BR/09/2021

GLOBAL MERGERS AND ACQUISITIONS REACH HISTORIC HIGH IN FIRST HALF OF 2021 CORPORATES TESTING WATERS IN LOCAL STARTUP FINANCING ECOSYSTEM

6 18

EMPLOYER BRANDING REMAINS TOP PRIORITY FOR COMPANIES IN 2021 AND BEYOND 24 September, 2021 / Volume 25, Issue 8

www.business-review.eu

GAMING INDUSTRY ALREADY BIGGER THAN FILM AND MUSIC

DIGITAL TRANSFORMATION ON FAST FORWARD

34

www.business-review.eu Business Review | September 2021

EDITORIAL 3

• Editorial •

M&A

Anda Sebesi • Editor-in-Chief •

6 Global mergers and acquisitions reach historic high in first half of 2021

COVER STORY

D

The power of digital

eal activity on the Romanian market rebounded strongly

10 Digital transformation on fast forward

ENTREPRENEURSHIP

in the first half of 2021, with a total of 69 transactions,

20 Measuring

reflecting a 19 percent increase over H1 2020. Despite the

higher volume of dealmaking, the estimated value of M&A only

the costs of the pandemic shock among local startups

increased by 4 percent to USD 1.1 billion. Yet, the Romanian M&A market is expected to remain active for the rest of 2021 given opportunities to further accelerate growth, including those arising from the economic volatility caused by the pandemic, which has left some businesses in financial distress. M&A will also be driven

EMPLOYER BRANDING

by the need to adapt business models, particularly in e-commerce and direct-to-consumer, but also to address digitalization, green economy, and ESG agendas.

With the covid-19 pandemic having fast-forwarded the digitalization process in many fields such as healthcare, education or public administration as well as across the business world, we decided to dedicate this month’s cover story to digital transfor-

24 Employer branding remains top priority for companies in 2021 and beyond

mation. Nedim Baytorun, Vodafone Romania’s new Consumer Business Unit Director, sat down with Business Review and talked about the company’s commitment to continue digitalization ef-

CITY

forts and investments and to expand its network and services to reach places that no other network covers. “Digitalization has the power to remove boundaries and provide equal opportunities for development to individuals, communities, and entire societies.

That means we shouldn’t be talking about big or small localities, about far or near villages, about bigger or smaller needs. The need to keep in touch with family is the same for everyone,” Baytorun summarises the role of digitalization in Romanian society.

36 Audiobook platform joins Romania’s digital landscape

37 SUP: Stand up for water fun

38 Cultural calendar

EDITOR-IN-CHIEF: Anda Sebesi JOURNALISTS: Aurel Constantin, Mihai Cristea, Romanita Oprea, Oana Vasiliu CONTRIBUTORS: Ovidiu Posirca, Sorin Melenciuc, Claudiu Vrinceanu COPY EDITOR: Anca Alexe PHOTO EDITOR: Mihai Constantineanu PHOTOS: Dreamstime ART DIRECTOR: Raluca Dumitru PUBLISHER: Bloc-Notes Media Network ADDRESS: 82-98 Calea Grivitei, 1st floor, Hotspot Workhub, District 1, Bucharest, Romania SALES MANAGERS: Radu Fireteanu, Alexandra Rosca MARKETING & SALES MANAGER: Luiza Luca PRODUCTION: Dan Mitroi DISTRI­­BUTION: Eugen Musat EXECUTIVE DIRECTOR: George Moise GENERAL MANAGER: Catalin Alistari USA MANAGER: Oana Molodoi FOUNDING EDITOR: Bill Avery EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu SUBSCRIPTIONS on Manpres Distribution Business Review is a member of Fwei

Publicație auditată pe perioada Apr 2015 - Mar 2016

ISSN NO. 1453-729X

www.business-review.eu Business Review | September 2021

4 NEWS

WHO’S NEWS BR welcomes information for Who’s News.

Submissions may be edited fo­­­r length and clarity.

Get in touch at mihai.cristea@business-review.eu

Burnout has hit three quarters of Romanian employees in last 5 years

By Aurel Constantin 24.2 percent to the manager to whom they reported, and 13.3 percent to the lack of time off.

On the other hand, 81 percent of employees said they had not received help from the

Razvan Patrunoiu has been appointed country managing director of Webhelp’s local subsidiary.

Razvan will manage Webhelp’s four offices in Romania, with a team of 2,300 people across Bucharest, Ploiesti, Galati, and Iasi. Patrunoiu, 44, has over 20 years of experience in various industries, such as electronic goods, BPO, private equity, FMCG, and telecommunications and he has previously worked at companies like Samsung Electronics SSC Europe, Ascenta Management, Accenture Romania, and Tchibo Romania.

employer to get over burnout.

Only 5 percent said they were helped by their company.

“More and more Romanians are suffering from burnout due to both the large volume of work but also the lack of

81 percent of employees said they had not received help from the employer to get over burnout

of a clear delimitation bethrough several episodes of burn-

tween the space of work and

Romanian employees said they

out in the last five years while

the one for personal life made

had gone through at least one

22.5 percent could identify a sin-

many people spend even more

burnout episode in the past

gle burnout episode during this

hours working. This survey

five years in a survey con-

period. About 20 percent said

again shows us that employers

ducted in August this year by

they couldn’t identify burnout

should pay more attention to

the Undelucram.ro platform,

and only 3 percent said they had

the well-being of their employ-

the largest online community

not gone through such moments.

ees and implement concrete

of employees in Romania. 3,016

Approximately 32 percent of

actions. One example of this

employees over the age of 18

respondents said that their burn-

is encouraging people to take

took part in this survey.

out was caused by the very high

time off,” says Andra Pintican,

volume of work, 24.7 percent

marketing director at Undelu-

pointed to the company culture,

cram.ro.

employees said they had gone

page 5

the pandemic and the absence

Approximately 76.5 percent of

54 percent of Romanian Lennart Zipfel is the new Country Manager of FREE NOW Romania. With vast experience in financial and strategic consulting, business plan evaluation, and global project management, Zipfel will play an active role in continuing FREE NOW’s development in the competitive mobility landscape in Romania.

Lennart has a Master’s Degree in Accounting and Finance from the London School of Economics and Political Science and a Bachelor’s Degree in the same field, from the University of Hamburg in Germany.

leadership. On the other hand,

Romanian football club Farul Constanta commits to climate neutrality by 2030

By Mihai Cristea Farul Constanta, the football club

ers climate change to be one of

led by Gheorghe Hagi (owner and

the biggest threats facing our

manager) and Gheorghe Popescu

society today, and for this reason

(chairman), has announced

it supports the European Union’s

its commitment to achieving

efforts to prevent it.

climate neutrality by 2030. Farul Constanta football club consid-

“For us, the future has been, is, and will remain the watch-

Farul Constanta considers climate change to be one of the biggest threats facing our society today

www.business-review.eu Business Review | September 2021

NEWS 5

Holde Agri Invest posts 193 percent rise in revenue in first half of 2021

By Mihai Cristea

Paul Neacsu is the new Country Sales Manager of Coca-Cola HBC Romania, the leader of the local beverages industry. In his new role, he will coordinate a sales team of approximately 700 people, in charge with the company’s relationship with its 100,000 customers. Paul joined Coca-Cola HBC 20 years ago as a Business Developer, and over the years he has held several positions in the Marketing and Sales departments.

Holde Agri Invest SA, a Romanian company operating farmland, reported revenues of RON 14.9 million for the first half of 2021, a 193 percent increase over the same period of last year.

In the first half of the year, the company made investments totaling RON 26.1 million, which were financed from own sources and borrowed capital, to upgrade existing farms and expand total oper-

Holde is currently negotiating the acquisition of four new farms

ated land area. For the whole of 2021, the company estimates

equipment needed for precision

to due diligence procedures,

a total production of 32,800

farming.

which will be followed by the

tonnes, consolidated revenues

In terms of future invest-

conclusion of acquisition con-

of RON 57 million, and a net

ments, Holde is currently negoti-

tracts and related payments.

profit of RON 7.3 million.

ating the acquisition of four new

The targeted land area is

farms, with transactions esti-

approximately 3,500 hectares,

2021, the company invested

mated to be finalised before the

of which 350 are owned and

heavily in the three farms it

end of the year. Upon completing

the rest are leased. The value

owns by equipping them with

these transactions, the company

of these four transactions

modern machinery, increasing

will have integrated four core

amounts to around RON 33 mil-

storage capacity, and irriga-

farms in the Holde concept, after

lion, including farm machin-

tion systems. Holde purchased

Rosiori, Frumusani, and Videle.

ery, leased land, and two own

three new high-capacity

Transactions for the acquisition

agricultural bases and related

combines and a series of other

of the four farms are subject

equipment.

In the first semester of

Jaime Gine has joined full-service Romanian game development agency Amber, as CEO. Prior to joining Amber, Gine was the former Chief Customer Officer at Keywords Studios and a 15-year veteran of Electronic Arts, where he served as VP of International Development Services. During his five years as CCO with Keywords, the company’s market capitalisation increased from around USD 100 million to over USD 2.5 billion.

word. We work with children a lot and our project is about them and their future. We all want a better world, and for that it is essential for each of us to get involved. I can assure you that together with our club and Academy colleagues we will do everything we can to achieve climate neutrality by 2030, especially since, according to data presented by experts, Constanta is one of the most exposed areas in Romania if global warming is not stopped,” Gheorghe Hagi said.

Laurentiu Chiriac is the new Head of Building Solutions at REHAU Romania. He’s taking over the role held over the past decade by Alexandru Oprea, currently the Country Manager of REHAU Romania, and he will coordinate the operations of the Building Solutions Division. Chiriac has a degree in economic studies and a master’s degree in Marketing and Communication from the Academy of Economic Studies in Bucharest.

6 MERGERS AND ACQUISITIONS

www.business-review.eu Business Review | September 2021

Global mergers and acquisitions reach historic high in first half of 2021 Mergers and acquisitions (M&A) hit an all-time high globally in the first six months of 2021, with deals worth more than USD 2.6 trillion, up from USD 926 billion in the first half of 2020 and far exceeding the pre-pandemic five-year average (H1 2015-2019) of USD 1.6 trillion, according to recent analysis by EY.

By Aurel Constantin

The US and the UK are rising as the most attractive destinations for inbound M&A

M

ore than half of the M&A activity

so far this year according to the analysis, with

The US tops the list of countries with

in H1 2020 was recorded in North

479 such deals announced. And despite many

the highest value of outbound transaction,

America, which saw deals worth

parts of the world economy still operating

having recorded USD 221 billion in deals,

USD 1.4 trillion (up from USD 345 billion in

under restrictions, cross-border transactions

up from USD 77 billion in H1 2020 and more

H1 2020) – almost double the average seen in

have also staged an impressive comeback,

than double the H1 2015-19 average of USD 92

the five years prior to the pandemic (USD 784

increasing to USD 688 billion from USD 236

billion. With USD 58 billion (up from USD 14

billion). North America was followed by the

billion in H1 2020 and going well above the

billion in H1 2020), Canada comes in second,

Asia-Pacific region, which saw M&A values of

average of USD 480 billion recorded in the

while the Netherlands and Ireland emerge

USD 446 billion, a jump from USD 222 billion

five years prior to the covid-19 pandemic.

as outbound M&A front-runners with USD 53 billion from an average of USD 21 billion

in H1 2020 and an increase from an average of USD 317 billion in H1 2015-2019. Europe

between H1 2015-19 and USD 51 billion from

follows, recording USD 412 billion, up from

OPTIMISM IN NORTH AMERICA AND EUROPE

USD 245 billion in H1 2020 and exceeding the

Despite the strong headline figure, M&A is

H1 2015-2019 average of USD 356 billion.

not evenly spread across the globe. When

rising as the most attractive destinations

an average of USD 4.3 billion, respectively.

At the same time, the US and the UK are

it comes to outbound and inbound transac-

for inbound M&A. The US has recorded an

deals announced, a spike in billion-dollar

tions, North America and Europe are the

increase of over 250 percent in the value of

deals has been the key driver behind activity

main centres of activity.

inbound transactions compared to H1 2020

Despite a decline in the total number of

www.business-review.eu Business Review | September May 2016 2021

MERGERS AND COVER ACQUISITIONS STORY 147

(to USD 200 billion), and 60 percent com-

of Hermes Business Campus, by investment

deal value, power and utilities attracted the

pared with the H1 average (USD 125 billion)

fund Adventum Quantum for USD 146 mil-

largest share of investment, followed by real

of the five pre-pandemic years. And the UK

lion was the largest transaction during the

estate, banking & capital markets, diversified

has seen an increase of 51 percent (to USD 87

period. Hidroelectrica’s acquisition of the

industrial products, and technology.

billion) compared to H1 2020 – exceeding the

108 MW Crucea Wind Farm, the first of this

inbound average between H1 2015-2019 (USD

kind by a state-owned utility company in the

to remain active for the rest of 2021 given

80 billion).

private sector, reaffirms the accelerating pace

opportunities to further accelerate growth,

Meanwhile, domestic dealmaking in

The Romanian M&A market is expected

of the green energy transition. Although

including those arising from the economic

China is running at a record pace, with M&A

the deal value was not formally disclosed,

volatility caused by the pandemic that has

value so far this year totalling USD 197 bil-

market pundits estimate the transaction at

left some businesses financially distressed.

lion – eight times more than foreign-invested

around USD 120-160 million.

M&A will also be driven by the need to adapt

M&A deals and a 20 percent increase in the

While excluded from the value of M&A

business models, particularly in e-commerce

average value of domestic transactions of

in EY’s data, three other large deals of the

and direct-to-consumer, but also to address

2015-19 (USD 164 billion).

period are worth mentioning. In January,

the digitalization, green economy, and ESG

AmerisourceBergen Corporation agreed to

agendas. Liquidity of capital and favourable

ESG-RELATED ACQUISITIONS DRIVE SECTOR ACTIVITY

acquire the Alliance Healthcare businesses of

financing costs will support and accelerate

Walgreens Boots Alliance in nine countries,

these trends. M&A winners have been and

While tech-related transactions are leading

including Romania, for USD 6.47 billion. In

will be those that have demonstrated resil-

the way with an increase in value of more

May, food delivery app Glovo acquired the

ience and innovation during the pandemic.

than 161 percent (to USD 783 billion) compared to the pre-pandemic average, the media and

operations of Delivery

Despite this overall positive sentiment,

Hero in the

it remains unknown how the

Bal-

pandemic will evolve in the second part of the year.

entertainment sector has seen some of the largest deals in 2021,

H1 2021 CAPITAL MARKETS IN ROMANIA

as streaming giants are looking to attract

In Q2 2021, the capi-

and retain customers.

talisation of Romanian

The sector has already

companies listed on

recorded an impressive

the Bucharest stock

USD 157 billion worth of deals (up from USD 16 billion in H1 2020) and more than double the average of the five pre-pandemic years (USD 71 billion).

exchange (BVB) exceeded kan

the pre-pandemic level and

region,

saw the largest IPO on the main

including Romania, for USD 208 million.

segment for over three years. TTS, the largest Romanian carrier on the Danube,

In addition, M&A in the renewables sector

Strategic investors continue to be the

started trading on June 14th after the sale of

has almost tripled compared with H1 2020 as

dominant players on the Romanian M&A

50 percent of company’s shares for USD 70.5

CEOs look to use transactions to meet ambi-

market, accounting for 94 percent of

million.

tious environmental targets. The value of

transactions. Although Romania remained

these environmental, social, and governance

an attractive investment destination for

to see an upward trend in Q2 2021. Market

(ESG) transactions jumped from USD 35.7 bil-

foreigners, with 31 inbound deals accounting

data indicates a preference for corporate

lion in H1 2020 to USD 96.5 billion in H1 2021.

for 45 percent of all transactions, domestic

bonds as a new investment instrument, with

Investment activity on the BVB continued

deal-making (34 deals) increased by 31 per-

eight bond issuances during the period for a

M&A IN ROMANIA IN 2021

cent compared to H1 2020 and accounted for

total of USD 357 million, the largest of which

Deal activity rebounded strongly in H1 2021,

just under half of all transactions. The most

was BCR’s, at USD 244.7 million. The alterna-

with a total of 69 transactions, reflecting a

active inbound investors were the United

tive segment, AeRO, was also very dynamic

19 percent increase on H1 2020. Despite the

States (6 deals) and Germany (3 deals), fol-

in Q2 2021. Six listings were concluded for

higher volume of dealmaking, the estimated

lowed by Hungary, France, Italy and Ireland,

a total of USD 15.9 million across a broad

value of M&A only increased by 4 percent,

with 2 deals each. The most active sectors

range of sectors, including: dairy (Agroserv

to USD 1.1 billion, due to a 12 percent decline

by deal volume were technology (14 deals),

Mariuta and Bonas Import Export), wine

in the average size of deals below USD 100

followed by real estate (10), diversified

(Vifrana), manufacturing (Raiko Transilvania

million, to USD 13 million. The acquisition

industrial products (10), power and utilities

and Simtel Team), IT (Firebyte Game), and

of NGY Propertiers Investment, the owner

(6), and healthcare (6). In terms of disclosed

agriculture (Agroland Agribusiness).

www.business-review.eu Business Review | September 2021

8 REAL ESTATE

Vastint Romania sticks to its plans even as pandemic lingers Antoniu Panait, Managing Director at real estate developer Vastint, tells Business Review about the company’s plans on the office segment and how they will create even better conditions for people working in its buildings.

By Anda Sebesi Has the pandemic period impacted your future development plans in Bucharest?

The global pandemic that started over a year ago has had an impact on the entire global economy and on every single industry,

How will you fund new developments in Bucharest?

the same types of challenges as everyone

of both investments and demand.

How does this inform Vastint Romania’s development plans in the housing segment?

else as a result of the restrictions. Things

Bucharest has always been a city where hous-

in the enlargement of its portfolio. All these

are nevertheless moving forward, albeit at

ing supply could not match the demand. This

decisions are taken at group level before the

slower pace than we had anticipated. We are

past year has only emphasised the need for

implementation of each major project, taking

confident that the situation will soon improve

larger and more comfortable spaces where

into account the long-term implications of

and that this whole period and its effects will

residents can relax for longer periods of time,

each option we have on the table.

be overcome.

and not just for a few hours, because working

generating issues in terms of planning and executing any type of project. We have faced

Considering our long-term commitment regarding both ongoing and future projects, our plans in Bucharest remain on

from home has led to a number of changes in people's habits.

Even though some real estate developers

Vastint has always been a very stable company in terms of the funds it chooses to invest

Is the emerging hybrid work system changing your investment plans for the office sector?

track, progressing at a normal pace, and our

have chosen to redirect their attention to-

As I mentioned before, the lack of predictabil-

general technical specifications (healthy air

wards developing residential projects instead

ity in how companies will decide to func-

conditioning, 100 percent fresh air supply,

of offices, the more pragmatic ones have

tion in the future does not detract from the

openable windows) are proving even more

maintained their original plans, acknowledg-

general importance of office spaces. Having in

fitting now considering tenants’ needs and

ing the fact the office market has remained

mind the limited amount of information that

expectations.

stable and that there will always be demand

we currently have regarding the impact of this

for offices despite the changes that may occur

hybrid working model on the wellbeing of

What does your development pipeline look like for 2021 and 2022?

in some companies’ work habits.

employees and how it will impact productiv-

Vastint Romania approach remains

ity in specific industries, it’s difficult to fore-

We aim to continue with all the projects in

unchanged, with further/future develop-

cast future demand and this phenomenon’s

our pipeline, which are currently in different

ments progressing as planned.

future effects on the office market. Neverthe-

stages of development. All future decisions

We want to meet our future customers’

less, there will certainly always be a need for

will depend on market conditions, demand

expectations, which have evolved signifi-

office spaces and we will continue to focus

levels, and the feasibility of each project.

cantly in recent years, so we are taking our

on maintaining a high technical standard and

time for detailed planning and design in

overall quality in our projects, because this

order to come up with ways to make people’s

shall always be important for any office user,

lives better.

and so will the location.

The residential sector has experienced significant growth over the past year in terms

10 COVER STORY

www.business-review.eu Business Review | September 2021

DIGITAL TRANSFORMATION ON FAST FORWARD

www.business-review.eu Business Review | September 2021

COVER STORY 11

With the covid-19 pandemic having fast-forwarded the digitalization process in fields such as healthcare, education or public administration as well as across the business world, Vodafone will continue to support Romania’s digital transformation, helping it build a new and improved infrastructure and increase the number of high-speed internet connections. Nedim Baytorun, Vodafone Romania’s new Consumer Business Unit Director, sat down with Business Review and talked about the company’s commitment to continue digitalization efforts and investments and to expand its network and services to reach places that no other network covers. He also told us about the operator’s desire to provide better customer experience through its high-quality services and entertainment solutions.

By Anda Sebesi You took over the Consumer Business Unit Director role at Vodafone Romania just two months ago.

What is your perception of the telecommunications market in Romania compared to those in other countries?

The telecommunications industry plays an enormous role in economic growth and social progress in Romania, just as it does in Albania and Turkey, the two other countries in which I’ve had the privilege to work. The telecom infrastructure, with all the services it enables, changes people’s lives for the better, allowing them to communicate, work, learn, and get entertained. At the same time, it provides the business sector the means to grow, streamline operations, and become more efficient.

These three markets are all very dynamic and complex, with Vodafone holding a leading position in all of them, along with strong commitments for the digitalization of society and businesses. In both Albania and Romania, we’ve been seeing consolidation movements over the past two years, which have enabled Vodafone to become a convergent player. In Albania, I had the opportunity to be involved in the acquisition of the largest cable operator, ABCom, a transaction that helped the company become a full telecom service provider.

Last year, Vodafone Romania also finished the merger process with UPC, yet another move that allows us to provide a full portfolio of services to both residential and business customers. Going further, we need to continue our investments in infrastructure – as the pressure on our networks has significantly grown in the pandemic context –, reduce the digital divide, and develop the population’s digital literacy. Above all, Romania has the historic opportunity to access the recovery and resilience funds provided by the EU and to shape its economy and society for the coming decades.

Telecommunications services (including TV) in Romania are the cheapest in the European Union.

How do prices compare to those in Turkey and Albania?

Indeed, telecommunications services in Romania are the cheapest in the EU, but compared to Turkey and Albania, which are outside the EU, the average revenue per user is bigger in Romania. However, if we correlate ARPU with GDP per capita, telecom services are still more affordable in Romania. Also worth mentioning is the fact that average data consumption is way higher for Romanian users, reaching 18GB, compared to 12GB in Turkey and 8GB in Albania.

All economies are currently undergoing a digital transformation process. How advanced do you think this process is in Romania?

Looking at what Vodafone Romania has achieved, as well as beyond to what the entire society has had to cope with during the pandemic, I would say that important and rapid steps have been taken in the country.

We saw rapid digitalization processes in healthcare, education, public administration, but also in the business sector.

www.business-review.eu Business Review | September 2021

12 COVER STORY

We have enhanced our networks to ensure sufficient capacity

holds in rural areas. One particular story comes to mind to illustrate

for all users, whether they are businesses or individuals, provided

how the pandemic has brought us together and how it has made us

support to the authorities by connecting hospitals and medical staff,

more human, more understanding of each other, and more attuned

and provided digital solutions in response to new needs in society.

to the needs of people around us. At the beginning of the year, our

We connected more than 1,000 schools to the internet to allow pu-

office received a letter from the Mayor of Isverna, a commune in Me-

pils and teachers to carry on with the school year, and we provided

hedinti county. He wrote the letter on behalf of the citizens of Dra-

more than 100,000 tablets to children who needed them to attend

ghesti, Cerna Varf, and Buzesti villages, asking us to connect them

online classes. At the same time however, the digital divide got even

to the Vodafone network. They were completely isolated, with no

bigger, with the most vulnerable groups getting hit the hardest. The

GSM signal, and with no way to get in touch with their loved ones,

same happened in the business sector, where small and medium

access medical services or attend online classes. Within a few days,

businesses, the least digitalized business category, were the most

Vodafone Romania's engineers had installed tens of kilometres of

exposed.

optic fibre, electronic communications equipment, and a dedicated

The need for digital transformation is critical among small and medium businesses in Romania, as they provide jobs for two thirds of all employees in Romania. To help them in this endea-

tower for 4G mobile services, providing inhabitants of those villages with the much-needed access to communications services.

That is just an example of many. But Vodafone is committed to

vour, Vodafone Business has launched V-Hub, an online resource

continuing its digitalization efforts and investments and to expan-

and information platform that helps SMEs in the process of digital

ding its network and services to reach places that no other network

transformation. At the same time, Vodafone is committed to su-

covers. Digitalization has the power to remove boundaries and pro-

pporting Romania’s digital transformation, helping it build a new and improved infrastructure and increase the number of high-speed internet connections. Our priorities include expanding 4G services in remote areas, launching 5G networks, and delivering high-quality telecommunications services

vide equal opportunities for development to individuals, communities, and entire societies. That means we shouldn’t be talking about big or small localities, about far or near villages, about bigger or smaller needs. The need to keep in touch with family is the same for everyone. These recent

through environmentally-friendly Gigabit

times have proven to us that telecommu-

networks. In addition, we are ready to

nications networks and services represent

implement and develop IoT solutions for

critical infrastructure that connects people

the public and private sectors to reduce energy consumption, optimise and acce-

and businesses, allowing daily activities to carry on.

lerate processes, digitalize education, and provide telemedicine solutions to hospitals.

According to a Deloitte report commissioned by Vodafone, accelerated digitalization in key areas, including through the efficient use of EU funds allocated in the national

Vodafone’s integration with UPC has allowed the former to extend its portfolio of services in Romania. What is the current state of the integration process?

recovery plan, could generate a 16.48 percent increase in GDP over

We started the integration process in August 2019 and it was

the coming years.

estimated to take up to three years. The first step was the merger between EMT and Management, followed by the one between the

Vodafone Romania expanded internet access in rural areas in the context of pandemic restrictions. How was this received by the population and how is it going to develop in the future?

How important is it to ensure digital communications to all areas?

teams and their relocation into one office. The first fixed and mobile

Indeed, following the outbreak of the pandemic, we continued

that was followed by the process of rebranding UPC stores. Through-

expanding our fixed and mobile coverage in isolated areas and

out the rebranding, we served our customers in all retail locations,

wherever coverage or capacity enhancements were needed, as the

regardless of the type of service they wanted to acquire, and pro-

crisis brought major changes in the use of electronic communica-

vided support through the merged call centre teams.

tion networks and services. Between March 2020 and June 2021,

commercial offer was launched soon after, in September 2019, and it represented a milestone as Vodafone became a convergent operator and one of the strongest players on the market. The completion of the legal merger was announced at the end of March last year, and

Last September, we brought our new convergent offer to the

Vodafone Romania expanded its mobile network by over 700 4G

market with a unique, complete, and fully integrated TV experience,

stations, providing connection to voice and mobile data services for

through the Vodafone TV service. We also continued to innovate by

approximately 150,000 inhabitants from 158 localities in rural areas.

offering the first full-fledged digital subscription in Romania, giving

Currently, 96 percent of the rural population is connected. During

users total control and flexibility to customize the subscription’s

the same period, Vodafone expanded its fixed network through new

benefits at any time, by adding bundles with national and interna-

developments or extensions of existing networks to 21,000 house-

tional minutes and text messages and extra GBs of mobile data, but

www.business-review.eu Business Review | September 2021

COVER STORY 13

also to temporarily freeze their subscription while still being able to

online payments, online shopping, and digital applications. Digi-

receive calls. In addition to flexibility and unlimited benefits, Flex

talization was thus no longer a projection for the future but a daily

digital subscriptions allow users to access to Vodafone Romania’s 5G

necessity, opening up new possibilities.

network, regardless of the value of their subscription. We have provided access to attractive offers through the Vodafone Club loyalty

What kind of offers is Vodafone preparing for the fall?

programme to all our mobile and fixed customers.

We update our commercial offering constantly in order to properly

Going further, we’ll continue to invest in expanding 4G coverage

serve our customers’ needs. Recently, in a first for the Romanian

in rural areas and 5G services in urban areas, as well as in extending

telecommunications market, we launched a simplified and flexible

the fixed-line network for television and telephony and improving

subscription for fixed internet and television services, to which

the quality of fixed internet services. Recently, Vodafone has been

users can add free extra benefits, based on their preferences, while

recognised as the most reliable 5G network, with the highest mobile

having more clarity in terms of package content and associated

scores for data performance as evaluated by independent auditor

costs. The Home Deal package includes 500 Mbps Internet and TV

umlaut. This is the seventh recognition for Vodafone Romania’s

services with 157 channels (Sport option included). Additionally,

mobile network through the measurement campaigns carried out by

customers can opt for two out of four free extra benefits, choosing

umlaut.

from HBO and HBO GO free for 12 months, Vodafone TV with video on demand options and 4K channels, 40 TV channels or a portable

How did customers receive the new integrated service offerings for internet and cable TV? One year after the completion of the UPC acquisition, 30 percent of all Vodafone customers were using mobile, fixed, and TV services. Today, 41 percent of customers also use our fixed services. It is obvious that people

Wi-Fi Mini-router (internet back-up). The package is available for EUR 9.9/month for customers who only subscribe to fixed services or EUR 7.9/month for mobile service subscribers. For clients who want the full list of benefits, the All Inclusive package comes with free HBO and HBO GO for 24 months, at the promotional price of EUR 14.9/month

prefer a one-stop-shop for all their teleco-

for fixed services subscribers, and EUR 12.9/

mmunications services, because it’s more

month for mobile subscribers. Apart from

convenient and cost effective. Since its

our services, we also want to provide cu-

launch a year ago, Vodafone TV has brought

stomers with the best experience in terms

Romanian consumers a revolutionary TV

of entertainment offers. We have recently launched Hit Play, the first fully digital mu-

service combining interactivity, streaming

sic show in Romania that integrates all the

apps, and digital cable into a platform with the richest content offering consisting of 190 channels in SD, HD, and 4K formats, the most comprehensive on-demand video library, with a dedicated HBO GO section and access to the most popu-

elements of a traditional talent show, adding interactivity. The show is streamed on Instagram and the audience has the chance to choose their favourites. The show is open to anyone, anywhere.

lar on-demand streaming apps in Romania, like Netflix, Amazon Prime, YouTube and YouTube Kids, and Hopster. In terms of fixed

What is Vodafone’s consumer strategy?

internet services, Vodafone Supernet Fiber provides up to 1Gbps

Though we can’t disclose our plans for the future, we can tell you

transfer rates and stable connections along with the best Wi-Fi expe-

that we’ll strive to bring innovative products and services as well

rience on the market through the Super-Wifi router.

as transparency and flexibility to our customers, and that we will continue to invest in our fixed and mobile networks and constantly

How have consumption trends changed during the pandemic?

improve the quality of our services.

The restrictions imposed because of the covid-19 pandemic have generated dramatic changes in our daily lives, forcing us to move work, learning, and entertainment activities online. Employees

How many 5G customers do you have today and what do you think the future holds for this technology?

moved from offices to their homes, children attended online classes,

Vodafone was the first operator on the local market and one of the

people stopped going out as much, substituting face-to-face meet-

first in Europe to launch commercial 5G services, about two years

ings with online entertainment. All these translated into a huge pre-

ago. Just before the commercial launch, we tested the technology

ssure on telecommunications networks, with voice and data traffic

during the first live concert that integrated the hologram of a young

in both fixed and mobile networks seeing significant increases.

guitarist – a world premiere –, proving that 5G was already here. One

Evening calls were replaced by lunchtime calls, as people were

year later we created the first 4K live holograms using 5G technology

probably taking lunch breaks and wanted to get in touch with their

to celebrate Mother’s Day. Currently, our 5G service is available in

families, while video calls saw also a significant increase. The use

several cities. This technology will certainly mark the beginning of

of digital channels, social networks, video streaming platforms, and

a new era in connectivity and communications, enabling the digital

online video gaming continued to grow, and so did the adoption of

future we all envision.

www.business-review.eu Business Review | September 2021

14 COVER STORY

Baytorun, Vodafone Romania: “Past failures have taught me just as much as past successes” Recently appointed as Consumer Business Unit Director at Vodafone Romania, Nedim Baytorun talked to Business Review about his vast international experience, highlighting the lessons he learned while building a career in the marketing field and providing insight into his goals as a top executive within Vodafone Romania.

By Anda Sebesi

www.business-review.eu Business Review | September 2021

About Nedim Baytorun was appointed as Consumer Business Unit (CBU) Director at Vodafone Romania on July 1, 2021. He first joined Vodafone in Turkey in 2013, where he held several commercial and marketing roles, including Head of Segments and Head of Digital Transformation & Revenue Management. In 2019, he took over the Consumer Business Director role at Vodafone Albania, leading the agile transformation of the CBU organisation into a household brand and building a convergent business through the Vodafone – Abcom integration. During this period, he was involved in important digitalization projects, including digital trading platform GigaMarket, a first for the market.

N

COVER STORY 15 ing more time with my team outside of work as well.” With cooking as his number one passion and one of the few ways he can really disconnect and clear his mind, he plans to host a cooking event for his team soon. “I’ve taken many cooking classes and got several certificates; one of them was from Le Cordon Bleu, and I am very proud of it. I love having the opportunity to socialise with my friends while I cook for them, so much that I even have a hashtag on Instagram: #nothingtastesbetterthancookingforfriends.”

BOLD PROJECTS As a marketing professional, Baytorun believes himself to have been extremely lucky to be able to do what he loves in four different countries so far: Turkey, the United States, Albania, and now Romania. “This gives you the opportunity to have many stories of both success and failure in different ecosystems where you can learn so much,” he notes. Asked to recount some good memories from these experiences, he says that launching the first light Greek yogurt

edim Baytorun was born and raised in a small town in

brand in the US was one of the top highlights, from when he was

southeast Turkey; his parents were both academics. Hav-

the marketing manager for Danone Light & Fit in the US. “It was the

ing always been a big fan of Science and Math, he decided

challenge of a lifetime to bring a brand new product line to a huge

to study engineering. However, in his last year of college he discov-

market.”

Later, at Vodafone

ered the amazing world of marketing, so since gradu-

Turkey, launching the

ation, his entire career has

marketplace business

been built around market-

during his last year on

ing and sales. In the early

the job was a major step.

years of his career, he had

“It was one of Vodafone’s

the chance to work with

first solid steps towards

many international manag-

becoming a technology

ers – Turkish, German,

communications company

French, Italian, American,

and I learned a lot during

Greek, and Portuguese. As

the process. From Albania,

a result, his management

the highlight was lead-

style is a mix of many

ing the acquisition of the

cultures. “I am a big fan of

biggest fixed internet & TV

communicating directly

company and managing

and openly with no hid-

the whole integration pro-

den agenda, empowering

cess. “All of these projects

teams by being a good

improved my commercial

listener, and challenging

acumen. I am proud to say

them to always step out

I have at least as many sto-

of their comfort zones

ries of failure as stories of

and try new things. The

success, and I can say that each one of them helped

best teams I’ve been a part of have been the ones where there was trust, open conversation,

me a lot. One big lesson I took from my biggest failures is that you

and the willingness to try new things, where you either succeed

should always listen to the consumer and make sure you get enough

together or fail together,” Baytorun explains.

core insight before making a strategic decision.”

A proud father of two daughters, Baytorun says he is fascinated

As for what’s ahead, Baytorun says that both Romania and the

with the natural beauty of our country, the cities he has visited, the

company for which he works represent great progress stories. “I

friendly and welcoming people, and the good quality of life. About

believe the country’s progress will accelerate even more through the

his team, which includes young and very energetic colleagues, he

digitalization agenda. My goal is to make sure that Vodafone has a

says: “They are very enthusiastic and they want to achieve more,

big role in supporting and leading the country on this digitalization

which makes me very happy. In fact, I am looking forward to spend-

journey.

www.business-review.eu Business Review | September 2021

16 FDI

The influence of covid-19 on CEE FDI flows The coronavirus crisis has had a powerful negative influence on the Central and Eastern Europe (CEE) region. According to forecasts by experts at the United Nations Conference on Trade and Development (UNCTAD), a recovery of FDI flows for countries in this region is expected no earlier than 2022.

By Claudiu Vrinceanu as the coronavirus pandemic and lockdowns curbed economic activity. The trend is also apparent in Romania: the country’s FDI volume contracted by over 60 percent to EUR 1.92 billion (less than 1 percent of GDP) in 2020, compared to 2019. M&A was also poor in 2020, with 1,705 deals reached in CE for a total of USD 60.8 billion. This translates to a 12.9 percent decline in transactions and a 16 percent decline in deal value compared to In Central Europe, FDI fell by 58 percent in 2020 compared to 2019

T

2019. Notwithstanding a solid fourth quarter in 2020 and CE putting in a more robust M&A performance than most other parts of the

he eleven Central Europe (CE) coun-

M&A and organic growth by foreign-owned

world, this represents the worst annual M&A

tries each gained their attractiveness

companies.

performance in over a decade.

as foreign investment targets, thanks

Global foreign direct investment flows are

Chinese investments are minor in CEE

to their closeness to west European markets,

expected to bottom out in 2021 and recover

countries, with the exception of Serbia, while

well-developed infrastructure, political

some lost territory with an expansion of 10 to

Germany and the US are the largest investors

stability, low tax rates, and a generally well-

15 percent, according to the UNCTAD's 2021

in the region. Romania is in fourth place in

educated workforce. According to a study

World Investment Report.

CEE region in terms of attracting new foreign

published by Les Nemethy, the CEO of Euro-

FDI trends in 2020 varied significantly by

investments from the US, Germany, and Chi-

Phoenix Financial Advisors, EU member-

region. In developing regions and transition

na. German assets drawn in by Romania are

ship compensates for the small size of many

economies they were relatively more affected

half of those gained by Hungary, the Czech

domestic markets.

by the impact of the pandemic on investment

Republic or Poland. The situation is similar

in global value chain-intensive and resource-

for China, which does not rank among Roma-

of cross-border investment associated with

based activities, according to the UNCTAD.

nia's top investors. The value of Chinese FDI

a resident in one economy having control or

Asymmetries in fiscal space for the roll-out

between 2000 and 2019 in Romania reached

a significant degree of influence on the man-

of economic support measures also drove

USD 1.4 billion, according to a study from

agement of a company that resides in another

regional differences. In Central Europe, FDI

the Central and Eastern European Centre for

economy. FDI involves both transborder

fell by 58 percent in 2020 compared to 2019,

Asian Studies (CEECAS).

The World Bank outlines FDI as a category

www.business-review.eu Business Review | September May 2016 2021

BUSINESS COVERMODEL STORY 14 17

Emerging verticals and business models in 2021 June, July, and August 2021 were very active months for the Romanian startup ecosystem, with multiple pre-seed and seed level funding deals.

Let’s take a look at the business verticals that were the most exciting for investors this summer.

By Claudiu Vrinceanu SOCIAL Investment fund Early Game Ventures signed a EUR 2.5 million round for the startup FameUp, a mobile platform for micro-influencers.

Bogdan Gheorghiu, Daniel Dines, and Marian Dinu also participated in the round as angel

Office visualisation solution provider Bright Spaces raised a seed investment of EUR 1.5 million

investors. Framey, a social networking app for travel enthusiasts, secured a USD 1 million seed loan from ICE Capital in Dubai, sup-

investor, in partnership with private investors

aged to attract more than EUR 500,000 from

ported by Romanian investment fund JECO

(business angels).

over 20 private investors through a campaign

Capital. The startup founded by Romanian

carried out on equity crowdfunding platform

entrepreneurs Robert Preoteasa and Alex-

MARKETPLACES

SeedBlink. In addition to the money raised

andru Iulian Florea will utilise the funds to

Metabeta, a data-driven platform for manag-

on SeedBlink, the company also got an EUR

extend operations and launch their applica-

ing investments in startups, took a seed fi-

300,000 investment from Litera Publishing

tion globally.

nancing round worth a total of EUR 500,000.

House.

The investment round was led by Neogen

PROPTECH

Capital and completed by 15 other business

SAAS

Office visualisation solution provider Bright

angels (part of groups such as Growceanu,

Vestra, a cluster specialising in the utilities

Spaces raised a seed investment of EUR 1.5

TBNR, TAN - Transylvania Angels Network,

and industrial automation industry, has in-

million, with French VC Axeleo Capital as the

and Techangels). The funds are aimed at

vested EUR 180,000 in the cash flow analysis

lead investor. The startup’s other investors

developing Metabeta into a machine learning-

and planning platform ThinkOut, which sup-

include British Pi Labs, Romanian Sparking

based marketplace for investors and startups.

ports companies in managing and monitoring

Romanian startup Stailer.ro, the online

capital flow, giving them an overview of their

Capital, and Growceanu Angel Investment.

Several well-known angel investors, including

booking platform for beauty salons, launched

Marian Dinu of DLA Piper Dinu and Alexan-

by entrepreneur Andrei Ursachi, raised a pre-

dru Boghiu of The Mavers.

seed investment worth EUR 500,000 from a

HEALTHTECH

group of angel investors in a financing round

Telios Care, one of the leading providers of

FINTECH

led by serial entrepreneur and tech investor

telemedicine services in Romania, attracted

Bankata.ro, a fintech platform that aggregates

Cosmin Tirvuloiu. Following the investment,

new financing worth EUR 700,000. The lead

and compares financial products, raised

Stailer’s value jumped to 5 million euros.

investor was Fortech, a Cluj-based software

a funding of EUR 180,000 to develop and

Local startup Storis, which has devel-

finances.

development company, which put in EUR

implement its business plan. The investment

oped an application for Romanian-language

400,000, thus becoming the largest investor

is coordinated by Sparking Capital as lead

audiobooks, e-books, and podcasts, man-

in Telios Care, with a 9 percent stake.

www.business-review.eu Business Review | September 2021

18 VENTURE CAPITAL

Corporates testing waters in local startup financing ecosystem Corporate venture capital (CVC) financing in the European startup industry reached a record of USD 5.7 billion in the second quarter of this year, but this type of funding remains rather limited on the Romanian market. Corporate-backed initiatives have been visible through acceleration and incubation hubs for startups, but large companies are also starting to scout the market for direct investments in promising entrepreneurs.

By Ovidiu Posirca

The focus of corporates on VC investments has been boosted by the pandemic economy

I

nvestments made by corporations in

rope, with funding deals worth USD 1.4 bil-

lyst Romania, says that CVCs are a newer

startups have grown in the pandemic

lion closed in Q2 alone. Meanwhile, Romania

structure not just in Romania, but in other

economy from USD 1.5 billion in the

has had no notable transaction of this kind

markets as well.

first quarter of 2020 to USD 2.3 billion in

until now.

company building venture portfolios for corporates.

The UK is the biggest CVC market in Eu-

“CVC activities could not exist in the absence of large corporate businesses with

Q4, according to a report by Stryber, a Swiss

HOSTING CORPORATE HQS HELPS A COUNTRY ATTRACT FUNDING FOR STARTUPS

enough funds available and with a specific vi-

Marius Ghenea, managing partner at Cata-

for profit or for other strategic reasons Usual-

sion and mission related to funding startups

www.business-review.eu Business Review | September May 2016 2021

VENTURE COVER CAPITAL STORY 19 14

ly for CVCs, the driver that’s more important

sheet to a fully autonomous CVC fund that

USD 59 billion in H1 2021, compared to USD

than profit or returns is the fact that they can

has been spun out from the parent com-

18.5 billion in the first half of last year. There

help grow businesses that complement their

pany.”

were more than 300 European companies

corporate ecosystem, which is why bank CVCs will invest in fintech startups, automo-

that raised late-stage and growth-equity

actually the main reason why we’re seeing

US CORPORATES DRIVING FUNDING IN EUROPEAN STARTUPS

so little CVC activity in Romania, as very

GV, the

few large corporations have headquarters in

venture

Romania,” he adds.

capital arm

tive CVCs will invest in industry 4.0 startups, and so on,” Ghenea tells BR. “The other condition for a CVC to exist in a country is usually for the corporate entity to have its headquarters there. This is

E-commerce player eMAG is one of the

of Alpha-

pioneers of the local CVC market, having

bet, was the

launched its own venture fund that will

most active

target promising tech startups in the digital

inves-

economy.

tor in Q2,

Meanwhile, Cristian Munteanu, managing

focusing on

partner of the Early Game Ventures (EGV)

FinTech startups. US-based Second Century

fund, suggests that the risk appeal among

Ventures was the second biggest player with

Romanian corporations is low, but things are

seven deals in the FinTech and SmartHome

corporates has been boosted by the pan-

starting to change.

space. In fact, US corporates closed 15 more

demic economy and the push by companies

deals compared to their European peers in

to digitalize their operations.

“As proof, several corporations have already invested in our fund, putting their money where their mouths are,

the top ten combined, according to

funding in H1.

The prioritisation of VC investments by

“Many established companies

Stryber data.

globally have come to the

actively investing in the best

How-

realisation that they do

tech startups in Roma-

ever,

not need to innovate

nia. I hope more big

from scratch, and

companies will follow

that a better ap-

their lead, especially

proach might

considering the

be to partner

handsome financial

with or invest

rewards,” Munteanu

in startups that

tells BR.

can help them

Single direct

accelerate their

investments are the first steps that corporates take into the venture capital space, and this could happen in Romania next given the current state of the market.

Marcus Schroeder, partner at Redstone

transformation in ways that better align

the big-

with the new normal,”

gest CVC deal

analysts wrote in a report on

closed in the second quarter involved Bonnier Ventures, the

venture capital by KPMG, the professional

venture investing arm of Swedish media

services firm.

VC, wrote in an opinion piece that this usu-

group Bonnier. The fund contributed to the

VC investment in European startups is

ally involves minority investments in the tar-

USD 800 million funding round attracted by

expected to remain robust heading into Q3,

get startups and it is decided on in the same

Dutch MessageBird, an omnichannel com-

particularly in industries such as FinTech,

way a corporate would decide on a mergers &

munications platform.

HealthTech, and cybersecurity.

acquisitions (M&A) investment. Another op-

The financing environment for European

The KPMG report points out that the big-

tion is for a corporation to build a portfolio of

startups has improved significantly this year,

ger funding rounds in Europe, including CVC

investments by closing 2-5 deals each year.

and the downfall caused by the pandemic

contributions, are fuelled by a sense of opti-

The Redstone VC partner suggested that

last year was fully recovered by the end of

mism combined with a significant amount of

CVC can involve everything from “sporadic

the first semester. Crunchbase statistics

cash investors. This has also pushed up the

investments from the corporate balance

show that venture investment climbed to

valuations of startups across the continent.

www.business-review.eu Business Review | September 2021

20 ENTREPRENEURSHIP

Measuring the costs of the pandemic shock among local startups More than 70 percent of Romanian startups were impacted by the pandemic crisis in the past year, and founders have had to make hard decisions for the future of their companies, including cost cutting, hiring freezes or delayed investments. Tech companies in some industries have flourished during the pandemic, while the rapid recovery of the Romanian economy will provide an impetus for startups that have decided to reposition themselves or for entrepreneurs who have scaled up their companies against all odds.

By Ovidiu Posirca sitioning have done things like freezing the hiring process, cutting salaries, and reducing administrative costs while experimenting with new prices on the market for a more efficient repositioning. External repositioning targeted medium-sized companies that chose to freeze bonuses and salary increases, conduct layoffs, and postpone investments.

The scaling-up process has given larger companies a chance to change their organisational strategy and marketing position. Most small startups, mainly operating in areas like FinTech, Automation or HealthTech, pushed the deployment of their products by expanding their tech teams by one or two members and increasing their marketing budgets,” Bogateanu told BR. Some 70 startups in the ROTSA survey, conducted among 117 entrepreneurial firms, had a balancing strategy once the health crisis emerged.

The study revealed that over 70 percent of the startups confirmed that COVID-19 had affected their business to some extent.

From the very beginning of the health crisis, Cristian Munteanu, managing partner The pandemic poses a higher risk for stagnation or even degrowth for some local startups

E

at Early Game Ventures (EGV), held talks with the founders of startups in the fund’s portfolio and agreed on immediate and radical measures to contain the damage of the pandemic.

nterprises of all sizes have had to

aptation strategies and repositioning market

adapt to the new economy and for

tools, suggests Cristiana Bogateanu, execu-

startups, this meant financial expan-

tive director of the Romanian Tech Startups

spot, whether it was freezing new hires,

Association (ROTSA).

postponing large marketing expenditures or

sion, access to finance, and investors willing

“All measures were implemented on the

shifting focus from opening to markets to

to fund their operations. The limitation of activities amid the pandemic brought with

FROM SALARY CUTS TO TEAM EXPANSIONS

R&D. The priority at that time was to limit

it a series of opportunities by generating ad-

“Companies that have chosen internal repo-

the damage, preserve the runway, and buy

www.business-review.eu Business Review | September May 2016 2021

ENTREPRENEURSHIP COVER STORY 14 21

time to assess the impact of the pandemic,”

Automation cohorts have managed to grow

clients they have or reach new ones. In terms

Munteanu told BR.

from a founding team to an average team of

of decision-making processes, local startups

10 employees, but also that the pandemic

have had different approaches depending

poses a higher risk for stagnation or even

on their size. For instance, startups with an

degrowth.

average of 14 employees looked for advice

On one hand, startups from the ondemand economy and delivery services, e-commerce, e-health or gaming proved their ability to scale up very rapidly over the past year. Meanwhile, companies in the POS payments industry, travel tech, restaurant booking services or mobility bore the brunt of the crisis.

“I think that startups in these industries are the ones that proved their resilience by surviving a significant reduction in demand.

And you must understand that I’m talking about early-stage startups – in other words, companies at an age when they are most sensitive to market fluctuation,” adds the EGV managing partner.

Like most startups, tech startups should plan for cash-flow rather than profits, says Marius Ghenea, managing partner of Catalyst Romania. From this perspective, they were more prepared to face the potential revenue downturn associated with lockdowns, for instance, especially if they had recently finalised investment rounds.

“Startups that were just about to close investment rounds had a big problem, because lockdowns and investor pushback might have put them into financial

“The market cap they have managed to acquire is threatened by rapid changes in the

jeopardy, particularly

internally, from the management team.

Meanwhile, startups with up to five employees relied on internal knowledge as well as on that of mentors

early stage firms with

and peers from other

significant cash-burn

companies.

and small revenues,”

“Entrepreneurs

Ghenea told BR. He

need funding to

added that some

limit existing risks,

startups were luckier

whether the funding

than others, and that

is public or private. We

therefore we should not blame or consider less worthy those businesses that were directly hit, such as those in travel, hospitality, events, and others.

mar-

identified three catego-

ket and

ries of startups and named

human behaviour in the context of the pandemic,” according to the ROTSA report.

them Independent, Vulnerable, and Rebound. The first group apprehends the threats and chooses to rely on

Meanwhile, startups with an average

their own experience to assess future risks.

HOW STARTUPS PERCEIVED RISKS DURING THE PANDEMIC

yearly income of just over EUR 100,000 and

The latter two both need coaching and men-

teams of three employees on average were

toring from their peers and other possible

The inability to finance operations, the loss

most threated by lockdowns and dwindling

programmes, but the Vulnerable startups

of market cap due to growing competition,

cash flows. The research notes that for this

can only access public funding due to their

and the challenge of attracting talent are

cohort, there is no risk of accessing human

revenues, while Rebounds are looking for

some of the risks founders mentioned in

capital or loss of market cap. They are small

private funding to expand and grow faster,

the ROTSA survey. The research shows that

teams, and that means they are nimble and

including on international markets,” the

startups in the HealthTech, FinTech and

better positioned to pivot quickly to keep the

ROTSA executive director explained.

www.business-review.eu Business Review | September 2021

22 HR

25 years of excellence on the HR software market Ionut Gherle, the CEO of UCMS

by AROBS, talked to Business Review about the company’s biggest achievements in its 25 years of existence, and explained why digitalization became a necessity once the pandemic started.

By Anda Sebesi all business processes: recruitment, administration, evaluation and training. dp-Payroll simplifies and automates financial processes.

We are supporting our global customers in standardising, centralising, and consolidating their HR operations in CEE.

UCMS by AROBS is celebrating 25 years on the Romanian market. What does this mean in terms of achievements and results?

departments, as companies have faced novel

Our company has undergone many changes

situations where employees had to work re-

How has the growth in remote work changed your target market?

motely or in a hybrid manner. Our company

Studies show that remote or hybrid work

offers comprehensive digital solutions for HR

has led to increased employee productivity.

and payroll through True HR and dp-Payroll.

More and more companies are looking for the

during these 25 years, and it was constantly

True HR is one of the most complex and com-

best ways to make remote work as efficient

shaped and improved in order to meet our

plete professional solutions for HR manage-

as possible. Our solutions help optimise

customers’ sophisticated business demands.

ment in the country, designed to digitalize

this type of work, and it works very well for

It started with the dp-Payroll application

and transform the entire HR process, from

companies that have adopted a hybrid work

in 1996, which covered the basic needs of

recruitment to offboarding, including time

model. They were designed to streamline

financial departments, followed by the

& attendance data. The solution is always

processes and save time for HR specialists,

development of True HR in 2002. In 2019,

kept up to date with legislative changes, so

leading to better communication between

AROBS Transilvania Software acquired UCMS,

all reporting to authorities can be carried out

employees and HR or between employees

thus adding a new business line on the HR

through the application.

and management.

What are your plans for the coming years?

of the products have been improved continu-

What are the main advantages of the UCMS by AROBS software products on the local market?

ously as to meet the needs of the industries

True HR & dp-Payroll are innovative software

product development and team growth. One

we work with: banking, IT, medical services,

solutions that have been recognised and

key aim for the company is to further im-

automotive, production, retail, etc.

implemented by both corporate and enter-

prove user experience for our products, en-

prise clients in Romania, to provide services

hance response times during implementation

How important is the digitalization of HR departments and what can you tell us about your company’s HR and payroll software solutions?

internally and externally. True HR is the only

and applications through state-of-the-art

Time Management and HR software product

technologies. The team's vision and efforts

to be developed in Romania and successfully

are aimed at a complete shift from tradi-

implemented outside the country’s borders.

tional, manual HR procedures to automated

Digitalization has become critical for HR

The application covers the management of

digital processes.

solutions market. Our True HR and dp-Payroll software solutions are being used in more than 500 businesses. Over time, the reliability

Over the next few years, we plan to invest heavily in technology, business verticals,

www.business-review.eu Business Review | September 2021

24 EMPLOYER BRANDING

Employer branding remains top priority for companies in 2021 and beyond According to Universum’s Employer Branding NOW 2020 survey, the share of large companies that say they are “very concerned” about growing competition for key talent from the startup sector dropped by half in 24 months. In 2018, 38 percent had said they were very concerned; in 2020, only 17 percent felt the same. The stability of large companies (and their large balance sheets) now appears to be a much more attractive factor for job seekers.

By Romanita Oprea

A

ccording to the same study, even in

Branding in January 2018. This happened

employer branding & integrated communica-

an economic downturn, employer

in the context of Romania’s labour market

tion division at GMP PR, we are living in a

branding represents table stakes for

being more dynamic than ever, with more

time when everything is being reinvented.

competitive talent brands. Only 3 percent of

and more employers developing communica-

Companies, people, teams – all seeking evolu-

the World’s Most Attractive Employers say it’s

tion campaigns in order to inspire, generate

tion and improvement as they adapting to

not a top priority. Recruiters have unwittingly

loyalty, and retain their employees. The

present challenges. “As clients’ needs keep

been preparing for the “new normal” of co-

division provides consultancy on internal and

evolving, our agency keeps growing in order

vid-19 for a few years: in 2020, 82 percent said

external employer branding, recruitment and

to meet their expectations. And as their de-

they had adopted video recruiting, up from

loyalty campaigns, internal communication,

mands are diversifying, we are expanding our

59 percent in 2019. At the same time, “people

as well as tactical actions that can support HR

teams and widening our areas of expertise, so

analytics” (using technology and AI to drive

objectives.

this year our Employer Branding Division is

smarter decisions at scale) has jumped from 28 to 43 percent.

Indeed, when the pandemic hit, employer

evolving and becoming an Employer Brand-

branding was in full bloom, with a large

ing & Integrated Communication Division.

In Romania, foreseeing the acceleration

number of companies requesting these types

We launched it in 2018, as an obvious reaction

of the field, the GMP PR agency created an

of services from PR and advertising agencies.

to market demand,” Marinescu said. Some

internal division dedicated to Employer

According to Raluca Marinescu, head of the

things have changed in the meantime though,

www.business-review.eu Business Review | September May 2016 2021

EMPLOYER COVER BRANDING STORY 14 25

including the fact that employers are placing

lenges,” said Chapter 4 Romania’s executive

companies' existing tools, internal platforms

an increased focus on staying close to their

director. She also noted that over the past 18

have been prioritised, and new internal plat-

teams, which the GMP PR representative

months, many of our values and habits, on

forms and programmes have been launched.

considers to be a change for the better. In

both a personal and professional level, have

“The first step was to ensure that normal

pandemic times, we all felt the need to have

been challenged and transformed. When it

operations could carry on, so as employees

people close to us, to receive support from

comes to the ways in which we evaluate our

moved to remote working, we saw higher us-

our “tribes,” to feel that someone was taking

jobs and working environments, people all

age of digital platforms created to keep people

care of our personal needs and protecting us,

across the world are paying closer attention to

connected and offer them the best tools

and employers were often the ones to provide

peer-to-peer relationships. “They are looking

to continue working as teams. Employers

that kind of support.

at how management teams have cared for

moved their focus to employee health, both

Ena Karabelas, executive director at

and supported their employees throughout

physical and mental, by developing wellbe-

Chapter 4 Romania, agrees that attracting

the pandemic and how their mental health

ing programmes and teaming up with sports

and retaining talent has been a colossal chal-

and emotional support needs have been met.

trainers, mindfulness experts, and psycholo-

lenge for companies operating on the local

Coupled with the shift in the way we work

gists,” she said.

(with remote or hybrid modes in many

Many companies took it a step further, get-

companies) and the greater focus on flex-

ting even more involved in their employees’

ible working, this new worldview pushes

lives through programmes that also included

companies towards reevaluating their

their families, whether we’re talking about

EVPs (Employee Value Propositions),”

medical services and assistance or about ways

Karabelas explained.

to entertain them while they were spending

According to Roxana Diba, managing director at Golin, the increase has

all that time at home.

“As a communication agency, we have

been seen especially in economic sectors

been involved in creating these kinds of

where financial benefits are extremely

programmes and making sure that the infor-

competitive – such as IT/software devel-

mation reached all our clients’ employees.

opment, banking, and so on. Employer

Right now, we are talking about ways to find

branding turned into a very important

that optimal new way of working, whether

brand differentiator, as companies knew

it’s remote, hybrid or fully going back to the

that money alone would no longer make

office. There is a huge challenge in terms of

enough of a difference. “In order to at-

communication, as people consume informa-

tract the best talents, companies started

tion in different ways. And while some are al-

to think of other benefits they could offer

ready getting used to the hybrid work model,

prospects in order to seal the recruit-

companies must make sure that employees

ment deal. This emphasis on employee

who are still fully remote don't miss a thing.

experience translated into increased

And that’s where we jump in to find the best

presence at job fairs, business events,

solutions,” Raluca Marinescu added.

higher education institutions, and leisure

Golin’s managing director confirms the

market for the past couple of years. “Even

time areas, where brands could present their

trend of companies having started to provide

if it was not the main focus of our commu-

offering directly or indirectly to potential

extra support by tailoring benefits to the

nications activities, many of our corporate

employees. Communicating about company

needs of both employees and their families.

accounts have also included engagements

culture and values was also prioritised, as

“We have had more companies asking us to

in this area. In fact, as we have grown our

brands knew how important it was for their

develop solutions that would enhance dia-

corporate communications department in the

ethos to resonate with their recruits,” said

logue with employees, keep them informed

past years, employer branding and building

Roxana Diba, adding that the biggest spike

about what is happening at all times, and

brand awareness for B2B companies have

in employer branding occurred during the

raise awareness about company wellbeing

been the most in-demand services, especially

pandemic.

initiatives. Employee mental health has also

for companies in highly competitive sectors

risen on the list of priorities, as workers felt

like IT&C. The underlying issues – the highly

RECENT CHANGES

isolated, disconnected, and uncertain about

competitive market, labour migrating abroad,

The most consequential recent change, in

the future. Companies have introduced

and the need to differentiate from competi-

GMP’s Raluca Marinescu’s view, was the need

lighter working hours, mental health hotlines,

tors based on values, not money – have not

to communicate with remote teams using

and online check-ins with team members

changed during the pandemic. If anything,

new channels. As a result, external commu-

and management in order to build deeper

they have been joined by a host of new chal-

nication platforms have been integrated with

connections and strengthen bonds inside the

www.business-review.eu Business Review | September 2021

26 EMPLOYER BRANDING

company,” Roxana Diba explained, adding

ing. And of course, “once you find the right

ees, and it continues with each and every

that after March 2020, an overwhelming

people, it’s a matter of how you structure the

employee’s actions, as it is all about company

majority of companies introduced at least one

integration and onboarding process, as this

values and the way employees adopt and

new wellbeing benefit for their employees

is a natural step in shaping the company as

implement them. “Agencies come next, as

and thus faced the challenge of implementing

a community based on strong connections

we support clients in becoming even better

it and communicating about it.

and a solid structure of knowledge transfer.

and communicating about their position on

We believe that these two elements are at the

the employment market, both internally and

WHAT COMPANIES WANT

core of the strategy to continuously boost our

externally. It takes a solid team to create an

From a company’s perspective, Daniela Ba-

employer brand,” Daniela Bacaoanu argued.

employer branding strategy that starts with

But what do companies want when they

the customer and extends to the agency, and

best and strongest employer branding strat-

contract a PR agency’s services? “We’re seeing

a relationship that’s based on honesty, trust,

egy is created, implemented, and maintained

a lot more emphasis on internal communica-

and experience. In terms of time, it takes

through team collaboration, because teams

tion and on projects that are very employee-

years to build the background for a good

are living proof of a company’s values and

centric among our clients. I believe that, with

employer branding campaign, years of grow-

organisational culture. “If a person identifies

all the trials and tribulations of the past year

ing a healthy organisational culture that can

themselves with the company’s values and

and a half, employers now fully and truly

afterwards be communicated through such a

goals, our perception is that they will contrib-

understand the value of their employees.

campaign. The campaign itself can take about

caoanu, HR manager at dcs plus, says that the

They are acknowledging

2-3 weeks to conceive, about 2-3 months to

the fact that you cannot

plan and implement, and it may be carried

build a pretty façade

over a period of about 6 months,” explained

on top of a dysfunc-

the head of GMP PR’s employer branding &

tional internal working

integrated communication division. After all,

environment. They have

she points out, a good employer brand is the

also come to realise that

decisive factor in strong candidates joining

beauty does come from

one company or another. And once hired,

the inside, even in pro-

employees expect a lot from their organisa-

fessional contexts. We

tions: besides career growth opportunities,

are having more conver-

they want to know that they’re working for a

sations which start from

company they can be proud of.

meaningful insights

“Employer branding is not something that

and look at how we can

should be done as a one-off, meaning that it’s

build a strong EVP that

not enough to just put out a nice campaign

is appropriate for the

with great copy and nice visuals. It is instead

present day, yet flexible

a constant effort that always begins from the

enough to withstand

inside and then branches out to external audi-

ute to the growth of our employer brand. Pri-

more changes in the future. Only then do

ences, sometimes requiring more communi-

orities have not changed for dcs plus, but we

companies look to external communication.

cations efforts (and a solid budget), and other

have a more focused approach when reaching

And when they do, we look closely at how

times just being a part of a standard comms

out to different types of candidates, meaning

to bring real added value to the recruitment

approach,” added Ena Karabelas.

that we are using different employer brand-

process through various communication

ing actions based on the types of workers we

tools,” Ena Karabelas noted. In turn, Raluca

good employer branding strategy assumes

are looking for at any given time. We have

Marinescu believes that all companies want

that a company will constantly and consis-

built strong relationships with our colleagues

to become best employer in their class, and

tently develop related activities. However, if a

throughout all these amazing years. The

reaching this goal takes more than a few em-

brand wants to draw up a strategy and imple-

pandemic has proven to us once again that

ployer branding campaigns. A key element to

ment it, Golin can help with all of its needs.

we can count on these relationships,” said the

a company’s popularity as an employer is its

“What we need is to understand the brand’s

dcs plus HR manager.

employee value proposition. An effective EVP

objectives while also researching company

integrates employee engagement with brand-

culture and values. As each organisation is

recruitment process. dcs plus is a highly se-

ing in order to support an efficient candidate

unique and has a specific ethos, this process

lective company and its representatives think

attraction and retention approach. Marinescu

helps us craft a tailor-made solution for each

that profiling the right candidate during the

argues that it all starts from the inside, from

client. Once a comprehensive strategy is

recruiting process gives them a better chance

the organisational culture and from HR and

created, criteria such as urgency, budget, and

to attract the right talent, which can bring

communication teams that stay in close

complexity dictate what the timeline should

energy, good vibes, and a fresh way of think-

touch with all current and potential employ-

look like.”

A top employer brand starts with a strong

Moreover, according to Roxana Diba, a

www.business-review.eu Business Review | September 2021

27

Hagag Development Europe brings a new vibe to the local market Anna COHEN, Head of Marketing at Hagag Development Europe tells about the importance of creating an excellent customer experience in building a strong brand loyalty. residential projects, such as the 24/7 virtual concierge, full property management, direct rentals and landlord representation, and added a developer instalments facility for our resi-scheme in Pipera. We even digitized part of our sales processes, helping our clients save time and resources. All of these actions combined helped us boost sales performance.

IT IS OFTEN SAID THAT IF YOU GIVE CUSTOMERS A GREAT EXPERIENCE, THEY WILL BUY MORE. CAN YOU RELATE? We bring to the local market a new vibe and extraordinary projects. In terms of marketing and customer experience, this is translated into providing our clients with privileged locations, unique types of archi-

HAGAG DEVELOPMENT EUROPE IS ONE OF THE TOP PLAYERS ON THE LOCAL MARKET. WHICH ARE YOUR KEY DIFFERENTIATORS IN SUCH A DYNAMIC MARKET?

HOW IMPORTANT ARE TRUST AND CUSTOMER SATISFACTION IN YOUR LINE OF WORK?

tecture and prime facilities and services.

We work in an industry that was built on

performing on a niche segment, you are

trusting relationships. When nurtured, these

the puppeteer. You have the answers that

relationships lead to customer satisfaction, high

clients are searching for and you just need

The local real estate market is very competi-

retention levels, solid company reputation and

to get your communication game strong and

tive, and with technology advancing fast and

year-on-year business growth. The way we articu-

the people that resonate with your work,

automating services popping up everywhere

late our value proposition by delivering projects

values and mission will come to you, in

you turn, one needs to be as innovative and

of great value not only for the residential market

depth knowledge of their actions.

to stay as up to date as possible. How do we

but also for the city as a whole, together with the

manage to stand out from the crowd? Well,

services we offer is what helped us gain the trust

prone to sign with a developer who builds

as a first we have been very careful when

of our clients. A content client will be more loyal

with passion and attention to details and

choosing our niche. Likewise, we have been

to our brand and will share his experience with

has the know-how, experience and expertise

concentrating our efforts on offering more

friends and family.

to deliver a project that exceeds their expec-

As peculiar as this sounds, when you’re

At the end of the day, clients are more

tations.

than just a space to live or work in, and the

Furthermore, we are constantly trying to an-

services we provide are the key element to

ticipate our clients’ needs. We understand what

generating a lasting impression. Buyers and

it is like to be in their shoes and we care about

pleasant customer experience boosts sales

tenants alike base their buying behaviour

providing them with everything they need, hence

and business performance as a whole, but

and brand loyalty on the level of service

we are working on meeting these needs before

we also find that the customer experience

and engagement they receive, and for us,

they even mention them to us.

journey should not end when the sale pro-

creating an excellent customer experience

Either thought our in-house sales teams, our

So yes, we can relate to the fact that a

cess is completed. The after sales part is, too, a highly valuable marketing component.

for our clients is what makes our brand’s

collaborators, or with the help of technology,

reputation. As I see it, amazing experiences

we are constantly surveying our clients on what

have the capability to lay the foundation for

they feel is lacking in the products now available

ambassadors and we want to make sure

a long-lasting, thriving business – and this is

on the market. As a result, we have managed to

that they are comfortable and satisfied with

what we deliver.

develop premium services available for all our

their decision.

As we see it, our clients are our best

www.business-review.eu Business Review | September 2021

28 SUSTAINABILITY

Circular economy just starting out in Romania Around 50 million tonnes of electrical and electronic waste (e-waste) is generated worldwide each year, a figure expected to more than double by 2050 to 120 million tonnes, according to a 2019 report from the World Economic Forum (WEF). As reported

by Reuters, half of all e-waste is made up of personal devices such as computers, monitors, smartphones, tablets, and TVs, with the remainder comprising larger household appliances as well as heating and cooling equipment.

By Romanita Oprea als and products and keep them in use for as long as possible. This way, the life cycle of products is extended. In practice, it implies reducing waste to a minimum. When a product reaches the end of its life, its materials are kept within the economy wherever possible.

These can be productively used again and again, thereby creating further value.

This is a departure from the traditional, linear economic model, which is based on a take-make-consume-throw away pattern.

This model relies on large quantities of cheap, easily accessible materials and energy. Still, according to the European Parliament, part of this model is also planned obsolescence, when a product is designed to have a limited A call for responsibility

G

lifespan in order to encourage consumers to buy it again. The European Parliament has called for measures to tackle this practice.

Measures such as waste prevention, eco-

lobally, around 20 percent of e-waste

carbon emissions, environmental damage,

is recycled. Even in the EU, the top

and human rights problems often associated

design and re-use could save EU companies

region by recycling rates, this rises

with mining.

money while also reducing total annual

to only 35 percent. Illegal or unregulated e-

The WEF report demonstrates the im-

greenhouse gas emissions. Currently, the

waste can end up being pulled apart manually

portance of a more circular economy-based

production of materials we use every day ac-

by poor workers in developing countries, who

approach to e-waste, where products or the

count for 45 percent of CO2 emissions. Mov-

are then exposed to health problems from

materials they contain are kept in use for

ing towards a more circular economy could

toxic materials. Metals like gold, copper, and

longer. But what is the circular economy? It’s

deliver benefits such as reducing pressure

nickel in products such as mobile phones,

an economic system that tackles global chal-

on the environment, improving the security

laptops, and TVs are worth around USD 62.5

lenges like climate change, biodiversity loss,

of the supply of raw materials, increasing

billion, three times more than the annual

waste, and pollution. Most linear economy

competitiveness, stimulating innovation,

output of the world’s silver mines. There is

businesses take a natural resource and turn it

boosting economic growth (an additional 0.5

100 times more gold in a tonne of mobile

into a product which is ultimately destined to

percent of gross domestic product), creating

phones than in a tonne of gold ore, the WEF

become waste because of the way it has been

jobs (700,000 jobs in the EU alone by 2030).

report notes.

designed and made. The circular economy is

Consumers will also be provided with more

a model of production and consumption that

durable and innovative products that will

in unwanted electronic products would also

involves sharing, leasing, reusing, repairing,

increase their quality of life and save them

remove the need to extract more, cutting

refurbishing, and recycling existing materi-

money in the long term.

Finding ways to reuse materials contained

www.business-review.eu Business Review | September May 2016 2021

SUSTAINABILITY COVER STORY 14 29

LAWS AND ORGANISATIONS

was transposed by Romania in 2011 and was

various places across the country, in partner-

On January 1, 2021, a new law in France

recently revised entirely. “The mechanisms

ship with local public authorities and local

asked companies that produced electronics

involved in implementing the concepts and

waste operators. In order to deliver the mes-

to publish repairability indices and repair

the roles of each player in such systems are

sages targeting each population group, we

manuals. France is the only country in Europe

in the process of being adapted to market

have built partnerships with opinion leaders

with such a law in place, its purpose being

realities. The main benefit we should get

who helped us reach our objectives. And to

to ensure a longer period of life for electron-

from using these concepts – waste collected

improve waste sorting at the point of waste

ics and to reduce e-waste levels. The criteria

separately and directed to sorting plants to

generation, we have developed our own

behind repairability indices were chosen after

be converted into secondary raw materials,

collection containers that we provide to the

intensive research and now consumers can

quantified by the volumes of these resulting

public for free,” Pocol added.

easily find out whether a product they are

materials – indicates the degree of implemen-

thinking of buying can be easily repaired or

tation of these concepts in Romania,” said

are adopting good initiatives, it is still not

not if the need arises.

Cristian Pocol. Moreover, he says that even

enough. As Cristian Pocol pointed out,

“There was a time when people would

though there are functioning

keep their electronics or appliances for a long

intermediary bodies between the

time, even more than ten years. Now, after

manufacturing industry and the

two years on average, most people buy new

recycling industry, the dialogue

products, either out of a desire to own the

between the two seems very dif-

latest model, because they believe that older

ficult. Talks regarding treatment

models won’t be able to support new operat-

capacities, treatment costs versus

ing systems or because they won’t bother

revenues from resulting materials

trying to repair them when they malfunction.

and requirements for secondary

Most of the time, the products they already

raw materials for the manufactur-

have would continue to work for a longer

ing industry are not being held

period of time, but instead they end up sitting

at a level that would allow both

unused in the house or get thrown in the

sides to grow. All stakeholders

garbage, polluting the environment, and not

must work on this aspect in order

being properly recycled,” said Cristian Pocol,

to develop a circular economy

president of the Respo DEEE Association.

in Romania. When it comes to

In Romania, there is an organisation called

And, even though some companies

education, figures show a lack

The Coalition for Circular Economy, whose

of knowledge regarding waste

main purpose is stimulating the development

collection among the popula-

of new business models and markets. The

tion. “Everyone is talking about

association wants to promote the EU’s recom-

it, but very few people actually understand

manufacturers should be more aware of the

mendations regarding green acquisitions

the underlying issues and act responsibly.

waste implications and adapt their operations

(Buying Green Handbook), carry out studies

The environmental impact of waste that is

in order to facilitate the work of all stake-

and research regarding the handling of waste

not treated properly can be difficult to assess

holders once the products have reached the

and tracking the results, sign partnerships

and show to the public. And the fact that

end of their shelf life, by developing their

with national and international organisa-

this approach leads to a loss of raw materials

products in a more sustainable manner,

tions with the purpose of implementing

that are no longer found in nature remains

designing products in such a way as to allow

programmes regarding the circular economy,

undiscussed. We are aware of the figures used

repairs, manufacturing products in a way

organise and take part in industry events in

in various EU countries, but we have to adapt

that facilitates the separation of materials

order to gather know-how and present best

them to the Romanian reality, to our popula-

(secondary raw materials) in the treatment/

practices; communicate with local and central

tion’s education level, and to their access to

recycling plant, etc. “Producers need to track

authorities and with special commissions in

the waste collection network,” Pocol said.

their own products after they are released and

the Romanian Parliament, take the lead in

The Respo WEEE Association is only active

sold on the market, and make sure they end

creating a legal environment in which the

in the field of waste of electrical and elec-

up in a collection site and later in a treatment/

circular economy can develop and grow, etc.

tronic equipment (WEEE). Throughout the

recycling facility. Given the fact that only 20

According to Cristian Pocol, the notion

organisation’s two years of operation, it has

percent of the products in the WEEE sector

of the circular economy is difficult to define

managed to make itself well-known through

are declared as waste and end up in the waste

and translate into legislation. It is a natural

targeted messages delivered via audio-visual

stream, I think there is still a lot of work to be

follow-up to the concept of Extended Pro-

media at a national and local level. “Each year

done before this figure improves,” the RESPO

ducer Responsibility, a national policy that

we organise waste collection campaigns in

DEEE Association president concluded.

www.business-review.eu Business Review | September 2021

30 ADVERTISING

The road to unconventional advertising in 2021 The myriad of adverts bombarding consumers every day has made people virtually immune to commercial messaging. This is why advertisers are trying to find new, alternative, and creative ways to reach customers.

By Romanita Oprea to be unexpected and catch people off guard, in places and situations where they aren’t expecting to be targeted by ads. Furthermore, unlike traditional ads, unconventional ones don’t use persuasive messages designed to convince the audience to buy, but rather address the customer’s subconscious by building memorable images that stick in the consumer’s mind for a long time.

According to Web Market Media, unconventional advertising means that any space with a certain level of visibility, whether static or mobile, can become the carrier of an advertising message. What makes it unconventional? It’s either the space being used to promote the message or simply its form of production. Anything that departs from traditional communication media and anything that Adrian Diac, Ogilvy Romania

T

surprises us due to its location, format or idea can represent unconventional advertising.

hroughout the years, the idea of

er, they consider these strategies to be part of

DIGITAL AND TECHNOLOGY DRIVEN

an unconventional marketing or

the larger category of stealth marketing. For

Adrian Diac, creative director at Ogilvy Ro-

advertising campaign has evolved,

Pavel and Catoiu (2009), the unconventional

mania, says that unconventional has become

especially around the amount of technology

advertising category includes the following:

interlinked with technology. It is a game

that was being used to reach a campaign’s tar-

elevator advertising, taxi advertising, bath-

of spotting the right technology in order to

get. From guerrilla marketing and flash mobs

room stall advertising, mirror advertising,

deliver a powerful message. “Each tech hit

to geofilters or from using the environment as

aerial advertising, ambient advertising, body

immediately turns into a platform for creativ-

the unconventional element (sky/coffee cups/

advertising, and graffiti advertising. This area

ity and, of course, our industry is at the fore-

lifts/escalators, etc.) to today’s TikToks and

changes constantly in the pursuit of new ways

front of exploring these platforms. We did it

NFTs, unconventional has been evolving in

to break through the advertising clutter. Tech-

with the Sound Codes of Romania project for

terms of both the messaging and the means

nology and the digital realm are playing huge

Globalworth, where we linked Spotify to tra-

of expression and interaction. And if we were

roles in changing it and allowing it to keep up

ditional carpet design, delivering a surprising

to take a look at the field’s specific literature,

with reality.

experience. People could practically listen to

we would find that Kaikati and Kaikati (2004)

In a world where every consumer is suffo-

traditional sound codes of Romania by simply

identified six main types of unconventional

cated by commercials that all sound and look

accessing a QR code placed on these carpets,”

advertising techniques: viral marketing,

alike, unconventional advertising is a breath

Diac explained.

brand pushers, celebrity marketing, bait-and-

of fresh air, delivering messages in unexpect-

tease marketing, marketing in video games,

ed forms that usually entertain viewers. In

advertising is mostly digital nowadays, due to

and marketing in pop and rap music. Howev-

fact, unconventional advertising is supposed

the important role mobile phones play in our

In Andreea Timofte’s view, unconventional

www.business-review.eu Business Review | September May 2016 2021

COVER ADVERTISING STORY 31 14

lives and the easy access to mobile internet.

attention and stay true to its name? For

and interactive. On the other hand, are clients

Brands that are looking to approach custom-

Adrian Diac, the entertainment factor has

willing to invest budgets in unconventional

ers in a special way today will almost always

to be the focal point of audience engage-

techniques, in innovative and surprising

think about reaching them through their

ment. And he may have a point, as consum-

campaigns? Or has the pandemic changed

phones. “From this point onwards, the power

ers are asking to be entertained every step

their priorities? Timofte says that during the

of IoT (internet of things) in our lives will add

of the way. “Consumers are numb to digital

pandemic, a lot of brands decided to put their

to the advantages of taking a digital approach

advertising. We sat in front of screens, locked

communication efforts on hold. And that is

banner ad, web users were taken to a branded

in our homes, for most of 2020. Brands need

why the two categories of ads that did well

website built solely around a hunger/typo

to think beyond this go-to media format to

in this period were retail and telecom, and

message. The campaign didn't sell the candy

re-engage with their customers in unique

they were mainly focused on financial results

bars directly, but it had 558,589 impressions

ways. Out-of-home advertising will be a very

and less on the wow effects. It’s true though

on various misspellings in just two days.

effective format to achieve this once the

that some new categories, being uplifted by

vaccine is available, as people will be rushing

the context, are more interested in surprising

technology, as all of us have. As we spend

outside and will be more aware of their sur-

customers.

several hours a day on our smartphones, it

roundings,” said Skye Suttenfield, managing

is obvious that we have to be there, offer-

director of Seen Media Group, for Forbes back

clients are not investing large budgets in un-

ing experiences and entertainment, taking

in 2020.

conventional. “Most of the time, innovation

for most projects. Ten or fifteen years ago, it was enough to put a special 3D production in the centre of Bucharest to get a wow effect. These days, such a project requires an internet connection in order to interact with customers via their mobile phones and offer them something more, even if it’s just information,” the general manager of Motion Vision Communication explained. How much have digital and technology changed unconventional advertising and offered new ways of exposure/creativity/innovation? “Technology and the internet are always in customers’ pockets, so there are plenty of touch points where advertising can interfere in customers lives. As such, brands are choosing to have a higher number of less intensive touch points with their prospects. Nonetheless, innovation will bring new ways of connecting things around us. A few years ago, we couldn’t think that the fridge door could be used as a digital ad display,” Andreea Timofte said.

Anything seems to be possible in the digital world – just take a look at the Snickers AdWords Campaign, which was based on misspelled keywords. The ad copy based on the same concept helped the brand connect with their audience in a humorous way. As pointed out by Social Media Today, upon clicking the

“Advertising has become dependent on

advantage of new tech, and interacting with

“An unconventional campaign must have

Ogilvy’s creative director agrees that

comes up as a creative idea that needs to be

audiences more and more,” Ogilvy’s creative

a strong experiential approach, with at least

explained, sold to the client, and implement-

director added.

a minimal digital component,” Andreea

ed. It is a difficult process that requires lots of

Timofte argued. Experiential marketing

meetings, persuasion, and trust. In the best

EXPERIENTIAL AND ENTERTAINING

means involving the audience in the event

and most successful cases, the client and the

So what should an unconventional adver-

or campaign and it produces great results,

agency come together to make these projects

tising campaign look like these days to get

because it creates something that’s immersive

happen,” Adrian Diac argued.

www.business-review.eu Business Review | September 2021

32 TECH

5G adoption: Over 580 million subscriptions expected by end-2021 For more than 18 months now, the world has faced a crisis on a scale that defies belief.

As countries around the world deal with different phases of the COVID-19 pandemic, it is clear that technology, and more specifically connectivity, increasingly supports many aspects of our everyday lives.

By Aurel Constantin

5G subscription uptake is expected to be faster than that of 4G following its launch in 2009

T

that tirelessly continues to drive innovation

all service providers are now offering fixed

and bring new technology to the market. So

wireless access (FWA) services speaks to this

far, more than 160 communications service

need. As societies plan a return to a more nor-

580 million 5G subscriptions by the end of

providers have launched 5G services and

mal situation after the pandemic, the need to

2021. Currently, northeast Asia has the high-

over 300 5G smartphone models have been

secure and invest in high-quality digital infra-

est 5G subscription penetration, followed by

announced or launched commercially, ac-

structure should be on everyone’s agenda as

North America, Gulf Cooperation Council

cording to the most recent Ericsson Mobility

a key component of economic recovery. It’s

countries, and western Europe. In 2026, it

Report.

a good thing, then, that the industry able to

is projected that North America will have

deliver on that need is already on its way to

the highest share of 5G subscriptions of all

doing so.

regions, at 84 percent.

we look at development on a regional level,

SERVICE PROVIDERS SWITCH TO 5G

faster than that of 4G following its launch in

where it is clear that it will take longer for 5G

Despite the uncertainty caused by COVID-19,

2009. 5G subscriptions are estimated to reach

to be deployed and ready for mass adoption

service providers are continuing to switch

1 billion two years earlier than 4G subscrip-

in some regions of the world. Nevertheless,

to 5G, with more than 160 having launched

tions did. Key factors include China’s earlier

he speed of 5G uptake is far higher

whether it’s 4G or 5G, the need for good,

commercial 5G services. 5G subscriptions

than it was for 4G, let alone 3G, and

high-speed connectivity is virtually limitless.

with a 5G-capable device grew by 70 million

it is one more sign of an industry

Before the end of this year, the world will have surpassed half a billion 5G users.

The fact that more than 70 percent of

during the first quarter, to reach about 290 million.

It is estimated that there will be close to

5G subscription uptake is expected to be

However, the picture is more nuanced when

www.business-review.eu September Business Review | May 2016 2021

COVER STORY TECH 33 14

engagement with 5G as well as the timely

today, with a total of around 8 billion. The

than doubled since the first measurements in

availability of devices from several vendors.

report estimates that this figure will increase

December 2018.

By the end of 2026, Ericsson forecasts

to 8.8 billion by the end of 2026, of which

The 5G device ecosystem continues

3.5 billion 5G subscriptions globally, ac-

91 percent will be for mobile broadband.

to evolve rapidly and outpace historical

counting for around 40 percent of all mobile

The number of unique mobile subscribers

developments in previous cellular technol-

subscriptions at that time. 4G will remain

is projected to grow from 5.9 billion in Q1

ogy generations. 5G adoption is growing in

the dominant mobile access technology by

2021 to 6.5 billion by the end of the forecast

momentum for both the network and device

subscription over the forecast period. During

period. Smartphone penetration continues

segments: over 300 5G smartphone models

tions. India had the most net additions (+26

to rise, and subscriptions associated with

have been announced or launched commer-

million), followed by China (+6 million) and

smartphones account for about 76 percent of

cially and global smartphone shipments are

South Africa (+2 million).

all mobile phone subscriptions.

expected to grow 7 percent year-on-year in

Q1 2021, 4G subscriptions increased by approximately 100 million, exceeding 4.6 billion, accounting for 58 percent of all mobile subscriptions. It is projected to peak during the year at 4.8 billion subscriptions before declining to around 3.9 billion by the end of 2026 as more subscribers migrate to 5G. The net addition of mobile subscriptions was quite low in Q1 2021, at 59 million. This is likely due to the pandemic and its associated restric-

At the end of 2020, there were 6 billion

2021, despite a temporary shortage of semiconductors.

SERVICE PACKAGE TRENDS

smartphone subscriptions. This number is

Service providers are continuously adapting

forecast to reach 7.7 billion in 2026, which

their service packaging towards consumers.

will account for around 88 percent of all mo-

to decline, with retail prices supporting low

In addition to offering significantly higher

bile subscriptions at that time. Subscriptions

and medium frequency bands under USD 250

speeds, 5G subscriptions often contain larger

for fixed broadband are expected to grow by

outside China and USD 400 for devices with

buckets or even unlimited data. As this drives

around 4 percent annually through to 2026.

mmWave support in the US, while 5G stand-

up usage, providers are also including limita-

FWA connections are anticipated to show

alone (SA) continues to evolve as more mar-

tions, albeit soft ones, as a means to improve

strong growth of about 20 percent annually.

kets enable it with 5G-native voice over NR

monetisation. Daily allowances for unlimited

Subscriptions for mobile PCs and tablets are

(VoNR) services, support for network slicing,

packages are appearing, with an option to

expected to show moderate growth, reaching

and dual connectivity using an NR anchor

increase the allowance in increments of a few

about 450 million in 2026.

carrier (NR-DC), allowing use of mmWave spectrum in SA networks.

GB at no cost, through a simple text message.

Many service providers are also introduc-

Furthermore, 5G device pricing continues

ing terms and conditions against the use of

OVER 70 PERCENT OF SERVICE PROVIDERS NOW OFFERING FWA

SEMICONDUCTOR CRUNCH

various IoT devices together with these pack-

The COVID-19 pandemic is accelerating

The device industry has navigated the effects

ages, as well as capping usage within family

digitalization as well as increasing the im-

of COVID-19 on semiconductor availability

and share plans. Service-based packages,

portance of, and need for, fast and reliable

quite well so far, despite worries due to the

such as music and video passes, have been

home broadband connectivity. In many cases,

significant impact the shortage had on the

steadily growing in number over the past few

FWA is the quickest alternative to meet this

automotive industry in 2020. Most vendors

years.

demand.

have been able to secure their share of base-

A new addition to this segment are gaming

In April 2021, for the fifth time, Ericsson

band and radio frequency (RF) components,

passes. These packages, sold as add-ons to

updated its study of retail packages offered

indicating that any impact on the device

regular buckets, are appealing to gamers by

by service providers worldwide. Out of the

industry will be limited and the projection

promoting 5G and low-latency experiences.

311 service providers studied, 224 had an

of approximately 500 million 5G-capable

Either the traffic is zero-rated or a certain

FWA offering, which represents an average

devices could be delivered in 2021. This is

number of usage hours or GBs are set aside

of 72 percent globally. Providers’ adoption of

equivalent to 35-45 percent of all devices

for the packages.

FWA offerings has increased by 12 percent-

shipped globally being 5G-capable, albeit

age points over the last six months and more

with strong regional differences.

Mobile subscriptions are also on the rise

www.business-review.eu Business Review | September 2021

34 GAMING INDUSTRY

Gaming industry already bigger than film and music The gaming industry is poised for another round of exceptional results, even though lockdowns and other restrictions have been lifted in much of the western world. Last year, pandemic boredom nudged older generations to rediscover games, while younger people spent even more time on their consoles.

By Aurel Constantin “Looking at the games that have grossed the most so far this year, Activision’s Call of Duty Black Ops: Cold War comes out on top.

Activision Blizzard, which is also the home of World of Warcraft, Diablo, Overwatch, and Candy Crush, had a good earnings call this month, with strong revenues of USD 2.3 billion and EPS (earnings per share) of USD 1.2, which was USD 0.29 above expectations and increased guidance for next quarter. But the company is in the middle of a labour scandal and it has been sued by California authorities, which are accusing the company of fostering a ‘sexist culture.’ As a result, several top officials were let go, including Diablo 4 game director Luis Barriga and lead designer Jesse McCree, raising some concerns about this highly expected game’s release path,” says Bogdan Maioreanu, eToro analyst and market commentator.

AAA TITLES Electronic Arts is the home of very wellknown franchises like FIFA and Madden The consoles segment is essentially a three-way competition, but the market is much more diverse on the games side

A

lready bigger than film and music combined, the global gaming indus-

NFL, Apex Legends, Sims, Battlefield, and F1- Formula one racing. The company, which has over 1,500 employees in its Romania

2020, according to a survey by NPD Group.

While the Xbox was the best sold console

studios, posted very good Q1 2022 earnings, with bookings of over USD 1.34 billion – 4

in terms of dollars in June, Sony’s PlayStation

percent less than last year, but beating con-

cades and is on track to hit USD 200 billion in

5 came on top in July. Nintendo was again

sensus, with EPS (earnings per share) of USD

sales in 2023. While the industry did benefit

number one in terms of the number of units

0.71, beating guidance by USD 0.32. EA also

from the extended lockdowns, its expansion

sold.

announced new sports games, with Madden

try has been growing rapidly for de-

preceded the pandemic and the high growth

The consoles segment is essentially a

22 to be launched later this month and FIFA

three-way competition, but the market

22 expected at the end of September. The new

is much more diverse on the games side,

Battlefield 2042 (release date 22.10) raised

cans spent USD 33.5 billion on video game

whether we’re talking about console, PC or

great interest from players, with trailers gen-

content, hardware, and accessories, a 14 per-

mobile games. Even Netflix is adding gaming

erating more than 210 million views across

cent increase compared to the same period of

now, opening yet another revenue stream.

multiple channels.

trend is likely to continue for many years.

In the first seven months of 2021, Ameri-

www.business-review.eu Business Review | September May 2016 2021

But gaming is not always about exclusivi-

GAMING COVER INDUSTRY STORY 14 35

the important metrics is the rise in the num-

Mobile gaming accounts for the largest

ties and AAA titles. A new trend is emerging,

ber of users over 13 years old, by 29 percent

share of revenue generated by the Chinese

namely the metaverse that can be defined

y/y. Roblox is planning to show premieres on

gaming market, amounting to USD 35 billion

as a persistent collective 3D virtual shared

its platform in the fall, starting with the Ba-

in 2020 after growing by an estimated 26 per-

space. We are still far from the Ready Player

kugan anime franchise. It has already hosted

cent from 2019’s USD 27.6 billion revenue. In

One type of metaverse, but there are several

music releases, with hip-hop artist KSI's

the 2021-2025 period, mobile gaming revenue

applications bringing such experiences to

recent virtual launch party.

is projected to grow at a CAGR of 10.1 percent, reaching USD 61 billion by the end of the forecast period.

In 2021, mobile gaming revenue is projected to increase a further 17.6 percent to reach USD 41.5 billion.

This gives mobile gaming an 84 percent share of China’s total gaming market. By comparison, the segment with the next largest share, online games, will only amount to USD 5.6 billion in 2020.

players. The best known is probably Mine-

According to the eToro Investor Beat

In terms of revenue growth, gaming

craft, but also Dreams on PlayStation, Rec-

survey, 45 percent of surveyed Romanian

networks overtook mobile games for the

Room, GTA Online, Second Life, and Roblox.

investors were planning to invest in compa-

first time in 2020 when the gaming network

nies involved in the digital transformation of

segment grew by 28.3 percent. In 2021, the

KIDS PLAYING ROBLOX

our lives. Investors who are interested in the

gaming network segment is projected to grow

Over half of US kids under 16 played Roblox

gaming industry can invest in the diversi-

a further 18.3 percent, the highest of all seg-

in 2020. Roblox is a metaverse that’s different

fied InTheGame portfolio on eToro, a fully

ments. China had 737.7 million video game

from anything else in the gaming industry be-

allocated themed investment portfolio that

users in 2020, after increasing by 13.8 percent

cause users are not only playing games; they

includes 30 large gaming companies.

from 2019. In 2021, the number of video game users is projected to increase by a further 5.7

are also making games and earning money

percent to reach almost 780 million. Mobile

from sales of in-game items, transforming

OVER 700 MILLION GAMERS IN CHINA

some creative kids into early tech entrepre-

Mainland China is the world’s most

neurs. Currently, the official website boasts

robust gaming market and it

that its users have published over 20 million

will further solidify this

games on the platform and that Roblox paid

position in 2021 as it ap-

USD 329 million to the creators at the end of

proaches an important

2020.

milestone. The coun-

the world’s leading

try’s video game

gaming market has

Roblox Corporation went public in March

game users are expected to account for 72.3 percent of total video game users (563.7 million in 2021).

“China’s position as

this year and posted its second quarter

market is expected

been well-estab-

results recently, falling short of expectations

to generate USD 49.3

lished for some time

on bookings and profitability. The company

billion in 2021, reach-

showed bookings having risen by 35 percent

ing the USD 50 billion

y/y to USD 665.6 million, as losses widened to

mark sometime in 2022,

USD 140.1 million, worse than analysts were

when revenue is projected

expecting. Revenue increased by 127 percent

to grow to almost USD 56

over Q2 2020 to USD 454.1 million. However,

billion. China’s gaming market is

user numbers and engagement reached

projected to grow at a Compound Annual

vances in cloud gaming, ensuring that they

record levels, with average daily active users

Growth Rate (CAGR) of 9.63 percent in the

will continue to be primary growth drivers

(DAU) jumping by 29 percent to 43.2 million.

four-year period from 2021-2025, reaching

for the entire Chinese video game industry

Users spent a combined 9.7 billion hours on

USD 71.2 billion by the end of the forecast

for years to come,” said Rex Pascual, eSports

the platform, a 13 percent increase y/y. One of

period.

editor at Safe Betting Sites.

now, and it has been consolidated by the pandemic. The growth of the mobile gaming and gaming networks segments will only continue alongside ad-

www.business-review.eu Business Review | September 2021

36 BOOKS

Audiobook platform joins Romania’s digital landscape Echo is the first Romanian platform to offer thousands of audiobooks in Romanian and English, all in one place. The entire user experience is based on simplicity, with easy access through mobile and tablet apps and a monthly subscription model. Business Review talked to Radu Nicolau, the general manager of Echo, about the challenges of launching the platform.

By Oana Vasiliu you’ll find on Echo are professionals with years of experience on stage or on the radio.

Usually, when preparing for a recording, we first look at what type of voice would best fit that particular book – whether it should be a feminine or masculine voice, a stronger or softer voice, as well as many other factors. A children’s book requires a completely different voice than a thriller, for example. After going through this process, we listen to samples from our portfolio or look for new ones to make sure we deliver the best experience for each audiobook. You will find familiar voices on Echo, including Romanian actor Andi Vasluianu or radio host Bogdan Serban.

Do you have any estimation of today’s local audiobook market?

We do not have a clear estimation at this point as this market is only now starting to take

How did you come up with the idea for Echo, considering the fact that several audiobook platforms were already established on the market?

How has the market - both publishing houses and users - responded to your services?

shape. Sure, some publishing houses have

Publishing houses have been our biggest al-

a market you need to have multiple parties

The idea behind the Echo platform is the

lies and we want to thank all of them, whom

engaged, such as dedicated distribution

result of a rather spontaneous discussion

we now call partners and without whom we

services, content producers, etc. All of these

that took place in early 2020 between two

wouldn’t have had all these amazing audio-

have started to happen over the past months

entrepreneurs with editorial and tech back-

books on Echo. There was a joint effort and

and we are confident that the audiobook

grounds. The book market had already started

I think that both sides are now happy to see

market will consolidate soon. And, of course,

its digitalization process and audiobooks

the positive feedback we receive from readers

we hope Echo will be a major player.

were clearly the next big step. With that in

daily. We hope more publishing houses be-

mind and in the pandemic context, which

come our partners so we can grow our library

showed everyone how important it was to be

and make more readers happy together.

Do you believe there is a civic duty inherent in the act of reading?

digitally present, Echo started its journey. The

As for our users, we hope Echo will have a

There are a lot of things that we can call civic

existing audiobook platforms only encour-

definitive role in creating a habit of listening

duty, and a lot of things that one person might

aged us to create Echo because first, we saw

to audiobooks.

consider to be a civic duty while others might

the potential of the audiobook product and

already launched several audiobooks, but I think that in order to define and quantify

not. I think that the act of reading is first a

second, we understood how important it was

How did you choose the narrators?

duty to yourself and it can help you grow,

to have a local platform that was tailor-made

When it comes to audiobooks, the narrator

develop, and gain information. Echo steps in

for Romanian readers.

is extremely important. All the narrators

to facilitate that purpose.

www.business-review.eu Business Review | September 2021

SPORTS 37

SUP: Stand up for water fun Stand-up paddleboarding or SUP has become Romania’s new favorite watersport.

Social media helped out too, with all those amazing photos of people trying out this sport, so young entrepreneurs spotted the opportunity and are now offering this type of entertainment all across Romania, from the seaside to mountain lakes.

By Oana Vasiliu a bit longer before people really understand what SUP is all about. Right now, most people who buy an inflatable paddleboard associate it with a cool new way of taking a swim in the middle of a lake or a little bit offshore, which is good for us, but we still have to teach people a lot of things about this sport,” Tiberiu concludes.

For Razvan Lucian, the CEO of SUP Constanta, SUP popped up when he was searching for a new watersport for himself and his girlfriend. “I started with two boards, one for me and one for my girlfriend, and then we Challenge: try out how nature and watersports can be fun

T

kept buying them for our friends, and afterwards we had the idea of renting them out

he only thing that someone needs

ing year I bought four boards with a friend

in order to enjoy SUP experience is

of mine and started to promote this sport all

an appreciation for nature. “People

over Bucharest and the seaside,” he adds.

and promoting SUP as a sport,” he says.

Social media is important for them too, as they are active on Instagram, Facebook, and

need to be nature lovers to really enjoy a

As for how clients can find them, social

TikTok, but what works even better is word

trip. It is very easy to learn to balance and

media is the key, but what has also helped is

of mouth: clients who tell others about their

the basic paddling technique, but the real joy

the fact that they were the only SUP operators

SUP experiences. “We see an increase with

comes from being in awe of the mountains,

in Romania for several years. “Lots of people

every year that passes, with more people be-

forests, sunsets, birds, and animals while

come back to check out other trips that we

coming passionate about this sport and get-

you are floating upright in the middle of a

do, and some even return to the same trip be-

ting involved by creating courses and rental

lake,” explains Tiberiu Balica, the founder of

cause they enjoyed the vibe so much the first

services throughout the country. At the same

SupAcademy Romania, the first organization

time. We have nine types of SUP excursions

time, sports stores have started to promote

to offer this type of watersport in Romania.

in Romania right now,” Tiberiu notes.

paddleboarding, which helps a lot. It is not

And what’s more, it is not even mandatory to know how to swim.

Tiberiu discovered this sport in 2010 in

But the industry is still in its early stages.

very easy to sell SUP experiences, but the goal

“For 6-7 years we were the only organisation

is not for it to be easy, but to grow this sport

that promoted SUP and now it seems that

together with more and more aficionados.”

Tenerife, Canary Islands. “At the time I had

almost all kayak operators have started to

only tried surfing a few times, so to me this

add SUP to their fleets. A lot of affordable SUP

across this watersport online. He saw a photo

looked like some sort of futuristic version of

equipment has come onto the market and I’m

on Instagram during winter and then bought

this sport,” Tiberiu says. Later, he saw the

seeing more and more people buying it,” he

a board the following summer. “I’m from

first SUP board in Romania at Kazeebo beach,

explains.

Nehoiu and I realised that the Buzau area

a kiting spot, in 2012. “That place became

And there’s more. “People here have a

Auras Mihaiu from paddleX first came

offered no such experiences for tourists, so

my weekend home as I surfed, paddled, and

tendency to buy cheap equipment and use

I started to invest in this business.” Auras

taught others all I knew about that board,

it the wrong way, then pay for a SUP trip

says. He finds clients through social media,

because Dorin and Dodo allowed me to use it

where they can fully immerse themselves in

too, but also through recommendations from

all summer long, I was the only crazy person

a paddleboarding experience. I've seen lots

guesthouses in the region. Auras will be

who seemed to enjoy the paddleboard so

of people riding their board backwards; I tell

hosting a PaddleFest from September 24-26,

much. I got into helping some Bulgarians

them, ‘hey, your board is backwards’ and

where people can camp, enjoy a series of live

organise a SUP contest there, and the follow-

their answer is, ‘Yeah, it's ok’ so it will take

concerts, and practice stand-up paddling.

www.business-review.eu Business Review | September 2021

38 CITY

Cultural calendar Enescu Festival August 28 - September 26, Bucharest

Carl Cox, Nervo, Tiesto, Alan Walker, and many others. 50,000 tickets are available for this

By Oana Vasiliu

iMapp Bucharest 2021 September 18, Constitutiei Square

event.

ArtSafari September 16-26, multiple locations in Bucharest

time of intensifying mass extinction. Launching in Bucharest,

The 2021 George Enescu International Festival will take place

The artistic works of the par-

Romania, the project’s main

in Bucharest and several cities

ticipating teams at iMapp will be

strategy is to focus on locality

across Romania, under the tag-

displayed on the largest projec-

and to engage a web of local

line “History Made with Love”

tion surface in the world – the fa-

and international relations and

celebrating the extraordinary

cade of the Palace of Parliament

narratives, outside the familiar

things people can create when

(23,000 square metres), and tens

contemporary art epicenters.

they are inspired by their love for

of thousands of hearts will vi-

Living Content: Under Pressure

music. It will be a jubilee event

The eighth edition of Art Safari

brate in unison during an electri-

is curated by Adriana Blidaru and

and the longest in the Festival’s

will take place in several loca-

fying evening at the intersection

co-curated by Tatiana Moise.

history, as it will mark 140 years

tions, as follows: Museum Pavil-

of technology and music. The 7th

since George Enescu’s birth and

ion, (Samuel Mützner. Following

edition of the event, the winner

the 25th edition of the Festival.

Claude Monet exhibition curated

of the “AV IN ACTION” category

Tickets might still be available for

by Rodica Marian ; Invited Pavil-

at the AV AWARDS in London

some concerts.

ion (Seduction and Triumph in

in 2020, will celebrate the way

Art. Female artists of Romania;

people are gradually resuming

curatorial team: Angelica Iacob,

their lives, with the theme of the

Ana Maria Maciuca-Pufu, Cris-

video mapping contest (“THE

tina Ionita-Maciuca and Liana

SHOW MUST GO ON”) present-

Ivan-Ghilia); Central Pavilion

ing major fields of contemporary

(Constantin Piliuta. Zenyth Color

society (art, music, sports, edu-

curated by Calin Stegerean);

cation, and tourism) which have

Contemporary Pavilion (Superhe-

the ability to reinvent themselves

roes/Antiheroes. Trends in Roma-

and drive the effervescence and

nian Contemporary Art, curated

dynamism of a life that we have

LP, the artist whose unmistak-

by Raluca Ilaria Demetrescu);

all missed so much.

able voice conquered the entire

SAGA Festival September 10-12, Izvor Park

Collateral Exhibition at Nicolae Minovici Museum (Ecaterina

LP concert September 26, Arenele Romane

planet with the release of the

Living Content Under Pressure September 15 - October 15, Mobius Gallery

hit “Lost On You,” returns to

People are invited to join a new,

Vrana: UnSeen - curated by Feli-

innovative three-day festival

cia Raetzky), Art Safari Kids – art

experience right in the heart of

explained – children can develop

Bucharest, featuring big names in

their creativity by taking part in

electronic music. Bucharest will

art workshops and guided tours;

The project brings together ten

fifth full-length album – the aptly

thus have its own electro-festival

Night Tours – the nighttime expe-

visual and sound artists who

titled ‘Heart To Mouth‘ [BMG/

from now on, with this year’s

rience that includes a guided tour

examine through their practices

Vagrant] – stands out as her most

lineup including John Newman,

of the exhibitions and live music.

narratives of transformation at a

direct statement yet.

perform her third concert in Bucharest. The singer-songwriter lays all her cards on the table every time she creates a record. Her