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
