WHERE ROMANIA TALKS BUSINESS September, 2017 / Volume 21, Issue 7
www.business-review.eu
6
APS ROMANIA: THE ACADEMY OF EMPLOYEES
22
SMART CITY BUSINESS CASE: THE ALBA IULIA EXPERIENCE
24
ROMANIA SEEKS TIGHTER CONTROL OF COMPANIES’ FINANCIALS
28
Millennials: the driving (work) force
Photo: Betfair Development Romania
DEVELOPERS PUSH THE PEDAL ON RESIDENTIAL INVESTMENTS
www.business-review.eu Business Review | September 2017
• Editorial •
EDITORIAL 3 REAL ESTATE 6 Developers push
Anda Sebesi
the pedal on residential investments
• Editor-in-Chief •
8 Logistics & industrial market could set new records by yearend
COVER STORY
Millennials changing the working pattern At present, companies worldwide are making huge efforts to face the increasingly challenging business environment, where
10 Millennials: the driving (work) force
INTERVIEW
consumers have refined their behavior and a brand has the power to make or break even the largest organizations. In such a complex context, companies need to face one of the most challenging generations of employees: Millennials. Born between 1980 and 2000, Millennials will make up half of the global workforce by 2020,
26 Phil Heasley: Romania ‘fits well with ACI Worldwide’s Midwestern roots’
according to the 2016 CBRE Global Overview, called “Millennial Myths and Realities.” As all other previous generations of employ-
CITY
ees, they have their own specifics which are forcing companies to adjust their HR practices. This young generation of employees needs to know that their opinion is taken into consideration when working for a company, do not agree with the idea of complying with senior managers’ requests just because the hierarchical rules say so and expect work to be less of a duty, but rather a source of learning, fun and meaning. They no longer abide by the idea that work is work and play is play, but expect the two to mix. Furthermore, there is a worldwide trend showing that younger people are less interested in financial stability or markers of social success, such as owning a house or a car, but more preoccupied with freedom, flexibility, having as many meaningful experiences as possible and contributing to society beyond their immediate circle. Thus, companies need to understand and offer them a suitable working environment in order to capitalize on the newest human resource available now.
37 Stretching your Anonimul frame of mind 38 Enescu Festival brings music magic back to Bucharest 42 From killer moving air to planning your daily shower 45 Restaurant review: Trying out Barrio 46 Calendar
FOUNDING EDITOR: Bill Avery, EDITOR-IN-CHIEF: Anda Sebesi, DEPUTY EDITOR-IN-CHIEF: Simona Bazavan JOURNALISTS: Georgiana Bendre, Georgeta Gheorghe, Otilia Haraga, Romanita Oprea, Ovidiu Posirca, Oana Vasiliu, HEAD COPY EDITOR: Debbie Stowe COPY EDITOR: Eugenia Pupeza, PHOTO EDITOR: Mihai Constantineanu, ART DIRECTOR: Raluca Piscu PUBLISHER: Bloc Notes Media, ADDRESS: No. 10 Italiana St., 2nd floor, ap. 3, Bucharest, Romania, LANDLINE: Office: 031.040.09.31 EXECUTIVE DIRECTOR: George Moise, BUSINESS DEVELOPMENT DIRECTOR: Oana Molodoi, SALES DIRECTOR: Ana-Maria Nedelcu MARKETING: Marius Andronic, Patricia Neamtu PRODUCTION: Dan Mitroi, DISTRIBUTION: Eugen Musat ISSN NO. 1453-729X EMAILS: editorial@business-review.ro, sales@business-review.ro, events@business-review.ro
www.business-review.eu Business Review | September 2017
4 NEWS
WHO’S NEWS
has a track record of underexecution), while higher wages
BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at simona.bazavan@business-review.ro
will increase social contributions,” said Fitch. In addition, Fitch forecasts that Romania’s budget deficit will widen to 3.7 percent of the GDP this year, from 3 percent in 2016. PM Mihai Tudose recently reaffirmed that Romania will maintain its deficit below 3 percent. Agency experts revised
Diana Cernaianu is the new HR director of TotalSoft. With over 20 years of management experience, Cernaianu has solid knowledge of HR and transformation processes. During this period, she has coordinated several integration, development and efficiency processes within big companies. Cernaianu graduated from the Cybernetics, Statistics and Economic Informatics Faculty at the Bucharest University of Economic Studies and has an MBA in marketing from the Romanian-Canadian University.
Sinziana Pardhan has been promoted to country head of P3 Romania. She is taking over from Blake Horsley, who has become P3’s group development director. Her promotion comes only three months after she joined the local subsidiary of the logistics investor and developer as acquisitions director. Pardhan has extensive experience in investments, acquisitions and disposals. She previously spent nine years working for real estate consultancy Colliers. Prior to that, she worked for SOPOLEC and the Romanian Green Building Council. page 5
Romania’s GDP growth forecast upwards for 2017, up to 5.1 percent from 4.8 percent. “We Fitch revised Romania’s GDP growth forecast upwards for 2017, up to 5.1 percent from 4.8 percent
forecast growth to slow in 2018 and 2019 as policy stimulus eases, to 3.4 percent in 2018
Romanian economy risks overheating, says Fitch
and 3.5 percent in 2019, but it will remain above the ‘BBB’ category median (of around 3 percent), allowing further convergence of GDP per capita with rating peers,” Fitch said in a statement.
By Georgeta Gheorghe
According to data released The Romanian economy risks
fiscal targets, as tax revenue
by Eurostat in mid-August,
overheating, as “wages outpace
has remained flat and spending
Romania recorded a 5.7 percent
productivity growth”, while
risen. Romania’s budget deficit
year-on-year growth in Q2,
the budget deficit will get close
(cash basis) over the first five
the biggest economic growth
to 4 percent, the Romanian
months was almost three times
among EU member states.
economy risks overheating,
as large as in the previous year.
According to government
rating agency Fitch warned.
We expect some offsetting cuts
forecasts, Romania’s economy
“Cuts in excise duties
to government consumption and
is expected to grow by 5.2
and VAT have led to missed
capital spending (where Romania
percent this year.
Deputy director Alin Barbu appointed interim BVB head By Georgeta Gheorghe Alin Barbu, deputy director of
tion’s activities. Former chief
the Bucharest Stock Exchange,
executive Ludwik Sobolewski,
was appointed interim head
whose term expired on August
and will oversee the institu-
21, is awaiting a decision of the
Alin Barbu will oversee the institution’s activities
www.business-review.eu Business Review | September 2017
NEWS 5 want to take the money that is there […] it’s just that, if it proves best for Romanians, we will give more money to Pillar I.” According to the Fund Managers Association in Romania (AAF), all economic and fiscal policy measures with a major
Romania’s PM dismissed the information that the Pillar II pensions would be dissolved
PM Tudose considers increasing contribution to Pillar I pensions
impact on the economy should be part of a program designed to support the long-term development of the economy, to be adopted in a predictable way and only after a prior consultation with the main players on the market. “The compulsory private pension funds have had a
By Georgeta Gheorghe
significant contribution to
Prime Minister Mihai Tudose
is very high, for the amounts
the development of the local
announced the possibility of
that flow into Pillar I to be a little
capital market and of the
increasing the contribution
higher than those that go to Pillar
Romanian economy and have
to the Pillar I pensions, which
II. Discussions are in advanced
the potential to create the same
is currently equal to that
stage,” Tudose said, after the
positive effects in the future
disbursed into Pillar II, arguing
meeting of the Executive Com-
once their assets increase,”
that the performance of the for-
mittee of the Social Democratic
the AAF said in a statement.
mer surpasses that of the latter.
party (PSD). “The state is a better
Any step backwards is bound
“I asked - and it was also
manager,” Tudose argued, adding
to have negative effects, and
a political decision - that the
that it was “a way of increasing
represents a real danger that
finance ministry, together with
pensions.”
undermines its sustainability
the pension system representa-
Furthermore, the PM dismissed the information that
the development of Romania’s
to see whether it is opportune,
the Pillar II pensions would be
capital market, the association
now that the economic growth
dissolved. “It is not true that we
warned.
BVB Council regarding his status.
contract for the mandate of the
Since 2009, Alin Barbu has
deputy director was not taken
been one of the two BVB direc-
during the BVB Council meeting
tors authorized by the Financial
that was summoned to deal with
Surveillance Authority Council
the topic on August 18, due to
(ASF). Moreover, as per the pro-
lack of quorum.
visions of the Constitutive Act
At the same time, no decision
and BVB Council decisions, he
was made to remove Sobolewski
is authorized to coordinate the
from his position. The legal circumstances did
According to a BVB report
not prevent Sobolewski from
published on August 21, Ludwik
continuing his mandate at the
Sobolewski’s mandate expired
helm of the BVB, however, he
“creating an unusual legal situ-
decided to step aside and await
ation.”
the decision of the BVB Council
The decision to extend the
Ionut Voinea has been promoted to VP for integration & operations, CEE, at American group Liberty Global, which owns UPC Romania. His present position is technical director of UPC Romania. Voinea started his career in 2006 within the customer care department, and has held several management positions with the company in Romania, Hungary and other CEE countries. In 2015, he was appointed technology director and in early 2017 he took over additional responsibilities for the CEE region.
and creates a spillover effect on
tives should make an analysis
activity of the BVB.
Ion Sterian has been appointed general director of Transgaz, following a decision by the company’s administration board. He had been serving in the post in an interim capacity since May, replacing Petru Vaduva, who stepped down before his term was due to end in June. The state-owned company’s administration board has also decided that Marius Vasile Lupean will serve as economic director.
on the matter.
Nadia Oanea has been appointed partner of Grant Thornton, effective July 2017. She joined Grant Thornton in 2015 as executive director and head of the Grant Thornton Romania tax department . She has 18 years’ experience in the field of taxation, of which 8 years as state tax inspector and 10 years in tax advisory. Besides her extensive experience in domestic tax issues, Nadia is specialized in international taxation, covering direct and indirect tax implications of cross-border transactions, transfer pricing and matters related of taxation of individuals.
www.business-review.eu Business Review | September 2017
6 REAL ESTATE
Developers push the pedal on residential investments House prices are expected to maintain their upward trend through to the end of the year, after picking up speed this first semester. In the meantime, developers are boasting of investments in new projects to match the growing demand. By Simona Bazavan not think there is a risk of overheating. The market is maturing and this trend is led by the ever evolving consumer needs,” Ahmet Buyukhanli, CEO of Opus Land Residential Development, tells BR. He expects prices to go up by between 5 and 10 percent on average by yearend in Bucharest. As to when property price hikes will ease, this could happen in the event of a mix of factors, believes Nita: house prices going up faster than incomes, fewer properties changing hands, fewer prospective buyers and supply picking up once more.
FULL SPEED AHEAD Developers are certainly taking notice of the While housing demand has been going up in H1, supply has been more sluggish
E
existing demand, with several major players announcing investment plans. Earlier this summer, real estate company Impact Devel-
conomic growth, low interest rates
the past three years house prices have posted
oper & Contractor bought a 22,000 sqm plot
and support schemes such as the
average quarterly growth rates of 2.5 percent,
of land in the Domenii area of Bucharest for
government-backed Prima Casa pro-
Imobiliare.ro data indicate. By comparison,
EUR 10.6 million (VAT not included) on which
gram spurred housing demand the first half
the rise stood at 3.1 percent in the second
to build some 600 apartments.
of the year, which in turn pushed up asking
quarter of this year. “Although the growth
prices throughout the country, data indicate.
rate was somewhat justified by the ratio
start this autumn and the first 268 units are
The trend looks set to continue throughout
between demand and supply, these fast price
scheduled for completion in the spring of
the rest of the year, despite concerns about
hikes are considered unsustainable, including
2019.
how sustainable these price increases are.
by the central bank. House prices on the local
The much-sought after plot of land is lo-
market are growing faster than the European
cated between the Kiseleff and Ion Mihalache
been more sluggish. “Although most eco-
average, according to Eurostat and the Na-
boulevards in an area of the city “known as
nomic indicators look favorable for real estate
tional Institute of Statistics,” added Nita.
the next office pole,” say company represen-
While demand is going up, supply has
Works on the first development phase will
tatives. The project will feature nine apart-
acquisitions, the existing supply is consider-
This has raised concerns about a possible
ably lower than a year ago. To be precise, our
market overheating, especially in cities such
ment blocks going as high as 13 floors. Homes
data indicate that supply in the main cities is
as Cluj-Napoca, yet consultants and devel-
will range from studios to three-bedroom
down by about 31 percent,” said Dorel Nita,
opers suggest that overall growth remains
apartments.
head of data and research at Imobiliare.ro, in
sustainable. “The local residential market
a recent company report.
is on a new normal cycle. I wouldn’t say we
dential compounds on the local market, its
are dealing with a market explosion, and I do
flagship project being Greenfield in northern
And prices are indeed picking up. Over
Impact is known for developing 16 resi-
www.business-review.eu Business Review | September 2017
REAL ESTATE 7
HOUSE PRICE RISES THROUGHOUT ROMANIA AT END OF Q2 City Cluj-Napoca Bucharest Timisoara Constanta Brasov Iasi YOY
+11.7%
+12.9%
+7.7%
+8.3%
+5.3%
+5.4%
QOQ
+4.9%
+3.4%
+3.5%
+4%
+1.8%
+2.4%
Average price (EUR/sqm)
1,330
1,240
1,080
1,020
950
920
Source: Imobiliare.ro
year, we will build another 40,000 sqm of
BUCHAREST NEIGHBORHOODS WITH GREATEST PRICE INCREASES IN Q2
residential area, and the works are underway
Neighborhood Average price Q2 increase Parcul Carol (Cantemir – Marasesti)
EUR 1,620/sqm
+16.7%
Giurgiului
EUR 970/sqm
+7.9%
Grivitei – Gara de Nord
EUR 1,110/sqm
+6.6%
Dorobanti-Floreasca
EUR 2,050/sqm
+6.2%
Dristor-Vitan Vechi
EUR 1,280/sqm
+6.1%
as planned. Currently we are delivering five blocks of flats totaling about 350 units. We also have around 100 villas under construction,” adds the CEO.
PRICES ON THE UP The average asking price on the residential market stood at EUR 1,120/sqm at national
Source: Imobiliare.ro
level this June, up by 6.7 percent compared Bucharest.
apartment in a good location. Right now there
to the end of December 2016, according to
is almost nothing available in the market
data from real estate platform Imobiliare.ro.
is planning to start works this summer on a
for such buyers, even if we take the second-
Throughout the country, asking prices for
residential project in the capital’s Bucurestii
ary market into consideration,” Mindaugas
new homes posted a sharper increase, ac-
Noi neighborhood. “It will consist of a gated
Valuckas, CEO of Hanner Holding, recently
cording to the same source.
complex, green areas, sports facilities as well
told BR. Overall, local buyers are getting more
as a commercial center, served by a metro sta-
sophisticated and demanding, especially as
their price expectations by 5.4 percent
tion at the entrance to the project. As part of
they also generally have more disposable
throughout the first semester. The average
the first development phase, two residential
income. “When we first started The Park
asking price for old apartments – meaning
buildings consisting of 190 apartments, mean-
residential project, some people said that we
mainly properties built before 1990 – was EUR
ing 16,000 sqm of built-up area, are scheduled
were spending too much money and that no
1,144/sqm this June, up by 5 percent com-
for development,” Tal Roma, development
one would buy. But we proved that people
pared to the end of last year. By comparison,
manager at AFI Europe Romania, previously
do care about the quality of the housing they
on the primary market, average asking prices
told BR. Given that the Israeli developer
buy. I expect this medium segment to grow
stood at EUR 1,254/sqm, a 7 percent rise,
purchased the plot ten years ago, the timing
even further. We are talking about people
indicate Imobiliare.ro data.
for starting its first residential project on the
willing to pay around EUR 100,000 or more
Romanian market is telling. “Now, finally, as
for a three-room apartment. And I think it is
first semester were posted outside Bucharest,
the residential market has recovered from the
very sustainable because this segment is not
with Cluj-Napoca leading the ranking. In the
crisis, we have decided to enter this market
driven by incentives from the government. It
western city, asking prices went up by 10 per-
segment and invest in our first residential
will continue to grow even further as this is
cent, reaching an average of EUR 1,372/sqm.
project in Romania. Patience always pays off
linked to the IT industry, which remains on an
As elsewhere, the growth rate was stronger
in real estate,” said Roma.
upward trend,” he added.
on the primary market than on the secondary
Another local player, AFI Europe Romania,
Lithuanian developer Hanner is another
Overall, the number of new apartments to
In the capital Bucharest, sellers increased
However, the steepest price increases this
market. While the average asking price for old
player that considers the timing right for a
be completed and delivered this year is pro-
apartments reached EUR 1,402/sqm, up by
new investment. The company wants to start
jected to be the highest since 2009, according
9.6 percent since the end of last year, that of
works by yearend on its mixed-use office
to Buyukhanli.
new apartments increased by 12.3 percent to
and residential project on the grounds of
The developer managed to sell 258 homes
EUR 1,330/sqm.
the former Grivita Brewery in center-west
totaling 22,000 sqm in its Cosmopolis project
Bucharest. The developer particularly tips the
in Bucharest in the first five months of this
main regional cities throughout the country,
medium segment of the market as having the
year, according to company data. This means
Imobiliare.ro data suggest. The average hike
potential for future growth.
it is on track to reach its 540 unit target for
stood at 9.6 percent in Iasi (reaching EUR 936/
2017 and post a slight increase on the previous
sqm in June), 8.2 percent in Timisoara (EUR
apartment a few years back and now want to
year, says Buyukhanli. Meanwhile, the de-
1,111), 7.3 percent in Constanta (EUR 1,044),
upgrade, not only to a larger one but a quality
veloper is making room for new buyers. “This
and 6.2 percent in Brasov (EUR 956).
“There are many people who bought an
Asking prices saw gains in all the other
www.business-review.eu Business Review | September 2017
8 REAL ESTATE
Logistics & industrial market could set new records by yearend With industrial & logistics space take-up racing beyond consultants’ expectations this first semester, the market looks set to reach new highs by yearend. By Simona Bazavan “The local industrial & logistics market is going through an effervescent development phase in term of both demand and supply. This year has maintained 2016’s upward trend, establishing new record levels for deliveries and leasing transactions. We are confident that this trend will be maintained for the next two to three years,” says Rodica Tarcavu, partner, industrial agency, at Cushman & Wakefield Echinox. Throughout 2016, more than 370,000 sqm of industrial & logistics space was completed across the country, marking the highest
STRUCTURE OF NET TAKE-UP IN H1 2017
Czech real estate company CTP is the main player on the Romanian logistics and industrial market
A
record level of over 300,000 sqm
than the level we were expecting for the
of logistics & industrial space was
entire 2017. Should the same growth rate be
leased in the first half of 2017, ac-
maintained, we could witness demand hit-
cording to data from real estate consultancy
ting a new record high,” says Costin Banica,
Cushman & Wakefield Echinox. JLL Romania
associate director and head of the industrial
estimates the figure at over 350,000 sqm,
agency at JLL Romania. By comparison, com-
which makes it 54 percent higher than the
panies leased 460,000 sqm of industrial &
same period a year ago.
logistics space last year, which back then was
New demand – meaning expansions or new leasing contracts – was up by 51 percent
an all-time high, he adds. Retailers and logistics companies were the
in the first six months of 2017, and repre-
main tenants driving up demand, account-
sented about 65 percent of the overall leasing
ing for 65 percent of leasing activity in H1.
activity, indicate JLL data.
“Manufacturing is gaining ground with a 22
“Demand on the industrial & logistics
percent share, yet many companies here opt
market has surpassed our estimations, given
to build their own facilities,” say JLL repre-
that first semester leasing activity is higher
sentatives.
Bucharest
56%
Roman
12%
Pitesti
12%
Timisoara
9%
Cluj-Napoca
4%
Ramnicu Valcea
2%
Ploiesti
2%
Oradea
2%
Turda
1%
Source: Cushman & Wakefield Echinox
www.business-review.eu Business Review | September 2017
REAL ESTATE 9
level of new supply recorded so far, say C&W Echinox representatives. This year, however, the level of new supply is forecasted to be 25 percent higher than in 2016, given that more than 450,000 sqm of industrial & logistics space is scheduled for completion. In H1 2017, approximately 80,000 sqm was delivered. Some 56 percent of this year’s stock will be delivered in Bucharest and 14 percent in Timisoara, followed by Pitesti (9 percent), Cluj (5 percent), and Ploiesti and Sibiu (each with a 2 percent share), they add. Overall, the stock of industrial & logistics
MAIN LEASING TRANSACTIONS IN H1 Project Tenant City Surface (sqm) CTPark Bucharest
DSV
Bucharest
55,000
CTPark km 23
DSV
Bucharest
35,000
CTPark Bucharest West
NOD
Bucharest
31,000
WDP Roman
Profi
Roman
27,000
Cateasca (Arges) Arctic Pitesti 21,000 P3
Tibbett Logistics
Bucharest
17,000
P3
Altex
Bucharest
15,000
Wdp
Carrefour
Bucharest
11,500
LogIQ Mogosoaia
Fildas
Bucharest
11,500
Source: JLL Romania
space reached 2.65 million sqm at the end of H1 2017, according to C&W Echinox data. The most developed market in the country
logistics spaces in Romania reached 4 percent
real estate company CTP. The developer has
remains Bucharest, accounting for approxi-
at the end of H1 2017, indicate C&W Echinox
reached a portfolio of about 600,000 sqm
mately 45 percent of the total stock. Outside
data. In Bucharest, the vacancy rate dropped
after having pursued an aggressive takeover
Bucharest, Timisoara has a share of approxi-
to 3 percent, with approximately 31,000 sqm
policy for the past two years. It is followed by
mately 12 percent of the total existing stock,
available. Prime headline rents for A-class
P3 with a 430,000 sqm portfolio. Belgian WDP
followed by Ploiesti, with 10 percent, and the
units range from EUR 3.75-4.25/sqm/month,
is the third largest player on the local indus-
area around Cluj-Napoca area, with 8 percent.
while effective net rents are around EUR 3.45-
trial & logistics market, followed by another
3.9/sqm/month, depending on the city, area
Belgian firm Alinso, with a 160,000 sqm park
logistics was three times higher than the vol-
and technical specifications, according to the
in Ploiesti, Logicor with about 150,000 sqm
ume of new deliveries already leased, average
same source.
and Olympian and VGP each with portfolios
Given that new demand for industrial &
vacancy rates remain very low, say JLL representatives. The vacancy rate for industrial &
The main player on the Romanian logistics & industrial space market remains Czech
of approximately 100,000 sqm, according to C&W Echinox data.
10 COVER STORY
www.business-review.eu Business Review | September 2017
MILLENNIALS: THE DRIVING (WORK)FORCE Seen as the next generation of employees, Millennials have the power to make companies adjust their organizational culture in order to meet their needs and demands. But who are they and what are their career preferences? What should a company do to be on their “desirable� employers list? BR talked with specialists to get their point of view. By Anda Sebesi
COVER STORY 11
Photo: Betfair Development Romania
www.business-review.eu Business Review | September 2017
www.business-review.eu Business Review | September 2017
12 COVER STORY
T
he Millennial generation seems to have attained an almost
from their work and a place which provides challenges and opportu-
mythical status: that they are a group so different in values,
nities to develop rapidly. They prefer to gain new experiences across
beliefs and expectations that they challenge the status quo
different projects rather than have the opportunity to progress,” says
across every aspect of our lives. From academic literature to the popular press, debates rage about how “different” Millennials really are. Born towards the end of the last century, Millennials now make
Maranca. Millennials look for companies where their opinion is taken into consideration and where they get constant feedback; they are not attracted by organizations that implement classical biannual or annual
up the youngest segment of the workforce—the fresh talent that
evaluations and that are focused on barriers imposed by hierarchic
employers are eager to attract.
levels.
They are growing in affluence and, for a growing number of
“Plus, they have a preference for companies with a well-known
organizations, understanding the needs and desires of this genera-
brand that already offers them a good experience as consumers.
tion is crucial.
They want to work for a dynamic employer whose business is dedi-
According to the 2016 CBRE Global Overview, called “Millennial Myths and Realities,” that cited a PwC study called “Millennials at
cated towards a specific contribution,” adds Maranca. By contrast, Millennials who graduate from different industrial
work: Reshaping the workplace”, by 2020, Millennials born between
schools that specialize in a wide range of technical professions, focus
1980 and 2000 will make up half of the global workforce. With such
their interest on developing their career abroad.
a large voice, Millennials’ decisions about where they
MORE MEANING AND LESS MONEY
work, how they work
Alis Anagnostakis,
and whom they work
trainer, coach and
for will have lasting
founder of Mind
consequences for the
Learners, says that, in
global economy and
her work with senior
for real estate. For ex-
managers, she sees
ample, let’s consider
more and more of a
the workplace, which
gap between expecta-
plays a significant
tions and perceptions
role in staff well-be-
when it comes to the
ing and productivity.
younger generation.
Employers looking to
“Often, younger em-
attract and retain the
ployees are perceived
best and the bright-
as unreliable, super-
est in the “war for
ficial, entitled and I
talent” will need to
even heard the word
know what motivates
‘spoiled’ being used
Millennials and how
to describe them – all
their needs may differ from those of previous generations, pundits
that for reasons that are partly justified and partly, in my opin-
say.
ion, have to do with a culture gap between two generations,” says
But who are Millennials – the current generation of employ-
Anagnostakis. She adds that, by comparison, some employees from
ees who are about to change the organizational culture and force
the older generation, who grew up in the early days of multinational
companies to adjust their strategies to their needs and demands
presence in Romania, seem to care less about fun working spaces,
accordingly? Seen from their educational perspective, Millennials
flexible schedules or companies that offer interesting work environ-
are split into two different categories on the local market: gradu-
ments and a sense of meaning and belonging. They tend to value
ates from universities and graduates of different industrial schools.
more job stability, career growth prospects, and generous financial
“Both categories of Romanian Millennials challenge the local labor
packages.
market,” says Mihaela Maranca, general manager at Randstad Roma-
“Millennials on the other hand tend to expect work to be less of a
nia, a subsidiary of Randstad, a top global recruiting company. The
duty, but rather a source of learning, fun and meaning. This younger
differences between the two of them come from their professional
generation no longer abides by the idea that work is work and play is
interests, types of companies they prefer to work for and their pref-
play, but expects the two to mix. There is a worldwide trend show-
erences for a specific working environment, just to name few.
ing that younger people are less interested in financial stability or
“Millennials who graduate from university prefer to have a job in a flexible environment that meets their need for a sense of meaning
markers of social success, such as owning a house or a car, but more preoccupied with freedom, flexibility, having as many meaning-
14 COVER STORY
www.business-review.eu Business Review | September 2017
ful experiences as possible (versus
ees into the group and explaining the
accumulating as many possessions as
reasons behind the goals which need to
possible – which was the obsession of
be achieved, those goals become their
older generations) and contributing to
own and they become more relaxed
society beyond their immediate circle,”
towards the aspects mentioned above,”
explains the founder of Mind Learners.
he adds.
Younger people seem to be more
The financial issue is collateral for
interested in making a difference in
Millennials, say pundits. However,
the world and, although many of them
despite this, in the past years it was no-
don’t really know how to articulate
ticeable that candidates put significant
that. They expect their employer to
pressure on increasing the levels of
provide a sense of meaning and con-
salary offered by employers for differ-
tribution, to offer a flexible schedule,
ent jobs. “They have financial demands
the possibility to work remotely and to recognize their performance more frequently. “They are no longer content to sell their time and energy in exchange for money. They
that significantly exceed the pay scale of the companies,” says Maranca of Randstadt. As for their engagement with the business, a study conducted
expect innovative environments and to have fun at work. This
by Gallup last year, called ‘How Millennials Want to Work and Live,’
need, when it’s not being fulfilled, tends to lead to oppositional
showed that just 29 percent of Millennials are engaged in their job,
or rebellious behaviors, which can
6 out of 10 say that they are open to
easily be interpreted by employers as
new job opportunities and just 50
superficiality or irresponsibility,” adds
percent intend to stay with their cur-
Anagnostakis.
rent company in the next year. “This
As Robert Machidon, general man-
is happening while organizations with
ager at APS Romania says, people want
better employee engagement are more
to have a decent and fair remuneration,
productive, post less incidents to their
they want to have their achievements
workplace and a smaller percentage
recognized and promptly compen-
of absenteeism, while their work has a
sated. Moreover, young people want
higher impact on the company’s profit-
to get together and get involved in
ability,” says Maranca.
order to fulfill their expectations. “I guess what Millennials hate most is being bored and undervalued. And if you understand this, you can actually
HOW DO MILLENNIALS SET THEIR CAREER? The way Millennials react when read-
engage them and create a bubbly work environment where people
ing a staffing notice reveals what they expect from their potential
not only contribute by doing what they have to do, but also come up
employer, say experts. “A traditional announcement has small
with fresh ideas,” adds Machidon.
chances of attracting their attention, while they will react positively
According to him, Millennials’
to a unique, vivid one. Millennials
expectations from potential employers
want an authentic dialogue, and are
refer to respect, opportunities, money
eager to be challenged and to be of-
and fair treatment. In other words, the
fered the chance to build something
usual stuff, but in different proportions.
special, with an impact on society,”
They fiercely protect their after-work
says Maranca of Randstadt. She adds:
life, they want to be free to enjoy their
“Millennials expect a job to offer
money and their time with friends and
them the chance to develop and a way
co-workers. “So, if you organize team
to contribute to a cause. When this
building exercises, they have to be
doesn’t happen, Millennials need to
really good and meaningful. If you get
change their job and thus the job hop-
them to work overtime, it has to be for
ping phenomenon begins.”
a good reason and if you want them to
So, to what extent are Millennials
join your CSR initiatives, it has to be for
job hoppers? According to CBRE global
causes that are important for them, not
overview, the idea that Millennials ex-
only for your company,” advises the general manager of APS Roma-
pect to change employers frequently—or even that they want to hold
nia. “On the other hand, I also noticed that, by integrating employ-
a “portfolio” of roles with different employers simultaneously— is
www.business-review.eu Business Review | September 2017
OPINION
Simona Nicolaescu, owner of Dynamic HR, trainer and coach
Millennials are burning. With burnout.
COVER STORY 15
also at odds with what the Millennials CBRE surveyed. When asked about their ideal career ladder, the majority seem to have similar attitudes to previous generations. Most want to work for the same or a small number of companies during their career, while only a tiny proportion want to work for a large number of companies or change jobs frequently. As researchers found, 62 percent of Millennials see their ideal career as with the same or a small number of employers. However, there are national differences in attitudes towards employment, with respondents in Mexico expressing the greatest appetite for change. German millennials, on the other hand, are the most loyal, with a third wanting to work for one company throughout their careers, says the same overview. A recent survey conducted by Manpower and cited by CBRE in their global overview, found that Millennials want to move on and move up, but more often than not, they expect to advance with the same employer. The overwhelming majority of Millennials also want lifelong learning and are willing to spend their own time and money on further training. Almost two-thirds say the opportunity to learn new skills is a top factor when considering a new job.
Burnout can happen to anyone anytime regardless of their gender, age, social or professional status. It is in close connec-
Like the traditionalists before them, they want the security of full-time work to ensure they can maintain their standard of living.
tion with the specifics of each individual: the way he or she
Rather than wanting one job for life, Millennials understand that
knows how to manage their thoughts, emotions, life experi-
continuous skills development is necessary to remain employable.
ence and past psychologically unsettling events. And yes, that
The same CBRE study shows that most companies recognize
so called “too late” moment can be reached by anyone! The
that the “war for talent” is real, and that they cannot take employee
consequences of extreme chronic stress are physical and men-
loyalty for granted. In this era of LinkedIn and job vacancy websites,
tal distress, cynicism, detachment or a feeling of misachieve-
it has never been easier for staff of all ages to identify opportunities
ment. They all are the result of a sum of profound causes like
elsewhere and for competitors or head-hunters to target your top
the lack of control of their work and social support, setting up some goals they don’t strike a chord with, assuming some responsibilities that are not in line with their specifics and the lack of “pressing the pause button.” It’s little wonder that, of all employees, Millennials are the
talent. When coupled with the difficulty in finding satisfactory and stable employment in today’s competitive job market, it’s hardly surprising that young people tend to move between employers until a better “fit” can be found. Overall, the study found that the idea that Millennials are some-
most affected by burnout. They grew up and live in a world of
how pre-programmed for job-hopping seems misplaced; rather than
speed, where results are required quickly. They want to dem-
desiring a nomadic career pattern, they are pursuing personal chal-
onstrate and set out to have at least the same results as those with professional experience. Sometimes, they want to exceed them, generating a gap between their individual capacity
lenge, development, variety and skills enhancement. Elsewhere, Machidon of APS says Millennials build their career as they go along. “In the beginning, they want to experience a lot of
and their self-imposed performance. Along with the pressure
things and this may appear disconcerting to the people around them,
of self-overtaking, often there are other organizational issues
as some of these experiences (work ones) tend to be quite short.
that have a strong impact on amplifying major stress at work:
They do not plan long term, that is for sure. However, many of them
their unclear role in the organization and very close deadlines.
are very good at spotting great opportunities and making the most of
Many employees complain about their unclear role and feel a
them. You cannot blame them if they do not want to spend too much
significant pressure when they have many tasks and problems
time in places they do not like. But rather, you should be happy
to solve. Plus, they feel incapable when they don’t meet oth-
when they choose to stay with you in the long run, this is a good
ers’ expectations. Thus, organizations that face such problems
testimony to the quality of the work environment you provide,” says
should solve them or hire people with the capacity of tolerat-
the representative of APS.
ing the ambiguity. Millennials prefer positive interactions with their colleagues, a less stressful shuttle, the satisfaction
A GOOD WORK-LIFE BALANCE
of their current job and rest. They look for jobs that can offer
According to the CBRE study, at present, 56% of Millennials world-
them lots of benefits, better payment and schedule and a more balanced work-life ratio.
wide think that work and leisure should be separate; they are not always-on and they value their personal time. As the first generation of digital natives, Millennials’ aptitude
www.business-review.eu Business Review | September 2017
16 COVER STORY
have a mutual influence. Thus, this is an additional reason for paying
IN MOST MARKETS, WORK-LIFE BALANCE COMES BEFORE CAREER PROGRESSION WHEN EVALUATING JOB OPPORTUNITIES
attention to well-being programs,” adds Nicoalescu.
MILLENNIALS BRING WELL-BEING TO THE NEXT LEVEL
RELATIVE DEGREE OF IMPORTANCE (EXCLUDING SALARY)
According to a study conducted by Deloitte last year that analyzed the answers of about 7,700 Millennials from 29 countries worldwide,
Good work-life balance
16.8
Opportunities to progress/be leaders
13.4
Flexibility i.e., remote working, flexible hours
11.0
the professional/personal balance posted the highest score, followed by the opportunity to progress in a company or be leaders (but not necessarily holding a formal leadership position). So what do Millennials expect from their professional career and how do they mix it
Sense of meaning from my work
9.3
Professional development training programs
8.3
The impact it has on society
6.8
The quality of its products/services
6.4
Strong sense of purpose
6.2
Opportunities for international travel
5.9
towards well-being seems to be the expectation that work should
Fast growing/dynamic
4.4
be a source of joy and satisfaction, not just something that has to
A leading company that people admire
4.3
be done to earn money and be able to “build a life” after work. For
Invests in and uses the latest technology
4.1
many young people, the border between work and life is becoming
The reputation of its leaders
3.1
blurred, or at least this seems to be their aspiration,” says Anagnosta-
with well-being? “Young people seem to be keener to cultivate well-being in their lives. We see more and more people actively practicing sport, healthy eating, sharing and sustainable living. Part of this inclination
kis of Mind Learners. Source: Deloitte
However, she highlights that there is the other side of the coin, which might give credit to some of the labels being placed on Millen-
with technology and its ubiquity in their lives changes their ap-
nials by the older generation. Issues like the fact that the younger
proach to work, says the study. As with the rest of the workforce,
generation is suffering from the aftermath of an education system
technology blurs the traditional boundaries between work and
that is deeply flawed and misaligned with modern times; a lot of
leisure time. However, while it’s widely assumed that younger gen-
disoriented young graduates who don’t know where to go or what to
erations readily accept or even welcome this blurring, CBRE findings
do with their lives; a lot of discontent among Millennials who grew
show something different.
up protected from the outside world, raised by parents who told
Slightly more than half of the Millennials surveyed agree with
them that if they do their homework and get good grades all would
the statement, “work and leisure should be entirely separate,” while
be well - they would get a good job and be successful. “They are now
less than a quarter disagree. Millennials are not alone in expressing
confronted with the hard reality that their university degree doesn’t
discomfort with the way technology promotes the intrusion of work
mean much or that the skills they learned in school are outdated
into their personal lives.
and far removed from what employers need: the ability to survive in
At the same time, though, employees of all generations welcome
the modern labor market where they need to be resilient, have high
the ability to send personal emails or shop the internet from their
tolerance for failure, be a self-starter and a life-long learner,” adds
desks. Sensible employers will recognize the need for work-life bal-
Anagnostakis.
ance and will establish policies that demonstrate that they trust their
The well-being concept is an issue that concerns both employees
employees to use technological access appropriately. They will also
and the company they work for. The role of an organization is crucial
try to ensure that work doesn’t intrude excessively into personal life,
when it comes to achieving, assuring and maintaining well-being,
found the CBRE study.
say experts. “In the past years, companies have learned that the
“At present, Romanian Millennial employees want to mix their
well-being of their employees means their well-being, as an organi-
work with creative and relaxation moments at their workplace,” says
zation, and an assurance for the future. Well-being programs are no
Nicolaescu of Dynamic HR. She highlights this trend by speaking
longer seasonal and discontinuous. They start to become a so-called
about one of her company’s programs developed in 2010 in a call
‘modus vivendi’ <way of being> in a company,” says Nicolaescu, of
center, where the majority of employees were Millennials. “The
Dynamic HR. When applied in a strategic manner, it’s not just burn-
main goal was to increase sales by encouraging well-being. Sales
out that is avoided, she says.
grew between 30 and 100 percent in the days when our program was
However, despite companies becoming more and more inter-
implemented compared with other normal days,” adds the represen-
ested in implementing well-being programs for the benefit of their
tative of Dynamic HR. However, she warns that, despite a balanced
employees, Nicoalescu says that it is still a “work in progress.” This
split between work and personal life is equally natural, healthy and
means that organizations are not 100 percent ready to examine the
desirable, the two concepts are connected as they have a direct or
situation exactly the way it is. “When we apply the well-being audit
indirect influence on one another. “A total, extreme and clear separa-
within organizations, there are cases when the management fears
tion between the two of them is not possible, as long as both of them
that it becomes intrusive and may discover issues that the company
www.business-review.eu Business Review | September 2017
COVER STORY 17
cannot address,” adds the representative of Dynamic HR. As for the engagement of Millennials with the company they
The mindset of Romanian employees has changed significantly in the past years, and the financial incentives have decreased in
work for, Nicolaescu says that the more they are involved in choos-
importance in favor of other factors. “New generations are increas-
ing those well-being programs that are suitable for them, the better
ingly valorizing the way their working environment looks and put
they will engag with their organization. “Thus, focusing on well-
in balance the quality of life when deciding to take a job,” says Mihai
being and implementing such strategic programs can be a double
Paduroiu, head of advisory & transactions, office division at CBRE.
edge sword and a common denominator of both the employees and
At present, the majority of multinationals that operate on the
the company, with significant benefits for each of them,” concludes
local market offer a good working environment with many benefits
the entrepreneur.
for their employees (leisure spaces, unconventional working spaces, proximity to transportation.) “The offices post spectacular changes
MORE THAN A WORKING SPACE
due to the influence of the new generation of employees, too. Mil-
Millennials prefer unconventional work spaces – cafes, working from
lennials are more rational and selective when it comes to choosing
home, co-working hubs. But this usually applies to people who are
a job. They look for an employer with a permanent development in
focused on creativity or liberal arts. “What we discovered is that
order to keep up with the advancement of their career and technol-
young professionals appreciate the big Pipera sky scrapers, despite
ogy,” says Paduroiu. He adds that employers try to offer a balanced
the full elevators, the badges and the security systems, provided
working environment, a good cooperation between departments, a
they work with people they like. To be honest, back when I joined
high-quality working space that benefits from additional services.
the company I am now leading, I stayed for the exact same reason,
According to the CBRE 2016 global overview, the cafeteria is the
although initially I thought I would only have a summer job. I liked
most commonly provided facility and the most popular, followed
my colleagues, the work environment, the fact that we were all
closely by coffee bars. Each is desired by more than a third of mil-
young and enthusiastic and there was nothing we could not do or
lennials—roughly as many as currently enjoy access to them. It is
experience,” says Machidon of APS Romania.
notable that several types of facilities rate high in importance for a higher proportion of Millennials than currently have access to them; there are also some— like day care, dry cleaning and game
What should companies do to be desirable employers for Millennials?
rooms—that fewer than 20 percent of Millennials consider decisionchangers. A lack of wellness facilities is potentially of greater concern, and
As Robert Machidon, general manager at APS Romania says, organi-
is an issue that companies are starting to take seriously. Previous
zations should be honest and authentic in their relationship with
research by CBRE has found that 74 percent of European employ-
recruits and employees. They should really care about the team
ers have some type of health and wellness program in place. The
they have and communicate with it often, so that everybody is clear
enhancement of employee health is a primary focus, but employ-
about the company objectives and embraces them. “They should
ers expect to benefit in turn, through reduced healthcare costs and
provide opportunities for career development or, if the structure of
improved productivity and performance. This is an important issue
the organization is such as it does not allow for development, they
for Millennials in the workplace, since their generation is character-
should say so from the beginning. They should listen to their em-
ized by a relatively strong commitment to health and well-being. As
ployees and respect their input and ideas, implementing whatever
Goldman Sachs reports, Millennials define “healthy” as more than
they find reasonable and fair,” adds the general manager. Based on
just “not sick” — it is a daily commitment to eating well and exercis-
the “How Millennials Want to Work and Live” study conducted by
ing.
Gallup last year, Jim Clifton, chairman and CEO of the company, says that companies have to change their organizational culture, in order
A FORCE FOR CHANGE
to meet Millennials expectations. He highlights six fundamental
Millennials are, from whichever angle we might be looking at
changes called the Big Six:
them, a force for change. They are no longer willing to be compliant, to strive hard for the salary at the end of the month, they are not as
Past
Future
respectful or fearful of authority and they are, by their very pres-
My Paycheck
My Purpose
ence, demanding that companies change.
My Satisfaction
My Development
My Boss
My Coach
restless, sometimes flawed, other times amazingly inspirational
My Annual Review
My Ongoing Conversations
generation is forcing companies themselves to transform. More and
My Weaknesses
My Strengths
more companies are seriously considering how to make work more
My Job
My Life
fun for their employees, how to create work environments that are
“I am convinced that having to incorporate this eclectic, colorful,
creative, flexible and stimulating and in doing all that, company Source: Gallup 2016
culture itself is shifting towards more constructive approaches,” concludes Anagnostakis.
www.business-review.eu Business Review | September 2017
18 DIGITAL
Very soon, BRD clients will receive financial advice from a chatbot Since the beginning of the year, BRD - Groupe Societe Generale has been developing a chatbot based on Personetics technology, which will operate via Facebook. We talked to Horia Velicu, head of the bank’s innovation lab, about the chatbot’s functions, as well as the advantages and challenges this type of AI brings. By Georgeta Gheorghe for the Romanian language, there is not much annotated data for the machines to learn from” he explained, adding that the bot’s personality is also important. As for whether Romanians will come to trust a chatbot with their money, Velicu is optimistic, while acknowledging there are some variables. “It all depends on the complexity of the task a chatbot would have to perform and the client’s affinity with technology. While it may take some time, I’m sure that they’ll come to trust it,” the head of BRD’s innovation
D
lab said. In Velicu’s view, the introduction of the
uring Business Review’s Country
a full-fledged financial tool. “What started as
chatbot does not amount to a complete
Focus Community Forum in mid-
a simple bot that could only answer a couple
change in the status quo. “There will still be
June, BRD - Groupe Societe Generale
of questions about investment in equity
some areas where human interaction will be
CEO Francois Bloch announced the lender’s
funds, turned into a more complex applica-
preferred, such as double-checking certain
five-year plan to invest tens of millions of
tion that can assist customers in selecting and
information or complex situations where hu-
euros in digitalization and automation of
subscribing to investment funds, transferring
man assistance is required. The chatbots will
processes. Soon, BRD clients will be the first
money between funds, bill payment or with-
be complementary to traditional services, not
among those of the French banking giant
drawing money from their accounts,” Velicu
a substitute,” he added.
to benefit from financial guidance via a
told Business Review. The end purpose,
text conversation with an AI. “In Romania,
Velicu explained, is for the chatbot to become
will be used to identify BRD clients’ areas
Facebook usage rate is very high, so for us it
an alternative to the classical menu-based
of interest, as well as contribute to machine
made sense to start it,” Velicu explained. To
mobile banking application and ultimately
learning. The data “allows the bot to learn
this end, BRD partnered with Personetics, a
support all functionalities offered by MyBRD
to better address the needs of the client and
company that provides customer interaction
Mobile.
even become proactive and ask the client if he
technology solutions for the financial services
The main advantage of implementing this
According to Velicu, conversational data
or she needs a particular service, at a particular time.”
industry from its offices in London, New York
type of tool, Velicu argued, is the ability to
and Tel Aviv. “They are specialized in finance
offer personalized assistance to customers
chatbots and use a financial ontology to grasp
at any time, something they have come to
level and is likely to be replicated in other
the language and product information in a
expect. “We live in a world where we can do
territories, Velicu believes. “I have seen a
conversation. This differentiates them from
almost everything at almost any time. We
large interest in the Societe Generale group
the general purpose chatbots like Siri or from
must be able to provide assistance over any
regarding our chatbot experiment and yes,
other general commercial chatbot develop-
digital channel, 24/7,” Velicu acknowledged.
most probably, there will be other countries
ers,” Velicu said.
Among the challenges encountered while
The project is attracting attention at group
interested in implementing their own.” How-
The pilot project, independently devel-
developing the tool, Velicu singled out the
ever, its design, the platform and implementa-
oped and implemented by Societe Generale’s
linguistic aspect. “Until now, chatbots have
tion will depend to a large extent on the local
Romanian banking unit, is designed to offer
been developed mainly using English, while
culture, Velicu explains.
www.business-review.eu Business Review | September 2017
20 INVESTMENTS
Philip Morris targets global markets with Romanian investment In July, Philip Morris Romania announced it was investing a record EUR 490 million in the conversion of the Otopeni factory, among the group’s top performing cigarette factories, into one fully dedicated to the manufacture of HEETS for its heat-not-burn product IQOS. The investment, Branislav Bibic, managing director Philip Morris Romania told BR, spearheads the group’s efforts to offer consumers worldwide alternatives to smoking. By Georgeta Gheorghe end of the year. “At the moment, the machinery and all the technologies are in place and the production of the first HEETS in Romania is expected to start in the near future,” Bibic told BR. The factory will experience a full conversion in 2018, when it will become an extension construction with a section for tobacco processing. In order to support its activity, the Otopeni factory will increase its staff by 300 over the next two years, with the first wave of new employees coming in this year. According to Bibic, they will be paid “to a standard as close as possible to the European one.” Currently, there are over 2.9 million IQOS users worldwide and PMI expects IQOS to be available in key cities in over 35 markets
P
the investment in late July in the pres-
investment project is a significant one, both
sold mainly online and in Bucharest. Since
ence of Romanian PM Mihai Tudose at
for the local market and for IQOS consum-
the beginning of this year, the product was
an event held at Bucharest’s National Theatre.
ers worldwide,” and “will contribute to the
marketed in the main 16 Romanian cities. As
“Late last year, Philips Morris International
development of the investment environment
of April 2017, IQOS has a share of 1 percent of
chief executive Andre Calantzopoulos de-
in Romania, Bibic told Business Review.
the Romania market, which consists of Bucha-
hilip Morris International announced
fined a bold vision by saying our ambition
by the end of 2017. The product was launched manufacture of tobacco sticks. “The
“The production at the Otopeni factory
in Romania in 2015 and over the last year was
rest and the largest cities in the country. “For
was to replace conventional cigarettes with
will serve both the local market and several
the tobacco industry, this means a very rapid
no smoke products,” Christos Harpantidis,
other markets around the world, Bibic said,
growth rate,” Bibic explains, adding that the
managing director Philip Morris Balkans,
noting that “IQOS has become the top priority
product has managed to achieve a 7 out of 10
said at the event. “What was considered by
in the company, both globally and locally. The
conversion rate among adult smokers.
some a revolutionary statement is something
fact that we chose one of our best performing
we have been working on for many years.
factories is further proof of our commitment
Managing Director, smuggling is a major
Starting 2008, when Philip Morris began its
to offer smokers around the world smoke free
concern for the company, which operates in
research, USD 3 billion have been invested.
alternatives,” Bibic added.
a country where, according to a March 2017
According to the Philip Morris Romania
study, illicit cigarette trafficking accounts for
We are one step closer to our smoke-free vi-
OTOPENI FACTORY TO EMPLOY 950 STAFF BY 2018
15.2 percent. “For HEETS we think we will
tant step towards this direction,” Harpantidis added.
The Otopeni factory, which currently employs
smuggling from non-EU countries, but we are
650, will be converted partially in 2017
constantly paying attention on how we can
already and will start producing HEETS by the
address this possibility.”
sion and today’s announcement is an impor-
The Otopeni plant will be PMI’s fourth production facility fully dedicated to the
be dealing in the first phase more with the
www.business-review.eu Business Review | September 2017
22 INTERVIEW
APS Romania: the academy of employees With Romania having become a business model from a management practices perspective, BR talked with Mihnea Spataru, Head of Human Resources, APS Romania to find out how it could be replicated at the regional level. By Anda Sebesi What have been your main professional achievements that have had a direct impact on the results posted by the company on the local market?
also comes from previously successful experiences.
ABOUT Mihnea Spataru, Head of Human Resources, APS Romania Spataruâ&#x20AC;&#x2122;s main responsibilities include designing and developing the HR strategy and recruitment process in the organization, monitoring and constantly optimizing the costs of the recruitment process, building and developing relationships with internal customers and external recruitment agencies. Previously, he worked in various industries such as outsourcing, consumer goods and fashion. for us at the beginning of the projects, we are
the opportunity to take a step towards a more
According to representatives at APS holding, the management practices business model in Romania is to be replicated at the regional level. What are the defining elements that recommend it for regional replication?
complex activity or promotion. Of course,
First of all, APS Romania operates like an
we took a market survey on the spot, identi-
it would also be the internalization of the
academy. We take young employees, eager
fied the main recruiting channels, posted ads,
personnel administration, payroll or recruit-
to stand out, at the beginning of their
ment processes, which for many years had
career and we create a framework
and thus we were able to identify the
been outsourced, and implicitly managed by
in which they can grow quickly,
profiles we were looking for.
an external provider. This has generated jobs
become very productive and then
in the HR department and has given me the
transfer their accumulated knowl-
opportunity to promote young talent within
edge and experience further. In this
APS. Other investments in the future are the
way, we ensure continuity of com-
partnerships weâ&#x20AC;&#x2122;ve signed with universities,
pany performance and develop-
the strongest at the moment being the one
ment even in times of higher
with SNSPA. We have internships, appren-
staff turnover. At the same
ticeships and presentations at the university.
time, we monitor and
business in Romania and
As a result of these events, since January,
extract good practices
the one in the country
10 students have started their professional
from ongoing projects
where you are going to
careers at APS.
and replicate them in
recruit, the specifics
the process of attract-
of the labor market
ing and implementing
there and of the
I equally appreciate all the projects weâ&#x20AC;&#x2122;ve ran since June 2015, but if I had to choose one, it would be the implementation of development programs that have offered employees
You are part of a very young team of professionals that assures the management of APS in Romania. In your opinion, what are the advantages of a company that has young managers at its helm?
new business.
proud to have covered the employee need - around 50 positions. Probably, given its success, we will continue to recruit for APS headquarters in these countries and most likely for others as well in the future. In the beginning,
done sourcing, met with many candidates
How challenging is it for you to coordinate the operations of different specific markets at the same time? You have to understand the differences between the
candidates, but also the cultural differences. The
these managers have energy, an unstoppable
What can you tell us about your professional experience in the region?
a double edged sword:
dynamism and a hunger for performance;
At the moment, we are
it is an advantage because
they do not set any thresholds or limits. Being
recruiting for our new
part of this environment, my main advantage
headquarters in Croatia
new-ness in general, but it
is that I enjoy their unconditional support
and Hungary. Consider-
can be a disadvantage when
in implementing new projects and explor-
ing that the labor market
ing new approaches and methods in human
in the two countries men-
resource management. Of course, this support
tioned was unknown land
Advantages are multiple. Being very young,
fact that you open a new company can be
the world is attracted to
candidates come with unrealistic expectations about benefits or career opportunities.
www.business-review.eu Business Review | September 2017
24 SMART CITIES
Smart city business case: the Alba Iulia experience The concept of urban digitalization is gaining ground in Romania, with the first figures on the economic benefits emerging from the first city spearheading this effort. A new report published by German engineering group Siemens predicts that the development of Alba Iulia under smart city principles could yield total estimated benefits of EUR 532 million over the course of 35 years. By Ovidiu Posirca
Left to right Julie Alexander, Siemens London; Mircea Hava, Alba Iulia Town Hall; George Costache, Siemens Romania; Nicolaie Moldovan, Alba Iulia Town Hall
T
he western city, home to the UNES-
residents and becoming a better connected
application means came to Alba Iulia; we
CO-recognized 12th-century Alba
city at the heart of Romania,” said Julie
signed partnerships through which they
Carolina Citadel, is focusing its smart
Alexander, director for urban development
came and made applications. There are
development on connectivity, transport and
and smart cities, lead global cities centre of
almost 300 smart lighting units. It is an exer-
energy, according to the report, which also
competence, at Siemens London.
cise to see what can be done, and of course
assessed the benefits of such investments in
Alba Iulia has inked partnerships with a
things will move forward,” said Mircea Hava,
Scottish city Aberdeen, London, Brussels and
series of technology firms that are working
the mayor of Alba Iulia, during a conference
the Kartal neighborhood of Istanbul. Siemens
on pilot projects there. In fact, it has ramped
in which the findings of the report were made
worked on the report in partnership with
up this program as it prepares to mark Ro-
public.
professional services firm Arup.
mania’s centenary, with Alba 7 Iulia being the
“We met with all the cities, spent some
The report suggests that if the city invests
place where the union of Romania was made
EUR 227 million in smart technologies, it
time with them and other stakeholders, so
official in 1918. Officials want to finish several
could reap more than half a billion euros in
in Alba Iulia we had the universities in at-
smart tech initiatives in time for next year’s
benefits in 35 years. The payback period for
tendance, with other interested parties, to
celebrations. The city has attracted tech gi-
the investment would stand at ten years.
really discuss and understand the ambition
ants such as Microsoft and telecom players
of the city, how it wants to develop economi-
Orange and Telekom. The municipality lends
the biggest initial investment of EUR 215 mil-
cally, its driver. Very quickly in Alba Iulia, it
an ear to start-ups as well, and earlier this
lion over four years, and the study puts the
became clear to the team that the driver was
year the town hosted a hackathon for the
cumulative direct and indirect benefit after
really about expanding the economy through
development of new solutions.
35 years at EUR 426 million.
increases in tourism, upgrading standards for
“All the firms that understood what this
Smart energy infrastructure would require
In addition, the city would continue to
www.business-review.eu September Business Review | May 2016 2017
SMART COVER STORY CITIES 25 14
register EUR 34 million annually in direct
towards an inter-connected ecosystem,” said
and indirect benefits after this period. Most
George Costache, CEO of Siemens Romania. “What do we do with 100GB of data that
of the initial investments would be required for smart grids. Smart connectivity, including
we don’t filter? This information needs to get
free Wi-Fi, and smart transport, which would
to the city’s partner, meaning the citizen, in
also support the development of real-time
the way he or she needs it,” said the execu-
journey planning and smart parking, are
tive. He added that Siemens provided the
smaller-scale projects that require smaller
report free of charge to the municipality,
amounts of funding.
and that the company would participate in
On its side, the municipality has already announced plans to develop the urban
tenders, if Alba Iulia Town Hall wants smart city solutions. Costache suggested that digitalization
infrastructure and is currently looking for
attract the private sector. Tax increment financing (TIF) could also back investments in smart technologies. In short, this instrument allows local authorities
will certainly lead to a fundamental change
to trade anticipated future tax income for a
The municipality is seeking to secure fi-
in urban infrastructure, and that the future
present benefit.
nancing for investments of EUR 22 million in
heralds predictive maintenance of buildings
transport infrastructure. This would include
and other key parts of the city landscape.
financing opportunities.
The authorities in Alba Iulia have cited public funds and EU grants as two of the main financing sources for investments in the
the modernization of roads, the deployment of smart traffic light systems and special
FINANCING SMART CITIES
city up to now. For instance, the Alba Caro-
bike lanes. Another EUR 16 million should
With mayors in Romania exploring the
lina Citadel was refurbished with national
be invested in the thermal rehabilitation of
concept of smart cities, the financing of such
and EU support of more than EUR 60 million,
30 apartment blocks, which should make the
investments remains a challenge.
according to the report. With a population of around 63,500, Alba
heating of homes more efficient. Moldovan
In theory, officials have to drop the old
said the city is also exploring investments in
mantra that city infrastructure must be built
Iulia welcomes some 400,000 visitors per
Virtual Reality/Augmented Reality projects,
only from public funds, in order to diversify
year, out of whom 14 percent come from
primarily for the Alba Carolina fortress, the
its financing mix for smart urban develop-
abroad. This is one of the reasons why the
city’s main tourist attraction.
ment.
municipality has inked pilot projects that aim
Siemens’ report includes several delivery
to support digital interfaces that help tourists
CRUNCHING DATA FOR CITIZENS
models and financing mechanisms that could
get around the city and find out more about
Fitting the city with sensors that can track
be deployed in Alba Iulia, such as mobility-
the main attractions.
anything from road traffic to faulty street
as-a-service, where customers pay subscrip-
Smart technologies have aroused the in-
lighting and air quality is set to generate
tions to have access to vehicles including taxi
terest of several mayors in Romania and pilot
impressive amounts of data that need to be
services or bike sharing schemes.
projects have been deployed in the capital
The municipality could raise funds by
filtered in order to help local residents.
Bucharest. Roughly half of the counties (20)
issuing bonds or tapping crowdfunding
nationwide have at least one project that was
need complex development teams including
channels. A more conventional way to raise
finished or is under development through
software engineers and hardware specialists,
financing could be public-private partner-
the smart cities concept, according to the
alongside traffic management experts, for
ships (PPP). In this way, private players and
Romanian Association for Smart Cities and
instance.
public authorities could share the risk and
Mobility.
This is why the cities of the future will
“Most of the smart city applications de-
financing for the roll-out of smart initiatives.
However, Alba Iulia is the first city that
veloped until now have focused solely on the
Romania has a new PPP law in Parliament
has attempted to integrate all these technolo-
optimization of resources. This will change.
that has yet to be approved, after previous
gies and actually get real-time feedback from
The Internet of Things (IoT) will evolve
pieces of legislation in this field have failed to
its citizens regarding its future development.
INVESTMENT REQUIREMENTS FOR ALBA IULIA SMART CITY Initial Investment*
Cumulative net direct/indirect benefit**
Energy
Field
EUR 215 mln
EUR 426 mln
15 years
Transport
EUR 5 mln
EUR 35 mln
8 years
Connectivity
EUR 6.7 mln
EUR 70 mln
10 years
*after 4 years **after 35 years Source: Siemens - The Business Case for Smart Cities Alba Iulia report
Payback period
www.business-review.eu Business Review | September 2017
26 INTERVIEW
Romania ‘fits well with ACI Worldwide’s Midwestern roots’ Phil Heasley, president and CEO of ACI Worldwide, the provider of real-time electronic payment and banking solutions, talks about the firm’s expansion plans following the relocation of its Timisoara operations into United Business Center 2, Openville Timisoara’s mixed-use project. He says that the Romanian office fits in very well with the American roots of the company, which was started in the Midwest.
ABOUT Phil Heasley President and CEO, ACI Worldwide he holds this position since March 2005 and he has more than 30 years of experience in payment systems and financial services. Previously, he was chairman and CEO of Paypower and held executive positions at US Bancport, Citicorp and Visa. Heasley holds an MBA from Bernard Baruch Graduate School of Business and a Bachelor of Arts from Marist College.
By Ovidiu Posirca
Have you looked at other cities for expansion, such as Bucharest, Iasi or Cluj-Napoca?
offices, but we have several development en-
build a staff that we think is very maintainable
gineering sites around the world. We tend to
within a municipality, within an area. Once
pick a university, or two universities clustered
we get to a certain size, we may decide that
We actually have locations in 55 countries
in an area, and if we are pleased with our
it doesn’t make sense to grow it any further,
around the world and lots of those are sales
interaction with that university, we will try to
then we would potentially look at another city
www.business-review.eu Business Review | September May 2016 2017
COVER INTERVIEW STORY 27 14 And there are systems that add up to zero.
or some place like that, but we tend to bring
ments, and large processors around the
it to critical mass. We are 200 [people] right
world, and we tend to be mostly on the digital
You start with zero, something happens and
now; we’re going to hire 50 more by the end of
real-time side of payments, so e-commerce
then you go back to zero. And that’s how it is
the year – we believe. It’s quality that comes
and very new trends around the world, called
in the payments business: you start with zero,
first, quantity second, and our plans are to be
immediate payments. If e-commerce can be
we do the transaction.
able to expand by probably 80 to 100 more
anywhere in the world you need to have pay-
on top of that. We could have as many as 330-
ments move as fast as e-commerce.
350 people here, and then we would go and
So our projects here have been mostly in
Blockchain is actually a very good technology as it relates to that and we’re looking at blockchain because at the very end of
potentially look at another location, another
high-speed switching of payments and in our
our payment cycle is settlement and then
university relationship to form.
payment fraud products.
reconciliation. And blockchain is very good technology towards the end of our cycles,
Almost half of our employees here, 100 of the 200, came from internships and that is very important to us, so before we move away
What’s your take on fintech? Should banks be afraid?
from an internship scheme, we grow it as large
They should be afraid because – and I used
as it can get.
to be a banker – banks often represent the
so we are looking at how we would interface with blockchain in intelligent ways.
What vacancies do you have?
want as little change as possible, whereas the
Have you seen any different payment trends in Eastern European compared to other markets?
Mostly engineering and computer science
fintechs are trying to reinvent the world.
I don’t think I’ve seen that much difference.
conservative side of society, therefore they
roles. Our primary (recruitment - e.n) method
I think what we are going through right
I think innovation comes almost from any
is through interns. I’ve watched this group
now is very similar to what we went through
corner of the earth. On payments, you need
over 11 years from becoming interns, through
25-30 years ago when credit cards came in.
both innovation and critical mass, because
dating and getting married, to having kids.
You know, all the banks tried to make credit
for a payment system to work, it has to be
I’ve watched this whole thing so we
cards go away, credit cards became some-
are kind of getting the new
thing of an independent industry and the banks went back
generation come behind
and bought all the
them. So, mostly
accepted in many places. We try to look for all the innovation around the world and we make that a
credit card busi-
interns, but some a
kind of end-point,
couple of the Ger-
nesses back up
a place that can
man companies
again.
enter into the
I think the
have readjusted
same kind of
their balance and
scheme, and if
thing is going to
what not, so we
that scheme makes
happen with this:
do hire people with
you are going to get
experience too. We’re a little bit fussier on the
global payments
some very good fintech com-
sense, then it can move its way around the world.
experience side, because we
panies that are going to move forward,
haven’t enculturated them.
real-time supporting e-commerce payments,
specific to Romania, and there are 4,000
I can’t think of anything
and then they will gradually be absorbed
ideas going around the world, out of which
Do you have problems finding new people because tech firms are battling for skilled employees in Romania?
because all payments need to be regulated
only 5 or 10 might get some real critical mass.
I think we pay well, so that hasn’t become a
believe it will naturally flow into the banking
Does the Timisoara office stand out in any way compared to other regions?
big problem for us. That is a global issue (with
structure. There will be winners and losers.
The ACI company has its roots in the
at some point in time. Governments are better at regulating banks than non-banks, so I
an insufficient number of engineers – e.n.) and it hasn’t been an issue here. We’ve kept pace.
American Midwest and we are also up in the Boston area. Culturally, Romania fits in very
Salaries have grown very nicely over the last
What’s your take on blockchain and bitcoin?
ten years, we’ve tended to grow with them,
Blockchain is the underlying technology for
family oriented, and we actually encourage
so it’s not a problem yet, but it may very well
bitcoin and there are two kinds of systems.
husbands and wives to both work for the
become a problem.
There are systems that add up to 100 percent;
company, fathers and daughters, mothers
well because we are a company that is very
that is you have your money and you want to
and sons. This is a very family-centric part of
In what kind of projects is the Timisoara office involved?
make sure that your money is safe, and if you
the world and culturally it fits very well with
are getting paid interest or charged interest.
how we think. If the community has the same
ACI basically builds very large financial
Those are the systems that add up to 100
values as the company, it makes it easier for
systems for the largest banks, central govern-
percent.
the company to operate.
www.business-review.eu Business Review | September 2017
28 TAX
Romania seeks tighter control of multinationals’ financial data The government is looking to implement EU Directives on tax avoidance, and is set to receive more financial information from multinational groups active in Romania. Tax experts suggest that large corporations might reassess their business models in order to meet the demands of the fiscal authorities in Romania and across the European Union. By Ovidiu Posirca Erosion and Profit Shifting (BEPS) principles launched in 2013 by the Organization for Economic Co-operation and Development (OECD). This summer, Romania adopted legislation that implements enhanced financial reporting standards for multinationals, transposing Directive 881/2016 on state-by-state reporting for large companies. This applies to groups with HQ in Romania that have consolidated revenues of above EUR 750 million per year. “The report must contain information relating to each country separately, and tax details such as: income, profits and losses before tax, corporate income tax paid/accumuIulia Dragomir, bpv Grigorescu Stefanica
T
lated, declared capital, undistributed profits, number of employees and tangible assets. The report should also contain details of other
he debates surrounding the tax prac-
Juncker, the president of the European
entities which are group members such as:
tices of multinationals have reignited
Commission, the executive arm of the EU, in
state of tax residence and the main economic
after the center-left government led
Brussels.
activities carried out,” Pana told BR.
profit tax with a new turnover tax. The PM
EU STEPS UP TAX AVOIDANCE RULES
tax authorities to carry out a preliminary risk
said that some companies had been reporting
Last summer, European Directive no.
evaluation concerning transfer pricing, tax-
losses for more than a decade, adding that
1164/2016 (ATAD 1, the Anti-Tax Avoid-
able base erosion and profit shifting in other
Romania will work with other EU states to
ance Directive) was adopted with the aim of
jurisdictions.
tax money that is leaving Romania “without
establishing rules guaranteeing that taxes are
justification”.
paid where profits and value are generated.
In short, this reporting method allows the
by Mihai Tudose dropped plans to replace the
This July, ATAD 1 was amended by Euro-
GAUGING THE IMPACT ON MULTINATIONALS
Juncker in relation to the European Direc-
pean Directive no. 952/2017 (ATAD 2), which
The raft of new EU rules that have to be
tive of last year, which includes among other
represents the EU’s commitment to eradicat-
implemented by each member state will have
things a concerted effort by European states
ing tax avoidance practices that benefit from
limited impact on multinationals operating
for transparency and interconnectivity on the
discrepancies in the tax treatment of hybrid
in Romania, because some of the measures
financial data of multinationals or firms that
elements (e.g. forms of financing that mix the
are already present in the local legislation,
are externalizing their profits, leading to an
characteristics of loans with those of share-
according to Mihaela Mitroi, leader of the fis-
artificial reduction of the taxable base. It’s a
holders’ equity) in different EU member states
cal consultancy department at PwC Romania,
very important directive and we will have to
and third countries (non-EU), according to
Moldova and Southeastern Europe.
implement it anyway. But here we are talking
Daniel Pana, director, tax, at KPMG Romania,
about a principle that each company pays its
the professional services firm.
“I touched on this subject with President
taxes where it obtains profit,” said the PM in mid-summer, after meeting with Jean-Claude
Pana explained that these two directives actually transpose and implement the Base
She says the directives will limit the deductions that companies can make on interest expenses from intra-group loans. Romania’s fiscal authorities already regulate these loans
www.business-review.eu Business Review | September 2017
to some extent, but the new directives include
TAX 29
“These new rules are ex-
fresh restrictions. For instance, interest costs
pected to see multinational
cannot exceed 30 percent of a company’s
firms rethink their holding
accounting profit; nor can they exceed EUR 3
structures within the groups
million per year.
of companies, and also
A fresh provision for Romania included in
reconfigure transactions
the directive rules that companies transferring
carried out by firms belong-
assets such as plants to other jurisdictions will
ing to the same group,” Iulia
pay tax on the value gap of those assets com-
Dragomir, senior associate
pared to the moment of their acquisition.
at law firm bpv Grigorescu
“This rule, which already exists in certain states in Western Europe, will make it harder
Stefanica, told BR. She added that the main
to transfer manufacturing facilities to and
challenge for multinationals
from Romania,” Mitroi told BR.
will be to reconfigure their
The new directives also regulate the taxa-
operations based on the
tion of profits recorded by subsidiaries in
different ways in which the
other jurisdictions, in which the profit tax rate
provisions of the directives
is higher or lower than in Romania, and the
could be implemented by
taxation of subsidiaries from Romania abroad.
each member state.
Mitroi added that this provision would
Getting back to the idea
only apply to companies that have a net
of the turnover tax, which was heavily criti-
annual profit of more than EUR 750,000 or
cized by the private sector in Romania, the
these international provisions and found
a profit rate higher than 10 percent of their
general opinion of tax specialists is that such
it impossible to apply them,” said Pana of
operational costs.
a move would have hurt the country’s profile
KPMG. Mitroi added that the implementation of
Although some of these measures are
as an investment destination. “If Romania
already applied locally, multinationals might
had continued with the implementation of
these directives in Romania does not replace
have to make changes to their corporate
the proposed turnover tax discussed earlier
the abandoned turnover tax, which could, in
structures.
this year, it would have distanced itself from
turn, have breached the EU Directive on VAT.
www.business-review.eu Business Review | September 2017
30 TELECOM
Romania poised for quick start, slow adoption of 5G Romania was quick to embrace 3G, 4G and 4G+ technologies, and is currently on track to become the first country in South East Europe to hold a 5G spectrum auction. We spoke to telecom industry representatives about growth opportunities, as well as the competitive advantages of an early 5G technology adoption. By Georgeta Gheorghe
I
n September of last year, the European
companies from sectors that are likely to
changer for mobile operators, industries,
Commission issued its action plan for
benefit early, had answered a call by Com-
cities and individual end-users. According to
the deployment of 5G infrastructure
missioner G.H Oettinger, responsible for
a 2016 survey by ABI Research, by 2025 the
and services, which it considers a stra-
the Digital Economy & Society, by drafting a
mobile operatorsâ&#x20AC;&#x2122; worldwide 5G revenues
tegic opportunity for Europe. Not only will
manifesto for the timely deployment of 5G in
will reach EUR 225 billion annually, with
the adoption of 5G services give economies
Europe. Moreover, the key players are com-
North America, Asia-Pacific, and Western
on the continent a competitive advantage
mitted to holding large-scale demonstrations
Europe expected to be the leading markets.
on the global market, the EC argues, it will
by 2018 and launch 5G commercially in at
Moreover, a recent EU survey showed that
also allow them to become active players in
least one city in each member state by 2020.
the benefits of 5G introduction across the
setting the global standards. Earlier, major EU-based telecom players, as well as leading
This type of synergy is hardly surprising, given that 5G is certain to be an overall game
automotive, health, transport and energy sectors may reach EUR 114 billion per year.
www.business-review.eu Business Review | September 2017
TELECOM 31
cant progress in preparing its 4G network,
core, collaboration and the best interest of all
mania is on course to become the first SEE
which is partially already 5G-ready, for
customers,” Orange Romania said.
country to tap into the opportunities the new
the transition by rolling out new baseband
technology has to offer. The road was paved
equipment to support this technology, Timos
jected to become a major game changer. By
in mid-June, when the National Authority for
Tsokanis, chief technology & information
building upon the capabilities of the existing
Administration and Regulation in Communi-
officer, told BR. Although it has not made it
networks, it will enable industrial transfor-
cations (ANCOM) launched a public consulta-
public yet, Huawei Romania has invested in
mation by providing wireless broadband
tion on the opportunity of holding a 5G spec-
5G technology, enterprise business unit direc-
services at Gigabit speeds as well as data
trum auction. The interest of industry players
tor Vlad Doicaru told BR, and will implement
connections above 10 Gigabits per second
was keen, with Vodafone Romania, Orange
in Romania all the parts of the 5G functional-
with latencies below 5 milliseconds, as well
Romania and Telekom Romania, among oth-
ity that have successfully been demonstrated
as support millions of connected devices
ers, submitting their input. The goal, ANCOM
in other parts of the world.
simultaneously (the Internet of Things).
If it follows the current roadmap, Ro-
head Adrian Dita said at the launch, was to
As far as challenges go, the implementa-
The transition to 5G technology is pro-
Moreover, it will support the emergence of in-
have all major Romanian cities benefit from
tion of 5G technology, Doicaru argues, will
novative business models across sectors such
5G coverage in less than five years. Earlier
not represent an issue. “Some challenges may
as health, transport, manufacturing, logistics,
that month, Ericsson and Telekom Romania
appear in the spectrum allocation, but they
energy, media and entertainment, and more.
had teamed up to stage the first 5G live dem-
can be solved. The adoption part is the real
onstration in the SEE area.
challenge here, and will have a longer adop-
of the 5G technology is expected to impact
tion time than that needed for implementa-
both companies and individual consumers.
tion.”
What might differ will be the timing, with
The transition to the new technology is expected to be gradual. Moreover, up until recently, some telecom players have preferred to work with more advanced 4G formats before focusing exclu-
As elsewhere, in Romania, the deployment
the former expected to reap
According to Vodafone Romania
the benefits first. “Both
representatives, the massive
will make the most
investments needed
out of this paradigm
for the deployment
change. Automa-
of 5G technol-
sively on 5G
ogy must be
tization will bring
technology. “4G+
supported
efficiency and
technology still
through an
will also allow
has a lot to offer
enhanced range
consumers to ex-
on the existing licensed spectrum, such as higher broadband speeds for the end
perience the impact
of mobile services
of technology in their
for which individuals
daily lives,” Orange Ro-
and companies will be will-
mania representatives said.
ing to pay, as well as rest on proper
At end user level, 5G technology
customers and a new range of IoT
regulations, which will allow operators to
services,” Vodafone Romania representatives
deploy the new network infrastructure.
is already anticipated by the ever-growing
told BR.
“The infrastructure law has a key role here,
data consumption. “Year to year we notice
and still needs to be adapted to the current
4G traffic increases in our network that are
generation is expected to build on, rather
market needs and demands. If blockages in
multiplied four times compared to the previ-
than replace, the 4G services currently in
the infrastructure development are not elimi-
ous years,” Orange Romania representatives
place. “Although the 5G standard is not yet
nated, the speed of the 5G network rollout
said. However, although they will certainly
finalized, the architecture of a 5G network is
will be seriously affected,” Vodafone Romania
benefit from higher speeds that will change
known,” Vodafone Romania representatives
representatives argue. Orange Romania
consumption behaviors, the impact of 5G on
told BR. “All the investments we make today
representatives share the same view and
consumers will be less relevant in the short
in our Access and Core networks, to evolve
argue that completion of the methodology
term, Doicaru argues. “5G is not a technology
our Supernet 4G+ network, are at the same
for the implementation of the infrastructure
necessarily translated into classic commer-
time preparatory steps for the introduction
law is seen as a matter of major importance
cial telco offers for end users,” the Telekom
of 5G, such as the implementation of NFV
for the daily activity of operators, as well as
Romanian representative explains.
(Network Functions Virtualization.)” Accord-
for the employment of 5G technology. One of
However, the speed of rolling out the 5G
ing to Orange Romania representatives, the
the main challenges to the deployment of 5G
technology country-wide and its adoption on
country’s largest telecom operator debuted
technologies, Orange Romania representa-
the market will depend on the monetization
the virtualization process in 2014, and will
tives further argue, is to align the telco indus-
possibilities. In Romania “the entire industry
accelerate it in order to be ready for the intro-
try in order to reach standardization and to
is still searching for 5G use cases which can
duction of 5G.
start the spectrum auction processes. “This
be monetized,” Vodafone representatives
shall be an industry effort that will have, at its
said.
According to industry experts, the next
Telekom Romania has also made signifi-
32 INTERVIEW
A self-funded haute parfumerie success story Madison Absolute Beauty, the first luxury perfumery in Romania, celebrated 10 years since its launch on the local market. The most important moment of the anniversary was the launch of two special fragrances created exclusively for its clients in Romania, by the master perfumer Roja Dove. BR met with him to learn more about the person behind international success of the Roja Dove Haute Parfumerie brand. By Romanita Oprea
www.business-review.eu Business Review | September 2017
ABOUT ROJA DOVE His career in perfumery began in 1981, when he joined the French perfume house Guerlain, working there for 20 years before leaving to set up his own companies, RDPR and then Roja Dove Haute Parfumerie. Dove is a celebrated ‘nose’ and has the ability to identify 800 scents blindfolded. Within the perfume industry itself, Dove has been actively involved with The Fragrance Foundation, The Jasmine Awards and The Cosmetics Perfumer Retailers Association.
When did you discover your passion for perfumes and how did it shape your professional path? When I was six or seven years old, I was lying in bed and my mother came to me. She was going to a cocktail party wearing an evening dress and gave me a kiss goodnight; I still remember her perfume and her dress. It was the first time I made a connection between smell and a moment. Therefore, I always say that that was when I was put on the path which I was going to walk on. When I was a young teenager, I used to spend all of my pocket money on bottles of perfume, which is quite a strange thing for a young boy to do. I could only afford very small bottles, but perfume for me was always like releasing a genie. I’ve always felt that you are opening it and you have no idea where it will take you. And then, a woman that I used to know became the director of a very important perfume company. I’d been writing to this French house trying to find out its story, its history. It was owned by three cousins and one of them asked this friend of mine: “Who is Roja Dove?” She asked why and he answered that he was fed up of receiving faxes and phone calls requesting information. And then she said: “Why don’t you give him a job? He will be less trouble working for you.” Today, I don’t know if the same thing would happen, because companies are different, the world is different, but they employed me. Not to be a perfumer, but to develop a perfumery
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INTERVIEW 33
training course. Which was marvelous. Sud-
of opening a shop which had, additionally,
only said one thing that would upset her:
denly, I was paid to go down to the South of
those that I thought were the best made per-
with this generation my family name dies.
France to learn about all of the raw materials.
fumes in the world. When we opened the per-
Therefore, I decided I could leave a legacy
Because of the company importance, I had a
fumery, it was the first time in the world that
behind with my family name. And so, in 2011,
red carpet put in front of me every time. I was
somebody would go to the perfume houses,
we launched Roja Perfume. I told the buyer
a young man and it felt like I was in heaven.
say what fragrances they were interested in,
at Harrods, she wanted to know more and
and have them re-done for them. It was a
then she told me she wanted to stock it in the
What were the next big moments in your career, in your opinion?
risk, because the industry wasn’t about this
main perfumery. But, never having done that
and we offered something completely dif-
before, I had to ask her how many to create
It became clear quite fast that I had a good
ferent. How I explained it to a journalist was
for Harrods. She gave me the amount and
sense of smell and I worked for this house
like the difference between pret-a-porter and
told me it would last between four and six
for 20 years and in 2001, I left. In the begin-
couture. It was like haute perfumery. And, as
months. I did just that, but in just 10 days we
ning of 2002, I was wondering how I wanted
I said the name, I decided that this was the
sold every last one of the bottles. In 10 days
to come back to the world of perfumery and,
way we were going to call it: Roja Dove Haute
we’d had the most successful launch in Har-
while invited to a dinner party, I was asked by
Parfumerie. It was the first time something
rods history up to that time and we still hold
the host if I could make a perfume for a very
was called Haute Parfumerie. Today, every
the record. Within six months, we became
important charity, as an auction lot. When
perfumery that opens is called this.
the number 1 selling brand in that shop.
everybody at the table stopped and looked at
The reason I empathize with Madeleine
And I am really proud of that, especially
me, I realized I would actually love to do it,
(Madeleine Florescu, Madison Absolute Beau-
because we are a privately owned company
as the auction is a very important event that
ty owner) is that I understand this perfumery
and it means that David beat Goliath.
happens every year, once a year, in the oldest
very well. She opened her business two years
auction room in the world. The auction house
after I opened mine and the concept was
is called Christies. Then I got in contact with
very similar. And you have to educate the
What do you think drove your success that fast?
the people that did the bottle Lotion Bleu in
customer, because what you are doing is not
First of all, I think it’s really important to un-
1985 for an art fair and I asked that, if
derstand that my industry had been
they still had the mold, if they would
bought by the detergent industry. In
redo the bottle for me. I explained
the beginning there were some very
the context (the importance of
small, beautiful, perfumery compa-
the auction, the charity purpose –
nies and some which were bigger,
against HIV/AIDS, etc.) and I thought
due to their success. Old fashioned
that if I put the bottle up, if some-
brands in the 80s and 90s were
body liked it and wanted a certain
bought by conglomerates, three of
perfume in it then they will spend
which were detergent manufactur-
more money because the perfume
ers, who were brilliant at marketing
could be what they wanted. It was up against a holiday for 6 in the Maldives and a new
the same as everybody else. The next chapter started in 2009. I have
and made classic perfumery seem very old fashioned. Everything is about the era it’s in.
Mercedes sports car, and in this context, mine
a very close friend that I see maybe once or
When we launched, we did it at a price
fetched the biggest amount of money. Some-
twice a year and we always do this glamor-
point of GBP 295 and GBP 450, in an industry
thing that, of course, made me very happy.
ous thing: we go to Claridge’s Hotel and have
where the average price was GBP 25. I didn’t
It was really interesting as nobody was do-
a simple meal with a beautiful wine. In 2009
really care what other people were doing;
ing this. It wasn’t an idea to do it more, it was
when we met, my mother had just died and,
I never did, because you can’t care. If you
purely for the charity, but the person’s partner
even though I thought I was dealing well for
don’t stand for something, why would any-
who bought the lot, decided they also had to
the outside world, my friend gave me the best
body be loyal or even look at you in the first
have a perfume for themselves. This is how I
3-hour-long metaphoric slap in the face. She
place? I know very little about many things,
got my first customer and I decided that this
pointed out to me that I was spending my
but what I know quite a lot about is perfum-
is what I wanted to do. I was going to do be-
whole life curating and promoting everybody
ery. And astonishingly, I have spent most
spoke perfume, which is still a very important
else’s work, but when was I going to do it for
of my work-life travelling: meeting sales
part of my work.
myself?
people, meeting customers and, in doing
Around the same time, I was invited to
When I left, I called my partner and told
it, you really have a feeling for what people
Harrods, the department store, for a cup of
him I’d just had the best conversation of my
look for. I don’t sit in an office, I don’t have
tea and, literally, before I even sat down, they
career and I wanted to launch a commercial
some marketing plan drawn up by somebody
proposed that I open a perfumery with them.
brand of perfumery. And the reason I did
else, I decide how the perfume will be, how
Opening a shop wasn’t in my plans, but by the
it was because my mother, who was one
it will smell. It’s my personal point of view,
end of the cup of tea, I came up with the idea
the most upbeat people you’ve ever met,
my take.
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34 SHOPPER MARKETING
Shopper marketing: from shortterm to long-term activation With shoppers becoming more sophisticated and information-savvy thanks to digital influence, BR decided to take a look at the local shopper marketing industry and how it approaches consumers and clients. By Romanita Oprea ogy is constantly in a changing process, but human needs are always going to be the same. However, what technology enables us to do today is to understand and address shopper needs at an individual basis, as opposed to segmenting them into broad categories. For the first time in the history of marketing, we are able to operate on a segment of one individual customer,” explained the g7’s CEO. On their turn, Fieldstar’s representative considers that the best word describing shopper marketing in Romania would be “strive” – a continuous strive for consumers’ attention, for fresh ideas in a world with hard-set boundaries: location restrictions, budget, lowpace adoption of marketing trends by companies or consumers etc. “In contrast with other segments (creative, online, production agenCorina Chiorean, g7
N
cies), where there are lots of new-up comers every year, the shopper marketing industry seems to be an area suitable for agencies that
ine out of ten Romanians love to
trail for marketers to analyze. Technology and
have a strong background and great national
shop however, even in their daily
data are the omnipresent means to find out
coverage,” said Andreia Dinu, executive direc-
shopping activities, they tend to
what best suits one’s shopping needs – apps
tor Fieldstar.
stick to the budget. Ideally, they would prefer
and innovative user interfaces are within
to shop from only one place, but the real-
anyone’s reach.
ity shows that price is a main driver (72%),
“Although the decision-making process is
Adrian Paculea, executive director at Mercury360 Communications believes that shopper marketing is still a trend in Romania when
making stops at several shops inevitable.
faster and more fluid, the intriguing questions
it comes to agencies. “I would say that there
Romanians have big expectations when it
remain the same as in previous years - how do
are 3-4 agencies that are truly doing shop-
comes to shops’ offers and want to optimize
shoppers choose a brand? When and where do
per marketing in the Romanian market. And
their shopping process. The results were gath-
they decide to choose it? How do they decide
when I say that, I am referring to the complete
ered by the research agency GfK, from a 3,000
to switch from one brand to another? What
cycle, from shopper strategy to execution.
house panel of respondents.
earns and keeps their loyalty? We, g7, think
The market is divided into categories: strategy
that the most significant part of the answers
and concept and execution. Shopper market-
decision process is complex and subject to a
to these questions depends on creating per-
ing in Romania represents a lot of in-store, at
whole array of influences, generating valuable
sonal relevance of the brand for each shopper.
point of sales. Very few clients target through
marketing insights. According to Corina Chio-
This is the next currency – connecting the
shopper marketing campaigns online and
rean, CEO g7, the shopper has access to tons
shopper to your brand by being personally
I consider that this is a place for growth in
of data to compare and interpret. Further-
relevant, by understanding their moments of
the future. I still believe that not a lot of
more, modern shopping leaves behind a data
truth, their lifestyle and their needs. Technol-
clients are thinking their shopper market-
The buying decision is more informed; the
www.business-review.eu Business Review | September 2017
SHOPPER MARKETING 35
ing campaigns from a retailer standpoint,
only a product, rather a brand: the product,
although they should considering that each
the story, the emotional connection etc. And
one of them has a different type of business,
Millennials – this overused word – are those
different business targets; the politics of the
who are setting-up the new paradigm. An-
producers should be aligned to the ones of
other important change over the last years is
the retailer. We still have national campaigns,
the uprising mix of both digital and tradition-
somewhat customized to the shopper,” points
al solutions, in a perfect mix that has given
out Paculea.
brands the opportunity to know the shopper better,” said Paraschiv.
Coming closer to Andreia Dinu’s perspec-
Agencies’ strengths also lie in their human
tive on the agencies that are activating on this market, Mercury360’s executive director
capital. Fieldstar’s focus is to keep employees
declares that he sees a higher interest from
with great experience with a wide under-
multinational agencies in tapping this field of
standing of marketing and consumer behav-
activity. But clients are looking for specialized
ior. This year was dedicated to developing
agencies that are thinking shopper-centric and
Andreia Dinu, Fieldstar
the agency’s capacity to work with different
not consumer-centric, a competitive advan-
tools, gaining and interpreting data correctly
tage for the agency he is representing which
in order to deliver more efficient campaigns.
has always been very oriented towards shop-
“We have a mix of people on the team, with
per marketing. “In terms of budgets, more
backgrounds in marketing, statistics or cre-
and more large multinationals are starting to
ative areas. Additionally, our new technology
move budgets from the brand and media area
resources (especially AR &VR) are helping us
towards the shopper one. And here it’s really
to have an extensive perspective and answers
important to point out that shopper marketing
for various briefs and domains. In our orga-
is more than just what we do at shelf, it’s also
nization, relationship building is sometimes
about how we influence the shopper behav-
so much more than a marketing tool. It is the
iors and consumption, getting in their mind
one strategy that overcomes indifference for
and finding out what their mind processes are when making a decision, as well as trying to
Cristian Paraschiv, Fieldstar
us.,” added Andreia Dinu. On his turn, the Mercury360 executive
influence them throughout the entire process.
director considers that interest started to
Most of the time, in Romania, when people
shift more towards the shopper marketing
think about shopper marketing, they are only
industry in Romania after the crisis started,
thinking about what happens at the selling
as a way of influencing the shopper in-store
point. And here, it’s up to the clients and the
more. And then it started to evolve beyond
agencies to convince them how important all
the one-time activations that were generat-
the steps are,” explained Paculea.
ing good sales for a short period of time. Moreover, clients and agencies started to
Moreover, this new landscape leads to a very competitive race for the shopper’s
build platforms in order to better understand
attention, among the brands. “In Romania,
the shopper and the shopper matured by not
although the brands have understood that
just hunting promotions, making targeting
the shopping decision-making sophistication level has grown, judging by the types of con-
Adrian Paculea, Mercury360
more difficult. Therefore, things have to be seen more in-depth and complex, shifting the focus from short-term to long-term. “The
sumer engagement tactics they use, I would rather say that they chose to play it safe, at
agencies are more focused on delivering a
mechanics are changing, you have to find that
least for a time. Many marketing people I in-
complete and enhanced experience, telling
special factor that will attract the shopper
teracted with, in Romania and beyond, expect
the brand stories in a more qualitative man-
and keep him closer to your brand, something
a change in the way brands communicate
ner – from concept to implementation. Every
more than just a simple in-store activation.
with consumers and think that the industry is
single detail is important now, when consum-
Shopper strategy represents a lot more than
ready for a disruption,” said the g7’s CEO.
ers are bombed with infinite information on
just promotions. Online has changed the
their daily journey home-job-after job-home.
mechanics and the tactics a lot, creating a
CHANGES OVER THE YEARS
“Furthermore, with so many alternatives,
CRM platform can help you follow the shop-
Regarding what and how things have changed
people are more selective, paying attention
per’s moves and create a clearer view of their
during the last years in the industry, accord-
to every aspect. Price is still important when
behavior and preferences. It can also help you
ing to Cristian Paraschiv, customer experience
making the purchase decision, but now more
make it viral, something that will help the
manager at Fieldstar, the brands and their
than ever before, it’s not about purchasing
visibility of the brand,” said Paculea.
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36 WELLNESS
Indulge in a city break for wellness near Bucharest It takes you exactly one hour from northern Bucharest to Sky Blue Hotel & Spa, a wellness and spa center situated in Paulestii Noi, near Ploiesti city. And there you’ll find well(ness) treats, from accommodation to services and food. By Oana Vasiliu that, before you can decide whether you hate or love going to a Turkish bath, or hammam, you need to experience it at least once. One last recommendation from my side is to go to the sauna before the hammam procedure, just to prepare your skin for what will follow. And it’s not just fluff and buff. Fitness lovers also have a place to check in, spanning two stories, with possibilities for both intensive and subtle fitness forms. The first floor houses a vast array of fitness equipment while the upper level focuses on aerobic and cardio. Moreover, the outside olympic pool was recently opened, so for the rest
S
of the warm and sunny days, it should be a good investment in your relaxation package.
ilence is the new luxury, say most of
juvenating state of complete relaxation. And
the articles that are written about the
they deliver all these. But, first thing’s first:
spa industry, whether they are news
when you arrive here, book your therapist for
deluxe ones and three apartments, with a
massages.
specially designed pillow menu. The restau-
about treatments, procedures or new forms of therapy. And we all agree that spending
Then, go get dress(ed down)for the well-
The place offers 36 rooms executive and
rant menu is well balanced between several
time and money in a wellness center means
ness facilities - whether a Finnish sauna or
international meals, from Turkish delights to
to unplug and disconnect yourself from the
steam sauna, the hot tub or the salt room -
seafood and reinterpreted Romanian recipes.
daily routine. And this is what I personally
one of the spectacular facilities of this resort.
And if you don’t feel like going to the restau-
experienced during my weekend at Sky Blue
In terms of personal recommendation, book
rant for food, room service will definitely
Hotel & Spa.
your place for the hammam. Everyone agrees
impress you.
It’s been an intense week that has my muscles in a knot, so a wellness treatment like a massage and a trip to the sauna sounded like alluring medicine. They promise steamy saunas, a beautifully designed and faithfully detailed hammam, soothing Jacuzzis with intelligent ambient lighting to spoil the senses and ease the mind into a re-
SPA market of Romania values EUR 7.7 million 160,500 tourists annually RON 160 used for SPA treatments per person 15,300 foreign tourists have benefited from SPA treatments *information provided by Ioana Marian, founder www.desprespa.ro, for Agerpres
www.business-review.eu Business Review | September 2017
FILM 37
Stretching your Anonimul frame of mind Much has been said and written about the Anonimul Film Festival, but nothing compares with the experience of actually being there, right in the heart of one of the most savage places in Europe, the Danube Delta. If you missed it once again, take a look at the photos by official photographer Dragos Asaftei , who discussed his choices with Business Review.
By Oana Vasiliu
I knew that a moon ecl ipse was taking place so I ma naged to capture a stork and its baby right in fro nt of the moon.
Photos from page 37: Dragos Asaftei
are pretty Some evenings ve to imcold so you ha are your provise and sh hers. ot blanket with
And everyone is invited to have fun before the screenings and enjoy the live bands.
Once you are here, you must not miss a sunset on the Danube or a sunrise from the seaside.
And just after that, mo rning comes with a specta cular sunrise on the beach . And for sure you will see some pelicans.
Of course, you shouldnâ&#x20AC;&#x2122;t miss some traditional Sfantu Gheorghe food like fish soup.
In the evening, th e camping grounds gath er several hundred people.
Evenings are again about the festival-goers who come to see the movie projections.
During the daytime, the three projection halls await visitors with movies.
xing place This is a rela enjoy their le p where peo tty ey look pre time and th e you also se happy. And love.
Anyone is welcom e during screenings.
One of the m ost spectacu lar momen ts was the co ncert of Acker Quartet wh ic took place just under th h e moon rise.
www.business-review.eu Business Review | September 2017
38 MUSIC
Alexander Nikiforov
Enescu Festival brings music magic back to Bucharest Each September brings the magic of national composer George Enescu to Bucharest, this time with the festival itself. The spirit of George Enescu is celebrated through his works and the younger generations of performers he inspired, enlivening Bucharest with the beauty of his magnificent music. By Oana Vasiliu
I
n the introduction to his festival review in September 2011, James Jolly, Gramophone’s editor-in-chief, wrote, “Bucharest is also, as I’m discovering, a veritable Mecca for great music-making. Think
Romania, and think classical music, and the names that will probably slip easily into the mind are Dinu Lipatti, Radu Lupu, Angela Gheorghiu, Constantin Silvestri and maybe a couple of others. Come to Bucharest and the Main Man is, without a doubt, George Enescu. He gives his name to streets, to orchestras and to a music festival of commendable ambition.” I still believe that nothing has changed since then – except that more and more Romanian classical musicians are conquering the world’s famous concert halls, while more and more foreigners are working to understand Enescu’s works to play them during the festival or the competition.
WHAT’S NEW With a new first-class international directing team – Zubin Mehta, Hon-
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orary President and Vladimir Jurowski, Artistic Director, the Enescu Festival 2017 will put the music and creation of George Enescu in a new light, as well as classical and contemporary music in general. As part of this endeavor, the Festival will put technology to the service of classical music and creativity, presenting famous works in a new approach, giving the audience the chance to enjoy a record number of works by George Enescu (37) â&#x20AC;&#x201C; two of which will be presented at the Festival for the first time. Another novelty of this edition is the series of 21st Century Music concerts, organized at Radio Hall. It will include performances of works by some of the most important contemporary world composers. Thirty of them, including Rodion Shchedrin, Jorg Widmann and Eliot Goldenthal (winner of an Oscar for the best original music score for Frida, starring Salma Hayek) will take part in dialogues with the audience in Bucharest during the International Composersâ&#x20AC;&#x2122; Forum, another event organized for the first time at the Festival. For six days, composers will discuss the role of contemporary music in the current
MUSIC 39
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Andrei Gandac
40 MUSIC
All performances are currently sold out for this edition of the festival
society. Access to this event is free, based on
porary composition, reconnecting with the
of this part of the story is almost ritualized,
prior registration. Magnus Lindberg (Finland),
audience, as well as the relationship between
sometimes more oratorio-like than operatic.
Iain Bell (Great Britain), George Balint (Ro-
film and composition in the 21st century in
But his churning, dark-hued orchestral music,
mania), Nimrod Borenstein (USA), Zygmunt
a series of conferences and round tables.
with its stylistic roots in a range of late-
Krauze (Poland), Adrian Pop (Romania),
The debates are open to the general public
Romantic composers, as well as in Debussy
Dmitry Sitkovetsky (Russia/USA), Sir James
interested by the current state of music in the
and early Bartók, really comes into its own in
MacMillan (Great Britain), Rodion Shchedrin
international cultural space, as well as to the
the second half, which abandons any sense of
(Russia), Tod Machover (USA), Jörg Widmann
specialized audience and young musicians all
distance and detachment. It depicts Oedipe’s
(Germany), Dan Buciu (Romania), Thierry
over the world.
final realization of the horror of what he has done, his self-blinding and exile from Thebes
Huillet (France), Viorel Munteanu (Romania), Octavian Nemescu (Romania), Vladimir
GRAND OPENING
accompanied by his daughter Antigone, and
Cosma (France), Elliot Goldenthal (USA),
This year’s opening night features the London
the resolution and peace he eventually finds
Thomas Larcher (Austria), Doina Rotaru (Ro-
Philharmonic Orchestra under the wand of
at Colonus, with extraordinary warmth and
mania), Cornel Țăranu (Romania), François
Vladimir Jurowski, interpreting Enescu’s
tenderness. It’s not a score in which set-pieces
Nicolas (France), Detlef Glanert (Germany),
Oedipe, the most timeless story ever told,
figure prominently, but Oedipus’s assertions
Adrian Iorgulescu (Romania), Rumon Gamba
an opera in four acts. Romanian soprano
of his own innocence in the final scene, and
(Great Britain), Sven Helbig (Germany), Val-
Ruxandra Donosie and Romanian operatic
his absolution by the furies, are spellbinding.”
entin Gheorghiu (Romania), Ari Ben-Shabetai
tenor Marius Vlad Budoiu will also be staged
We will see if this kind of magical atmosphere
(Israel), Mihaela Vosganian (Romania), Ulpiu
in Oedipe. In a review from The Guardian
will be revealed on the Romanian scene at
Vlad (Romania) and Rolf Martinsson (Sweden)
in May 2016, Andrew Clements describes
the grand opening on September 2nd at Sala
will discuss the main directions in contem-
Enescu’s composition as “Enescu’s treatment
Palatului.
www.business-review.eu Business Review | September 2017
42 REPAT EYE
From killer moving air to planning your daily shower In our third monthly column reflecting on the Romanian experience from the perspective of a native whose life has primarily been spent abroad, BR’s resident repat will temporarily fill the expat’s shoes by musing on quirks and interesting experiences of life back home. By Eugenia Pupeza
T
hree years ago, when I moved back to Romania from the US, I started telling a co-worker about the interesting
things that I would come across – little things or big things or anything that I found interesting, really. She strove to “Romanianize” me back and expose me to all the authentic Romanian things. After a while, she told me that I should write them down, immediately, before I became accustomed to my surroundings and no longer found things to be out of the ordinary. I started keeping a journal of these quirks and have finally found a place to further elaborate on them!
1
‘CURENT’
If you’ve lived in Romania for a while and have interacted with the locals, you most certainly have learned the number one cause of
1
2
3
4
90 percent of ailments, perhaps even deaths, in Romania. It’s an invisible killer, odorless and also silent; in fact, were it not for Romanians frantically screaming “close the window” and their odd behavior (to those born outside Romania), you would never even suspect its presence. ‘Curent’ (read: moving air) is a phenomenon that (at least in my experience) exists only in Romania. It is the reason why, on a blistering hot summer day, you may see little children and older people with thick, knitted woolen hats on. It is also the reason why, if riding any form of public transportation in the summer with the windows closed (think: sauna/no AC) and someone (usually from a younger generation) attempts to open a window, someone else (usually from an older generation) promptly shouts “close the window, you want us to
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REPAT EYE 43
become sick because of the current!?” Rest
ly if it is an older one, you will have noticed
individual houses. They are hundreds of
assured that not only older generations
the theatrical performance that surrounds
different companies across the country and
firmly believe in this phenomenon, that a
the presence of hot water. If you wake up
present, literally, everywhere. But, that is not
draft or moving air can make you sick, make
early and nobody else in the building has
the point. Perhaps it’s the branding profes-
your back hurt, give you toothache or cause
turned on the hot water, you will most likely
sional in me, but I’m sorry, I cannot possibly
pneumonia in unsuspecting and ill-prepared
not have any hot water. If you live on a
be the only one who finds the names of these
victims (think: those that do not avoid
higher floor, it will most likely take at least 15
security firms very (very!) amusing, espe-
moving air at all costs). My 20-something
minutes of leaving the hot water running for
cially considering the nature of their role.
coworker swears on her life that, because she
you to actually have hot water. If you live on
Ranging from Tiger Security to Mike Security
looked through a keyhole when she was little,
the top floor, you will freeze. So, you learn to
to IQ Security to Lion Expert to Dragon Star
the ‘curent’ caused conjunctivitis. So, if you
time your showers to that point during the
Protection to S.W.A.T. Force (no, I’m not kid-
plan on driving with the windows down this
day when your neighbors with many children
ding) to (my favorite so far) Scorseze Secu-
summer, make sure you bring a woolen scarf
give them baths. Win-win. And this lasts
rity. I mean seriously?? Seriously??!!! (Insert
with you!
year-round.
laughing emoticon here.) They seem so ironic
2
During the summer, you look forward to
HOT WATER
If you live in an apartment building, especial-
something different. On an unsuspecting day, when you come home to your apartment building, after a long day at work, you
that you can’t help but wonder how they take themselves seriously.
4
TV
might find a scribbled piece of paper that
I moved to Bucharest three years ago from
says something like “the hot water in this
(nearly) a lifetime of the marketing industry
building will be shut off for annual mainte-
in New York City. From a marketing/advertis-
nance from …. to…..” If you are lucky, it will
ing/media perspective, the US is very digital/
only be for one day; however, it usually lasts
mobile oriented. Ever since TV shows started
for around a week. In my unlucky case, I was
to be recorded on your local provider’s DVR
without hot water for two weeks. Having
or streamed to your laptop or tablet, watch-
spent my childhood in Romania during the
ing TV (in the traditional sense, dependent
Communist period, when a lack of hot water
on an hour) has become something of the
and electricity was commonplace, I wasn’t
past. Commercials, as a consequence, fol-
quite as appalled as someone who had never
lowed suit. So, when I moved back to my
experienced this before might have been.
homeland, the apartment I rented didn’t
But still, having spent the majority of my
even have a TV. What on earth for, all the
life in the US and Italy, it presented an initial
information I needed was provided through
shock. It is an interesting experience, being
the ultra-fast internet connection (which I
deprived of something essential that you take
began to cherish – I mean, I could access the
for granted every day. This year, however, I
internet on the SUBWAY – a distant dream
didn’t even have the benefit of receiving said
in NYC) on my phone or laptop. Imagine my
scribbled note. Monday evening after the
surprise upon realization of the enormous
gym, no hot water. Tuesday, no hot water.
importance of television in Romania. It is
Wednesday after the gym, no hot water.
THE medium for obtaining information, for
You’ve had enough. You go and heat water
the young and the less young. And, as much
on the gas stove and take a “shower by pot,”
as I am not a fan of media in the US, the
with some swearing involved. Thursday, you
Romanian sensationalism, when I am not in
come home to hot water and are so enthusi-
the mood to be ironic, is too much. Want the
astic that you jump directly into the shower
weather? Watch the morning and evening
after work and thank God for the miracle that
news. Want a movie? It’s on at 8pm and
is hot water on command.
10:30pm. Reruns of your favorite 90s shows?
3
Comedy Central all day.
SECURITY
The cheese factor is too much sometimes,
Walking (or driving) around Bucharest, you
especially when the weatherman starts com-
cannot help but notice the fairly abundant
menting on the Bill Gates empire and how he
presence of private, non-state security and
got there, and even more so when a family
guards – from the subway cars, to every su-
from a small town claim that their house is
permarket and corner store, to your local KFC
haunted (and make the news), but you gotta
and, sometimes, even in little booths outside
love it.
www.business-review.eu Business Review | September 2017
44 FILM
Atomic Blonde FILM REVIEW
By Debbie Stowe
DIRECTOR: David Leitch STARRING: Charlize Theron, John Goodman, James McAvoy, Sofia Boutella, Toby Jones ON AT: Movieplex Cinema, Grand Cinema & More, Happy Cinema, Cine Globe Titan, Hollywood Multiplex, Cinema City Cotroceni, Cinema City Cotroceni VIP, Cinema City Sun Plaza, Cinema City Mega Mall, Cinema City ParkLake, Cinema City ParkLake VIP
W
terribly old hat, with versions of this story – find the microfilm, unmask the mole – having been done to death back in the Cold War and ever since (Tinker Tailor Soldier Spy in 2011 being one of the most obvious recent retellings). Two things modernize it: a woman in the lead role, and the neon-lit, punkish, high style in which events unfold. As with all spy movies since the early
ith the often male, pale and stale
2000s, there’s a hint of Bourne, but Leitch’s
world of the action movie get-
film comes with an offbeat fashion vibe – pro-
ting recent jolts in the arm from
ceedings have the feel of an Ultravox video,
2015’s feminist take on Mad Max and the 2016
with Lorraine sashaying about Communist
all-female Ghostbusters reboot, the title of
Berlin in a series of eye-catching designer
David Leitch’s spy thriller is dispiriting. Your
coats (being unobtrusive definitely isn’t
action hero’s a woman so you name your
part of her espionage playbook). A pulsating
film after her hair color (while making a lame
soundtrack also adds to the music video vibe.
pun). Really? Fortunately, the patronizing ends with
Some things don’t change. When a sadistic Communist army officer says to the young
the (oddly irrelevant) title. MI6 spy Lor-
punks lined up before him, “Let’s have some
raine (Charlize Theron) is a kickass – literally
fun”, you know that no fun is going to be
– agent, easily dispatching her male rivals
had, and you can prepare to flinch as some-
as she navigates 1989 Berlin, in the chaotic
one takes a beating.
period before the collapse of the wall. Her mission: find a missing microfilm
It’s this aspect that is one of the film’s less palatable features: the excessive violence.
with all the names of the West’s undercover
Spies from different sides of the Iron Curtain
agents, which has fallen into enemy hands.
probably weren’t very nice to each other: we
It’s a satisfyingly old-school McGuffin (Hitch-
get it.
cock’s term for the otherwise insignificant device on which the plot rests). She tells her story in flashback, during
No need to spend minutes at a time depicting graphic brutality and blood spattering everywhere. The scenes of psychologi-
a London debrief with senior officers from
cal interest, as Lorraine interacts with both
her own agency and the CIA (Toby Jones
(supposed) allies and enemies, are far more
and John Goodman). Her face is covered
engrossing.
in bruises, so we know she’s been through
As with many Cold War stories, there are
some violent encounters, but has ultimately
so many twists and volte-faces that the narra-
prevailed, or at least escaped.
tive can become confusing in a “I thought
Lorraine’s German adventures center on fellow British spy David Percival (James McAvoy), the UK’s louche, hard-drinking Berlin
he was with them”, “No, he’s really against them” or vice versa type of way. Initially the flashback structure also strips
station chief. In a prelude to the main action,
the story of some of its suspense: if Lorraine
we see another MI6 man assassinated by
is sitting there in the debrief room at MI6 HQ
the KGB, having been betrayed by a double
in London, then she clearly hasn’t been killed
agent, thereby throwing a traitor into the mix
in Berlin. However, a coda to the main Ger-
and ramping up the jeopardy for Lorraine.
man action ensures there is further intrigue
Looking just at the plot, Atomic Blonde is
to come.
www.business-review.eu Business Review | September 2017
RESTAURANT REVIEW 45
TRYING OUT BARRIO
T
>>> Barrio, 30 Biserica Amzei, Tel 0733 222 777 <<<
he only nice thing about Barrio is
there was no cheese dip, so we had mayo as
There were none of these in my chosen
the building. It was a legal library
a substitute. The chicken tasted identical to
dish.
for the Romanian Bar, right up to
that at KFC, so no thanks. A failure.
the 1930’s. It is a hugely attractive villa
But, a larger failure loomed on the hori-
And now comes a culinary paradox. The prices are so low that we (and you) could
operating as a restaurant since the 1990’s
zon, with my “crispy duck with caramelized
easily afford to make multiple orders off the
which has passed through the hands of
soy and basmati rice.”
menu and thereafter discard your dish if
many owners - all of whom went bust!
The duck was destroyed by simply deep
you are dissatisfied, with no financial pain
The present owners are a successful
frying it. Far from being tender and moist, it
attached. On that note, let me show you
high-quality restaurant chain used to writ-
was as tough as old boots and inedible. And
the beautifully described dishes we passed
ing sexy menus. But in Barrio’s case, they
the ‘caramelized soy’ was simply a weak
on. Take for example “stuffed chicken with
stretched themselves too far, for as you
soy dip which probably has a spoon of sugar
Camembert, sundried tomatoes, prosciutto,
will see, none of the food Blondie and I
dumped into it.
sautéed spinach, and blue cheese ‘bon
tried from their sexy menu came up to our
Off we went to a “shrimp, lemon pepper-
expectations.
oncino (spicy sweet pepper)
We started off with
white wine
a bump, because
bon’.” Sounds good doesn’t it? But so did our dishes which were all a failure. We further
sauce
passed on
the house
salmon ‘in a
must have
champagne’
searched high and
sauce.
low for
Cham-
the one
pagne? Oh
person in
give me
Bucharest
a break!
who could
Probably another mis-
not speak
description,
English. They
just like the
found her and made her our waitpound our disillusion, their
imaginary, virtual
and
ress. To further com-
garlic.” The last three ingredients were miss-
truffle. They had no champagne on the bar menu,
website describes them as “Mediterranean
ing, and the pepperoncino had been replaced
so be sure there will be none of it in the
with Spanish accents.” What nonsense,
by a mountain of broccoli, which had been
kitchen. There were references to ‘lime and
there was not a hint of anything Spanish
over-boiled to a soft, mushy stodge. Another
honey infusion’- big talk, just like the vir-
and the only accents we could hear were
disaster.
tual, non-existent pepperoncino and truffle. Barrio is just another example of the
Romanian and one American desperately
But the worst failure was my “seafood ta-
speaking English and failing to communi-
gliatelle with truffle.” Yes, there was seafood
house taking the piss out of the customer,
cate with our waitress.
(all the usual suspects), the pasta was average
by claiming a foreign/European provenance
at best, but there was no truffle. It was re-
for their food which is not unique, and not
good, and prices are a bargain with the
placed by disguising the truffle taste with an
imported as regional and seasonal Europe-
most attractive dishes ranging between
essence made from a petrochemical product
an fare, and is nothing more than the result
RON 25-40. So Blondie ordered a simple
‘Dithiapentane’ which, although it is perfectly
of a lazy trip to the local Bucharest super-
chicken schnitzel (chicken breast beaten flat
safe to consume - is a dishonest gesture from
market. You could do exactly the same, so
and coated with breadcrumbs and spices)
the house to describe it as ‘truffle,’ for clearly,
why bother going to Barrio.
with “fry ‘n dip potatoes with blue cheese
it is not.
So let’s get down to their menu. It is
sauce.” Well, the potato was nothing more than an English chip (fat French fry) and
Worse still, any seafood pasta cries out for lashings of garlic, seasoning and white wine.
Michael Barclay Mab.media@dnt.ro
www.business-review.eu Business Review | September 2017
46 CITY
Cultural calendar Bucharest International Dance Film Festival 7-10 September, Cinema Elvira Popescu, MNAC, National Centre for Dance Bucharest, Point Hub
45 years after Pink Floyd’s David Gilmour filmed ‘Live at Pompeii’ in the legendary Roman Am-
Delahoya Festival 29-30 September, Sala Polivalenta Cluj Napoca
phitheatre there, he returned
By Oana Vasiliu
Goran Bregovic and the Wedding and Funeral Orchestra returns to Bucharest to energize the public with some Balkan music. What
for two spectacular shows, part
Delahoya is the oldest electronic
does his orchestra for Wed-
of his year-long tour in support
music festival in Romania. From
dings and Funerals (composed
of his No.1 album ‘Rattle That
1997 till this day, electronic music
of a gypsy brass band, tradi-
Bucharest International Dance
Lock’. The performances were
fans from all over the country
tional Bulgarian polyphonies,
Film Festival is the only Roma-
the first-ever rock concerts for
and also foreigners come to Cluj-
an electric guitar, traditional
nian festival dedicated to the
an audience in the stone Roman
Napoca every year to dance to
percussion, strings and Orthodox
dance film. Among movies, two
amphitheater, and, for two nights
their favorite music, presented
Church male singers) read on
performances by Sharon Frid-
only, the 2,600 strong crowd
live by well-known dj’s and bands
Bregovics score sheets? Echoes
man will take place: Caida Libre,
stood exactly where gladiators
and also by newcomers.
from Jewish and Gypsy wed-
Sharon Fridman’s current move-
would have fought in the first
ment research is rooted in several
century AD.
key elements: necessity, natural spontaneity, verticality, falls, impulse and contact and Hasta Donde, a contemporary dance duet based on the technique of contact.
Balkanik Festival 8-10 September, Gara Baneasa
DokStation Music Documentary Film Festival 14-17 September, Mihai Eminescu amphitheater, Deschis Gastrobar, Club Control, Drumul Taberei Park, Excelsior Theatre, M60 Space DokStation is dedicated to both the film- and music-loving audience and the communities in Bucharest’s neighborhoods. During its four days, DokStation’s program will consist of recent
The Balkanik Festival is the first
documentaries premiering in
event showcasing Balkan music
Romania which uncover stories
and culture in Romania, and at its
about music – stories from the
center is humanity, multicultur-
studio, the stage or behind the
alism and expression in its purest
scenes, stories about different
form. This edition will be free of
kinds of music, words and vi-
charge, so everyone is invited for
sions, stories of musicians and
some Balkan spirit.
their failures and triumphs.
David Gilmour - live at Pompeii 13 September, several cinemas
Creative Fest 22-24 September, Romexpo Creative Fest means cool music, space & urban art, graffiti, extreme sports, street dance and freestyle, everything free of charge.
dings, chants from Orthodox
Goran Bregovic concert 29 September, Arenele Romane
and Catholic Church, Muslim invocations. His music comes from that terrible frontier where for centuries Catholics, Orthodox Christians and Muslims made war and lived together. Music that our soul recognizes instinctively and the body greets with an irresistible urge to dance.