,
that we grow and develop together with the
2016, when we expanded with the acquisition
change is seldom made. At World Class we
community, we are part of it and we can bring
of Club Moving there. We will open the new
share our spark, energy and drive. Tell your
the change from within.
World Class Record Park, in the proximity of
We share our passion – at World Class we
story and get others to see why you think change for health is important to you and
the Office complex, in Q1 2019. This will be a
in parallel but towards the same objectives to
What is the most challenging part: informing people of the benefits of a healthier lifestyle, convincing them to join a gym/start a fitness routine or encouraging them to stick to it? How is World Class Romania involved in this process, at every step?
spectacular location in the heart of the city:
get more Romanians to be more active more
All of the parts that you mentioned are chal-
the 2,500 sqm club, with a pool, will be sur-
often, this would give great benefits to every-
lenging. We started the #BeHealthy movement
rounded by an impressive forest stretching
one, state companies, market actors and con-
in order to create a statement and a call-to-
for 3,000 sq ft. It will have a spectacular re-
sumers of health & fitness services. Of course
action for a healthy lifestyle. This initiative
tractable pool that will serve both the indoor
more investment is needed at state level to
involves all aspects of informing, motivating,
and outdoor space.
support and educate Romanians about the
making active and inspiring new and existing
vital importance of health as a daily routine.
members to start a healthy routine, to join
A healthier population means a healthier
a gym close to their home or their work-
What is the value of investments planned for 2018? And for 2019?
economy and we can all benefit from that.
place and the ongoing process of sticking to
We will continue to invest in our existing
For companies as well, it is very important
a healthy routine. To us it is a step-by-step
clubs in order to keep up the high standard
to see the effect of having healthier, happier
process that is ongoing every time we interact
in terms of facilities, training equipment,
and more efficient employees by encouraging
with our clients, both inside our clubs and
training programs and trainers’ expertise. We
them to exercise and implementing corporate
outside. All our trainers support our clients
are opening new clubs in 2018 and 2019. For
wellness programs. Health & fitness educa-
when they use our Group Fitness services or
2018 we have already signed contracts for the
tion and opportunities still see a low market
exercise in the gym. It is fun, creates good
opening of two new clubs in strategic urban
penetration but this can only mean, in fact,
energy, reduces stress and makes you feel
locations and in 2019 two more World Class
a great opportunity for all market actors to
great after your workout. In this period we are
clubs will open.
why it should be important to them. With our BeHealthy movement, we create positive awareness and attention around living a healthy lifestyle.
Who could improve the figures in Romania on the short and long term: the state, companies, market players? I would say all of us could. If we are working
www.business-review.eu Business Review | August 2018
36 GADGETS
Smartphones getting ‘smarter’ but also pricier Smartphones are having a good year in 2018, with a lot of innovation on the camera side and a jump in performance in all categories. But the year is not even near an end and the industry has much more in store. By Aurel Dragan last reveal of the year for Samsung, but given that the sales of Galaxy S9 didn’t go as well as expected, the company might just bring the launch of S10 forward to this year, from February next year. Rumors about the S10 are already circulating in the media, so it may not be such a big surprise if the Koreans release the model before the winter sale. Ahead of the event on August 9 Samsung uploaded three videos to its YouTube channel to give fans a glimpse of the next Note 9. The first one is focused on performance and says that the phone will blow its predecessor Note 8 out of the water in terms of ‘horsepower’. But the leading chip will be the same Qualcomm Snapdragon 845 that is used in Asus ROG, the smartphone dedicated to gaming
T
the S9 and S9 Plus, so the computing power is more or less the same. If the power is broadly equivalent (leaving aside the RAM, which can
he driving force of the smartphone
some cases, the Qualcomm Snapdragon 835,
go up to 8GB), the producer may boost, one
industry is the flagships. The top
launched last year, was even faster than the
way or another, the graphic unit (GPU).
models are upgrading and innovating
Snapdragon 845, the latest processor on the
every year, while lesser ones are increasing
market).
in performance and photo quality, catching
This is one reason why mobile producers
up with the older flagships. This is how we
are pushing the boundaries in photography
got today to have models in the middle with
capabilities, photo editing and graphics
performances close to the high end ones; pro-
power. It is no surprise that there will soon be
cessors’ performance today is more than we
a smartphone dedicated to gaming, made by
need for most tasks, which means that older
Asus, which is using its experience in PC gam-
(like, last year’s) processors can give the same
ing to create a phone dedicated to it.
speed for everyday use. The capping in performance is a ‘legacy’
There is a handful of industry leaders: Apple, Samsung, Huawei, Lenovo, Sony, HTC,
In Romania feature phones make up 45 percent, while Telekom Romania officials told us that almost 70 percent of their users have smartphones. Around the world, smartphones are expected to reach 50 percent this year. The phone is supposed to have internal
from computer chips, which underwent a cap-
LG, Asus, Acer, Nokia, together with some
storage up to 512GB (starting from 128GB),
ping a couple of years ago, the difference com-
lesser known players, such as Xiaomi and
which is already more than most of the SSDs
ing from gaming rigs and graphics stations.
ZTE. And we can add Google Pixel to the list,
(solid state drive) that equip most laptops.
Phones are forced to find new areas where
even if the company does not produce hand-
Also, the battery may be an improvement on
they can come up with real innovations, since
sets on its own.
the Note 8. Apparently the phone will have a battery that is at least 3,850 mAh and up to
the performance of the processor is not that visible. BR compared the Nokia 8 Sirocco and Samsung Galaxy S9 Plus and there was no difference in using the apps or the browser (in
SAMSUNG NOTE 9 AND GALAXY S10 The latest phablet from Samsung will be revealed on August 9. Normally, this is the
4,000 mAh, a lot more than the 3,300 mAh of the Note 8. The possible upgrade of the GPU comes
www.business-review.eu Business Review | August 2018
GADGETS 37
from the rumors about the Galaxy S10. A
of the smartphone
source broke ranks and said that there would
industry are releas-
be a new GPU design in ten years and it is used
ing flagships that are
on airplane cockpits and supercomputers. The
over 5.8 inches.
phone will have a 4K Infinity display, resolution good enough for use in a VR headset. The new GPU could also mean that virtual
Like Apple, which is set to launch the iPhone X 2018 at 5.8
reality gaming will be a strong possibility in
inches, the cheaper
the near future, with more power-efficient
version at 6.1 inches
games and smoother images than we have
and iPhone X 2018
today.
Plus at 6.5 inches.
On the GPU side, Apple is also working on something new and Intel completes the list with innovations in the field. While the mar-
GOOGLE PIXEL 3 AND ASUS ROG
ket will have to wait until next year for Intel’s
There is another
offering, Apple may come up with something
trend that interests the phone makers:
is the Asus ROG (Republic of Gamers), the
new in the coming months.
feature phones, meaning old phones that are
gaming terminal that treads a path opened by
not smart, are still used by almost half of the
Razor Phone. It will be powered by a Snap-
APPLE IPHONE X 2018
world’s 4.5 billion mobile phone users. That
dragon 845 but with a boost in its top CPU
In just a couple of months the new iPhone X
means smartphones have a lot of ground to
clock speed, going up to 2.96GHz, the highest
2018 should be in stores. Rumors suggest that
cover until the vast majority of users have a
for a mobile phone, and will have a 6 inch
Apple will launch a successor to the iPhone
small computer in their hands. In Romania
display that runs at 90Hz with a 1ms response
X, an iPhone X Plus and a cheaper version of
feature phones make up around 45 percent,
rate.
the iPhone X in September. One piece of news
while Telekom Romania officials told BR
already on the internet is that the cheaper ver-
that almost 70 percent of their users have
Asus Rog phone is that it will come with three
sion will be released in gold, grey, white, blue,
smartphones.
USB-C ports (phones usually have only one).
red and orange. The red is something that dif-
Google will also launch new models,
One of the most unusual things about the
The idea is to keep the phone plugged into a
expected to include the Qualcomm Snapdragon 845 chip, water-resistant design and wireless charging. Google Pixel 3 will most probably keep the design used so far, which is ‘classic’, while Pixel3XL will change to an edgeto-edge screen, with an Apple-style notch and a small chin at ferent sources argue about, but the rest seems
the base. Google looks like it will keep the
to be clear.
one-lens camera instead of going for two or
While the low budget phone will have
three lenses for the back of the phone, but
lower specs but a 6.1 inch display, the other
it might go for a dual-camera on the front.
power source, but without the cable getting in
two will have faster processors and improved
Pictures of the phone reveal that it will have a
the way of your hands. The ports can be also
facial recognition. The fact that Apple will
stereo speaker at the base and rear-mounted
used for different specially-made accessories.
have a cheaper version that has a 6.1 inch
fingerprint scanner on the back. The models
display points to another trend: bigger and
are expected to be released at the beginning
1,200) and will go up to RON 10,000 (EUR
bigger phones. While the 4.7, 5 and 5.1 inch
of October, when Google usually unveils its
2,200). But it seems less expensive given that
are still the most popular phones in the world
Pixel phones.
most of the flagships we expect this year are
(4.7 for Apple with older iPhone models, and the other for Android phones), the leaders
One phone that has already been presented, but will be available only later this year,
Prices will start from RON 5,500 (EUR
over EUR 1,000. Probably a way to increase the price of the lower models too.
www.business-review.eu Business Review | August 2018
38 BLOCKCHAIN
Blockchain goes large across EU Showing Europe’s long-term commitment to blockchain technology, 22 EU member states signed a declaration on the establishment of a European Blockchain Partnership on April 10, which Romania and Greece joined at the end of May. By BR Team
Economies capitalize on blockchain technology Several states have started to implement blockchain technology in pilot projects in various fields. Among the highly-developed countries which have functional blockchain legislation and have initiated endeavors to capitalize on the impact this technology could have on national and global economies are France, Austria, Germany, Estonia, Switzerland, Japan, and South Korea. Examples include:
Global banking institutions have started to embrace blockchain technology
ccording to a statement by the Eu-
A
information. Proponents say that block-
ropean Commission, this agreement
chain supports the progress of technology
represents “a vehicle for coopera-
and society, and Europe is a world leader in
tion amongst Member States to exchange
developing and launching such technologies.
experience and expertise in technical and
Blockchain is a decentralized registry for
regulatory fields and prepare for the launch
storing encrypted information that cannot be
of EU-wide blockchain applications across
subsequently changed. This type of technol-
the Digital Single Market for the benefit of the
ogy is not exclusively dedicated to transac-
public and private sectors.” Mariya Gabriel,
tions and cryptocurrencies – it can be used in
the European Commissioner for economy and
multiple fields such as banking, healthcare
digital society, stated that all public services
(for storing medical data and maintaining its
will use blockchain technology in the future,
integrity), logistics, transport, online voting,
as it represents an opportunity to rethink
improving financing capacity, and so on.
information systems, promote user trust and protect personal data. Global banking institutions have started to embrace blockchain technology and a con-
Among the EU’s blockchain projects are MHDMD and DECODE, for use in healthcare and in the control of personal data. The European Commission has allocated
sortium called R3, including 70 of the biggest
EUR 80 million to blockchain projects and
international banks, has been established to
will invest another EUR 300 million in the
promote the use of blockchain in the sector.
field in the coming years.
However, the National Bank of Romania “dis-
The signatories of the Blockchain Part-
courages any involvement of credit institu-
nership are: Austria, Belgium, Bulgaria, the
tions in virtual currencies.”
Czech Republic, Estonia, Finland, France,
Specialists say that blockchain allows the
Germany, Greece, Ireland, Latvia, Lithu-
creation of a digital data ledger comprising
ania, Luxembourg, Malta, the Netherlands,
user transactions. This way, all transactions
Norway, Poland, Portugal, Romania, Slova-
are archived and authenticated publicly,
kia, Slovenia, Spain, Sweden and the United
without the need for a sole owner of the
Kingdom.
• The Dubai government wants to become the first to govern with the help of blockchain technology, as well as to have robot police and autonomous taxis and vehicles. In real estate, Dubai has launched a blockchain-based system that comprises electronic records of all real estate contracts. • Singapore has launched a project to carry out interbank payments through blockchain. • In the US, the Emerging Citizen Technology Office launched the Federal Blockchain program, and the technology has been used to automate contracts for the office’s selection and verification of products and services suppliers for federal institutions. Furthermore, the Department of Homeland Security has launched an auction for small research and innovation companies to carry out blockchain-based projects for border security. NASA is financing research for artificial intelligence that operates on an Ethereum blockchain network, in order to develop new sustainable communication and compilation paradigms in various spatial communication environments. • The Netherlands could start implementing blockchain in the activities of its Fiscal Agency, Justice and Security Ministry, Judicial Information Service, Central Judicial Collection Agency, Health Institute and National Dutch Office for Identity Data. • The Chinese government has initiated three large-scale blockchain projects: VeChain, Matrix and Nebula. VeChain is an IT platform for Enterprise and decentralized apps, Matrix is an open-source project for developing auto learning services, while Nebula supports decentralized apps.
www.business-review.eu Business Review | August 2018
BR EVENTS 39
Going green: mapping the future in the environmental sector The private sector in Romania has made progress in implementing measures designed to protect the environment, but more education is needed to make people aware of the impact they have on their surroundings. These were some of the pronouncements of the Environmental and Sustainability Summit organized by Business Review in early June. By Ovidiu Posirca us collect the waste from the festival. They moved the waste to areas where it could be transported for recycling,” said Roxana Sunica, manager marketing, communication & corporate affairs at Fepra International, the waste management company that was involved in the project. After the two days of the festival, the company was able to collect 180 kilos of cardboard waste and 370 kilos of PET and plastic. The issue of plastic waste was also Oana Radu Turcu
mentioned by Laura Coroianu, director of AWAKE Festival. She says that the festival she manages has banned branded items made from plastic. Going forward, she adds that the objective is to power the festival only by Ionut Georgescu, entrepreneur in waste management; Roxana Sunica, Fepra International
R
electricity from next year. Some 75 to 80 percent of a festival’s car-
omanians are willing to recycle as
can create a backdrop and start thinking of a
bon footprint comes from the transport area,
long as solutions are provided and
future,” said the entrepreneur.
said Beatrice Gabor, co-founder of MAINOI, a Romanian NGO active in environmental
they receive something in return,
while the authorities should do more to promote campaigns of this type, said Roxana
WASTE CHALLENGES DURING PUBLIC EVENTS
Puia, PR manager at Environ Association.
Meanwhile, the challenge of environmental
“Local authorities and mayors admit that they need to find a solution and although it’s sometimes difficult to convince them to help
protection, alternative education and cultural promotion. The topic of sustainability is also vital for
protection is becoming crucial at large enter-
retailers. Loredana Samoila, PR manager at
tainment events across Romania.
Kaufland Romania, said that the company’s
“Legislation for environmental protection
CEO is a promoter of sustainability and many
us with permits and promotion, they were
is very complicated and in the case of festival
of the retailer’s projects have been the result
easier to convince when they saw that we
organizers we’ve learned that there are no
of his dedication to this goal.
would do most of the work,” she added. The
requirements specifically for such events, so
most recent education and awareness pro-
they need to read the legislation carefully and
employees, to encourage them to learn about
gram carried out by the association is called
find their own practical solutions to follow
the subject and come up with proposals,” said
Romania Recycles.
it,” said Roxana Ionescu, partner and head of
Samoila. Kaufland is currently working with
environmental practice at law firm NNDKP.
NGOs that aim to cut food waste.
Entrepreneur in waste management Ionut Georgescu said he would like to see the
For instance, during the Blaj aLive festival,
“We’ve opened a CSR Academy for our
Meanwhile, Cristina Hanganu, communi-
total transparency of the system regarding
visitors could dispose of their waste in sepa-
cation & CSR director at Lidl Romania, said
environment responsibility. Georgescu spoke
rate bins. This was something new for the
the retailer has implemented a sustainability
about the need for leadership, both from
town, because the municipality hadn’t put in
strategy.
public officials and private players.
place such a system across the city.
“We should start with the basis of leadership, which is about language; together we
“The key elements were the employees of the waste company that we paid to help
Even before this, it had already taken steps to make its network of more than 225 stores in Romania sustainable.
www.business-review.eu Business Review | August 2018
40 FESTIVAL
Electrifying the festival experience Probably the best organized festival in Romania, Electric Castle has opened up its gates once again for its sixth run. It was still raining cats and dogs, people were still complaining about the mud, but nothing else mattered when your favorite band performed live on the stage. And everybody around was partying, so regardless of these tiny details like the weather, it was almost perfect. BR checked into Electric Castle to see what was new in terms of architecture and brand activations this year.
Photo: Electric Castle
By Oana Vasiliu
Meet me at the castle and try to find me on the map
B
igger and better, some say. New stages
festival-goers.
was a memorable, breathtaking experience never before seen at a music festival in
and new entertainment zones have
What’s more, this year, the organizers
appeared at the festival, just to keep
put out a call for projects in domains such as
Romania. The reverse bungee, the immersive
you occupied 24 hours per day. How come?
architecture, art installations, storytelling and
Dome, live jukebox and Stigma Show were
An entire team of professionals worked for
activities, for which more than 300 projects
also new and popular tattractions.
a year in advance for five days of electric
were submitted, with four winners in the ar-
experience. This year’s production was more
chitecture section: In More Design - Camping
BRANDS POWER UP
impressive than ever. Covered areas for al-
House, Cosma Ioan + Sabau Doru - Shelter,
The “Electric” experience wouldn’t be com-
most 25,000 people, paved walkways all over
Kooho - Electric Village and Cismaru Gabriel
plete without electricity in some artsy forms.
the festival, 8,000 sqm of port-a-floor, ready
Cosmin + Viski Andrei - Electric Castles. Very
That’s why Enel has sponsored the festival for
for any weather. This year, the surface area
eclectic electric.
three years. “Enel’s brand activation at Elec-
rose by 30 percent, now standing at 300,000
In terms of new activities, the Metro-
tric Castle 2018 was a live dance, music and
sqm. Seven out of nine stages were covered
politan Circus of Bucharest has brought its
light show performed by the Russian group
when BR visited, over 300 artists had been on
Reveria Show to Electric Castle. Created in
Stigma Show, in which technological innova-
stage, while 6,000 parking spaces catered to
collaboration with Cirque du Soleil, the show
tion and art are interwoven. There was four
www.business-review.eu Business Review | August 2018
Photo: Lidl Romania/Mihnea Ratte
FESTIVAL 41
Photo: Mastercard
Royal Grill to cook up your meal
The priceless Tiny House experience
the Royal Grill area, we had a new range of products in the Royal Market and we present the Royal Burger in the Royal Food Court. Photo: Strongbow
Last, but not least, the campaign Less Talk, More Ice Cream for Gelatelli at Silent Dance
energy and color-rich performances, one on each evening of the festival. At the previous edition, Enel supported a live performance of Lords of Lightning, which was voted by the
Photo: Lidl Romania/Mihnea Ratte
The Cider Garden to relax during daytime
was also a new entry,” said Maria Parvuleasa of Lidl Romania. In my view, their brand activations were the best – the fact that there is a supermarket with the usual prices within the festival and affordable food in the food court sponsored by the retailer is a major plus. Electric Castle is still the most expansive Best sunset spot
festival to attend in Romania. Last but not least, the priceless experience was really a surprise. Ada Iftodi, marketing
public as the most popular activation of the 2017 edition,” Eleodor Ghenoiu, head of ad-
with our production process; so we prepared
manager at MasterCard Romania, noted, “As
vertising & brand activation at Enel Romania,
an interactive panel, which, at a touch, takes
an experiential brand, MasterCard wants to
told Business Re-view.
visitors through every step of the fabrication
provide consumers with the opportunities to
process,” said Anca Musat, marketing director
have meaningful moments with the people
consumed beverage at a festival – Ciuc
at Heineken Romania, of the Silva activation.
they care about, to fuel their passions and
Premium provided the immersive Dome
Last but not least, the Cider Garden powered
to create memories that last a lifetime. (…)
with impressive installations, a beer hunt
by Strongbow was one of the coolest spots
In order to be an enabler of this once-in-a-
using the festival’s official mobile app and
at the festival, with the apples hanging to
lifetime ex-perience, this year MasterCard has
some relaxation zones. “It is the first year
complete the forest setup – on day zero, I
turned a couple’s experience at Electric Castle
for Silva at Electric Castle, so we wanted to
personally met a deer there.
into a priceless one, offering them the cool-
In terms of the beer – probably the most
surprise our fans with a special multi-sensory
Lidl, the main sponsor, set up a large part
est accommodation, right in the heart of the
activation: we developed a very special craft
of this year’s edition. “We had many sur-
festival. The MasterCard Tiny Home is every
megaphone where festival participants can
prises in Lidl’s Electric Kingdom, like some
festival lover’s dream, as it was placed in a
enjoy our craft beer to a special soundtrack.
new entry areas in our line-up: Royal Village,
prime location in the middle of the festival
We opted for this sensory experience as it
the place to sleep at the festival; Royal Park,
and brought amazing surprises for the two
is proven that the sounds of different tones
where we`ll keep a piece of EC all year – an
happy participants: their own bartender and
amplify the taste of a good beer. Besides, we
amphitheater that will benefit the local com-
a cocktail show, gourmet dinner and morning
wanted to show consumers what a craft beer
munity; and Royal Lounge, a chill-out games
yoga session for their mind and body.” Really
means and at the same time get acquainted
area for goers. We learned fast, so we doubled
priceless. And fun.
www.business-review.eu Business Review | August 2018
42 FILM
Delta winning hand: celebrating art movies at the ‘end of the world’ Much has been said and written about the Anonimul Film Festival, but nothing compares to the experience of actually being there, right in the heart of one of Europe’s great wildernesses, the Danube Delta. Business Review talked to Miruna Berescu, executive director of the festival, about the wonders of such a special and surprising event, which is gaining more attention year after year. By Oana Vasiliu How do you convince international film stars – and especially directors – to come to Anonimul? Who was the first to accept your invitation? This could turn into a long conversation! The first big director to accept our invitation was Peter Greenaway for the second edition, and I think he mainly did so because Marcel Iures was starring in Tulse Luper Suitcases 2 and he probably felt like he could guarantee that it would be safe and interesting to go to. At least, this is why I think he accepted, as he was charming enough to tell us, actually to tell me in an interview, he came mainly because we invited him. Or maybe this could be a British thing, since two years later, in 2007, Ken Loach answered the same! Now it is so much easier to invite people, and I am not only talking about big names of world cinema, but also film directors, producers and Almin Zrno
actors who are invited as representatives of their films that are part of our lineup.
What does Anonimul Film Festival represent for you after so many years as director?
course, at first and theoretically speaking,
What special guests will you have this year?
they were right to ask such a question. We
Our special guest is a director that we discov-
had little to answer to that at the beginning.
ered at Anonimul, just to be able to follow
I always say Anonimul is my first child, as
But the years passed by and the question was
his career afterwards – the Kazakh director
my daughter is only 11 years old. It is still the
less and less heard. So, I guess something
Emir Baigazin, who won a Silver Bear for Best
most important and significant project I am
changed in the approach of the people that
Camera at the Berlinale, back in 2013, for his
part of, because I guess a 15-year relationship
started visiting us, regardless of our being
debut, the amazing film Harmony Lessons.
is quite a long one.
at the end of the world. It is certainly much
Our selector, Ludmila Cvikova, included
more than a film festival we are talking
Harmony Lessons in our competition and
Do you consider the distance to this festival an advantage or a disadvantage?
about: the wonderful place, the closeness
we knew we had discovered a great direc-
of the sea, the wild and amazing delta, the
tor. With his second film, Wounded Angel,
In the first few years of Anonimul, the most
light that surrounds us there, the people, the
Baigazin returned to Berlinale in 2016 and he
frequently asked question was: why is this
atmosphere, the films – a little bit of every-
has established himself as one of the most
festival at the end of the world? And of
thing.
promising directors of our times.
www.business-review.eu Business Review | August 2018
EXPAT EYE 43
A wee bathroom encounter flushes out fluency In our monthly take on expat life in Bucharest, BR’s British correspondent gets a sinking feeling when surprised in a toilet. By Debbie Stowe
O
ne thing that divides us expats (at
“when you gotta go,
least, long-term, English-speaking
you gotta go”, so I
ones) is fluency in Romanian. Can
proceeded. Thankful
you get by in the native tongue, or have you
that, unlike many ac-
never really got beyond “doua bere va rog”
tual disabled users,
– the Brit’s standard phrase overseas, along
I was able to move
with please and thank you of course.
the cardboard, I set
I’ve always liked to count myself in the
about doing so and
former category, although I’m not as good as I
then sat down to do
should be, after 15 years here.
my business, confi-
But last week a strange thing happened: I became a fluent Romanian speaker. I was at a very large beer hall with a friend
dent I’d be in and out in little more than a minute and that
and our toddlers. (Start them young, I say…)
nobody would have
She had gone outside with my elder child and
time to come in.
hers, while I went to “use the facilities” with my younger son in his pushchair. (On a side note, I have baffled more direct
So imagine my surprise when the door suddenly
Romanian friends with my use of that euphe-
swung open, and I
mistic term before, when I asked if our train
was greeted with the
would have “facilities”, leaving them trying
sight of a cleaner.
to guess if I was hungry, or wanted to buy a ticket onboard, or what…) The cubicles in the women’s toilet looked
Now, there is only one possible response to opening a door to the toilet and
My interrupted business concluded, I
too small for the pushchair, and I didn’t
seeing someone upon it, and that is to mutter
angrily set about addressing the issue with
fancy (a), leaving the door open or (b), not
“sorry” and close the door as quickly as you
the loitering cleaner and another employee
being able to keep an eye on my baby. But
can, while you both feel slightly embarrassed.
who had heard the commotion, and strongly
fortunately, next door there was a sign for
At least, in my decades on the planet, that
voiced my view that as the biggest beer house
a disabled bathroom (which, before I get
is all I have ever known until last week. But
in the region, surely they had space for a
letters, across the UK and Romania, are com-
there is, I now know, another response, and
separate cleaning closet, did they expect
monly also designated for non-disabled users
that is to stand there, the door wide open as
me to abandon my son outside, how would
with accessibility issues such as, say, having a
customers pass back and forth outside, and
a disabled person use that bathroom, it was
pushchair/stroller).
engage in a lengthy discussion.
exceedingly rude to stand with the door open
How civilized, I thought! Bucharest is truly changing. Hmm. I opened the door (which, promis-
The gist of it was that I shouldn’t be in the cleaning closet (to which I pointed out that it was in fact a bathroom), and then that
having surprised someone on the toilet, and so on. And suddenly I realized it. My Romanian
ingly was unlocked), but couldn’t see the
okay, yes, it was a bathroom, but I shouldn’t
was flowing freely and fluently on the back of
toilet due to the fact that it was buried under
be in it because I was not disabled. I replied
my righteous indignation and – finally – I was
a pile of cardboard, while the rest of the
that I couldn’t get in the normal cubicle with
a Romanian speaker!
space was full of detergents, cleaning equip-
a pushchair, in between increasingly strong
ment etc. Less water closet, more cleaning
requests to close the door, which, after about
language: don’t bother with apps, lessons or
closet. But, in the immortal words of Annie,
a minute, were finally complied with.
practice – just get surprised on the toilet.
So, quick tip for anyone trying to learn the
www.business-review.eu Business Review | August 2018
44 FILM
Skyscraper DIRECTOR: Rawson Marshall Thurber STARRING: : Dwayne Johnson, Neve Campbell, Chin Han, Roland Moller, Noah Taylor, Byron Mann, Pablo Schreiber, Hannah Quinlivan ON AT: Movieplex Cinema, Grand Cinema & More, Happy Cinema, Cine Globe, Hollywood Multiplex, Cinema City Cotroceni, Cinema City Sun Plaza, Cinema City Mega Mall, Cinema City ParkLake
J
and they make unconvincing jokes, so there must be an evil plan afoot. From this point on, we all know the drill. We know what’s going to happen, we know who’s going to be imperiled (unless, in an unpredicted plot twist, Mrs Sawyer and the little ‘uns spend the day shopping for holiday souvenirs in Wan Chai) and we know how it’s going to end. It’s just a question of how much fun, surprise and panache the filmmakers can bring to a tried and tested formula, and
ust as Liam Neeson has become cin-
whether they can sidestep the most tedious
ema’s go-to man when it comes to rescu-
of the clichés.
ing family members, passengers etc
Johnson’s presence is a plus – not for noth-
from terrorists, Dwayne Johnson seems lately
ing is he busy sewing up the disaster movie
to have cornered the market in saving the day
market. While unlikely to trouble the Oscar
during larger-scale catastrophes. He did it
committee any time soon, he manages to
recently in San Andreas, the earthquake flick,
exude an everyman likeability/vulnerability,
and now he’s back in this disaster-flavored
despite being built like a skyscraper himself.
action thriller, which gives a big nod to both Towering Inferno and Die Hard. Boy-wonder financier Zhao (Chin Han)
And props to writer-director Rawson Marshall Thurber for giving Mrs Sawyer (yep, you guessed it: she’s not off shopping in Wan
has built the tallest skyscraper in the world
Chai) a nice meaty role in proceedings, rather
in Hong Kong. Called the Pearl, it’s absolutely
than just simpering, screaming and looking
fireproof. Of course it is.
worried, as is so often the lot of wives of ac-
Rather than entrust security for this swanky monolith to a large and established
tion heroes. All the stunts are decently executed, and
firm, the financier decides to hire Just One
there are a few tense moments, particularly
Man. That man is Will Sawyer (Dwayne John-
if you are prone to vertigo, as Johnson hangs
son), who used to be a hostage-rescuing guy
improbably off the building (it’s not a spoiler –
for the FBI, until a tragic incident in which he
it’s on the film poster).
Made the Wrong Call resulted in an explosion that left him with a prosthetic leg. Will is now a bitter man who takes out his
Also, the “MacGuffin” (the term popularized by Alfred Hitchcock for the plot device in thrillers that sets events in motion without
frustrations on his wife and children… Just
necessarily making sense) is actually clever
kidding, silly! He’s a loving husband and fa-
and memorable here.
ther who engages in sweet-natured flirtatious
This is more than can be said for much of
banter with his wife (Neve Campbell) and has
the rest of the movie, which is fairly forget-
cutesy “daddy loves you” routines with his
table (aside from a sequence that looks like
two gorgeous little moppets (a boy and a girl,
it’s been copied detail by detail from Die
of course).
Hard). But while it’s in progress Skyscraper
So off go the Sawyers to Hong Kong for Will to do his thing for the Pearl. It’s going to be a cakewalk because the building’s security
is diverting, and the final face-off also has a certain style. It’s probably all enough to secure Johnson
system is so well designed, right? But what’s
his next gig saving his wife and family from a
this? There are some dodgy guys hanging
future bunch of un-American bad guys. Or a
around – they have non-American accents
tornado. Or whatever.
FILM REVIEW
By Debbie Stowe
www.business-review.eu Business Review | August 2018
RESTAURANT REVIEW 45
A-MAIZE-ING? YOU DECIDE
I
>>> Maize, 61 A Str. Paris, 0745 211 234 <<<
avoided Maize for a long time, as they
I was utterly seduced by the online descrip-
a green bio salad with sliced beetroot at a
had copied the name from Gordon
tion of the House trout. But when I ordered it
whopping RON 45. So again, off to the menu, at which
Ramsay’s flagship restaurant in Lon-
at my table I was told that it was off, as it was
don. That bothered me as it was a cheap
not “trout season”. WHAT!!! There is no trout
point I had to pause for thought. There was
move. If they thought that Ramsay’s magic
season whatsoever.
something missing from it; in fact almost
dust would rub off on them, they were mis-
Maybe the petulant bio trout, in his pure
everything was missing from it. There was
bio water, had a bad hair or scale day, threw
no pasta, lamb, tomato, onion, aspara-
a moody huff and refused to get out of the
gus, eggplant, courgette, prawn, octopus,
I read that they were lauded as the best
pond. The oh-so sensitive bio fisherman
lobster, chili… oh I could go on forever, but
restaurant in Romania by a French tourist
probably respected the fish’s PC ‘animal
clearly all those ‘ghost’ ingredients were
food guide. So here I am to check out the
rights’ and left him alone. As for me, I would
not bio enough for the kitchen.
veracity of that shoddy guide.
stand no such s**t. I would have gaffed him
taken, but nonetheless Maize is good. I had to overcome my misgivings when
Maize is bright and breezy with an
with a giant hook, pulled the bugger
open kitchen (always a good
It was both a wonder and a compliment to the chef that he could design a menu at all considering the ‘ghost’
out of his bio pond
thing) occupying 40 per-
ingredients we expect
and
as a comfort staple
cent of the floor space. But on entering, my
were missing. So
ears were assaulted
off I went to a safe chicken
by a noise Americans call ‘hotel
with ‘elements
elevator muzak’.
in a fermented
There is no
cabbage sauce’.
discernable song,
It was a simple delight, with a
just a grinding yet
‘two way’ cooked
soft musical ‘thing’
potato, chicken
which is meant to
breast and offal ‘ele-
relax you, but its relentless repetition drove me to the edge of my sanity. I was informed that the theme of the House was a ‘bio’ restaurant. The politically correct bio movement is based upon
ments’ of liver and two
beaten
hearts. A Romanian chicken with
his bio head till death, then thrown him into the cooking pot. That
two hearts? Bearing in mind that chickens
is reality.
are all female, I have yet to find a gorgeous
Back to the menu. I had the bread starter
human Romanian female with one heart, let alone two!
a well intentioned misconception that
with three dips. It was superb, with three hot
bio produce is healthy. Rubbish! It has no
freshly baked breads, together with a further
additional nutritional value than normal
three dips of fish roe, kale and mixed meat
kitchen, which was an oasis of calm. Bravo
produce, has less flavor and costs far more
of deer, boar and beef. At RON 33 for the dish
House. My waiter was well informed about
than normal produce.
plus more for the wine, it would be worth
every dish, so bravo again. But despite
quitting at this point as good value. But no, I
the media hype about Maize, there is no
had to go on for more.
way they can be number one in the land.
Bio is a movement embraced by hippies and food fascists alike, and in its purist form, all vegetables are grown in a fertilizer
I felt healthy, so I opted for a salad, about
Before I left, I had to check out the
They have to compete with La Cantine and
soup of raw animal and human sewage.
which I will quote from the online menu:
The Artist, which are both on a different
This is recycling at its literal best, but the
‘beetroot baked in madison coffee and semi
level, with a different concept and differ-
notion repels me.
dehydrated in its own juice with shaved
ent menus. The only winner is you, the
So let’s eat. The online menu is a poetic
horseradish, burrata and smoked silver carp,
customer.
delight to read with a mouth-watering de-
green herbs from the garden and lovage oil’.
scription of each dish, which was inexpli-
Oh what pomposity! I could barely discern
cably missing from the menu on my table.
the sum of the aforementioned parts, and ate
Michael Barclay Mab.media@dnt.ro
www.business-review.eu Business Review | August 2018
46 CITY
Cultural calendar
By Oana Vasiliu
village in the heart of Apuseni Natural Park. Outdoor activities accompany music from international and Romanian artists.
Awake Festival August 17-19, Teleki Mansion, Gornesti, Mures County
since his first gig here. Rumors about a possible Snoop Dogg concert in Romania began in 2016, after the famous rapper checked in on Instagram into a small Romanian village Bogata, Mures county, while he was actually in the Colombian capital Bogota.
Untold Festival August 5-8, Cluj Napoca
it is undoubtedly one of Bucha-
That mistake led to thousands of
rest’s best festivals. With a lineup
likes and comments, especially
including Justice, Bastille, The
Morcheeba and South African
from Romanians who invited him
Parov Stelar, Foreign Beggars,
Kooks, Kodaline, Cigarettes After
indie rock band The Parlotones
to come to the country for real.
Stavroz, Jan Blomquist, Black
Sex, Sofi Tukker, Rationale, Tom
are the headliners of this year’s
And now it is happening.
Eyed Peas, The Chainsmokers,
Grennan, HMLTD and Isaac Gra-
Awake Festival, a three-day mu-
The Prodigy, Jason Derulo, Armin
cie, it manages to keep up with
sic event organized on the Teleki
van Buuren, Kygo, Diplo, Steve
the hottest names of the moment
estate, a beautiful Transylvanian
Aoki, Dimitri Vegas&Like Mike,
as well as allow the local public
heritage mansion. Other artists
Afrojack, Tiesto, Solomun and
to meet the biggest alternative
playing on the festival’s two
many more artists will take to
music stars.
stages include Wilkinson, Milky Chance, Akua Naru, James Za-
the stage at this year’s Untold, an electro festival that has rapidly earned its place among the dance music world’s must-do events.
Eye to I exhibition Until September 6, Mobius Gallery
Smida Jazz Festival August 17-19, Smida, Alba County
Don’t miss it if you are a fan of
biela, The Subways and Fink.
Nightwish concert August 17, Romexpo
EDM. An invitation for anyone who peruses the exhibition to leave
Summer Well Festival August 11-12, Domeniul Stirbey, near Bucharest
behind all preconceptions, ignore any means of interpretation and simply meet the artwork. There is no other story except the one created between what you envi-
One of the newest jazz festivals in Romania, Smida has quickly
The band will take you through
sion and yourself. Eight artworks,
won plaudits for its eclectic
their 20 years and eight albums
eight artists, and eight different
lineup. Positioned similarly
of symphonic metal, mostly com-
exhibitions unfold this summer
to Garana Jazz Festival, this
posed by Nightwish founder and
before your eyes, each of them
Summer Well’s motto is ‘A festi-
international event is dedicated
mastermind Tuomas Holopainen.
opening to an intimate encounter
val like a holiday’ and that pretty
to avant-garde jazz, built on
much sums up the vibe of this
the unique concept of blend-
two-day August festival. Held
ing innovative jazz styles with
at Buftea, half an hour’s drive
the raw beauty of the Apuseni
from Bucharest, in the forest
Mountains. The event takes place
Legendary rapper Snoop Dogg
Larcher, Lea Rasovszky, Sándor
surrounding the Stirbey estate,
in the open air in a Transylvanian
will be back in Romania 10 years
Szász.
with their viewer. On display:
Snoop Dog concert August 29, Arenele Romane
Catalin Badarau, Roman Tolici, Bianca Mann, Anna Khodorkovskaya, Andrei Gamar, Claudia