RENTS IN BIG CITIES REMAIN UNCHANGED DESPITE PANDEMIC-HIT ECONOMY
October, 2020 / Volume 24, Issue 9
www.business-review.eu
6
ROMANIAN COMPANIES CONTINUE TO SCALE GLOBALLY
16
STARTUP INVESTMENTS TO PLAY BIG PART IN ROMANIA’S ECONOMIC RECOVERY
18
REMOTE WORKING SHAPING NEW MODELS AMONG PR AGENCIES
30
A CONFIDENT VIEW OF THE NEXT QUARTER-CENTURY
www.business-review.eu Business Review | October 2020
EDITORIAL 3 REAL ESTATE
• Editorial •
Anda Sebesi
6 Rents in big cities remain
• Editor-in-Chief •
unchanged despite pandemichit economy
COVER STORY
A
Let’s stay healthy
8 A confident view of the next quarter-century
ENTREPRENEURSHIP
ccording to the State of Health in the EU - Romania Country Health Profile report released by the European Commission in 2019, our country spends less on health
than any other EU country, both as a share of GDP as well as in per capita terms. Although health spending has constantly increased in recent years, Romania spent just EUR 1,029 per capita in 2017, less than half the EU average of EUR 2,884. This is even more important in the context of the SARS-CoV-2 pandemic, which puts a lot of pressure on public healthcare. It should be clear for authorities that
18 Startup investments to play big part in Romania’s economic recovery
20 Proptech startups making their way into Romanian real estate market
MACROECONOMY
Romania must improve its healthcare system, including in terms of infrastructure, to cope with the current pandemic as well as future outbreaks. However, having lots of free beds in intensive care units doesn’t necessarily mean that a medical system is better prepared
22 New opportunities in
for epidemics. I recently read an interesting interview with Tunde
the age of big projects
Szabo, a healthcare economist from the European Investment Bank’s life sciences division. Szabo, who was recovering from the coronavirus back in April, talked about the strain the coronavirus has put on hospitals. “Pandemic preparedness isn’t about having more intensive care beds or even unoccupied hospital beds. It is
CITY 34 Entrepreneurs in
an international effort where a flexible team of healthcare profes-
Bucharest defy pandemic to open new restaurants
sionals and equipment must be able to very swiftly go to the place
36 Something old,
where the outbreak happens.”
something new, something bubbly: The potential of wine tourism in Romania
In these difficult circumstances, it is clear that the private medical sector plays a crucial role in consolidating the entire system. This is why we’ve decided to write a cover story about private
38
Cultural calendar
healthcare network Regina Maria, one of the pioneers of the local medical services scene. 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: 58 Stirbei Voda Street, 3rd Floor, District 1, Bucharest, Romania LANDLINE: 031.040.09.31 SALES MANAGERS: Radu Fireteanu, Alexandra Rosca EVENTS MANAGERS: Mara Dragoiu EVENTS & MARKETING 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 | October 2020
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
Auto adspend to drop more than twice as fast as total ad market By Mihai Cristea tion to their supply chains, as lockdowns shut down manufacturing in different countries at different times. Faced with pressure on both supply and demand, car brands cut their ad budgets very sharply when the
Ary Naïm was appointed Regional Manager for Central and Southeast Europe by the International Finance Corporation (IFC), a member of the World Bank Group. Naïm will be based in Belgrade and will oversee operations in Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Slovenia, Kosovo, Montenegro, North Macedonia, Poland, Romania, and Serbia. A French national and a former banker, Ary Naïm has been with IFC for 17 years, having worked for the organisation in countries such as Morocco, the US, the Dominican Republic, Haiti or Mexico.
Cornelia Nicolae is the latest addition to the Fashion House Group team in Romania. An experienced retail veteran, Cornelia became the Retail Operations Director in Bucharest. With 24 years of fashion retail experience, she joined Fashion House Group from Italian fashion brand Stefanel. As Retail Sales Manager for Eastern Europe, she managed the retailer’s operations in Romania, Turkey, Germany, Austria, and Poland, overseeing significant revenue growth across 59 direct stores, seven outlets, and 350 people. page 5
severity of the crisis became clear. The months of April and May had the greatest decline in most markets. Year-on-year declines have since eased, and Zenith expects them to moderate progressively over the rest of the year. The situation is
Car brands cut their ad budgets very sharply
also reflected in Romania – the media budgets for the automotive sector are influenced
Automotive advertising expen-
many, India, Italy, Russia, Spain,
by the health crisis. After a
diture is forecast to shrink by
Switzerland, the UK, and the US,
promising start to the year,
21 percent in 2020 across 10 key
which collectively account for 57
during the state of emergency,
markets, according to Zenith’s
percent of all global adspend.
most customers in the segment
Automotive Advertising Expen-
The spread of the coronavirus
have significantly reduced their
diture Forecasts. That’s two-
and its effect on the global econo-
budgets. However, automotive
and-a-half times faster than
my have left consumers uncer-
adspend is poised to outper-
the decline of the ad market as
tain about their financial futures
form the market in both 2021
a whole in these markets. The
and unwilling to commit to large
and 2022, with 10.5 percent
markets included in this survey
purchases. Car manufacturers
growth in 2021 and 11.4 percent
are Australia, Canada, Ger-
have also suffered from disrup-
growth in 2022.
TotalSoft launches HR Reporting as a Service under an initial investment of EUR 300,000 By Mihai Cristea TotalSoft, one of the leading pro-
port companies in obtaining the
viders of business information
most relevant information related
systems in Central and Eastern
to their employees. The service
Europe, has launched a new HR
is dedicated to HR operational
Reporting as a Service solution
teams, top management, and
(in SaaS mode). The investment
other departments. By creating a
in the new reporting service so
comprehensive reporting applica-
far amounts to EUR 300,000 and
tion that includes the most im-
will increase in the future to sup-
portant KPIs in human resources,
The investment will support companies in obtaining relevant information about their employees
www.business-review.eu Business Review | October 2020
NEWS 5
Electrogrup develops smart urban mobility project in Bistrita By Mihai Cristea Electrogrup, a member of the
Yovav Carmi was appointed President of the GTC Management Board. Carmi has over 26 years of professional experience in finance and real estate and has been working for GTC for 19 years. Upon joining GTC in 2001, Yovav Carmi was initially responsible for financial operations as the CFO in CEE and since July 2015, he had been the COO of GTC.
E-INFRA group, will develop a complex smart urban mobility project worth over EUR 6 million, in association with MIS Grup and Drumserv. The project aims to significantly develop Smart Mobility in Bistrita and includes: turnkey implementation of an adaptive traffic management system; intelligent video surveillance and access control system; an advanced command centre for
People living in Bistrita will enjoy safer and more effective transport
the management of implemented smart systems; a smart
verticals and bring us closer to
traffic, public transport, and the
management lighting system;
the goal of becoming the number
quality of mobility services.
modular bus stations and infor-
one integrator on the Romanian
At the beginning of the
mation panels in stations along
Smart City market,” says Dragos
year, Electrogrup started the
with computers and on-board
Nedelea, Smart City & Telecom
implementation of another
displays in buses. The project
Development Director at Elec-
smart urban mobility project in
also covers the civil works
trogrup.
Piatra Neamt that aimed to upgrade public transport stations,
required for the implementa-
Through this project, people
tion of the above-mentioned
living in Bistrita will enjoy safer
worth over EUR 4.3 million.
systems.
and more effective transport and
In addition, the company has
smoother traffic with less conges-
started the development of a
continuation of our efforts
tion, while local authorities will
smart road traffic management
to deliver integrated projects
be able to easily manage in real
system in the same city, which
that combine various smart
time all aspects related to road
is worth EUR 5.5 million.
“This new step is a great
Jan Zahumensky is the new CFO of Mars in Central Europe. After 5 years as CFO of the Austrian branch of Mars Multisales, he is moving to Prague where he will be responsible for financial management across the four countries included in the Central Europe region: Romania, Hungary, the Czech Republic, and Slovakia. Florin Frunza was announced by MET Groups as the new CEO for MET Romania Energy SA, the Romanian subsidiary of the Swiss-based energy company.
TotalSoft provides companies with the opportunity to track all the stages of workforce management, from business planning of recruitment applications to employment, onboarding, development, evaluation, promotion, and separation. “The development of this reporting service is based on the needs of our clients and was supervised by our HR experts, business consultants, product designers, technical consultants, and managers,” said Radu Ciuca, Head of Business Intelligence at TotalSoft.
Florin Frunza came to MET from OMV Petrom, where he had worked since 2007, having been appointed CEO of OMV Petrom Gas SRL in 2015. Since 2019, in parallel with his CEO duties, he was also Business Development Vice President for Downstream Gas.
www.business-review.eu Business Review | October 2020
6 REAL ESTATE
Rents in big cities remain unchanged despite pandemic-hit economy Almost 14,000 apartments were listed for rent in early September in the largest cities and university centres in Romania. Rent values for these apartments slightly has stagnated or even gone up slightly compared to prior months. By Aurel Constantin II. At the opposite end, there are areas such as Braytim or Unirii Square, where you will pay between EUR 400 to 470 per month for a onebedroom apartment. Lower rent levels are found in Iasi, where prices have remained similar to those recorded in 2019. Areas like Frumoasa, Dacia, Alexandru cel Bun, and Canta are offer one-bedroom apartments for less than EUR 300 per month, while in the Civic Centre, Independence or other ultra-central areas, the monthly asking price is around EUR 400.
IN NEED OF NEW DWELLINGS All the prices above are calculated for old apartment buildings, since those represent the majority of dwellings in these cities. A report by Cushman & Wakefield Echinox shows that only 13 percent of the 9.1 million housing units in Romania were built in the last 30 years. Only 13 percent of all dwellings in Romania are built after 1990, while 87 percent are old houses and apartments
O
There are only three counties where the share of homes built within the last 30 years exceeds the 20 percent threshold: Constanta
ver half of these dwellings were
big institutions going online. This means that
(22.1 percent), Cluj (22 percent), and Suceava
available in Bucharest, according to
demand from incoming students for studios
(21.4 percent). At the opposite end are Teleor-
data collected by imobiliare.ro and
and one-bedroom apartments is lower than it
man (5.6 percent), Hunedoara (5.6 percent),
was in previous years.
and Caras-Severin (4.1 percent), where the
centralised by Analize Imobiliare. As the biggest city in the country, the capital unsurpris-
Cluj-Napoca, a city that needs a lot of new
ingly also has the largest rental market. Those
dwellings to cover its rapidly growing econo-
whelming share of dwellings over 30 years
who are looking for a one-bedroom apart-
my, has around 2,660 apartments listed. The
old.
ment but have a fairly small budget should
average rent in Cluj-Napoca is just slightly
search in areas like Ferentari, Resita Square or
lower than it was in September 2019, but still
homes built between 1990 and 2019 reaches
Alexandriei, where average is below EUR 300
the highest in the country. For a one-bedroom
16.8 percent, with a significant difference
per month.
apartment, the lowest rents can be found in
between the capital city (10.3 percent) and
areas like Floresti, Baciu, Gruia or Dambul
Ilfov county (46.1 percent), a fact that illus-
Rotund, averaging EUR 400/month.
trates the city’s high appetite for expansion
September is usually the month when the rent market peaks, as it’s the period when university students are getting ready for the
Over 2,000 apartments were awaiting new
residential stock is dominated by an over-
In the Bucharest-Ilfov region, the share of
to neighbouring towns, such as Popesti Leor-
new semester. However, 2020 is different, as
tenants at the beginning of September in
deni, Chiajna, Bragadiru or Voluntari. In gross
the pandemic is changing the way universi-
Timisoara as well. Among the cheapest areas
numbers, in both Bucharest and Ilfov, 90,000
ties are delivering their courses, with several
are Freidolf, Traian, Maria Square, and Plavat
residential units have been built over the last
www.business-review.eu October Business Review | May 20162020
COVER REALSTORY ESTATE14 7
30 years. After Bucharest and Ilfov, the largest
for low prices or luxury dwellings in very ex-
lowest prices on the new buildings segment,
residential markets of the last 30 years have
pensive areas. This is not a good situation for
EUR 850/sqm, are found in the city’s suburbs,
been Cluj (77,074 new homes), Constanta
the residential market, but it could be fixed by
while prices in the Astra and Tractorul areas
(66,645 units), Iasi (59,948), Suceava (58,557),
expanding the city limits, with proper infra-
inside the city can reach EUR 1,100 – 1,150 per
and Timis (48,714).
structure and public transportation.
sqm. The most expensive areas are centre, with EUR 1,400/sqm, and Poienii Avenue,
“Despite the constant development of the
with EUR 1,630/sqm.
last 4-5 years, the residential market in Roma-
BRASOV BEGINS EXPANSION
nia remains underdeveloped, with the stock
Brasov’s residential market saw good results
still dominated by old apartments, which
in 2020, with prices and total transactions in-
throughout 2020, with approximately 85 per-
mostly have small surfaces, lack parking spa-
creasing slightly compared to 2019, when the
cent of units sold prior to their delivery dates.
“General absorption rates remained high
Brasov’s residential market is still attractive to investors, even amid a drop in tourism-related occupancy to less than half of 2019 levels. Even so, the potential yield that can be obtained by renting units on the free market can reach 6 percent per year. Brasov has over 25,000 students and perhaps the biggest growth potential in the medium to long term, taking into account all major public investments due to be completed in the future, form the new Brasov International Airport to the PloiestiBrasov highway,” says Razvan Calita, managing partner at SVN Romania | Brasov. The residential sector is one of the most important pillars of Brasov’s regional economy, with yearly deliveries stabilising at a level of approximately 3,000-3,500 units. ces and a low quality of construction in terms
best results in the market’s modern history
Approximately 3,250 new homes could be
of facilities and common areas. In cities with
were recorded, according to a report released
delivered this year in Brasov and its surround-
better economic development, such as Bucha-
by real estate consultancy SVN Romania.
ings, slightly decreasing compared to 2019,
rest, Cluj, Iasi, Constanta, Timis or Sibiu, the
The results recorded by the residential
due to a lower number of permits issued in
new residential share is above the national
sector in Brasov, one of the main regional
recent years, following several legislative
average, but even in these counties there is
residential markets in Romania, is all the
changes.
still enough room for development in order to
more positive as the market was significantly
Over 80 percent of the new residential
improve living conditions. In addition, other
affected by the two months of travel restric-
units are located in the city, while neighbour-
counties such as Bihor, Dolj or Prahova have
tions during the State of Emergency.
ing areas attract the delivery of 600 to 800
positive demographic and macroeconomic in-
However, the total number of transac-
new homes every year – the most developed are Ghimbav, Tarlungeni, and Sanpetru.
dicators and a new residential deficit, so they
tions closed on the residential segment at
have good potential for residential develop-
county level in the first eight months of 2020
ment,” says Mihaela Pana, Residential Agency
increased slightly compared with the similar
sov is represented by units targeting the mass
Partner at Cushman & Wakefield Echinox.
period of 2019, by 0.8 percent, according to
market segment, with projects located in the
official figures. At the same time, transaction
suburbs or on the outskirts of the city and
ing the same problems as they did five or
prices for dwellings located inside Brasov,
prices that can go up to EUR 1,100 per square
ten years ago: a lack of demand due to low
regardless of segment – new or old – or deliv-
meter. At the same time, approximately 32
purchasing power and a lack of affordable
ery date, has increased slightly in the last 12
percent of the new stock targets the middle
land. This means that new residential build-
months, by 2.1 percent.
market segment, characterized by better loca-
But new residential buildings are fac-
ings tend to either be built on the outskirts of cities with small apartments that can be sold
The average transaction price in Brasov reached EUR 1,195 per square meter. The
The biggest share of the new offer in Bra-
tions, bigger surfaces, and average transaction prices of EUR 1,200 per square meter.
8 COVER STORY
www.business-review.eu Business Review | October 2020
A CONFIDENT VIEW OF THE NEXT QUARTER-CENTURY Celebrating its 25th anniversary on the local market this year, REGINA MARIA has been able to maintain its leading position on the local private healthcare sector by focusing on four major development pillars - investments in infrastructure, medical leadership, education, and digital leadership. Operating on a very competitive market, innovating in the corporate subscriptions segment and pioneering some of the most courageous medical interventions have always been at the core of its strategy. Its commitment to meeting the needs of its patients while using state-of-the art technology has made REGINA MARIA a leader of its market segment, who is thus able to confidently look forward to the next 25 years. By Anda Sebesi
www.business-review.eu Business Review | October 2020
COVER STORY 9
A
ccording to State of Health in the EU - Romania Country Health Profile report released by the European Commission in 2019, our country spends less on health than any other
EU country, both as a share of GDP as well as in per capita terms. Although health spending has constantly increased in recent years, in 2017 Romania spent EUR 1,029 per capita on health, less than half the EU average of EUR 2,884, or 5 percent of GDP compared to the EU average of 9.8 percent. The same report says that Romania also spends very little on prevention, with only EUR 18 per person in 2017, or 1.7 percent of total health spending, compared to 3.1 percent in the EU. While plans to reform health care have moved forward in recent years, the process has been perceived by patients and health care professionals as being fragmented and poorly coordinated. More specifically, stakeholders say that policies have been excessively focused on addressing financial issues, at the expense of long-term performance. Political instability has also raised a challenge: since 2009, the country has had 15 different health ministers, which has undermined continuity and led to fragmentation and paralysis in reform initiatives. As for infrastructure, according to the National Institute of Statistics (INS), there were over 63,000 medical units (both public and private) in Romania in 2019, of which 51,000 were located in urban areas and the remaining 12,000 in rural ones. The same source says there were 532 hospitals nationwide, compared to 524 hospitals in 2018. Out of 693 hospitals and medical units assimilated with hospitals, only 344 were large medical units with a capacity of over 100 beds, while 268 were smaller (less than 50 beds). In such a complex context, characterised by a significant lack of infrastructure and investments in the local healthcare system, the role of private health care providers is crucial for improving the population’s access to quality medical services. In addition, it responds to the problems related to the effectiveness of the medical practice in Romania and encourages prevention among citizens, as it is easier and cheaper to prevent than to treat. Medical subscriptions are just one tool launched by private medical players on the local market, and they make a significant contribution to prevention, especially among the active population, who tends to pay more attention to health.
FROM A SMALL OFFICE TO A NATIONAL NETWORK With fierce competition on the private medical services scene, REGINA MARIA had a major contribution to the creation and development of this sector. Founded back in 1995, the private healthcare network is celebrating its 25th anniversary on the local market this year, having been the first major provider of private medical services on the Romanian scene. It all started with a small medical office in the Unirii area of Bucharest, which recorded exponential year-onyear growth as a result of continuous investment, innovation, and a permanent focus on meeting the needs of Romanian patients. “We built our future step by step and I am happy that we’ve managed to become leaders in terms of the quality of our medical services as
www.business-review.eu Business Review | October 2020
10 COVER STORY
well as in terms of our initial vision and strategy, which was based
in Central and Eastern Europe, which has been operational since the
on three pillars: quality medical services, a highly effective national
beginning of this year at the same hospital.
medical infrastructure, and medical subscriptions,” says Fady Chreih, the CEO of REGINA MARIA. Under the tagline “For 25 years we have been investing in the next 25” (“De 25 de ani investim in urmatorii 25”), REGINA MARIA
At the same time, the REGINA MARIA Central Laboratory is equipped with the latest technology available in Europe with all REGINA MARIA labs having an annual capacity of 50 million tests. In addition, in the context of the SARS-CoV-2 pandemic, all five
is one of the longest-lived
REGINA MARIA molecular
investors on the local market,
biology labs have a com-
having made major invest-
bined capacity of 3,400
ments in medical infrastruc-
RT-PCR tests per day, with
ture. Ongoing innovation,
over 200,000 tests having
access to state-of-the art
been provided since the
equipment, and a permanent
beginning of the SARS-CoV-2
focus on training are some
outbreak.
of the main factors that have
As for REGINA MARIA’s
brought it so much success.
current portfolio it includes
In addition, the company
corporate clients, special
has been pushing the pedal
packages for SMEs and
of digitalization in its operations to recognise the fact that technol-
startups, and individual subscribers. “In addition, we are a trustwor-
ogy has become an integral part of our day-to-day lives. “We are in
thy partner to many diplomatic missions in Romania and thousands
continuous development and our main goal is to follow international
of companies which represent 620,000 subscribers. This trustwor-
standards of quality and effectiveness in our field. I think that excel-
thiness makes us even more determined to prove that Romanian
lence in medical services is crucial for the global medical system and
medical practice is at the same level as what expats are used to,” says
we want to permanently improve in order to confirm the beliefs we
the CEO. The company was a pioneer in launching medical subscrip-
had when we started 25 year ago,” Chreih adds.
tions on the local market, hence contributing to prevention among Romanians.
THE ROAD TO SUCCESS IS PAVED WITH BIG INVESTMENTS
In terms of the amount spent on prevention per person, Roma-
Since its inception, REGINA MARIA has invested over EUR 130 mil-
nia recorded the second-lowest level in the EU, only overtaking
lion in the development of its medical system by upgrading clinics
Slovakia. In addition, the report says that in Romania, the preven-
and opening new locations, acquiring high-performance medical
tion component is a low priority in most national health policy
equipment, and training its medical teams. “Most of this investment
programmes, such as those addressing cancer or maternal and child
has come from our reinvested
health, while the focus pre-
profits, and it is also based on
dominantly lies on curative
the thousands of companies
care. Moreover, the popula-
who have contracted medical
tion does not have equitable
subscriptions from REGINA
access to health promotion
MARIA. Our profits stay inside
and education resources.
the country and are utilised
Last but not least, mortality
to further develop the health
from both preventable and
care system,” says Chreih.
treatable causes is very high
As a result, the medi-
in Romania. The country’s
cal provider now has over 4
preventable mortality rate
million patients, it is present
was the fourth highest in Europe in 2016, highlighting
in 20 counties with its own clinics and reaches national coverage through its over 300 part-
the need for effective public health and prevention interventions,
ner locations. “In recent years, we have accelerated acquisitions
while the rate of mortality from treatable causes was the highest in
and investments in order to serve our patients’ interests amid the
the EU. This result reflects the considerable challenges faced by the
constant growth of the private medical sector. We want our services
health system in providing appropriate and timely treatment. Con-
to be available across the country,” adds Chreih. According to him,
sidering this situation, subscriptions are a valid tool developed by
the EUR 60 million the company has invested in medical equipment
private medical players meant to encourage the prevention among
and cutting-edge technology has played a crucial role. It is about
Romanians. As Chreih says, 71 percent of REGINA MARIA subscrib-
the DaVinci robot, which the doctors have used for more than 1,200
ers visit a doctor at least once a year, compared to just 54 percent of
surgeries at Ponderas Academic Hospital, and the first MAKO robot
non-subscribers.
www.business-review.eu Business Review | October 2020
COVER STORY 11
MEDICAL LEADERSHIP AT THE CORE OF REGINA MARIA’S BUSINESS
In addition, we will focus on digitalization, multidisciplinarity, and
One of the company’s main achievements is that it performs com-
explains the CEO of REGINA MARIA.
telemedicine as directions for the future of the health care sector,”
plex surgeries of the sort we’ve only seen in other countries, meeting top international standards and maintaining conditions of maximum
BANKING ON HIGHLY QUALIFIED PROFESSIONALS
safety. “Some of our doctors have been the first in Romania to per-
When it comes to education, REGINA MARIA is involved in training
form groundbreaking surgeries,
and mentoring new gen-
which means they saved pa-
erations of doctors and nurses
tients who had been told they
according to international
had no chance. We have highly
standards. The company wants
trained doctors who train the
to create an environment that
future generations with the
encourages medical profes-
support of the latest medical
sionals to stay in Romania,
equipment,” says the CEO of
which is a crucial endeavour
REGINA MARIA. He also notes
considering that despite in-
that the company has been in-
creases in the size of the health
ternationally recognised for the
workforce over the course of
quality and safety of its medical
the last decade, the Romanian
services, having received 12 accreditations. “It may be just a number, but these accreditations represent a guarantee of the medical act, as evaluated and monitored by remarkable international institutions, which in turn have been
health system is still suffering from shortages of doctors and nurses. The same EU report shows that there were 2.9 practicing doctors per 1,000 population in 2017, the third lowest figure in the EU (the
endorsed by the World
Union average was 3.6),
Health Organization,” adds
and 6.7 nurses per 1,000
the CEO.
population (EU aver-
For example, Ponderas
age 8.5). The migration
Academic Hospital is the
outflows of medical staff
only hospital in the world
seeking better career and
to hold seven interna-
remuneration prospects
tional accreditations, and
abroad have contributed
it has five teams who are
to the development of
qualified to operate the
a domestic shortage of
DaVinci robot. Meanwhile,
health professionals, with
Euroclinic Hospital is the
negative consequences for
sole Center of Excellence
the accessibility of care.
in Romania specialised in
In response to this issue,
minimally invasive gyne-
the government has taken
cologic surgery as well as
measures to try to improve
a Center of Excellence in
retention and increase the
Breast Pathology. Both are
attractiveness of employ-
accredited by the SRC. On
ment in the health care
similar lines, the Baneasa
sector.
Maternity was the first
“In the past 25 years, we
hospital in Romania to be
have been investing in the
accredited by the Interna-
next 25. I strongly believe
tional Joint Commission
that permanently invest-
for quality of care and
ing in the quality of the
patient safety. Last but not least, REGINA MARIA’s Endoinstitute and
medical act and placing the patient at the core of all our actions will
Gastromond clinic in Constanta are two other major business arms
generate the expected results. And this has already been proven in
for the company, offering high-quality medical services on the local
our case. Our goal was – and always will be – to be the best. Over the
market. “In the future, in terms of medical leadership, we aim to get
last 25 years, we’ve succeeded in providing medical services at inter-
an international accreditation for our hospital in Cluj-Napoca and
national standards as well as in training the best teams,” says Chreih.
get more of our physicians recognised as Surgeons of Excellence.
For example, the Surgical Training Institute (STI) at Ponderas
12 COVER STORY
www.business-review.eu Business Review | October 2020
Academic Hospital is used to train specialists in the field of mini-
MARIA, where patients are able to get online check-ups and medi-
mally invasive surgery and operations assisted by robots or endo-
cal monitoring. Currently, the Virtual Clinic is the most complex
scopic devices. It has trained over 2,500 participants so far (2,000
and the only fully integrated medical platform on the Romanian
physicians and 500 students from medical schools in Romania and
market. Medical examinations and tests are saved in the patient’s
abroad). “Without education and investments in training the future
digital medical file along with recommendations and a complete
generations of professionals, we cannot have a high-performing
medical report. The Virtual Clinic can be accessed from anywhere in
medical system,” Chreih argues.
Romania or abroad for examinations, tests results, second opinions,
The European Nursing Academy is the first academic programme
certificates, prescriptions, references, and monitoring of chronic
for nurses and offers a diploma from an
diseases. The platform has already
international university. “Founded in
registered more than 100,000 medical
cooperation with Coventry University
appointments, over 440 doctors, and
from the United Kingdom, our acad-
40 medical specialties. According to
emy provides a three-year programme
Chreih, the patient’s overall level of
in English, similar to the one available
satisfaction reaches 80 percent. “This
to nurses in the UK,” Chreih adds.
is a confirmation of the success of
REGINA MARIA also supports the Royal Club of Physicians to provide
telemedicine,” he adds. As a matter of fact, according to the
specialist training to medical staff
Commission of the European Commu-
within a series of workshops, sympo-
nities, telemedicine could contribute
siums, conferences, hands-on courses
to the improvement of the quality of
or congresses. Furthermore, REGINA
life for Europeans, be they patients or
MARIA offers scholarships to students
doctors, at the same time enabling the
in years 5 and 6 of medical school from
medical system to face current chal-
Cluj-Napoca, Iasi, Targu Mures, Craio-
lenges. Improving access to specialised
va, and Constanta. “We aim to develop
treatment in countries or areas where
the European Nursing Academy and
there are few specialists or where ac-
STI to provide more medical profes-
cess to medical services is otherwise
sionals in Romania with training and
limited and contributing to an increase
experience using the latest technolo-
in the effectiveness and productivity
gies,” says Chreih.
of the health care system are among the main benefits. The same docu-
ACCELERATING DIGITALIZATION
ment shows that telemedicine could
Chreih says that digitalization contin-
have a significant contribution in the
ues to be a priority for the company.
EU economy as a whole. Finally, as the
The aim of REGINA MARIA’s digitali-
European population is getting older,
zation process is to educate patients
telemedicine could improve access to
and allow them to have more control
more frequent medical assistance.
over their own health. “REGINA MA-
The REGINA MARIA website is an-
RIA intends to create generations of
other important digital tool, designed
confident patients who consider their
as a medical educational platform
health to be both a responsibility and
which provides answers to a wide
a priority.” Digitalization also sup-
range of medical questions. Among
ports corporate subscribers, who can
other tools it offers access to three
now implement occupational health
sections: My Account, Ask a Doctor,
services online and benefit from a series of medical facilities for
and the Edu Section. Finally, the mobile app developed by REGINA
their employees. “In addition, the digitalization of our services and
MARIA is one of the most complex apps in the healthcare area. It
communication has allowed us to combine the education pillar with
integrates a series of facilities for patients: medical appointments
empowering patients when it comes to their health. As part of this
and bill payments, facial recognition for authentication and account
initiative, we have developed a series of webinars and online cours-
validation, linking parents’ and children’s accounts, and a chatbot
es within educational health programmes. Companies can now use
for support. Considering that the local healthcare market is very
the HR portal to monitor the status of their subscribed employees
challenging for all players, either public or private, it is clear that an
from an occupational health service perspective,” Chreih notes.
accelerated innovation in the field and a focus on the needs of the
The Virtual Clinic is another example of digitalization at REGINA
patients could give an impetus to the entire sector.
www.business-review.eu Business Review | October 2020
14 FOREIGN INVESTMENTS
Romania’s to-do list after two years of FDI stagnation and 2020 decline Foreign direct investments (FDI) have had a consistent contribution to the modernisation of the Romanian economy over the last 21 years, but they are no longer on the radar of decision makers or large private organisations in Romania today. We hear a lot of talk about entrepreneurship, which is healthy for the economy, but Romanian companies cannot accelerate their growth without any new names appearing on the foreign investors’ map. By Claudiu Vrinceanu of visibility, suggesting that Romania is not very interested in FDI, and providing limited resources to promote Romanian exports.
MORE CREATIVE INCENTIVES Romania currently has two state aid schemes that contribute to the attraction of FDI. The first is the scheme for new (greenfield) investments which has the role of attracting new investments with a major economic impact of at least EUR 1 million, while the second scheme is designed to support investments that lead to the creation of new jobs. Internationally, specialists are discussing how states and communities could rethink in-
I
Romania today does not have interactive online platforms
vestment incentives and seek more cost-effective solutions. Infrastructure subsidies and
n the context of falling FDI in Romania,
these economic indicators, each government
workforce training are just two examples. The
not only is the public sector reluctant
has a strong investment promotion agency
former are usually implemented to increase
to build a strong and proactive institu-
or structure. Let’s take just the example of
the accessibility and attractiveness of a target
tion aimed at attracting investments through
Enterprise Estonia, Invest Lithuania, and
location for investors. This may include the
marketing actions, incentives, and training
CzechInvest, the top award-winning institu-
construction of roads, railways or ports that
specialists in the state apparatus, but neither
tions specialising in foreign investments
are designed to meet the investor’s needs. As
are large private organisations rushing to
in Europe. Solid organisations with tens or
for the latter, if a foreign investment brings
create platforms and promotional projects
hundreds of employees and solid protocol
a new type of operation to the host country,
that could create new strategic investment
and promotion budgets. For comparison,
there could be potential problems with the
opportunities in our country.
the public institutions currently tasked with
supply of skilled labour.
Three economic and governmental priori-
promoting Romanian exports and attracting
ties stand out and should be prioritised in the
foreign investments are three undersized Di-
ONLINE PLATFORMS
coming year.
rectorates: the General Directorate of Foreign
Whether we are talking about the public or
Trade, the Directorate of Tools and Pro-
the private environment, Romania today does
CREATING INVEST ROMANIA, A TRULY CONSOLIDATED GOVERNMENTAL INSTITUTION
grammes for Export Promotion and the Direc-
not have interactive online platforms, with
torate of Foreign Investments, all within the
real-time information about target destina-
Two important indicators we must constantly
Economy, Energy and Business Environment
tions for foreign investors. An English-lan-
look at are the volume of foreign direct
Ministry. The fact that these two important
guage marketplace where all local authorities
investment and the value of the subscribed
areas – exports and foreign investments – are
would publish investment opportunities on a
share capital in new companies with foreign
just parts of small public departments means
monthly basis would increase the chance for
participation, which reflects the attractive-
that the institutions that should promote the
international specialists to generate a “pipe-
ness of the Romanian business environment
internationalisation of Romanian companies
line” of new investments for Romania in the
and foreign investors’ perception. To grow
and attract foreign investors suffer from a lack
coming years.
www.business-review.eu Business Review | October May 20162020
PRIVATE COVEREQUITY STORY 14 15
An overview of private equity in 2020 Confidence among private equity (PE) firms has hit its lowest level since the global financial crisis as a result of the COVID-19 pandemic, but deal-doers these days are more optimistic than they were during the 2008 crisis. By Claudiu Vrinceanu
GOOD NEWS FROM PRIVATE EQUITY IN 2020 Even though the last six months have been Investment funds remain among those most able to cope with a crisis
P
turbulent for all economic actors, who have seen differences in consumer behaviour generated by the pandemic, we have heard good
rivate equity specialists forecast a
enough to take risks,” said Radu Dumitrescu,
decline in market activity and worsen-
Financial Advisory Partner-in-Charge at
ing economic conditions given that
Deloitte Romania.
news from the private equity area. Morphosis Capital Fund I, a PE fund focused on Romanian SMEs, announced the closing of a new investment in Medima
regional economies, which are largely consumer-driven, are expecting significant GDP
DIFFICULTIES IN CLOSING TRANSACTIONS
Health SA, a Bucharest-based chain of
contractions in 2020 amid drops in demand
Some private equity funds have encountered
medical clinics specialised in imagining and
caused by the rise of unemployment.
difficulties either in negotiating and signing
radiology.
The pandemic is creating a buyers’ market,
transactions or in the closing phase in the
Meanwhile, Victor Capitanu and Andrei
with 74 percent of the latest Deloitte CE
case of transactions structured in two stages,
Diaconescu, the founders of the real estate
Private Equity Confidence Survey believing
signing and closing. For example, problems
development firm One United Properties,
that 2020 would be a good vintage. Nearly
appeared during due diligence processes
launched a private real estate equity company
half (45 percent) of them believe vendors
when a virtual database could not be organ-
in Switzerland, in partnership with CC Trust
have decreased their price expectations over
ised or when the due diligence process also
Group, owned by Swiss entrepreneur Claudio
the last six months, and over half (51 percent)
involved an operational analysis. “It was
Cisullo, to invest in the Bucharest real estate
think they will continue to do so. As a result,
problematic to relocate production units in
market.
the share of PE firms expecting make new
Romania as part of a transaction given the
investments in the coming months remains
traffic restrictions imposed at national bor-
period, we can say that thanks to structural
relatively high, reaching 45 percent.
ders. Some investment funds have requested
advantages, investment funds remain among
revaluations of companies in which they
those most able to cope with a crisis, and
most deal-doers also went through the 2008
are interested or have begun renegotiating
their capital and expertise can be pillars that
financial crisis and many of them are well-
payment in installments or on the basis of
support and help relaunch certain economic
capitalised, which can help them navigate
earn-out mechanisms – all choices that have
sectors. Finally, we can expect investment
this period of uncertainty. As any crisis does,
risen among investors’ preferences,” says
funds to take more niche approaches in the
the current one also opens up opportuni-
Alexandra Radu, Partner at law firm Bulboaca
future, depending on the industries that will
ties to those players who are positioned well
and Associates.
have best adapted to the new realities.
“Although they are walking on quicksand,
Despite the inherent difficulties of this
www.business-review.eu Business Review | October 2020
16 BUSINESS
Romanian companies continue to scale globally For many Romanian firms, now is a great time to go further in their global scaling efforts. Four more Romanian tech companies recently announced new internationalisation plans. By Claudiu Vrinceanu nection infrastructure for the banking system to ensure the transfer of funds and interbank settlements. NIBSS processed 1.1 billion electronic transactions in 2019, totalling over EUR 235 billion.
EMAG eMAG has continued its international expansion by diversifying its sales channels and opening a showroom in Sofia, Bulgaria, having opened its first showroom outside Romania in Hungary three months ago. The company is planning to open three more showrooms in the first part of next year. The growing interest from Romanian sellers in taking their products to other markets is also key to the company’s international expansion: in Bulgaria alone, there are currently over 400 Romanian merchants using the constantly-expanding eMAG Marketplace platform thanks to the ease and speed it provides. eMAG facilitates Romanian sellers’ access to new markets through content eMAG has continued its international expansion by diversifying its sales channels
translation services, as well as assistance with product listing.
TAILENT
specialized in software solutions, is accelerat-
DOCPROCESS
Just a few months after securing their first in-
ing its global expansion on the African market
With an established presence in Romania,
vestment round from Neogen Capital, Roma-
through a new project aimed at strengthening
France, Belgium, and Luxembourg, DocPro-
nian startup Tailent started its international
the security of the infrastructure and opera-
cess, a Romanian technology company with
expansion by creating the Tailent Automation
tions of a key Nigerian institution. The new
an international footprint, is now ready for
Platform Studio for robot development and
project marks an important stage in expand-
a new expansion phase as it aims to reach
the Tailent Automation Platform Control
ing the Trencadis brand to foreign markets.
beyond Europe and gain new clients in the
Center for robot management in production
The Romanian company already has opera-
United States. The company has offices in Bu-
environments, both available to clients and
tions and projects in Switzerland, Croatia,
charest, Brasov, Paris, and Grenoble and over
partners all over the world. The Tailent Auto-
Albania, Nigeria, Ghana, and Senegal.
50 employees. The development strategy en-
mation Platform (TAP) offers unprecedented
Nigeria’s new Trencadis project will be im-
compasses a growing market share in France
flexibility, performance, and scalability in
plemented for the NIBSS Nigeria Inter-Bank
as well as further expansion to Benelux
developing and using software robots.
Settlement System (NIBSS), an organisation
countries, followed by the UK and the United
owned by all Nigerian banking institutions,
States. To accelerate this process, DocProcess
TRENCADIS
together with the Central Bank of Nigeria
wants to access new financing rounds from
Trencadis, a Romanian technology company
(CBN), whose mission is to provide intercon-
reputable international investment funds.
www.business-review.eu Business Review | October May 20162020
COVER BANKING STORY 17 14
There is only one way in banking: the digital way Ufuk Tandogan, CEO Garanti BBVA Romania explains the importance of the digitalization process for both the bank he manages and the entire local banking system and highlights the main achievements of the lender in this direction. By Anda Sebesi How would you describe the importance of digital channels in this uncertain period? Social distancing and isolation rules adopted by the Romanian authorities have led to a much higher need for digitalization and digital literacy. In order to maintain a sense of stability and connection to our everyday lives, acquiring and using digital skills has proven to be paramount. Although this pandemic has had a strong impact on humankind, from many points of view (social, economic, politi-
tions in the first half of 2020 by our mobile
million digital clients. BBVA was recognized
cal etc.), it is undeniable that it has brought
retail customers, over the same period of
last year by Forrester Research as the global
the future sooner than expected. I strongly
2019. Moreover, between January and June
mobile banking leader, within the review of
believe that the need and preference for digi-
2020, for the retail customers and all digital
the mobile apps of 54 retail banks across the
tal channels and digital banking will continue
channels - mobile and online, the number of
world.
the upward trend on the long run.
transactions grew with over 23.5%, while the volume of transactions increased with 15.2%,
Speaking of digitalization. How do you think this trend will evolve in the future?
How do you see the influence of this trend in your business?
compared with the same period from 2019.
Garanti BBVA has always been a visionary
What are your long-term plans regarding digital channels development?
period the importance of digital channels
player and we have constantly deployed our resources in order to innovate and bring add-
The success of our digital channels would not
handy solutions. This is why I am confident
ed value to our customers’ lifestyles. There-
have been possible without all the years that
that this trend will continue, not because
fore, we bet on our digital channels - Garanti
preceded 2020, when we invested heavily
people will be afraid of physical contact, but
BBVA Online and Garanti BBVA Mobile - years
and constantly in our platforms, as we believe
because online/mobile banking is so conve-
before their utility appeared as critical.
that there is only one way in banking - the
nient and, above all, safe.
We have observed that this digitalization
digital way. Our strategy is to continue to
trend is strongly present among our clients
invest and develop our digital services, as we
have to continuously improve its facilities,
and all this is confirmed also by the results
see that during these challenging times our
in order to respond to the customers’ needs.
obtained in 2020. Thus, for example, in the
clients prefer our easy-to-use and safe digital
Thus, the increase in demand of digital bank-
first month of lockdown, the number of mo-
channels. In developing the digital channels,
ing adds more pressure to innovate and to
bile banking transactions grew by over 60%
Garanti BBVA Romania relies on the support
speed up the adoption of digital technologies.
over the same period of last year. Further,
and significant know-how of its sharehold-
This is a period when customers want to have
during the first half of 2020, Garanti BBVA
ers. Garanti BBVA Turkey (TGB) has over 8.9
the ability to conduct their entire financial
recorded a 47.7% increase in volume and over
million active digital customers, while Banco
activities, safely and easily, on their mobile
47.4% increase in the number of transac-
Bilbao Vizcaya Argentaria (BBVA) reached 34
phones and desktops.
I believe that people have realized during this and now they know that these are simple and
On the other hand, the banking sector will
www.business-review.eu Business Review | October 2020
18 ENTREPRENEURSHIP
Startup investments to play big part in Romania’s economic recovery With the Romanian economy estimated to grow by 4 percent in 2021, partially recovering this year’s drop in output which is estimated at 6 percent, the entrepreneurial sector could support the growth trend by attracting fresh funding and generating new jobs in dynamic sectors ranging from tech to healthcare and e-commerce. By Ovidiu Posirca
S
tartups’ growth potential will be important across Europe. The economy of the European Union will slip into
recession due to the coronavirus pandemic, lowering its GDP by 8.3 percent this year. In 2021, the EU economy will grow by 5.8 percent, according to Eurostat estimates. In the first half of 2020, venture capital investment remained resilient in Europe despite the economic contraction, but the outlook became rather uncertain as we moved into the second semester. Additional challenges could stem from the ongoing impact of the healthcare crisis and the issues related to Brexit, according to professional services firm KPMG. “Investors doubled down on companies expected to do very well in the short-term due to the impact of the pandemic, including those focused on e-commerce, healthtech, and remote education,” wrote the firm’s analysts in a report.
LOCAL STARTUPS CONTINUE SCALEUP EFFORTS INTO 2021 In H1, the median funding size provided by an angel or seed fund grew to USD 1.1 million, compared to USD 800,000 in 2019, according to the KPMG report. This type of financial support is critical for early stage startups. Gains were also recorded on funding rounds in later stages. Locally, funding conditions are good to support the growth of the startup market in 2021, suggests Vladimir Aninoiu, technology director within the consulting practice at Deloitte Romania. “Nevertheless, investments The capacity of startups to have a major contribution to economic growth is limited
in startups strongly depend on the economic recovery, and a slow recovery will negatively
www.business-review.eu Business Review | October May 20162020
ENTREPRENEURSHIP COVER STORY 14 19
influence investments in tech startups,”
economic recovery, and not just in Romania,
and horizontal/backbone services for online
Aninoiu told BR. He adds that the startup in-
but in other countries as well.
retail.
dustry could boost the share of IT&C services
“The advantage in Romania is that a lot of
in the country’s GDP to above 7 percent. “We
its young enterprises or startups are usually
expect startups to contribute more substan-
either tech firms or companies that signifi-
TOP FUNDING ROUNDS CLOSED BY EUROPEAN STARTUPS DURING THE PANDEMIC
tially to export business than to in-country IT
cantly rely on technology for their business
In the second quarter, the biggest funding
consumption,” says the technology director.
model (e.g. platforms, marketplaces, B2B
deal went to Deliveroo, the London-based
or B2B2C models, etc.). As a result, a lot of
online food delivery startup. The firm got
products and services, capital to grow, good
these companies currently have very good
USD 575 million in a series G round to ex-
technical universities to recruit engineers
and positive
from, a well-designed legal framework to
dynamics
attract investors, and big markets to service.
in terms of
Therefore, their capacity to have a major con-
revenues
tribution to economic growth is limited, ex-
and profit-
plains Cristian Munteanu, managing partner
ability, as
of Early Game Ventures. “Relying on startups
in many
to boost the economy when the country has
cases they
absolutely no history in encouraging startups
have been
and investments is unrealistic,” Munteanu
positively
told BR.
influenced
Startups need time to test their innovative
In 2019, private equity investments in Ro-
by the
mania amounted to EUR 551 million, with the
COVID-19
country recording one of the biggest funding
crisis, with
volumes in Central and Eastern Europe
increased
(CEE), according to an Invest Europe report.
demand for their technologies, products or
pand its engineering teams and enhance its
In fact, PE investments in Romania account-
services through digital channels,” Ghenea
delivery platform. To date, the startup’s total
ed for 0.25 percent of GDP last year, above the
told BR.
funding exceeds USD 1.5 billion.
CEE average of 0.17 percent. Such investment
The wave of business digitalization trig-
Fintech N26 from Berlin secured a USD
firms place bets on promising startups, but
gered by the coronavirus crisis could also
570 million investment to expand to new
they can also fund more established firms
boost some of these tech startups. More firms
markets in Europe, the US, and Brazil. The
will have to invest in
startup’s attractiveness in the eyes of inves-
technology in order to
tors was boosted by the increase in online
upgrade their interac-
payments since the start of the coronavirus
tion with customers and
pandemic.
employees as a result
275 million to continue its work on an on-
place to reduce health
demand electric air taxi service. The startup
risks.
aims to connect cities within a region at a
“Locally, some strong enough startups have
fraction of the cost of traditional infrastructure.
proven they can launch
French startup ContentSquare raised USD
or grow despite the un-
189.1 million to support further investments
certainties of this global
in its core predictive analytics platform. The
health and economic
firm’s product helps brands understand how
crisis,” Dan Mihaescu,
consumers interact with their websites and
founding partner of
mobile apps.
GapMinder VC, told that haven’t gone public.
Elsewhere, Munich-based Lilium got USD
of the restrictions set in
In the UK, Cazoo got over USD 156 million
BR. He cites TypingDNA, FintechOS, and
in an early VC funding deal. The startup
DeepStash as some of the GapMinder-funded
acquires used cars which it sells online and
partner of Catalyst Romania, says that both
startups which will scale up and boost their
delivers directly to the buyer’s home.
during and after a crisis like the current pan-
operations in 2021. The fund will continue to
demic, startups – and young enterprises more
analyse new investments in startups doing
raised USD 10.1 billion from investors in Q2,
generally – have a major contribution to the
machine learning, cybersecurity, fintech,
according to KPMG.
Conversely, Marius Ghenea, managing
All in all, European VC-backed companies
www.business-review.eu Business Review | October 2020
20 ENTREPRENEURSHIP
Proptech startups making their way into Romanian real estate market Startups providing innovative technology keep emerging on the Romanian real estate market, whose investment potential could go north of EUR 1 billion per year. Proptechs can help developers sell their properties more quickly and aid Romanians in renting or buying a home. By Ovidiu Posirca
Right now, there are few proptech solutions on the Romanian market
G
lobally, proptech startups have
5.3 billion, already lower than last year due to
the interaction of multiple parties, including
raised over USD 43 billion since 2012,
the ongoing coronavirus pandemic, accord-
state institutions,� says Vladimir Aninoiu,
according to a Deloitte study. The
ing to data by CB Insights.
technology director within the consulting
future of the proptech sector is promising,
“We are probably seeing a limited number
practice at professional services firm Deloitte Romania.
considering that the field has the same fund-
of such firms in the Romanian economy
ing size as the fintech sector did in 2013, hav-
because the return on investment and profit
ing registered a compound annual growth
margins are limited. Another factor influenc-
rate of 44.8 percent since then.
ing the number of startups in the property
TECH-ENABLED STEADY GROWTH FOR COMMERCIAL REAL ESTATE
sector is that the process of acquiring or
Having just entered the local property mar-
selling properties is complicated and involves
ket, Czech startup Realpad has already inked
In the first eight months of 2020, funding to real estate tech companies reached USD
www.business-review.eu Business Review | October May 20162020
ENTREPRENEURSHIP COVER STORY 14 21
deals with two developers. The company pro-
of demands for most companies in search of
have the critical mass to make these new
vides a platform which residential develop-
office space as well as for potential investors.
technologies prove their value. On the other
ers can use to make their sales process more
“These technologies vary from property
hand, the big players simply can’t adopt too
efficient.
management applications to IoT solutions
many new technologies at once,” Munteanu
for buildings and managers. While this is a
told BR. Right now, there are few proptech
manager at Realpad, says that the market
very attractive type of business, it has a very
solutions on the Romanian market because
potential is significant as there are more than
niche scope and this is why we have not
there is a limited number of people who are
250 active residential projects in Bucharest
seen it developing too much in Romania so
willing to invest time and money into getting
alone.
far,” Marius Ghenea, managing partner of
to know the real estate sector, says Florin
“I can see clear signs that developers are
Catalyst Romania, told BR. He says that real
Stoian, CEO & founder of Milluu, a mobile
starting to realise that innovation can – and
estate developers could become investors in
app for apartment rentals.
will – play a significant role in their future.
such startups through existing or emerging
COVID-19 has shown us that innovative
venture capital funds.
Jakub Licak, business development
companies with digitalized processes had a
This fall, Skanska was set to launch an in-
“Moreover, most players have an antiquated approach to both day-to-day operations as well as overall market behaviour. Therefore,
much better response to the crisis and many
teractive 3D visualisation platform for one of
developing the right solutions for a market
developers are now starting to source new
its office projects in Bucharest based on tech-
that is so hard to change is very challeng-
technologies,” Licak told BR.
nology from proptech startup Bright Spaces.
ing,” Stoian told BR. The entrepreneur argues
Technology is already embedded into the
This was the first major deal inked between a
that the proptech market is still in its early
new stock of office and high-end residential
large property developer and a startup doing
days, so investment funds and developers
buildings on the market. Developers have in-
proptech in Romania.
might need more time to analyse its business
vested in new solutions to make their build-
potential. “Proptech solutions are mostly
ings green and have implemented digital
MAKING PROPTECH WORK ON THE ROMANIAN MARKET
tools to more easily manage the consumption
Startups in the Romanian property sector
who value their time, and want a convenient
of energy and other resources in their proj-
must be aware of the particularities of this
solution for renting, buying or investing in a
ects. Interaction with buildings is facilitated
market. While the commercial real estate
real estate property,” says Stoian.
by smart interfaces and a growing number
segment has a handful of large domestic
of Romanians want their homes to be fitted
and international players controlling major
tion volume of the local real estate market
with smart kits that allow them to control
projects, things are different on the residen-
remains on a steady path this year and might
security or heating systems remotely.
tial segment: there are established players
exceed last year’s result of more than EUR
developing large scale compounds, but also
600 million in closed deals. One deal alone,
sionals have become more accustomed to
smaller investors who may build a couple
involving the sale of four office buildings,
digital tools that enable virtual tours as well
dozen houses or a small number of apart-
has been valued at EUR 294 million. Through
as other platforms that provide location intel-
ment buildings. The local market has a
this transaction, NEPI Rockcastle, who owns
ligence for new investments.
limited absorption power, according to Early
a portfolio of shopping centers, exited the of-
Game Ventures managing partner Cristian
fice sector. The buyer of the office stock was
Munteanu.
AFI Europe Romania, who also has ongoing
In the past few months, real estate profes-
Representatives of real estate consultancy CBRE Romania suggested that it was only a matter of time until green certifications and advanced technologies would be on the list
“On the one hand, small players are not interested in new technologies and don’t
dedicated to people who are open to change,
Meanwhile, the investment transac-
investments in retail and residential projects, aside from its office parks.
www.business-review.eu Business Review | October 2020
22 MACROECONOMY
New opportunities in the age of big projects Romania has been allocated a total of EUR 80 billion through the EU’s resilience mechanism programme and 2021-2027 budget. Most of this large sum will be spent on large infrastructure projects including roads, railroads, hospitals, energy, and urban regeneration. By Sorin Melenciuc projects in Romania, the new contracts will mean that at least 375 km of motorway or expressway will be under construction in 2021 (compared to less than 100 km in 2019), and the financing will mainly come from EU funds. These projects could trigger a bonanza of construction, with large local companies such as UMB, Selina, Arcada, Erbasu, Marcotim or Deme very well placed to secure large contracts and enjoy a golden age in terms of their profits. The main beneficiary of this boom is by far the UMB Group, owned by Dorinel Umbrarescu, called “the king of the asphalt” in Romania. In the past few years, UMB has won some motorway projects and managed them very well compared to other construction companies. UMB is already working on two main projects: the Bacau ring road (31 km, of which 16 km of motorway) and one of the four sections of the Craiova-Pitesti expressway (DX12). But this year, the company has secured many other contracts: one section of A0 (BuThis year, Romania increased its motorway network by almost 25 kilometers
charest Orbital motorway), 3 sections of A3 (Nadaselu-Poarta Salajului), 2 more sections of DX12, the Galati ring road, and the Galati-
HARD WORK
Most experts say that Romania’s construction
Braila expressway. These new contracts could
In fact, Romania is already experiencing a
boom, overtaking regional peers, is a logical
push Umbrarescu’s UMB to become a true
construction boom, despite the Covid-19
consequence of its lack of infrastructure.
engineering champion in Romania and even
pandemic. Construction works in Romania
This year, Romania increased its motorway
in the region, as it has become by far the larg-
rose by 12.2 percent year-on-year in July and
network by almost 25 kilometers – 2 sections
est and best-equipped construction group in
by 18.1 percent in the first 7 months of this
of the Transylvanian A3 motorway – to a total
the country.
year, with the main driver being the engineer-
of 873 km, below Hungary or Serbia. But the
ing works sector (+25.5 percent year-on-year
speed of infrastructure projects seems to
being among the beneficiaries of this boom.
in January-July 2020).
have accelerated this year as the new Liberal
Selina Group, based in Oradea and owned by
government has signed several contracts for
local entrepreneur Beniamin Rus, completed
new projects.
its first motorway section this year as a main
According to the latest Eurostat data, Romania has registered by far the largest increase in this sector among the 27 EU member states – and this deserves an explanation.
But other, smaller groups are also seen as
According to the Pro Infrastructura As-
contractor (a 5.3 km connection between Ro-
sociation, an NGO monitoring infrastructure
mania and Hungary near the city of Oradea)
www.business-review.eu Business Review | October May 20162020
MACROECONOMY COVER STORY 23 14
and has signed another contract for a 28.5 km
(Turkey, Moldova or Ukraine) as well as from
inconvenience as possible during hospitalisa-
section in the western county of Bihor with
southern Asia (Vietnam, Sri Lanka, India or
tion, allowing people to remain connected to
CNAIR, the state-owned company that man-
Nepal). In urban regeneration projects, the
their lifestyles, passions, desire, social lives,
ages the country’s roads.
workforce shortage is even more obvious: the
and even to their work, if their health allows
Other local construction companies
workers laying down new pavement in the
it,” he adds. This highlights new trends in
generally work as subcontractors for larger
central area of Oradea are Italians, as Roma-
hospital projects, with these new ideas hav-
Romanian or foreign companies – such as
nia has very few trained masons.
ing landed in Cluj through a bold partnership with a Spain-based firm. The Pinearq office
UMB, Astaldi, Strabag, Porr, Max Boegl, Pizzaroti or Aktor. But this is only the beginning of a larger,
ARCHITECTURE BOOM IN SIGHT
decade-long boom in the sector. The gov-
But other companies
ernment is now preparing some really big
will profit as well, and
projects that could truly change Romania
that includes architec-
over the next ten years. These include three
ture firms. Public and
trans-Carpathian projects: the Pitesti-Sibiu
private projects need
motorway (sections 2,3, and 4), the Meses
the input of profes-
bridge (a section of A3 motorway with a 3 km-
sionals from various
long tunnel, the largest in Romania), the A8
branches. Romania has
motorway (connecting Moldova and Transyl-
a decent architecture
vania through the Oriental Carpathians) and
school at the European
the A7 – a motorway connecting Bucharest to
level but local firms lack
Moldova.
the know-how needed
When completed, these multi-billion infrastructure projects will allow Romania to achieve a higher goal: becoming a truly
for some of the projects in sight. As an example, major
developed nation. Even if the country’s
healthcare projects are
construction growth is singular in the region,
planned for the next
its neighbours could benefit from it as well.
decade, from large
Romania produces only 20 percent of its
regional hospitals in
needs in bitumen, a ke building material in
Cluj, Iasi, and Craiova
road infrastructure, and the rest is imported,
to smaller urban hospitals or county-level
in Barcelona, managed by architect Alberto
mainly from Ukraine and Poland.
emergency units. But some architects have
de Pineda, specializes in health projects, and
already acknowledged the potential and are
their know-how is already at work in Roma-
URBAN REGENERATION, WORKFORCE SHORTAGE
thus seeking partners abroad in countries that
nia. But Romania will certainly need more
have developed a lot of healthcare projects
such expertise during the next decade, with
Another sector that is now at the beginning of
in the previous decades. In a first, Cluj-based
many other projects planned.
a period of rapid increase is urban regenera-
architecture firm Dico & Tiganas won the so-
tion. Many large cities in Transylvania are
lutions contest for a large new public hospital
1.6 billion will be delivered in Romania, and
already in the midst of large projects targeting
in its home town – the 300-bed Integrated
the current government programme plans a
the creation of pedestrian spaces replacing
Transplant Center – and became the first local
EUR 3.6 billion investment in the construc-
crowded streets, restoring old Secession or
architecture firm to gain expertise in health-
tion or modernisation of local hospitals. The
Art Nouveau-style buildings, creating new
care projects.
project includes 1,450 medical centres, 25
parking spots and cyclist-friendly public
“Hospitals are far from easy to build.
By 2027, three major hospitals worth EUR
county hospitals, and 110 city hospitals – by
roads. Following in these cities’ footsteps,
The functional complexity, the technology
far the largest health modernisation pro-
many more municipalities are already plan-
being used, the requirements related to the
gramme seen in Romania in decades.
ning similar projects, based on EU funds,
multiple flows of people and materials and
which translate into opportunities for local
especially the rapid and continuous evolu-
would trigger a boom in several sectors – in-
and foreign businesses. However, to achieve
tion of medical science and practices make
cluding construction, logistics, transport, and
these goals, Romania must overcome a huge
hospitals the spaceships of the construction
architecture – both in Romania and abroad.
challenge in terms of its workforce shortage.
sector,” says Serban Tiganas, partner of Dico
Such large projects will also generate intense
& Tiganas and co-author of the winning
international competition, so local companies
ers in the Romanian construction sector are
project. “Hospitals must be as comfortable as
should already be making plans if they want
from other countries – both from the region
possible for patients and cause them as little
to receive a big slice of the pie.
Even during pandemic times, many work-
But if all these projects materialised, they
www.business-review.eu Business Review | October 2020
24 ENERGY
Burning gas to turn green: what does the future hold for Romanian gas? Romania’s energy sector will be under pressure from the European Union to become much greener over the next decade, but there is an opportunity to make this process less painful: using gas as a transition energy source. By Sorin Melenciuc
For Romania gas exports could turn out to be a bad choice in the long term
GREEN DEAL
Germany, where Green political groups have
when the European Commission is preparing
Even though the European Commission’s
much more traction, as well as by environ-
to launch the Just Transition Fund, supported
first version of the European Green Deal did
mental NGOs.
through the recovery fund and the EU budget,
“It’s just not explainable to the public,”
to help fossil fuel-dependent regions in the
sources which would be eligible for financing
said German Green party lawmaker Niklas
EU shift to cleaner energy sources. The goal
through EU funds, the European Parliament
Nienass, as cited by Reuters. Experts say
is to achieve net zero emissions by 2050, but
voted on September 16 to allow some gas
that gas emits around 50 percent less CO2
this also implies a tougher 2030 target for
projects to tap into the EU’s green transition
than coal when burned in power plants, but
emission cuts.
fund.
it is also associated with leaks of methane, a
not include gas among the transition energy
In fact, the Parliament decided to back an amendment making some gas projects
greenhouse gas. However, the Parliament decided that EU
TRANSITION ENERGY SOURCE If this European Parliament decision remains
eligible for aid as long as they were located in
member states would be able to access Just
in force, Romania may become a major
coal-dependent regions and complied with
Transition Fund money if they pledged to
beneficiary of this new policy. In fact, the Ro-
the EU’s 2030 emissions target. This decision
become climate-neutral by 2050 – a condition
manian government is already making plans
was welcomed by countries like Romania or
targeting Poland, the only country that has
to capitalise on this policy, as the Eastern
Poland, both with coal-heavy regions, but
not signed up to this EU-wide goal. The Eu-
European country has large gas resources as
criticised by other member states such as
ropean Parliament’s decision comes at a time
well as a chance to secure additional sources
www.business-review.eu October Business Review | May 20162020
COVERENERGY STORY 25 14
from Black Sea offshore projects. These plans
and Gabriel Comanescu’s GSP Power in west-
Hungary-Austria), but it is being blocked by
include two main objectives aiming to use
ern Oltenia. These new projects are important
the conflicting geopolitical options of the
much of the gas locally: new pipeline projects
because they reduce Romania’s reliance on
“partners” involved in the project. In fact,
to connect cities and rural areas to the nation-
coal and allow the government to restructure
Hungary has decided to change the route of
al gas grid and building new gas-based power
the two major coal-based electricity produc-
the pipeline to have it go through Slovakia
plants. The first objective is underpinned
ers (Complexul Energetic Oltenia and Com-
rather than stick with the initial route going
by the low share of households in Romania
plexul Energetic Hunedoara) and shift them
directly to Austria’s Baumgarten gas hub.
which are connected to the gas grid – only a
to cleaner energy. Currently, one quarter of
This choice directly hurts Romania’s goal to
third – one of the lowest rates in the region.
Romania’s electricity output is generated
gain access to western markets through the
in coal-based power plants. This transition
Austrian hub.
“Only 35 percent of Romania’s population is connected to the gas network. Romania
from coal to clean energy could prove painful
has gas but is has almost no petrochemi-
for the regions where the two companies
be completed based on the its initial plans. “I
cal industry. (…) We have to try to use this
operate, but using gas as a transition resource
believe that Hungary will build its part of the
resource more wisely. First of all, we must
could ease the process.
project in the end. They’ve come up with an
connect as many households as possible to the natural gas network,” Romanian prime
Another market for local gas is export, and this could become more attractive following the completion of the Iasi-Chisinau Pipeline – a project allowing gas
Romania has been calling for the project to
alternative, but I think that they will eventually meet their obligation,” Economy minister Virgil Popescu recently said. Another important phase is the gas pipe-
exports to the Republic of Moldova –
line interconnection between Bulgaria and
and especially through the Arad-
Greece, now under construction, which will
Csanadpalota pipeline – allowing
allow Romania and other countries in the
gas exports to western markets. In
region to be supplied with gas from alterna-
September 2020, Romania exported
tive sources – Azerbaijan or other countries –
gas to western Europe through the
through the Turk Stream pipeline and BRUA.
Arad-Csanadpalota pipeline for the
Romania needs these projects to be complet-
first time in the last couple of years
ed for several reasons. Besides gaining access
as the gas price on the local market
to major export markets, the country is also
went below the Baumgarten refer-
aiming to become a major transit route for gas
ence price in Austria. Romania has
and a regional gas hub. But other countries
an interest in being more present
in the region have similar – and thus conflict-
on the western market in order to
ing – objectives, as well as often divergent
attract foreign investment in pro-
geopolitical views.
duction and transit facilities on its
Romania is currently the only country
territory. Another goal is to expand
in the region with strong relationships with
its gas storage facilities so as to avoid
both Brussels and Washington and a poor
reliance on foreign suppliers during
relationship with Moscow. However, the EU
harsh winter periods.
has failed to create a unified energy policy in the block, mainly due to divergent interests
THE GEOPOLITICAL FACTOR
among its member states. The biggest failures
minister Ludovic Orban said in September.
But for Romania, gas exports could turn out
in this area were the Nabucco project, which
Two new projects were launched this year to
to be a bad choice in the long term. In fact,
was abandoned, and the Nord Stream 2 pipe-
expand the local gas pipeline network, aiming
the country faces a much bigger challenge: to
line, which is almost completed but serves
to provide gas to tens of thousands of new
get better use for its gas and avoid the Dutch
Russia’s interests. The biggest challenge for
households. The second option is to invest
disease – an economic relationship between
Romania now is gaining support from the EU
in new gas power plants in Romania, and the
the accelerated development of the natural
for BRUA and the two key interconnections to
European Parliament’s decision may prove a
resources sector and a decline in other sectors
Baumgarten and Greece.
key support factor as it allows such projects to
like manufacturing. This challenge is also
use EU funds.
associated with rising difficulties in building
reliance on Russian gas in the region and hurt
If completed, these projects would limit
a real regional network and a real regional
Moscow’s interests. However, Russia still
in the planning or development stage: a new
market connected with western Europe and
has many options at hand and it has been
gas power plant in Iernut (Transylvania) being
supplied by as many sources as possible.
trying to block these projects through friends
There are also two gas power plant projects
built by state-owned company Romgaz and the Halanga project developed by Romgaz
For Romania, the key pipeline now under construction is BRUA (Bulgaria-Romania-
and proxies in the region such as Serbia or Hungary.
www.business-review.eu Business Review | October 2020
26 TECHNOLOGY
Riding the pandemic wave: Essential apps in the age of social distancing The COVID-19 outbreak has created a new space for video conferencing, and might have completely changed the way people communicate going forward. In the span of a few months, the video call has gone from an occasional practice to being an essential part of our daily lives. By Aurel Constantin and the now mega-popular Zoom, were mainly used by businesses to streamline communication with customers and teams in different locations. Where voice-only conference calls fall short in terms of what they can communicate (just like texting), video comes to fulfil the need of seeing the other person in order to have a better experience.
SWITCHING TO DIGITAL COMMUNICATION With dramatic fluctuations in supply and demand, the pandemic has also represented a stress test for the power of platforms. Outcomes have varied by sector, Geoffrey Parker, a visiting scholar at the MIT Initiative on the Digital Economy, said during the MIT Platform Strategy Summit in July. Information technology, communication services, and discretionary consumer companies — including platform companies like Amazon, Facebook, Apple, and Netflix — had seen market cap gains in the range of USD 401 billion as of June 2020, said Parker, who presented research conducted with fellow platform Video comes to fulfil the need of seeing the other person in order to have a better experience
strategy summit co-chairs Peter Evans and Marshall Van Alstyne.
T
video communication systems were
munication platforms to choose from based
130 billion, as 18 of the top 25 market cap
tech pioneers who saw the impact
on your needs. Some video tech providers
losses were in the financial or energy sectors,
that video conferencing could have on busi-
have had more experience with the public
following a drop in oil demand. In other ar-
ness and our personal lives. But when cloud
over the years. Pretty much all the social
eas, ride-sharing platforms also saw dramatic
computing hit the scene, any company that
media platforms have incorporated video
drops, while other companies pivoted to
could develop an easy-to-use tool with a
into their messaging apps to allow users to
meet changes in demand.
good interface had just as much of a shot at
see each other at the click of a button.
he first companies that built modern
being successful in this space.
In the finance and energy sector, market In 2020, there are numerous video com-
Other video systems, like Cisco’s WebEx
cap losses had been in the range of up to USD
There are three archetypical ways in which platform companies have responded
www.business-review.eu October Business Review | May 20162020
COVER TECHNOLOGY STORY 27 14
to the pandemic, demonstrating that the
had already adopted one of these platforms.
up to 100 “envelopes”, meaning you can have
platform model might be uniquely positioned
Profits however have been soaring, with
multiple documents sent out for signatures
to survive disruptions. First, it is about “Ride
Zoom reporting USD 186 million in net profit,
in the same envelope. This is a great option
the wave”: companies that saw increases in
mainly driven by high-end corporate clients.
for businesses who need to obtain legal sig-
demand have been riding the wave, accord-
The situation was similar in Romania,
ing to Parker. Explosions in demand “can be
where the usage of Zoom, Microsoft Teams
every bit as disruptive as the demand falling,
and Webex is still at very high levels. Though
MICROSOFT
because you’re trying to scale rapidly,” he
not at the same rate as apps in the busi-
Microsoft is offering six months of free
natures while working remotely.
explained. Companies
ness communication
Microsoft Teams, its communication and
that experienced these
category, the likes of
team collaboration platform, with Microsoft
shocks included Insta-
WhatsApp, Skype, and
365 Business Basic, which you can now also
cart, which went on a
Viber also experienced
get for free for six months if you make an
hiring spree to meet
significant increases in
annual commitment. The license costs USD 5
demand during the
their user base in the
per user/month after the first six months and
first few months of the
first 2-3 months of the
includes web versions of Office apps, such as
pandemic, and online
pandemic. Interest-
Word, PowerPoint, and Excel.
communication tool
ingly, however, some
Zoom, which topped
of these platforms not
GODADDY
weekly download charts
only slowed down their
GoDaddy provides a number of free tools to
for weeks on end.
exponential growth, but
support small businesses’ online marketing
Second, it is “Weather
they even started losing
efforts. Get a free website as well as free ac-
the storm”: Compa-
some of their users
cess to GoDaddy’s marketing tools for email
nies like Uber, Lyft
around late April - early
marketing, Google Business, and Facebook.
or oil companies, whose demand dropped
May, when most countries lifted their strict
If you already have a website, check out Go-
suddenly and who didn’t have the ability to
lockdowns and allowed people to begin mov-
Daddy’s social media design tools with a free
serve other markets, had to hunker down
ing around again.
three-month Over subscription, including
and weather the storm, by quickly going into
Google also decided to set up Google
resource conservation mode, which included
Meet, which is not among the most popular
furloughing employees. Last but not least, it
apps, but Google Classrooms is being used
MAILCHIMP
is about “Rapid pivots”: The third type are
widely. On the social platforms side, TikTok
Mailchimp is also offering a free, custom
companies that carried out a rapid pivot, tak-
saw so much growth that it got US president
website domain for up to five years. In addi-
ing their assets to supply other markets.
Donald Trump to order
tion, the popular email
a shutdown of the app
marketing platform
BUSINESS COMMUNICATION
in his country if the net-
is making its website
Among the first effects of the pandemic was
work remained under
builder platform free
the closing of offices and schools, leading to
the control of Chinese
until May 31, 2020. This
tens of millions of people having to adapt
company ByteDance.
is a great way to set up
access to the design content library.
But there are tons of
an e-commerce store or
its own challenges. As people set up home
big enterprises offering
landing page quickly to
offices, the use of e-Signature apps such as
help to smaller vendors
promote your business.
DocuSign and Adobe Fill & Sign spiked in
and entrepreneurs
the first weeks of COVID. But there was one
through discounts or by
PAYCHEX
kind of app that stood above all, and that is
offering their tools for
This payroll and ben-
videoconferencing. Zoom quickly became
free. Below are some
efits platform is offering
the most popular video communication app,
free tools you can access
three months free for
with a customer growth of nearly 500 percent
to make running your
payroll and unemploy-
in the first month.
business on a budget a
to working from home, which came with
Zoom and rival apps Microsoft Teams
little easier.
and Cisco Webex have all seen a big surge in
ment benefits, as well as two months of free HR support. Paychex is also advertising support and resources
usage since coronavirus lockdown measures
DOCUSIGN
to help small businesses come up with a
were imposed earlier this year. The growth
New customers who sign up for DocuSign’s
strategy to keep employees on and continue
gradually slowed after May 2020, when
Business Pro e-signature product will receive
to pay as many people as they can while the
things started to settle down and most people
a three-month free trial. This offer includes
economy recovers.
www.business-review.eu Business Review | October 2020
28 INTERVIEW
Kent Orrgren (World Class Romania): We want to help Romania become a healthier nation The COVID-19 outbreak forced all gyms and fitness clubs to close down for a few months, hitting the industry hard. Authorities were reluctant to reopen these venues because they thought the risk of infection was too high. Business Review talked to Kent Orrgren, the CEO of World Class Romania, to find out how the industry is dealing with the pandemic crisis. By Aurel Constantin keep exercising, whether in health & fitness clubs, at home or outdoors. More Romanians adopting an active lifestyle will actually save the government significant costs related to healthcare, as it has been proven that exercise improves the immune system and helps it fight against respiratory infections. Romania could benefit from a 9 percent GDP boost and a USD 26 billion GDP impact over the next two decades, about half of which would come from a larger and healthier workforce, according to a McKinsey report. The remainder comes from expanding the capacity of older people, disabled individuals, and informal caregivers to work as well as from productivity gains as the burden of chronic health conditions is reduced. In Romania, the largest amount – USD 11.5 billion – will be generated by a higher participation of the above mentioned categories, while almost USD 8 billion will be the result of fewer health conditions.
How much have restrictions affected World Class in term of revenue? Do you think you can recover the loss from this period by the end of the year?
has completed the gradual reopening of all
I want to start with the thing that matters
World Class is the largest pool operator today,
most: the health of the nation. All our ef-
with 21 indoor pools and 3 outdoor ones in its
How has your activity been affected by the rules imposed upon reopening? How many of your customers have returned to the gym and what is the situation like today?
forts are directed towards this aspect. The
network of Health & Fitness centres.
More than 60 percent of our active members
pandemic has challenged our lifestyles and
40 of its premium health & fitness clubs in Romania and it is ready to reopen its network of indoor pools when authorities allow it.
The entire health & fitness industry has
have already returned to clubs. Others have
now more Romanians need to make a change
been affected by the COVID-19 restrictions,
decided to continue to train online using
towards a more active way of life, and not
and that includes World Class. However, the
our platform. It is important to know that
just to improve their health, but also to live
way we have tackled the coronavirus crisis
all clubs function under strict health and
longer lives. Dr Robert Sallis, co-director of
by providing alternative health & fitness
safety and prevention rules. Social distanc-
the Sports Medicine Fellowship Programme
solutions like online or outdoor training will
ing, sanitising stations, deep cleaning of
in California, said it best: “COVID-19 has just
actually consolidate and grow our commu-
spaces and equipment multiple times a day.
so vividly exposed our unhealthy lifestyles...
nity while making our network stronger. We
We work with authorities to minimise risks
You go through the list of risks for COVID-19,
strongly believe that we can make a differ-
and provide a safe training environment in
including the risk of dying or getting severely
ence and contribute to making Romania
all of our clubs, regardless of their category,
ill: those are the diseases of INACTIVITY.”
a healthier nation. We are committed to
from Bronze to W. We still have thousands of
In terms of going back to normal, World Class
encouraging and motivating Romanians to
members who are eager to restart their swim-
www.business-review.eu Business Review | October May 20162020
COVER TECHNOLOGY STORY 29 14
ming routine in our indoor pools. According
Alzheimer’s, several types of cancer, and
the core of our services and many of the
to the Center for Disease Control and Preven-
some complications of pregnancy; it helps
safety measures that have proven so effective
tion, “there is no evidence that the virus that
you avoid weight gain, obesity, and related
in these challenging times will certainly be
causes COVID-19 can spread through water
chronic health conditions.
maintained.
in pools, hot tubs, spas or water play areas.”
Only a few lifestyle choices have as large
It adds that treating these types of facilities
of an impact on your health as physical activ-
with chemicals including chlorine “should
ity does. People who are active for about 150
inactivate the virus in the water.” COVID-19
minutes a week have a 33 percent lower risk
Has the coronavirus crisis changed your investment plans? Will World Class continue to open new clubs?
started to train using our www.worldclass.
of all-cause mortality than those who are
We will focus on growth, as always. By
ro/online/ platform are health-conscious and
inactive.
consistently following our social mission and
is an airborne, not water-borne illness, meaning it spreads when droplets fly through the air. Chlorinated pools in particular pose very little risk from swimming because viruses are very susceptible to chlorine disinfection. Swimming has extraordinary benefits for overall health. It also lowers the risk of diseases that are known to increase the severity of COVID-19. Besides being a great form of cardiovascular exercise, swimming for just 30 minutes a week can protect you against heart disease, stroke, and Type 2 diabetes.
What special measures has World Class taken in order to prevent the spread of the virus? Have customers complied with the new rules? All health and safety and prevention measures are clear and visible from the moment you enter the club. There is specific signage for social distancing and hygiene regulations. Every safety rule is in place and the process is continuous. Our members comply with the rules as they understand the importance of safety and prevention measures. All those who have already returned to gyms or have
aware of the fact that exercise is more than weight loss. It has a vital role in treating and
strategically opening new clubs in Bucharest and other important Romanian cities, we’ve
conditions, and respiratory infections. That
How long do you think these rules will remain in place? Do you believe a return to normal will be possible this year?
is why we have started the #ExerciseIs-
We are prepared for this “new normality”
into financial stability for the long term. It
Medicine educational campaign, to get more
to be with us for a long time. Safety rules
is a difficult period, and we will of course
Romanians to understand the health benefits
will certainly remain in place long after
be extremely cautious about expanding the
of fitness and convince them to have a more
the pandemic ends. Hand sanitisation will
network in the coming year as we need to
active lifestyle. We want everybody to un-
become a habit and dispensers will certainly
invest more in existing clubs in order to raise
derstand that when they train, they do it for
continue to be a part of the new normality.
the degree of safety for our employees and
their health, to set an example to others, to
When we say “return to normal” we should
clients. World Class invests in Romania and in
have a longer life, because exercise promotes
take into account the fact that the old normal
educating more people to be active.
longevity.
is gone for good. And to stay successful we
By opening more health and fitness cen-
need to adapt and embrace the new. Health
tres every year and by promoting the benefits
improves your immune system; it lowers
has always been our priority. That is why
of a healthy lifestyle, World Class’s mission is
the risk of heart disease, stroke, Type 2
we launched the #BeHealthy campaign a
to inspire more Romanians to be more active
diabetes, high blood pressure, dementia and
couple of years ago. We will keep health at
more often and live a healthy lifestyle.
preventing a lot of chronic diseases, heart
Here are some of the gains: exercise
built a solid network so far, with tens of thousands of yearly memberships which translate
www.business-review.eu Business Review | October 2020
30 PR
Remote working shaping new models among PR agencies A fifth of PR agency chiefs are planning to reduce their firm’s office space in the aftermath of COVID-19, and one in 10 are thinking of giving up their physical office entirely, according to exclusive new research by PRTheyek. Meanwhile, more than half of the UK’s in-house comms chiefs expect to take more work in-house in the aftermath of COVID-19. And while about onethird say their PR agency budgets have been cut, it is likely that more opportunities will emerge for agencies in the coming period. By Romanita Oprea for colleagues who want to use them, while enforcing clear procedures for a safe work environment. We are evaluating the situation on a monthly basis and planning to start coming to back the office in shifts in the coming period,” said Andreea Irimia, group communications manager at Oxygen. For Fabrica de PR, even though they faced all sorts of personal and professional difficulties at the beginning of this pandemic – uncertainty about how projects would develop, the changes that came up in the workflow, events that were cancelled or put on hold – they actually managed to make it work quite rapidly. They were also involved in volunteering projects and were happy to offer their expertise to NGOs during these difficult times. “We did something new for the first time in many years, and discovered that we really liked it. We realised that we were lucky Andreea Irimia, Oxygen
W
Raluca Ene, Chapter 4 Romania
to be able to do our jobs in friendly and safe environments, where we could be closer to nature or to our families. We can now work
hat has work been like for
continued working at full capacity for their
from anywhere and do so efficiently, we can
Romanian PR agencies during
clients.
save time because we no longer waste count-
the pandemic? At Chapter 4
“Our procedures and workflow were defi-
less hours in traffic or in long meetings, and
Romania, the switch to working from home
nitely changed by the pandemic, especially
this means more time to reflect and create.
got organised very quickly; in fact, they had
when we moved to working from home. We
It’s a kind of freedom we believe every human
moved everything online a week before the
had to adjust all our internal and external
should experience at least once in a lifetime
government declared a State of Emergency.
procedures, from brainstorming and client
and decide whether it is good for them,” said
And since they had been practicing remote
meetings to presentations and weekly status
Camelia Cavadia and Alina Sin, managing
working for a couple of years already, every-
reports. Fortunately, we had a lot of tools
partners at Fabrica de PR.
thing went smoothly and efficiently. With
available to help us communicate and we
the exception of a hybrid break of a couple
also discovered a lot of new things about our
to make things work. Generally, we follow
of weeks, they are still working from home,
team and about ourselves as professionals.
a normal daily schedule, but should there
and they’ll continue to do so for the next
We are in work from home mode, but we have
be any interference, we let each other know
few months, as they’ve performed well and
a flexible policy by keeping our offices open
and help each other out to make sure the
“Constant communication is the best way
www.business-review.eu Business Review | October May 20162020
COVER STORY PR 31 14
client is always well served. We have regular
representative. Looking at the entire Roma-
4 Romania’s managing director. Speaking
online team meetings, doubled by individual
nian PR industry, Irimia believes that things
about the industry in general, Ene says that
meetings depending on activities and proj-
have definitely changed for all players, as
it had a short period when it slowed down
ects, plus ad-hoc brainstorming sessions to
most clients have recalibrated their market-
and adjusted to the social realities, but once
maintain our creative flow. Instant messaging
ing budgets or changed the focus of these
we and our clients evaluated all the variables
is constant, but we have a mutual agreement
budgets. This was reflected in the workflow
and started working with different scenarios,
to use it responsibly, to keep work time undis-
and in the ways in which departments were
we found ways to not just move forward, but
turbed as much as possible,” explains Raluca
organised. “However, we were glad to see that
also to push for better results. “The fall feels
Ene, managing director at Chapter 4 Romania.
many brands decided to change their messag-
busy and rich in opportunities, and I think
But what about coming back to the office?
ing and approach to fit the new context. It’s
we’ve also been able to adapt business-wise,
Have perceptions and attitudes around work-
a work in progress and the communications
which is great news for our industry,” Ene
ing from home changed forever? Because
market reacts quickly to changes,” com-
concluded. At Fabrica de PR, the past months have led them to exclude the option of coming back to the office in the near future. With lots of devices and apps available, things can go very smoothly. But if requested, face to face meetings are not excluded, of course. “For the moment, we no longer see the purpose of having an office. It saves time and energy; we can be more focused on results and less on the means in which to achieve them. The feeling that you can do your job anywhere is a very pleasant one, with positive effects for each team member. In addition, it can also be a wise business decision regarding the management of administrative expenses,” said Fabrica de PR representatives. They also believe that this
even though the communications industry
mented Irimia. Moreover, Raluca Ene points
new work from home (WFH) experience has
has more openness and creativity than oth-
out that control over the team’s activity has
opened many people’s eyes, employers and
ers, some actions and events or meetings still
by far been the biggest change in the way they
employees alike. “Each company was able to
need to happen face to face.
are organising activity. “The perception that
make its own assessment of the advantages
there was a need for compulsory physical
and disadvantages of working from home
and thinks that a mix between working from
control used to be so deeply ingrained into
during this period. For some of them, the
home and coming to the office will continue
our culture that it seemed impossible to make
budgets assigned to monthly rents suddenly
for an indefinite period. “For some of our
this work. But moving everything online has
became unnecessary, a roadblock to other
colleagues, working from home gave them
forced us to do so, and we did it in a very
possible investments, while for others it
the opportunity to be more time efficient or
effective manner, thus reminding the entire
became clear that the loss of physical contact
more proactive in their work, while for others
society that adaptability is in fact the secret
between employees would be bad for the
it clarified the fact that they need to be at the
to our thriving throughout history. We have
company. As we have seen all over the world,
office to be productive and stay connected
understood that human relations go beyond
companies are considering flexible work
to other people. We are all different and I
the physical aspect – which is always impor-
schedules and hybrid work arrangements,
believe we cannot talk about a change in at-
tant, don’t get me wrong, but the energy, the
workspaces are being redesigned to ensure
titude that will last forever, but about a better
motivation, the positive attitude can all go
safe human interaction, and there’s more
ability to adapt to various conditions, which
through any screen and have the power to
room for choice. Adaptation is again a key
will continuously change,” added Oxygen’s
keep us close together,” explained Chapter
word,” Cavadia and Sin added.
Andreea Irimia argues that flexibility is key
www.business-review.eu Business Review | October 2020
32
OPINION Mihnea Radulescu, Vodafone Romania
SME Digitalisation: Charting a course towards resilience and recovery with additional analysis by Deloitte, provide
more accessible and thereby increase adop-
tangible recommendations for future govern-
tion, not every small business still under-
ment policy.
stands the importance of greater digitalisation. Therefore, there is still a significant role
DIGITAL SUPPORTS RESILIENCE AND RECOVERY
that governments can play to help accelerate
Vodafone Group’s survey of 1,200 SMEs has
adoption in order to unlock further economic
shown that those SMEs that have digitalised
and societal benefits.
are more likely to have found new business opportunities during the pandemic. In fact, the
A TAILORED SME DIGITALISATION FRAME-
most digitalised businesses secured opportuni-
WORK
ties at more than double the rate of the least
The research clearly shows that the govern-
digitalised.
ment in Romania should adopt a clear SME
And it is highly likely that these digital shifts
digitalisation policy framework that:
will drive long term changes. Just as more of us
• addresses availability gaps and take- up
expect to work more flexibly in the future, 44%
of high-speed connectivity. In order to better
of businesses expect the measures they have
facilitate digitalisation of SMEs, it should
It is widely accepted that SMEs are the “back-
implemented in recent months to be perma-
aim to increase overall and rural access and
bone” of the Romanian economy. Small busi-
nent as indicated in another Vodafone Group’s
potentially pair this with short-term voucher
nesses account for 52.7% of total value added
research, Future Ready Report.
schemes to support high-speed connectiv-
and 65.8% of employment in Romania making them integral to innovation and job creation. What is more open to debate is how gov-
However, too many SMEs have found significant barriers when it comes to the adoption of digital services. They are still much less likely
ity take-up and reduce barriers to further digitalisation; • offers flexible vouchers, grants, or tax
ernments can best support SMEs through this
than larger businesses to take advantage of new
credits for digital investment, so that SMEs
unprecedented period of economic challenge
technologies, even though they connect to the
have the capacity find solutions based on
– and the role digital tools and solutions can
internet at the same rate. Despite the benefits of
their individual needs; and
play in driving greater business stability and
digitalization, the Digital Economy and Society
resilience. At Vodafone, we provide a compre-
Index (DESI) 2020 data found SMEs lag behind
support capability such as an accessible, one-
hensive range of digital services to small busi-
larger businesses in adoption of nearly all tech-
stop shop, particularly providing targeted
nesses in Romania, and so we are well placed
nologies. The largest gaps are in digitalization of
guidance and training for key sectors.
to help identify the solutions that will enable
the internal organizational process, where the
them to achieve the digital transformation
greatest efficiency gains are to be made.
that will deliver long-term growth. Six months after the first wave of EU lockdowns, now is an opportune time to assess
There are a number of reasons why SMEs have struggled to digitise: • 73% said they had had trouble with the
• delivers additional support measures to
These recommendations will not only help Romania improve its overall DESI score, currently ranking 26th across EU Member States, but will also ensure that SMEs are able to digitalise fully. As we seek to emerge from the crisis, we
how businesses have been impacted – and
set-up and implementation of new technolo-
governments have reacted – by the Covid-19
gies, integration with existing technologies and
have an opportunity to shape the economic
crisis to date. Vodafone Group commissioned
business processes, migration from previous sys-
recovery in a way that delivers sustainable,
a new study involving 1,200 SMEs from several
tems and decommissioning old technologies; ,
long-lasting, impactful change. The EU recon-
European countries, conducted from the start of the pandemic up until July 2020 with the aim to better understand the main challenges faced by SMEs and how digital has supported
• 51% said that they had struggled to identify
struction plan presents a once in a lifetime
the right technology to use, or the right supplier
opportunity to contribute to this transfor-
• 38% of SMEs said that they needed support
mation. Investing in small businesses, and
with training.
SME resilience during the pandemic crisis. The
However, while there is much technology
learnings highlighted by this study, combined
firms can do to make their products and services
helping them achieve their full, digital potential, will ensure a stronger, future-proofed Romania.
www.business-review.eu Business Review | October 2020
www.business-review.eu
34 GOING Business ReviewOUT | May 2016
COVER STORY 14
Entrepreneurs in Bucharest defy pandemic to open new restaurants As one of the industries that were most affected by the pandemic, hospitality is slowly recovering after two months of lockdown and a series of safety measures that left them with significantly fewer customers and reduced opening hours. Nevertheless, new places have recently opened downtown, highlighting new trends in urban cuisine. By Oana Vasiliu Indoors are opened for public since September 1
A GLANCE AT THE NUMBERS
discovering new places to eat, offering a series
partnerships with eight online food delivery
HORA, the largest association of hotels and
of discounts from 15 to 50 percent at more
platforms. In the second quarter, 47 percent
restaurants in Romania, recently pointed out
than 100 restaurants in Bucharest and Brasov,
of its sales in Romania came through delivery,
that the crisis generated by the COVID-19
with the owners’ support. So far, both clients
compared to 7 percent in the same period of
pandemic and the restrictions enforced by
and restaurants have been happy with the
last year.
the authorities led to a 70 percent drop in
festival,” said Cosmin Magureanu, CEO of the
AmRest opened three new Burger King
turnover for local restaurants and bars in the
ialoc app, which allows users to reserve tables
restaurants in a single month, with the new-
first six months of the year. Moreover, 40
at restaurants.
est located at Sudului Square, and with it, the company achieves the final objective of its
percent of operators have suspended their activity altogether. This situation impacts
strategic plan of opening six new restaurants
400,000 employees in the sector. But on
HIGH HOPES FROM INTERNATIONAL CHAINS
September 1, more of the measures were
Recently, Romanian restaurant management
lifted, with restaurants now allowed to serve
company Sphera Franchise Group (SFG), the
their clients indoors while following social
owner of the KFC, Pizza Hut, and Taco Bell
ENTREPRENEURSHIP IN THE HOSPITALITY INDUSTRY
distancing rules.
franchises in Romania and the KFC franchise
Despite the pandemic, some entrepreneurs
in Northern Italy, has been seeing signs of
have decided to go ahead with planned
growing since June 1, when we were allowed
recovery after it recorded consolidated sales
openings and set up their “new in town”
to dine in outdoor spaces, but we have to
of RON 304.6 million (EUR 63.5 million) in the
tag. One of the coolest and trendiest places
consider the fact that for most restaurants
first half of this year, down 31 percent com-
in Bucharest, Bar A1 (1 Piata Amzei Street),
in the capital city, summer is not usually a
pared to the same period of 2019. Sphera thus
recently reopened in Amzei Square, in the
period that boosts sales, as many people are
recorded losses of RON 22 million (EUR 4.5
same location where it started out a few years
away on holiday. However, the numbers on
million) in the first half of the year, compared
back. “I decided to reopen A1 in October 2019,
our app show that more and more people are
to a net profit of RON 18 million in the same
and it was ready by March. (…) The most
using it to book a table. To encourage this
period of 2019. Still, the company has focused
difficult thing for me is the uncertainty. It is a
behaviour, we created a festival dedicated to
on developing news sales channels and closed
general uncertainty, which affects absolutely
“The number of people going out has been
on the Romanian market in the first year.
www.business-review.eu Business Review | October 2020
GOING OUT 35
Breakfast or brunch? Ou Bucharest should be tasted if you are egg-friendly
BAR A1 is the place to be downtown everything until the end of May, when Paul and I decided that we could not wait any longer. Up to that moment we had already lost money, as we paid rent and
Red Angus Steakhouse, said: “We decided
other bills even if we had no activity whatso-
to expand our business in early 2020, before
ever. We somehow knew that we should not
the WHO had declared the pandemic. We
give up on a project with such great potential
saw the potential on the market and planned
in a new community. (…) I think was the most
to invest in casual concepts, targeting wider
difficult thing: to do what we love even in
audience segments who are young, modern,
these troubled times while protecting our-
dynamic, and appreciative of quality. When
selves and our community. We wanted to be
the lockdown came, we were already working
perceived as friends who made an effort for
on the new ideas, but we hadn’t yet spent any
everyone, not just our field, and it doesn’t
the good of the neighbourhood and I hope we
money. Still, it never crossed our minds to
allow us to hire more people, to work on a
were able to accomplish that.”
give up. While I am realistic about the crisis
New opening in Calea Mosilor zone: RUA Espresso Bar
we are experiencing now and the repercus-
more complex menu, to gradually grow as
Andrei Isac, owner of Ou Bucuresti (1 Di-
we would like, to make investments. I am
anei Street), opened his business in mid-Au-
sions of the COVID-19 measures on our
facing an unpredictable scenario. Selecting
gust, with a concept built around four dishes
industry, I believe that a good concept which
the people you want to work with is also very
that all reinterpret the egg. “The business
is well-adapted to the current landscape will
difficult, and I am also emotionally involved,”
had been planned for a year. The location was
deliver medium- and long-term results.
said Anda Mancas, co-owner of Bar A1, for
ready to be opened on March 14, but I decided
Business Review.
not to. During the lockdown period we had
ment in stages and, as a consequence, some
time to perfect our recipes and think of solu-
projects have been delayed. We started with
rest, the city with over 300 speciality coffee
tions for the opening day, so we eventually
RUA Espresso Bar in early September and will
shops. Each and every one of them has some-
did it on August 12. In this period, I believe
continue with a casual chicken rotisserie in
thing specific, so most of them are worth be-
that uncertainty has become far too present
October. The new concept will be focused on
ing discovered. Radu Solo, co-owner of Boiler
in our lives. But there are also beautiful things
affordable, quality products which are suit-
Milk and Coffee (1 Ing. Slaniceanu Nicolae
like rediscovering our country and creating a
able for the whole family, and the focus will
Street), said: “The initial plan was to open in
community around small, high-quality busi-
be on takeaway and delivery, thus responding
March just before the lockdown, but we were
nesses,” he noted. Ionut Ivan of RUA Espresso
to today’s consumption patterns and needs,”
forced to cancel our plans. We postponed
Bar (248 Traian Street), who also co-owns
the entrepreneur explained.
Specialty coffee is still on a roll in Bucha-
(…) We approached new business develop-
www.business-review.eu Business Review | October 2020
www.business-review.eu
36 TOURISM Business Review | May 2016
COVER STORY 14
Something old, something new, something bubbly: The potential of wine tourism in Romania It’s still harvest time in some areas of Romania, for one of the country’s best kept souvenirs: grapes. But is there more to Romanian vineyards than enjoying some grape-picking and wine tasting? By Oana Vasiliu includes a presentation of the winemaking process, the tasting of five to seven types of wine, and, if the weather allows it, a walk through the vineyards. “Wine tourism can happen at any time of year and benefits wineries in the sense that they can sell some of their wine to visitors, and small wineries may end up selling 10-15 percent of production right on site,” adds Alina. “Tasting rooms have started to appear lately, as well as more events and a greater interest in the wine business, and that’s good, but the demand is not large enough for wineries to have dedicated staff for wine tourism. During the summer, tourists also visit on weekdays, but during the rest of the year, It’s the season to enjoy nature at its best and get bubbly all the way
wine tourism remains more of a weekend thing,” Alina Iancu notes. This year, wineries faced a new challenge,
ONCE UPON A TIME
however, does not leave Romania. In 2018,
besides the drought. “With little to no activ-
Romania has been cultivating grapes for a
the country exported just 3.5 percent of its
ity in the hospitality sector for more than
long period of time, but its history as a wine
total production. “To put this in context, Ro-
three months, wineries have large stocks of
producer is rather fractured. While growing
mania makes more wine than New Zealand,
wines and now, in the middle of the harvest,
grapes dates as far back as 5,700 BC, Roma-
Greece and Hungary, but exports less than
they need to make space for this year’s wine
nia’s modern wine industry only developed
Denmark, Austria, Slovakia, and Bulgaria,”
harvest, so they have to get rid of the stock
once the Communist period ended, meaning
explains Phoebe French from “The Drinks
somehow,” Iancu explains.
it’s barely 30 years old. The once-nationalised
Business”.
wine industry was then privatised and
THE VINEYARD’S SIDE OF STORY
received considerable investment from over-
THE WINE TOURISM BUSINESS
Jardine Hills, located 100 kilometres from Bu-
seas, mainly from Italian, Austrian, German,
One of the biggest promoters of wine tour-
charest, had the best summer on record. “We
French, and British companies, which helped
ism in Romania is Alina Iancu from Crame
were basically fully booked every weekend
build new facilities and replanted vines to
Romania and Revino, who manages a website
after May 15, when the COVID-19 restrictions
increase both the quality and quantity of the
where people can find information about
were eased, as well as on most weekdays. Our
wine.
vineyards, their availability for accommoda-
cottages provide safe and clean accommoda-
The magazine “The Drinks Business”
tion, and other facilities they offer. Last year,
tion near Bucharest for friends and families to
writes that according to OIV data from 2019,
around 70 wineries in seven wine areas of
be able to socially distance while still having a
Romania is Europe’s sixth and the world’s
Romania were opened to visitors. This year,
nice time, so they have become very popu-
13th largest wine producer, yielding 4.9 mil-
about 20 wineries are offering accommoda-
lar. We are currently fully booked for every
lion hectolitres last year. Most of this wine,
tion in guesthouses nearby. A visit to a winery
weekend through to the end of October,” the
www.business-review.eu Business Review | October 2020
TOURISM 37
Chill vibes at Jardine Hills owners tell Business Review. Accommoda-
Road to Crama Liliac
For Avincis, wine tourism started in 2011,
tion starts from EUR 150 and they have eight
when they opened up the manor, the Avincis
rooms available, split between three cottages
winery, 43 hectares of vineyards, several
which are rented entirely.
hectares of forestland, and landscaping sights. This summer was particularly busy for them too, as tourists opted for local destinations. At Vila Dobrusa, the accommodation facility, tourists can choose from 9 double rooms and 3 apartments and also enjoy good meals, wine tasting, a tour of the winery and walks through the vineyard. A package for two people including one night of accommo-
Vila Dobrusa is surrounded by their wineyards
dation, meals, and tasting 5 wines starts from RON 710.
- Dealu Mare - are produced. “The Dealu
The Liliac Winery was founded in 2010
Mare initiative is an exception, and it was the
and had two landmark buildings in the Batos
result of the associates understanding that in
village. One was the winery, located inside
order to protect the name of the region on an
the village, where the magic of transforming
increasingly competitive market, they had to
grapes into wine takes place, and the other is
upgrade standards and communicate a strong
Liliac Lodge, the tasting cabin, located in the
message to the market together. It all started
middle of the vineyard, above Batos, where
with a small group of people - the owners and
you can be enchanted by the vines stretch-
managers of Davino, SERVE, Budureasca, To-
ing over the hills, the fabulous view, and the
hani, Aurelia Visinescu, and Viile Metamorfo-
tranquillity of the place. This Lodge has only
sis, the oldest wineries in the area and among
one room available, with a price starting from
the most reputable – and others soon joined,”
RON 670, all experiences included. Wine
says Cezar Ioan, one of the promoters of the
tastings have been taking place here since the
Association. “I strongly believe that people
launch of the first Liliac wines in 2012, and
visiting wineries and vine plantations to see
they’ve been offering accommodation to visi-
where wine comes from and how it’s made
tors since 2018.
and meet the people who make it is the best way to promote wines and wine culture.
BABY STEPS: DEALU MARE ASSOCIATION PROMOTES BOTH VINEYARDS AND WINEMAKERS
It goes well beyond simple tastings, as
The Dealu Mare Association was the first
and consumers – not to mention the fact
Romanian collective initiative who managed
that this is the best way to educate the people
to enact updates to the legislation and condi-
working in hospitality about wine,” Cezar
tions under which the wines of one region
Ioan argues.
these types of actions establish strong and meaningful connections between producers
www.business-review.eu Business Review | October 2020
www.business-review.eu
38 CITY Business Review | May 2016
COVER STORY 14
Cultural calendar
By Oana Vasiliu will go on stage. On blues&more day, Mike Godoroja, Marius Mihalache, Stones Free, Hot Leeks, and Ceata Blue will take over. Tickets start from RON 75 and go up to RON 150 and they are available through the iabilet. ro platform.
Beta 2020, Timisoara Architecture Biennial Until October 25, Timisoara
Museum of Broken Relationships Until October 17, Fundatia9
dedicated to prominent interna-
Only 500 people can attend this
tional artists who shaped the way
music festival, where Deliric X
art is made, shown, and under-
Silent Strike, CTC, Muse Quartet,
stood today. A selection of 19
Dan Basu, Suie Paparude, Nane,
Beta 2020 highlights the theme
paintings and a series of videos
Macanache, El Nino, Argatu’ &
of responsibility for the pres-
documenting the historical per-
Mos Martin, Bad and Boujee,
ent and future environment,
formance of legendary Austrian
and Dj Kuky will perform live for
whether built or still yet unbuilt,
artist Hermann Nitsch will be on
music lovers. Tickets start from
in an attempt to become a plat-
display at MARe. Nitsch (1938) is
RON 125 and are available on
form that articulates a position
founder and major figure of the
iabilet.ro.
on the ever-increasing pressures
neo-avant-garde group Wiener Aktionismus, which turned artis-
(environmental, social, cultural,
Hope Festival October 16-17, Arenele Romane
economic, etc.) generated by
Organisers of Hope Festival have
found transversally in the events
planned two days of live music,
and in the way this edition was
one dedicated to rock and the
organised, culminating with the
The Museum of Recent Art in
other to blues&more. On the first
“Enough IS Enough” exhibition,
Bucharest (MARe) continues
day, VH2, Proconsul, Spitalul de
curated by Anca Cioarec, Brin-
its programme of solo shows
Urgenta, and Tavi Colen Band
dusa Tudor and Ilka Ruby.
tic practice in the post-war period into an extreme experience. They
the construction sector. The theme of responsibility can be
performed painful acts in thrillThe Museum of Broken Relation-
ing sceneries, fusing together
ships exhibition, which features
religiously-derived rituals, politi-
objects from failed love affairs,
cal targets, artistic provocation,
will stay up in Bucharest until Oc-
and heavily physical and social
tober 17. The project is an inter-
participation, which rapidly be-
national initiative of exploration
came influential worldwide.
and creative expression, with permanent exhibition spaces in Zagreb and Los Angeles, but it
Vest Fest October 9-10, Timisoara
also travels around the world. Entry is free of charge.
Hermann Nitsch. Ritualuri/Rituals Until December 6, MARe/Museum of Recent Art
