BR/07/2018

Page 1

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




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