Romania's FDI inflow reached EUR 8.9 billion in 2021, the highest value since 2009. However, the country continues to rank last in the CEE region in terms of FDI per capita. Last year, the net flow of foreign direct investment (FDI) continued on the positive trend recorded in the last part of 2020. Although the state of alert imposed by the authorities as a result of the persistence of the SARS-CoV‑2 pandemic was in place throughout the year, foreign investors were able to adapt to the new economic conditions, resuming investment projects that had been suspend ed at the beginning of 2020 amid the economic freeze, and even initiating new projects.
Romania’s efforts should not simply be aimed at attracting any FDI, but be focused on the types of FDI that create economic value, stimulate the local business environment or target sectors with high added value, thus having lasting effects on the economy. This was one of the key conclusions of the 9th edition of the Foreign Investors Summit, Business Review’s flagship event.
With all that in mind, we’ve decided to dedicate this month’s cover story to Samsung Electronics Romania. With over half of the total smartphone market share and one third of premium phone sales, the Romanian subsidiary of Samsung Electronics is constant ly reinforcing the company’s position as a leader on the technology market. Romania’s potential of becoming a top tech hub in Eastern Europe could represent a driving force for Samsung’s strategy, also with the help of Romanian consumers, who are always eager to try the company’s innovative products and services.
BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at mihai.cristea@business-review.eu
Catalina Urse is the new Country Man ager for Pharmaceuticals at Bayer in Romania & Republic of Moldova. She joined Bayer in January 2020 as the Head of Marketing and Marketing Excellence of the Pharmaceu ticals division. Urse holds a de gree in pharmacy and over the past 20 years she has gained broad experience with proven achievements across different business models in the Roma nian pharma industry, from dis tribution and pharmacy chains to local and multinational pharma companies.
Zimmer Biomet Holdings is opening its first branch in Ro mania and planning to invest more than EUR 3.5 million in the country in 2023. The investment will go towards logistics expenses (new office, warehouse, etc.), building the local team, and securing equip ment stock. The company will move from distributor repre sentation to direct representa tion, a change that will result in an expansion of its product portfolio and medical educa
tion offering and the introduc tion of a number of integrated digital and robotic technologies to the Romanian market.
Following the opening of the new office in Sema Parc, Roma nian patients will have access to Zimmer Biomet’s latest and most modern products, a wider range of solutions for sports medicine, joint and extremity reconstruc tion, as well as the company’s digital and robotic technologies. The ZBEdge range combines integrated digital technologies,
implants, robotics and monitor ing services, providing a unique medical platform in orthopae dics. This platform provides physicians with accurate data and information to help them make better decisions for their patients, both during surgery as well as in the recovery process after knee or hip surgery.
“Romania is one of the largest markets in CEE and an important customer base for Zimmer Biomet. We’ve made a great choice to open our first office in Romania in Sema Parc. By the nature of what we do, we collaborate with surgeons, hospitals, clinics, and uni versities to improve patient experiences and outcomes in Romania and enhance the efficiency of their operations, which is why it was essential to choose an office that was acces sible and well connected to the city,” says Marian Isac, Country Manager at Zimmer Biomet Romania.
Liviu Togan has been recruited by Dentons as a partner to establish and lead the White Collar and Government Investigations group in Bucharest. He has 23 years of experience in White Collar and Government Inves tigations, Compliance, and Litigation and Arbitration and has successfully represented businesses, senior executives, public officials, and others in a wide range of investiga tions and prosecutions before Romanian courts. Throughout his career, Togan has advised numerous clients on regula tory compliance and complex legal proceedings.
By Deniza Cristian
In 2022, companies increased the number of employees in their HR departments by an average of 60 percent, according to internal data from EXEC-EDU. “Many of the challenges faced by com panies in the post covid period
are related to human resources. I speak daily with profession als in HR departments, who are probably going through one of the most challenging periods of their careers, which is filled with pressures, but also with opportu
HR has climbed from sixth to second place among the fields with the most available jobs
Le Manoir Group is focused on sustainability across all its operations
Fine gastronomy business Le Manoir Group, owned by Ro manian entrepreneur Cristian Preotu, has joined forces with Air France KLM, taking an active stance towards reducing CO2 emissions, after signing an agreement to invest in the aviation group’s Corporate SAF Programme (Sustainable Aviation Fuel), contributing to the ecological transition of
air transport. The Corporate SAF programme was launched by Air France KLM to encourage com panies to play an active role in the future of sustainable travel.
”By working with companies like Le Manoir Group, we can achieve Air France KLM’s goal to use at least 10 percent sustainable aviation fuel worldwide by 2030.
We are glad to see that Le Manoir is joining the AF-KLM group’s ef
fort to make our activities more environmentally sustainable and to reduce CO2 emissions and carbon footprint globally,” said Razvan Radut, Country Sales Manager in Romania for Air France KLM.
Through the SAF pro gramme, after estimating the CO2 emissions associated with their travel, Air France and KLM corporate customers are able to determine the annual contribution they should make to this programme. Air France and KLM will invest all contri butions in the supply and use of sustainable aviation fuel.
“We are happy that we can contribute to the Air France KLM Corporate SAF pro gramme, as Le Manoir Group is focused on sustainability across all its operations. By investing in the programme, we want to actively contribute to reducing the CO2 emissions associated with our business travel,” said Cristian Preotu, the CEO of Le Manoir Group.
Shaun Conning is the new Chief People Of ficer of Superbet Group. He will coordinate the HR and organisational culture strat egy of the company, which has recorded substantial growth over the past few years. Before joining Superbet, Conning served as Chief People Officer at DAZN Group, the world’s leading sports entertainment platform.
nities. Now is the time for them to take the reins and become good strategists, after having struggled to move beyond a sup port department role for the past 20 years,” said Oana Scarlat, the CEO of EXEC-EDU.
HR has climbed from sixth to second place among the fields with the most available jobs, ranking just below the IT industry, according to a Hipo.ro report. In addition, human re sources jobs are considered to be among the best jobs, both locally and globally.
Dennis Selinas has been appointed Chief Ex ecutive Officer of Globalworth Group. He will join the com pany as an executive director on November 21, 2022 and will take over as Globalworth CEO starting with January 1, 2023. Dennis Selinas has nearly 20 years of real estate experience in Central and Eastern Europe.
Michal Mrowiec has been named as the new President of Ursus Brewer ies. He will take over the new role on January 1, 2023, following current President Paul Barnett’s decision to return to Australia, his home country. Over the past 7 years, Michal Mrowiec has been part of Kompania Piwowarska, the Polish business of Asahi Europe & International, most recently serving as its Sales Vicepresident.
The office market is going through a period of stagnation, with demand values that are similar to 2021’s. Office deliveries have slowed down and will remain at a low level in 2023. In the first 9 months of 2022, the total demand for office space in Bucharest stood around 200,000 sqm, resembling last year’s levels. Net demand increased by 5 percent year-on-year to around 106,000 sqm. A total of 65,700 sqm were leased in Q3, a volume almost identical to the one recorded during the previous quarter, according to JLL data.
By Aurel ConstantinThe first half of the year brought good results for the office market. “The Bucharest market had a positive evolution throughout 2022, especially if we’re talking about the Class A segment, on which Genesis Property operates. In the first semes ter, almost 100,000 sqm of Class A offices were delivered (4 new buildings), and around 42,000 sqm (2 new buildings) are due to be delivered by year’s end, taking the modern of fice stock to approximately 3.34 million sqm, according to CBRE research. During the first half of 2022, total leasing activity in Bucha rest saw an 18 percent increase compared to the same period of 2021, with deals totalling almost 132,000 sqm,” says Stefan Tudos, vicepresident at Genesis Property.
“On this market, the tenants are usually
multinational companies with multi year contracts and, in the context of redesign ing work in the post pandemic period, with a focus on socially relevant amenities and strengthening the professional community, there is a favourable outlook for this seg ment’s evolution. However, demand will mainly increase for premium Class A offices that can accommodate the new lifestyle and working trends, with less of an emphasis on the space itself and more on the networking, interaction, connection, and culture it creates for employees,” Tudos adds.
The return of employees into offices is pushing up demand for spaces. “We’ve been seeing higher demand for office buildings locally, especially in the second half of the year, which was triggered by a wave of
employees coming back from remote work. For AFI Europe, 2022 was a productive year: we leased about 30,000 sqm GLA of offices, mostly through new contracts, we launched the second phase of the AFI Tech Park office campus, we completed the AFI City Bucur estii Noi shopping gallery, and broke ground on the AFI Arad retail park. Additionally, the pandemic period and the fact that many tenants worked from home allowed us to make improvements across most of our office projects, including refurbishing all common areas in the AFI Lakeview building, creating a lounge area for tenants at AFI Park Timiso ara, installing ionisation based air purifica tion systems in all of our projects, as well as obtaining WELL Health & Safety Certifications for our office projects,” says Emma Toma, Head of the Office Division at AFI Europe.
“Despite the challenging macroeconomic and geopolitical contexts, we at CPI Romania take pride in stating that we’ve had yet an other very successful year in our office line of business as well. As part of our group strategy, we actively manage our assets to continu ously improve environmental performance, quality, and resilience. We’ve thus continued to expand our myhive office brand by carry ing out a comprehensive refurbishment of the Victoria Park building, and at the same time, we’ve made various ESG compliant upgrades to other buildings. This has proved to be the right approach, as this year we’ve managed to secure over 40,000 sqm of leased space, with 75 percent new leases and 25 percent exten sions,” says Fulga Dinu, Country Manager at CPI Romania.
As part of their efforts to adapt to changes on the labour market and new hybrid work formats, companies are turning to specialised services to make the transition as smooth and efficient as possible. In response to market demands, CBRE has developed a specialised workplace team that provides workplace management & strategy services for compa nies in fields such as IT&C, shared services, pharma, etc. CBRE is the only local company that integrates the entire set of services for transactions and office space configura tions, and it also has a suite of architects who complement the teams of consultants in its Office department. “When we talk to our partners, we are always thinking about the change process for the company's employees. We begin to understand the organisation and culture, we design solutions together with their project teams, and take care of communication and implementation. This ensures that we have a finished product with which the stakeholders will resonate. It is increasingly difficult to deliver a successful development project without the change management component,” says Mihaela Topor, Senior Workplace Consultant at CBRE. Flexibility is an important factor that compa
SAW AN 18 PERCENT INCREASE COMPARED TO THE SAME PERIOD OF 2021,” STEFAN TUDOS, VICEPRESIDENT AT GENESIS PROPERTY
nies must cover in order to keep employees happy. “Employees are returning to the office in growing numbers, adopting hybrid work patterns that fit their current and future lifestyles, although the pace of return differs from one company to another. With some where between 1 to 4 days per week in the office, employees are more focused than ever on maintaining a healthy work life balance, while employers are making more efforts to create a work environment and culture that meet workers’ expectations. Flexibility is the key word these days, and the hybrid system is currently the preferred option for both employees and companies. In this equation, the office keeps a central role, provided it is properly equipped and offers employees multiple options for interaction and collabo ration,” Stefan Tudos explains. The hybrid work model has been adopted by 70 percent of companies in the EMEA region, with Romania having a similar share. For example, AFI tenants prefer to work from the office for at least 3 days a week. “There is also a grow ing trend for developing co working spaces to better suit hybrid work. Some companies are choosing to rent temporary or long term co working spaces so they can have flexibility in their operations,” Emma Toma notes.
LOCALLY, ESPECIALLY IN THE SECOND HALF OF THE YEAR ,” EMMA TOMA, HEAD OF THE OFFICE DIVISION AT AFI EUROPE
According to JLL, after an increase in Q2 from EUR 18.5/sqm/month to EUR 19/sqm/month, prime rents maintained the same level in Q3. However, given the inflationary pressures, further rent increases are possible over the next few quarters. “The evolution of rents in office buildings has been influenced by the rising costs of construction materials, the energy crisis, and the overall economic in stability and inflation. Moreover, particularly in Bucharest, we are experiencing a stock decline because of the lack of new construc tions, which will lead to an increase in rents in the coming period,” Toma adds.
“Overall, rents have slightly risen this year amid improved demand and higher infla tion. The size of the increase varies widely, depending on the quality and location of the offices. The most significant changes have been recorded for Class A offices in Bucha rest, which provide very good conditions in terms of both facilities and connectivity. We expect to see further growth in this segment, as demand for premium offices is likely to increase and future supply will dry up due to the current unfavourable market conditions for the construction of new projects,” Tudos says.
“DURING THE FIRST HALF OF 2022, TOTAL LEASING ACTIVITY IN BUCHAREST
“WE’VE BEEN SEEING HIGHER DEMAND FOR OFFICE BUILDINGS
“AS PART OF OUR GROUP STRATEGY, WE ACTIVELY MANAGE OUR ASSETS TO CONTINUOUSLY IM PROVE ENVIRONMENTAL PERFORMANCE, QUALITY, AND RESILIENCE,”
FULGA DINU, COUNTRY MANAGER AT CPI ROMANIA
Investing in innovative technologies for buildings and boosting the sustainability of projects are priorities for Dimitris Raptis, the CEO of Globalworth Group.
He spoke to Business Review about the company’s office and logistics portfolio in Romania, which has grown to EUR 1.5 billion in value, and provided insight into the emerging opportunities offered by the local market.
By Anda Sebesi
With over half of the total smartphone market share and one third of premium phone sales, the Romanian subsidiary of Samsung Electronics is constantly reinforcing the company’s position as a leader on the technology market. Romania’s potential of becoming a top tech hub in Eastern Europe could represent a driving force for Samsung’s strategy, also with the help of Romanian consumers, who are always eager to try its innovative products and services. Julia Kim, President of Samsung Electronics Romania and Bulgaria talked to Business Review about the success story behind Samsung Electronics Romania and provided insight into the company’s ap proach to sustainability, one of its top priorities both locally and globally.
Despite the macroeconomic uncertainties, which are likely to persist, we have managed to obtain record revenues each quarter so far this year. In the third quarter, revenue grew 3.8 % to 76.78 trillion won (USD 54 billion). Specifically, the smartphone business posted solid profitability as demand increased following the release of the foldable phones and new wearables. Even though the eco nomic contraction has hit demand for consumer electronics, we expect our annual revenue to exceed the histori cal high of 2021.
Samsung Electronics Romania emerged as a fully autonomous sales subsidiary in June 2010, at a time of general growth for the IT market in South East Europe. Its success here is the result of a very good mix: a grow ing market, a solid team that brings Samsung’s vision, mission, and values to life, and tech savvy consumers look ing for a brand that puts their needs first and offers quality and inspiration. And it is precisely the fact that Romanian consumers appreciate innovation and quality that has allowed us to maintain our leading position in the mobile and visual displays categories.
increased customisation options, allowing users to express their personal styles and access tailored video and audio experiences. A better future requires seamless connectivity. As a founding member of the Home Connectivity Alliance (HCA), which brings together various smart home appliance manufacturers, we aim to foster greater interoperability between devices across brands to give consumers more choice and to enhance the security and safety of products and services. Through our SmartThings app, users can control more than 40 functions in 15 product categories from 13 brands, including Samsung Electronics. I men tioned sustainability as being a main pillar; on the one hand, that means building sustainability into the ways customers experience our products, and on the other hand, it involves expanding the use of recycled materi als to include all mobile products and home appliances over the next three years.
One of the key statements made by Samsung Electronics is “We create a culture of infinite possibilities.” How does the concept translate to innovation for its customers worldwide?
They include customisation, connectivity, sustainability, and a peo ple first approach, which means understanding that each person is unique and that they all want to customise their devices to suit their lifestyles. In response to this, we gradually introduced new prod ucts like the Bespoke Jet™ vacuum and Bespoke Washer and Dryer, expanding our line up to every room in the home to offer consum ers more ways to customise their spaces. We have also expanded our Lifestyle TVs series, which features the latest technology and
Behind any product launch, whether it's a new phone, a new type of TV or a range expansion like the Bespoke home appliances, there are entire research teams working hard so that the innovations we bring to the market can really add value to the lives of our con sumers. Throughout the process, we also rely on the feedback we receive from consumers as we carefully study their desires and their expectations, but also new ways in which we can provide them with new experiences and open up infinite possibilities.
I think it's also important to mention that our culture of infinite possibilities has a new layer, as we are now increasingly focused on a future built on everyday sustainability. This means that we use in novation to respond to the needs of our consumers, in Romania and
What can you tell us about Samsung’s current worldwide operations?
What is the story behind Samsung’s success in Romania?
What are the pillars of the company’s strategy?
worldwide, but also to empower people to reduce their carbon foot print and make positive changes towards a better tomorrow. And let me give the readers an example of how we integrate sustainability into our culture: to eliminate battery waste, we’ve launched the So larCell Remote with a built in solar panel that can be charged during both day and night. The latest version of the SolarCell Remote gets electricity from radio frequencies in devices like Wi Fi routers and it will be included alongside more Samsung products, including TVs and home appliances, with the aim of eliminating more than 200 million batteries from landfills.
Based on our data, Romanian consumers make their purchase decisions based on three key criteria: price, quality, and sustain ability. They spend their incomes on food, savings, and investments, but also—depending on budget constraints—on experiences (relaxation, entertainment, etc.). They are also willing to pay extra for quality because they really ap preciate innovation, which for us translates into very good results in the premium area. If we’re talking about young Romanian consum ers, we know that they are looking for means of self expression. They like individualised shopping experiences and pay a lot of atten tion to brand ethics and corporate responsibility.
Customers are at the core of our strategy, so we are constantly adapting and expanding our portfolio according to their needs and expectations. Our services and products now cover much of what people’s current needs mean, from high performance phones for multitasking to customisable electrical appliances, including cutting edge heat pumps to provide people with more comfort.
What are some similarities and differences between the Roma nian market and other markets on which you operate in the CEE region?
Romania, just like Bulgaria where we also operate, is a growing tech hub in Eastern Europe, and both countries have been successful in creating an attractive business environment. Both Romania and Bulgaria have a lot of potential for further growth, including in the smart home market area. Two years ago, I had the opportunity to coordinate the development of Samsung’s business in Hungary, a country that is on its way to becoming a leading digital technology hub, with consumers who, just like Romanians, are eager to try our innovative products and services.
How has this year been for Samsung in Romania in terms of achievements, financial results, and investments?
Although global economic activity is experiencing a slowdown, we have managed to continue to grow and develop in several segments. In the smartphone segment, Samsung’s market share continues to be at over 50% in terms of units sold. In the premium segment, one third of the phones sold on the market are Samsung devices. This demonstrates Romanian consumers’ affinity for premium Samsung products, which have state of the art specifications.
In terms of TVs, the company has a market share of 42 % of the total market in terms of value. We continue to see positive develop ments in this segment as a result of the increasing consumer interest in Smart TVs and connectivity, as the technology behind these devices now offers users unique viewing experiences.
How important is Romania for Samsung and what is the coun try’s weight in the company’s portfolio?
As already mentioned, Romanians are very open to new technologies, something that is also reflected by the increases recorded in sev eral business segments, including smartphones and consumer elec tronics. Moreover, our data and recent studies show that Roma nians are increasingly interested in investing in a Smart Home, seeking intelligent solutions for their homes that will not only provide them with more comfort, but also help them save energy. Taking all these aspects into account, we can see that the Romanian market has a lot of development potential, and therefore, it holds major strategic value for us.
We are, of course, focused on strengthening Samsung’s position as a leader on the technology market. We will continue to provide Romanian consumers with products and solutions designed to bring them new experiences and new alternatives for a higher quality of life. We also want to bring AI based technologies closer to people; as examples, I would mention the upcoming Bespoke washing machines with AI Ecobubble (a function that achieves the same level of cleanliness with lower energy consumption). We are also committed to launching 100% Wi Fi enabled appliances by the end of 2023 to ensure access to SmartThings Energy, an easy to use, app controlled smart metre service that helps users reduce energy consumption. And of course, our plans also include guaranteeing the best performance you can get in the smartphone world through the launch of new flagship phones and accessories.
Samsung Electronics is tackling climate change through a complex and comprehensive approach. Achieving net zero direct and indirect carbon emissions by 2050 and developing carbon capture and utilization technologies to reduce emissions are some of the strong commitments the company announced recently as part of its new sustainability strategy.
By Anda SebesiThis fall, South Korean manufacturer Samsung Electronics announced its new environmental strategy, a comprehensive effort to join global efforts to tackle climate change. It includes commit ments to achieve enterprise wide net zero carbon emis sions, plans to use more renewable energy, as well as in vestments in new technologies that will allow the company to develop energy efficient products, increase water reuse, and implement carbon capture technology. Samsung Electronics has also joined RE100, a global initiative dedicated to pursuing 100% renewable energy. As part of this commitment, within five years the company plans to match the electricity needs of all the international markets where it operates outside of Korea with renewable energy generation.
“The climate crisis is one of the greatest challenges of our time, and the consequences of inaction are unimaginable. Every one of us must contribute to the effort, including businesses and govern ments. Samsung is responding to the threat of climate change with a comprehensive plan that includes reducing emissions, new sustain ability practices, and the development of innovative technologies and products that are better for our planet,” said Jong Hee Han, Vice Chairman and CEO of Samsung Electronics.
Furthermore, in September this year, at the International Con sumer Electronics Fair (IFA), the company unveiled its vision for adopting a smart lifestyle in order to provide a sustainable future for next generations. The challenging context of the recent years has led consumers worldwide to become increasingly aware of their impact on the environment and eager to adopt a greener and more respon sible behaviour. They want to actively contribute to the creation of a more sustainable environment and lifestyle, and they want to use brands with whom they share the same values in terms of sustain
ability. “Consumers have an increased need for sustainable alternatives and we are happy to meet their needs by offer ing them the most up to date smart home appliances, which generate energy savings. By using efficient home appli ances that are synergetic with our SmartThings solution, we want that home experience to be genuinely sustainable,” said JaeSeung Lee, president and manager of the Digital Appliances Division at Samsung Electronics. The environmental commitment made by Samsung Electronics includes an enterprise wide effort to enhance resource circularity throughout the entire product lifecycle, from raw material sourcing to recycling and disposal. The plan also details investments in new technologies to reduce emissions from process gases as well as to reduce power consumption in consumer products. The com pany also aims to explore carbon capture and utilization technolo gies and tackle harmful airborne particulate matter.
In acknowledgement of the need for innovative approaches around environmental sustainability, Samsung Electronics will invest over KRW 7 trillion (about USD 5.1 billion) in its environmental initiatives by 2030. The investment figure will be aimed at reduc ing process gases, conserving water, expanding electronic waste collection, and reducing pollutants and excludes costs related to the expansion of renewable energy use.
Samsung Electronics seeks to become the No.1 brand when it comes to energy efficiency. To do this, the company has intensified its ongo ing efforts and collaborations in order to provide its customers with solutions that can help households cut their energy consumption down to zero. In addition, Samsung’s brand vision is to create a com fortable, energy self sufficient, and minimum emission home. In its
attempt to become a market leader in the energy efficiency technolo gies segment, Samsung has developed partnerships with companies that have similar goals. For example, together with Patagonia, a US based company specializing in outdoor clothing and gear for silent sports, Samsung developed a new washing machine technology that reduces microplastic pollution generated from clothes by up to 54%.
At the beginning of 2022, Samsung launched the SmartThings Home technology, laying the groundwork for the development of a genuinely sustainable home. By combining appliances that are connected to services like SmartThings Energy and the AI En ergy module, users can optimise their energy consumption while maximising their savings. Currently, SmartThings Energy works on about 40 Samsung home appliances that can be activated using the SmartThings app, including washing machines, dryers, dishwash ers, air conditioners, vacuum cleaners, air purifiers, ovens, cooker hoods, cooking stoves, microwaves, TV sets, and energy counters. SmartThings is thus a big step forward towards a sustainable future, which Samsung intends to contribute to through its home appliances. The company also aims for 100 % of its imported goods—like fridges, washing machines, residential air condition ers, and eco heating sys tems—to be connected to the SmartThings app in the near future.
The company has also come up with another sustainable innovation: in partnership with Qcells, it developed Net Zero Home, a self sustainable home that can generate and store energy from solar panels in order to power all Samsung equipment controlled through the SmartThings app.
“Through its most recent innovative products and services, Samsung offers its customers greater ope ness, connectivity, and efficiency when it comes to their day to day user experience. We therefore continue in our mission to search for revolution
ary solutions that can support people’s lifestyles, bring new forms of entertainment, and encourage sustainability through the different ways in which we care for our planet,” says Benjamin Braun, Chief Marketing Officer at Samsung Europe.
The design for Samsung’s smart home appliances is based on two fundamental concepts: being sustainable and helping people save money and reduce their carbon footprint. The company’s Bespoke product range and its Digital Inverter technology are great examples. The modular structure and replaceable panels of the Bespoke refrig erators extend their lifecycles and hence reduce waste from electri cal and electronic equipment (WEEE). After 25 years of intensive research, the Digital Inverter technology contributes to the increase of home appliances’ energy efficiency, performance, and durability.
The sustainability of a brand is closely linked to the experience it provides to its customers. With that in mind, Samsung Electron ics decided to offer a 20 year warranty—the longest warranty pe riod ever offered by the company—for its Digital Inverter engines and compressors. This way, Samsung increases the reliability of its products and confirms its com mitments to reducing electronic waste and promoting sustain ability.
Users are also encouraged to make greener decissions by using the SmartThings Energy app, which monitors diferent usage patterns and provides real time data that helps them reduce energy consumption. Accord ing to company repre sentatives, all Samsung products with a Wi Fi connection will have access to the SmartTh ings Energy app by 2023. Plus, Samsung will bring an additional 10 % energy saving capability to all its appliances, to reach the highest energy saving standard, A+++.
Romania's FDI inflow reached EUR 8.9 billion in 2021, the highest value since 2009. However, the country continues to rank last in the Central and Eastern Europe region in terms of FDI per capita. Last year, the net flow of foreign direct investment (FDI) continued on the positive trend recorded in the last part of 2020.
By Aurel ConstantinAlthough the state of alert imposed by the authorities as a result of the persistence of the SARS-CoV‑2 pandemic was in place throughout the year, foreign investors were able to adapt to the new economic conditions, resuming investment projects that had been suspended at the beginning of 2020 due to the economic freeze caused by the pandemic and even initiating
new projects. “Investments are a central issue of the OECD acces sion discussion, as well as the adoption of non discrimination and transparency principles, the liberalisation of capital flows, and the setup of a transparent and open regime for FDIs. Romania’s OECD accession is a strong signal for investors and Romanian businesses about its commitment to adhere to the highest standards. Foreign
Romania’s OECD accession is a strong sig nal for investors and Romanian business es about its commitment to adhere to the highest standards. Foreign investors will find an even more favourable and predict able business environment in Romania starting with the pre-accession period.
Five categories of competitiveness are usually analysed in studies on attracting FDI: legislative predictability, market size, labour market, economic sophistication, and digitalization level. Romania should first develop a strategy to attract FDI, which should highlight the essential sec tors for its development.
It is not easy to convince people to invest in Romania. But when you see that the purchasing power in Bucharest is as high as that in Warsaw, it is easy to find customers for projects. Furthermore, Romania is a NATO and EU country, so it is a safe country.
Despite the challenges it faces, Romania is moving forward, still developing in a good way. Having strategic investors with a long-term view is very important for the future of a company as well as for the future of the economy.
Investing in Romania, like in any other country, can be a roller-coaster ride, but when you look back at what you have achieved as a foreign investor, the bal ance is very positive. That is something that we should not forget.
capacity to access international financial markets—and the country’s increased involvement in global decision making and economic practices will be some of the most noticeable results of Romania’s acces sion to the OECD.
We are the third largest investor in Roma nia, with many of our top companies hav ing a presence here, in all sectors. French companies had invested EUR 1.2 billion in Romania as of last year, and our commer cial ties are strengthening as Romania proves to be an asset for the EU.
We are celebrating 16 years of generat ing business in Romania; and it’s not just about business, but also about value creation. About 90 percent of the food products in Auchan are produced locally by our partners, and 85 percent of our producers are Romanian.
Daniel Anghel, Board Member and Chair of the FDI Task Force at the Foreign Inves tors’ Council, said that Romania’s efforts should not simply be aimed at attracting any FDI, but be focused on the types of FDI that create economic value, stimulate the local business environment or target sectors with high added value, thus hav ing lasting effects on the economy. “Five categories of competitiveness are usually analysed in studies on attracting FDI: leg islative predictability, market size, labour market, economic sophistication, and digitalization level. Romania should first develop a strategy to attract FDI, which should highlight the essential sectors for its development, after an evaluation of the competitive advantages of its economy.”
Though Romania still has plenty to do in order to create a more predictable busi ness environment, it remains an attractive destinations for investors. “It is not easy to convince people to invest in Romania. But when you see that the purchasing power in Bucharest is as high as that in Warsaw, it is easy to find customers for projects,” said Jan Demeyere, co founder and partner at Speedwell.
We must implement digitalization in ev ery sector, as the economy must become more efficient; and there is a huge need for big infrastructure projects. Acceler ating digitalization will lead to more IT infrastructure being developed, and that will bring more opportunities.
investors will find an even more favourable and predictable business environment in Romania starting with the pre accession peri od,” said Luca Niculescu, State Secretary and National Coordinator of Romania’s OECD ac cession process, in his keynote speech at the 9th edition of the Foreign Investors Summit, Business Review’s landmark event. He added that an improved country rating—which will have a major positive impact on Romania’s
In his turn, Radu Hanga, the president of the Bucharest Stock Exchange (BVB), noted that we were all witnessing a posi tive economic development of our country. “The Romanian capital market was the best performing in the CEE region this year from the perspective of resilience—and this is noticeable considering the context. We have a conflict on our border, and we’re used to being seen as a weak spot, a market that overreacts to both positive
and negative situations. Looking at the main index, we could see that it was down only 10 percent from the begining of the year com pared to 27 percent in Hungary, 25 percent in Austria, and 37 percent in Poland.”
H.E. Ms Laurence Auer, France’s Ambassador to Romania, stated that French companies were among the biggest investors in the country, with millions of customers and tens of thousands of employees. “The success of French Romanian ventures is symbolised by Dacia, who launched its first electric car here. Dacia is one of the most important parts of Renault Group and it has a Roma nian identity. Today, we are the third largest investor in Romania, generating 8 percent of the GDP,” she noted, also pointing out that Romania was an asset for the rest of Europe and that France would continue to invest in the country.
Cristian Preotu, CEO at Le Manoir, said that it was not only large French companies that were operating in Romania, but also SMEs. “And it’s not just about investing, but about reinvesting as well. French companies’ investments may not be taken into account by all the statistics, but they bring in a huge amount of capital.” Official data shows that French companies have invested EUR 1.2 bil lion in Romania to date. Of the top 20 largest companies in Romania, five are French.
Eric Stab, Vice President at the Foreign Investors’ Council and Chairman and CEO at Engie Romania, highlighted the fact that foreign investors have found Romania to be a welcoming country and a good place for investments. “Investing in Romania, like in any other country, can be a roller coaster ride, but when you look back at what you have achieved as a foreign investor, the bal ance is very positive. That is something that we should not forget.”
Investors place high value on Romanian talent, including languages or technical skills, and we hope to also see some of the workforce that now resides in other countries coming back. There are two key conditions that can convince Romanians to stay or come back: good healthcare and quality education for their children.
H.E. Dr. Peer Gebauer, German Ambassador in Romania
Romania is much more than an excellent economic partner for Germany; we have close political partnerships which are of particular value during these times of crisis and of brutal Russian aggression, so we are relying on this partnership for the entire EU.
In a contest of geopolitical difficulties it is very important to find the right commer cial models to make projects of energetic independence. We must have a global vision, but it is important to act and develop locally.
We have constantly grown our business here, having added the factory in Blaj and the call centre in Timisoara. Later, we opened another manufacturing facility in Cluj, followed by a research facility. This will continue, as it has been a very suc cessful journey.
long history and they’ve been significant in size, and we are not just talking about new investments, but also about reinvestments. French companies may not be taken into account by all the statis tics, but they bring in a huge amount of capital.
When we started out, it was a place with good and cheap labour, but we also saw that there were over 200,000 people studying in the universities, and this led us to immediately begin research and development operations. Currently, we have 17,500 employees here and we’ve invested EUR 2.1 billion.
Romania has the potential to at tract new investors, especially in the energy sector, in both natural gas and renewable energy. There are still plenty of opportunities here. Romania has also developed as an innovation hub with a lot of startups and I am very optimistic about its future.
Lucian Enaru, Country General Manager at Schneider Electric Romania, said that Romania had become an important support service centre for Schneider, covering over 40 countries. “The high energy prices are forcing us to mobilise all our forces in Ro mania to implement the knowledge we have about energy management, which we’ve sourced from all over the world.”
Tiberiu Danetiu, Marketing Director at Auchan Romania, noted that investing is not just about the money, but also about value creation. “We have strong relationship with our Romanian suppliers, they’ve been growing with us, so about 90 percent of our products today are local. And there are many small producers that deliver directly to our shops.”
Francois Coste, CEO of Groupama and President of CCIFER, said that Romania of fers plenty of opportunities, as the market is not yet saturated. “Investors are aware of the fact that Romanian talent can perform very good services for the benefit of Europe or the whole world.”
there were German companies in Romania at the beginning of the last century. Also, in modern times, there are companies that are already 30 years old.
Mihai Boldijar, General Manager at Robert Bosch, noted that Bosch first started operating in Romania 28 years ago. “Since then, we have constantly grown our busi ness here, having added the factory in Blaj and the call center in Timisoara. Later, we opened another manufacturing facility in Cluj, followed by a research facility. This will continue, as it has been a very success ful journey.”
Andreas Lier, Managing Director at BASF Romania, said that his company was also celebrating 20 years in Romania and that the country remains a very good destina tion for investors. “Romania has the poten tial to attract new investors, especially in the energy sector, in both natural gas and renewable energy. There are still plenty of opportunities here. Romania has also developed as an innovation hub with a lot of startups and I am very optimistic about its future.”
The history of German invest ments in Romania are going back a long time as there were German companies in Romania at the beginning of the last century. And we’re seeing these companies operating across many different sectors of the economy.
H.E. Dr Peer Gebauer, the German Ambassa dor to Romania, said at the start of the third panel of the Foreign Investors Summit that Germany was Romania’s most important partner and that German companies have built great success stories here. “Romania is much more than an excellent economic partner for Germany; we have close political partnerships which are of particular value during these times of crisis and of brutal Russian aggression, so we are relying on this partnership for the entire EU.” He added that we cannot accept the Russian aggression and that all EU countries must help Ukraine end this war.
Theodor Artenie, Head of Tax at Noerr, said that the history of French investments in Romania are going back a long time as
Dr Christian von Albrichsfeld, Head of Country at Continental Romania, pointed out that they had also entered Romania about 22 years ago. “When we started out, it was a place with good and cheap labour, but we also saw that there were over 200,000 people studying in the universi ties, and this led us to immediately begin research and development operations. Currently, we have 17,500 employees here and we’ve invested EUR 2.1 billion. In the past year alone, we have invested about EUR 150 million. Around a third of all our employees here are working in research and development. I think this is one of the biggest opportunities for Romania, as it has a lot of young people coming out of univer sities, including many engineers.”
Romania has attracted billions of euros in foreign direct investments over the past three decades, and it has managed to close some of the gap that separates it from the most developed countries in the EU. However, there is still a lot to improve, especially in terms of infrastructure, education, healthcare, and digital skills. And right now, there are plenty of opportunities arising in all sectors of the country’s economy.
By Aurel ConstantinThe second day of Business Review’s Foreign Investors Summit started with a speech by Economy Minister Florin Spataru, who explained that there were many things the Romanian economy had to change in order to make use of all the opportunities coming from European programmes and the associ ated non refundable financing. “The economy must enter a period of transformation in order to become more sustainable, and we need to take exceptional measures in order to boost ESG invest ment. One of the solutions has to do with changing the way things are done in the manufacturing industry. We have a EUR 300 million programme to support the transition towards a more environmen tally friendly industry, and I will fight to keep the programme going until all the funds are used up,” the minister said. “Then there are the measures being taken towards the development of a circular economy. We have the minimis scheme and we also creating new circular economy projects that we can get funding for. This is how we can create a framework for the economy of the future, one that is more sustainable,” he added. Next steps also include developing strategies for mineral resources, for boosting the competitiveness of the economic sector. “The government will have to make sure that these strategies are followed and put into practice,” Spataru concluded.
“Romania has grown into a major centre for mobile technology, information security, and related hardware research. The country
has a well earned global reputation for developing strong cadres of computer science, technical, and engineering talent,” stated H.E. Mr David Muniz, Charge d’Áffaires, Embassy of the United States in Romania, explaining why our country was such an appropriate host for the International Telecommunications Union Conference. “However, Romania’s ICT sector is just one of the many industries that have attracted US investors’ interest. Some of our most valu able brands—from the defence, energy, automotive, pharmaceuti cal, consumer products, healthcare, finance, and other sectors—are supporting tens of thousands of jobs and have invested billions of dollars on this market. As we salute the American Chamber of Com merce’s 30th anniversary next year, we would highlight that the number of its US and US affiliated members have multiplied ten times to over 500 members today. We can say with pride that our commercial relationship is a critical component of the 25 year old US-Romania Strategic Partnership.”
But Muniz also admitted that not everything is great in Ro mania. “The European Commission’s 2020 Country Report for Romania pointed to persistent legislative instability, unpredict able decision making, low institutional capacity, and corruption as factors eroding investor confidence. US companies are echoing these concerns, along with shortfalls in energy and transportation infrastructures that reduce operating efficiency and increase costs. We urge the Romanian government to continue combatting corrup
The economy must enter a period of transformation in order to become more sustainable, and we need to take excep tional measures in order to boost ESG investment. One of the solutions has to do with changing the way things are done in the manufacturing industry.
Mioara Iofciulescu, LL.M, EMBA Managing Director at Atlantis Romania
I do believe that the workforce is Roma nia’s biggest asset. I think that US inves tors also see that. We are a country with hard-working people, and we have proven loyalty to our companies. Investors coming here will find a beautiful country, wonderful people, and plenty of business resources.
tion, holding consultations with stakehold ers, and conducting impact assessments consistently before enacting legislation to improve the overall business climate and to strengthen its position among EU member nations who also seek to attract US inves tors,” he said.
Ramona Jurubita, Vice President of the Foreign Investors Council and Country Managing Partner at KPMG Romania & Moldova, took over from David Muniz and explained that the panel would focus on investments, but also on possible answers to the crisis that we are experiencing today. “We’re seeing many problems in Romania today, from the workforce shortage to rising prices and the energy crisis, and we must find ways to tackle these problems and make sure that we can overcome them. One answer is in investments, specifically in US investments,” she argued.
H.E. Mr. David Muniz, Charge d’Áffaires, Embassy of USA in Romania
Romania’s ICT sector is just one of the many industries that have attracted US investors’ interest. Some of our most valuable brands—from the defence, energy, automotive, pharmaceutical, consumer products, healthcare, finance, and other sectors—are supporting tens of thousands of jobs and have invested billions of dollars on this market.
In the last five years we have done projects to improve the digital skills of more than half a million Romanians. That is a huge opportunity because the digital economy is the area where we are all trying to succeed and I believe Romania can play a more important role in this environment.
We have been here for 25 years and we represent a large number of clients, so we have seen it all. The fact that Romania is a member of the EU and NATO makes a big difference to foreign investors, especially now when we have tanks at our doorstep.
We’re seeing many problems in Romania today, from the workforce shortage to rising prices and the energy crisis, and we must find ways to tackle these problems and make sure that we can overcome them. One answer is in investments, specifically in US investments.
The information & technology sector is one of the key components of the future economy. Romania is lagging behind other countries in terms of digital education, and this may impact the way the future is shaped. But while Romania as a nation has some of the worst digital education scores, a significant part of its workforce is highly qualified in IT&C. Elisabeta Moraru, Country Manager at Google Romania, noted that Google employs more than 300 developers locally, who are responsible for most of the development being carried out for smart mobile devices. “In the last five years we have done projects to improve the digital skills of more than half a million Romanians. That is a huge opportunity be cause the digital economy is the area where we are all trying to succeed and I believe Romania, as a digital challenger, can play a more important role in this environment.”
Teresa Shafer, Ph.D., Executive Dean for Institutional Affairs at Tiffin University, an institution that has been present in Roma nia for 23 years now, talked about bringing
the US’s applied education practices to Romania. “What makes Romania unique is the fact that there is an open mindset, a strategic mindset among the leaders here, who want the youth and the senior leaders to think differently. Along with my respon sibility of teaching and running part of our programmes, I have the distinct pleasure of working across our international campus es. And we have some that have failed, in countries that don’t have that open mind set, that want to keep doing things the way they always have. That doesn’t work, it doesn’t bring value,” Shafer argued, add ing that she sees new positive changes in Romania every time she visits.
“I do believe that the workforce is Romania’s biggest asset,” said Mioara Iof ciulescu, LL.M EMBA, Managing Director at Atlantis Romania, pointing out that the high number of qualified young profes sionals that are joining the workforce every year is crucial. “I think that US inves tors also see that. We are a country with hard working people, and we have proven loyalty to our companies.”
Also on the topic of investments, Perry V. Zizzi, Managing Partner at Dentons Romania, pointed out that Romania was in a good position, geopolitically speaking. “We have been here for 25 years and we represent a large number of clients, so we have seen it all. The fact that Romania is a member of the EU and NATO makes a big difference to foreign investors, especially now when we have tanks at our doorstep. At this point, we are seeing a lot of interest not only from tech investors, but also from investors in green energy or agriculture and clients who are engaged in military procurement.”
The topic of the final panel of the 2022 Foreign Investors Summit was finding
the proper balance between tradition and innovation for thriving businesses in the years to come, with a focus on FDIs originat ing from two of Romania’s most important economic allies, Israel and Italy. “There are many challenges regarding R&D in medtech, and the most important one is financing,” said Dr Elena Ovreiu, CEO & Co founder of the BIOdyssey Health Innovation Hub and Senior Lecturer at the Politehnica University of Bucharest. “When I say that about financ ing, I am referring to Romania. What I saw in Israel was universities producing dozens of startups every year, many of which go global and are backed by research carried out inside the universities. There are many innovation tools available for startups, grants for profes sors, and other types of grants for different levels of innovation. There is also a great amount of collaboration between universities and hospitals, as you cannot have innovation without the involvement of medical institu tions,” she explained.
The situation is different in the manufac turing sector, represented in the panel by Matteo Baldan, Group Chief Financial Officer at Martelli Europe. “In the last two years, we have seen more onshoring of manufacturing and a big increase in demand, despite the fact that we’ve been seeing pessimism on the market since February. We work only with luxury and premium brands. The biggest concern we have is finding local workforce that has the ability to work with automation and digitalization tools.”
Inflation and high energy prices will definitely impact manufacturing, but the solutions lie in more efficient processes or consumption cuts. “The most convenient approach is to reduce consumption, but this is not always possible for industrial process es. Therefore, players should try to secure fixed prices for their energy supply. For the medium term, they should look at installing PV panels in order to produce some of the energy they need,” said Bogdan Asanache,
H.E. Mr. Alfredo Durante Mangoni, Ambassador of Italy in Romania
Italian companies are operating in a number of sectors here, and the problem is that a significant share of Romanian workers are choosing to go abroad, where they can find better working conditions, public services, education, and health care.
H.E. Mr. Reuven Azar, Ambassador of Israel in Romania
Two things are at the root of many problems: permits and processing. We are in a global crisis, which means there is less money available for investment, but if you look deeper you’ll see that there is also more reluctance about going to the stock exchange to find money.
What makes Romania unique is the fact that there is an open mindset, a strategic mindset among the leaders here, who want the youth and the senior leaders to think differently. I have been coming here since 2000 and I can say that there’s been a lot of change over the past two decades.
In the last two years, we have seen more onshoring of manufacturing and a big increase in demand, despite the fact that we’ve been seeing pessimism on the market since February.
Country Manager at Ecoenergy Balkan. He added that there are some EU funds available for green energy, but they are not easy to access, so it may take a long time to get such funds.
“There are two aspects that should be highlighted. The first is the infrastructure gap and the second is the scarcity of skilled workforce. In terms of the infrastructure gap, we are certain that Romania can catch up rather quickly, but the lack of the skilled workforce is causing a bigger concern,” said H.E. Mr Alfredo Durante Mangoni, Ambas sador of Italy in Romania. “Italian companies are operating in a number of sectors here, and the problem is that a significant share of Romanian workers are choosing to go abroad, where they can find better working conditions, public services, education, and healthcare. The biggest problem has to do with living conditions in areas that are not close to big cities,” he added.
see that there is also more reluctance about going to the stock exchange to find money. Foreign investors are looking for assets, including in real estate, and there is money waiting to come in, but all of that hits a wall due to the current issues around permits. The second big issue has to do with pro cessing: sometimes it is caused by a gap in infrastructure, other times by an absence of labs for food sampling, for example.”
The most convenient approach is to reduce consumption, but this is not always possible for industrial processes. Therefore, players should try to secure fixed prices for their energy supply. For the medium term, they should look at installing PV panels in order to produce some of the energy they need.
H.E. Mr Reuven Azar, Ambassador of Israel in Romania, also brought up two key issues that Romania should address: permits and processing. “We are in a global crisis, which means there is less money available for investment, but if you look deeper you’ll
One of the biggest areas of opportunity for Romania is the agricultural sector, which should be developed more ag gressively. And even though the largest farms in the country are already owned by foreign entities, there is still plenty of room left for FDIs. “Another major source of opportunities is tourism, with many Israelis now invading Romania, looking for new holiday destinations that are not too far from home. I saw some official statistics that said Israelis were the most numerous foreign visitors in Romania. This is some thing that we can develop much further, and we are already working on it,” Reuven Azar noted.
University of Bucharest
There are many challenges regarding R&D in medtech, and the most important one is financing. What I saw in Israel was universities producing dozens of startups every year, many of which go global and are backed by research carried out inside the universities.
The world is becoming less global and mentalities are getting more divided, therefore all business links should be strengthened. Furthermore, as supply chain issues are causing headaches across the board, it may be a perfect time for Romania to step up.
Identifying the right measures to im prove Romania’s business environment is the most important thing authorities can do right now. “I think the education system should be reformed and that we should see a better link between the school system and the labour market. At the same time, we should try to attract European funds for smart projects in manufacturing and renewable energy. Great importance should also be placed on key infrastructure, its development across large territories of the country, as it would significantly boost the modernisation of these areas. Italian companies are currently based around Timisoara, Cluj, and Bucharest; we have an ongoing project at the embassy to assess other high potential areas in Romania in order to generate a new wave of Italian investments,” Alfredo Durante Mangoni concluded.
With over 15 years of experience as an executive in the Roma nian IT industry, Mihail Raduta, Country Manager at Accion Labs Romania, sat down with Busi ness Review to talk about the company’s recent entry on the Romanian market.
By Mihai CristeaYou have recently launched operations in our country, so to kick off our discussion please tell us: what is Accion Labs, why Romania, and what are your company’s core values?
Accion Labs is a a cloud and digital trans formation services company that supports business development through emerging products and technologies. Our new centres in Romania will be integrated into Accion’s global offering and will focus on all areas of Accion’s services offering to customers in North America and Europe.
Our core values are Innovation striving to do things differently to achieve improved results and create a culture of creativity and innovation, Value Creation – enhancing our brand value with the support of our custom ers, employees, and investors Empathy and Respect creating an environment that fosters collaboration, honesty, trust, and wellbeing, and Result Oriented – having a sense of own ership, problem solving, better productivity, and focus on outcomes.
What
Romania?
In the short term, we want to launch the centre with the core Management team and other team members in Q3 2022 and to build a centre of 100+ people in the first half of 2023. Then, we plan to build an Extended Develop ment Centre focusing on Cloud and Digital
Engineering services for a select group of customers. As for the mid and long term, say in the next 2 3 years, we want to build on the foundation to enlarge the development centre and serve as the hub for Accion’s delivery ca pability expansion in the Central and Eastern European regions.
We expect the Romania operation to be a significant part of Accion Labs’s global expan sion strategy, mainly focused on Europe and the US markets.
What are the main areas in which the Ac cion Labs technologies stand out?
Among the areas in which Accion Labs has demonstrated its expertise at a global level, we can mention the healthcare system, artificial intelligence and machine learn ing, human computer interaction, and data analytics.
One of the largest financial and admin istrative healthcare networks in the United States wanted to consolidate data from multiple business units into a company wide consolidated Data Warehouse for their Busi ness Intelligence applications. Accion Labs built a Data Warehouse and consolidated data from multiple business units within the com pany to enable consistent reporting of KPI metrics. The client built multiple Business Intelligence applications that read data from this Data Warehouse, resulting in improved decision making through actionable insights.
Accion engagement has also helped a tech company build a next gen analytics platform that delivers better business outcomes with insightful data based on accurate predictive modelling. We achieved 5x performance im provements by re engineering the entire data lake to the analytical engine pipeline. Also, the highly concurrent, elastic, non blocking, and asynchronous architecture we designed reduced runtime to around 8 hours, from 30 hours previously while processing 4.6 billion events.
One of the world’s most successful global asset management software companies was facing a problem of data flooding that was generating chaos across its technology infra structure. Accion engaged with this company to plan and implement their unique digital journey. The kick off to the discussions happened with the scheduling of extensive deep dive sessions wherein Accion engineers highlighted the problems with Relational Da tabase Management Systems, citing that over the years, RDBMS has been the first choice for most organisations to manage their data storage, but the fast growing volumes of data have made it imperative for companies to build more robust data management systems that are able to handle the load. In this com pany’s case, the limited capability to integrate unstructured data from smart devices was choking up the system and needed a major overhaul.
With an 11.1 percent growth of its local business, supported by a double-digit expansion on 7 of its 9 divisions, Nestlé Romania aims to double its operations over the next 5 to 10 years. Silvia Sticlea, Country Manager at Nestlé Romania, talked to Business Review about the company’s financial performance both locally and globally.
By Anda Sebesi
Earlier this year, Nestlé Global announced its financial results for the first nine months of 2022, reporting significant or ganic growth. What were the main drivers of these results?
For the first nine months of 2022, at the Group level, Nestlé saw an organic growth of 8.5 percent, with real internal growth (RIG) stay ing resilient at 1 percent and pricing surging by 7.5 percent.
In the Europe Zone, organic growth reached 7.1 percent, with pricing account ing for 5.7 percent. RIG was resilient at 1.5 percent, following a high base of comparison in 2021 along with supply chain constraints. Foreign exchange negatively impacted sales by 7.5 percent, reflecting the appreciation of the Swiss franc against the Euro. The Zone saw market share gains in coffee, Infant Nutri tion, and plant based food.
By product category, the key growth driver was PURINA PetCare, fueled by premium brands Gourmet, PURINA ONE, and PURINA Pro Plan. Sales in Nestlé Professional grew at a strong double digit rate, led by bever
ages. Water posted double digit growth, with strong contributions from international and local brands. Sales in Infant Nutrition also grew at a double digit rate, based on strong momentum for human milk oligosaccharides (HMOs) products. Confectionery reported mid single digit growth, with strong demand for KitKat and seasonal offerings. In the third quarter, our vegan KitKat V was rolled out across 15 European countries. Coffee posted low single digit growth, led by NESCAFÉ soluble coffee, and continued strong sales developments for Starbucks by Nespresso. Culinary reported a sales decrease, impacted by negative growth in pizza and noodles. Gar den Gourmet plant based products continued to see strong double digit growth, reflecting new product launches.
What can you tell us about Nestlé Roma nia’s results in the first nine months of this year?
Nestlé Romania finished the first nine months of the year with a growth of 11.1 percent, supported by a double digit evolution in 7 of
our 9 divisions, including Infant Nutrition, Pet Food, Nespresso, Nestlé Health Science, and Coffee. We expect the good overall per formance to continue until the end of 2022. Solidarity with society and its current needs is important to us, and the products donated by Nestlé Romania since the beginning of the year have exceed CHF 600,000 and 90 tonnes of food and beverages. In a period character ised by frequent changes, I am glad to lead a united, strong, and ambitious team, which has demonstrated flexibility and adaptabil ity to further develop a business that brings beloved products into the homes of Roma nian families. Through all of our projects, we reconfirm our commitment to improving the quality of life and contributing to the well being of society at large.
In the third quarter, the OptiXpress brand entered Nestlé's portfolio and launched the Nestlé LITTLE STEPS® 3 range for young children in cardboard packaging designed for recycling and spoon dispensers made of at least 95 percent cane plastic, a renewable resource. On the packaging of JOE Mini, JOE Good Day, JOE Dreams, JOE Original Bar, and JOE Noir Bar, you can already find the Rainforrest Alliance and Cocoa Plan symbols. Nestlé communicates the “100 percent cocoa from sustainable sources” message on 34 percent of its Sweets portfolio.
What are your expectations for the evolution of the Nestlé Group this year from a financial perspective, both locally and globally?
At the Group level, we expect organic sales growth of around 8 percent. The underlying trading operating profit margin is expected around 17 percent. Underlying earnings per share in constant currency and capital ef ficiency are expected to increase. In Romania, we estimate a double digit growth, upholding the year to date trend.
After almost a decade of operating in Romania, BTDConstruct & Ambient is one of the top 10 construction companies on the local market, according to IBCfocus. Along with its tailored construction management strategies, BTDConstruct & Ambient is working towards becoming a full-service provider by integrating new lines of business. The company’s Head of Business Development, Razvan Parvulescu, sat down with Business Review to talk about the company’s plans for the coming years.
By Anda SebesiOur company’s story began with a small team of professionals who, back in 2013, set out on a journey to build a general contractor firm that would make a difference on the country’s dynamic and ever changing real estate mar ket. The initial team soon grew into a group of experienced innovators in the field of civil engineering, architecture, interior design, and project management, all of whom shared a strong sense of business ethics and a desire to always work in the client’s best interest.
Since the beginning, we’ve been feeding into the motivation to push beyond the limits of our plans and develop creative solutions.
From the sketch stage to the moment of handing over our construction projects, we’ve upheld our core vision of going beyond the details. Over the years, we have managed to
make our mark on some of the most impor tant and impressive residential projects on the market, and now, after almost 10 years of operations—which we will celebrate next year—, we are one of the top 10 construction companies in Romania, according to the inde pendent ranking released by IBCfocus.
If we were to look at the financial side, in 2016, with 17 employees, we had a turnover of over RON 25 million and a profit that was close to RON 3 million. The company has grown every year, so in 2021 we had a turn over of RON 304 million, a profit exceeding RON 11 million, and a team of 103 profession als.
What are some of the main projects BTD has developed and implemented?
Our company has multiple projects un derway, including Liziera de Lac, Vulcan Residence, Stejarii Residential Club II, Dan
ielopolu, Dimri Residence, Promenada Mall (the underground structure of the extension), Up site by Atenor, and Medicover Hospital. At this time, we have contracts totalling more than EUR 150 million. Other major proj ects that have been completed by our team include Win Herastrau, Luxuria Domenii Residence, The Ivy, Gran Via Park, C entral Residential, H Victoriei 109, H Pipera Lake, Ibis Styles Bucharest City Center, and many more. The projects we have contracted for the coming year are mainly based on sustain ability and energy efficiency solutions, with a total of 8 major projects with completion dates spanning over the next 1 2 years.
What is the added value that BTD brings to each of its projects?
Our most important and reliable asset is our team. With the experience and ambition to build using innovative solutions and modern technologies, we have the ability to create tailored construction management strategies that can be measured in terms of costs and time savings, risk reduction, and quality en hancement. The value we add to each project is bolstered by innovative services that make for more creative solutions rather than chal lenges and our team is the key essential here.
The strength of our company lies in the quality of our work, which is made possible by our team of professionals who are trained to carry out highly complex tasks in a timely manner while adhering to the highest quality standards. With this vision in mind, we have brought together professionals with an aver age of over 19 years of experience in this field. We work closely with specialised partners in areas like technical construction consulting or health and safety. Together, we can assist
What is the story behind BTD and how has the company developed since its establishment?
those who request our services in all stages of their project, from the design phase to construction and operation.
What can you tell us about the digitalization of the construction industry and what are the main benefits for this sector?
The term “brick and mortar” is already outdated. The digital age is here, the digital push is accelerating, and the race is tight. The industry is quickly embracing new technolo gies, from automation to Building Informa tion Modelling (BIM) and analytics tools, encouraged by the current economic con text—but that’s not the only reason. This race forces companies to assess their competitive ness and market position more broadly.
A major upgrade is the use of common data environments and BIM by companies to deliver projects faster and more efficiently. This is a major change from 10 15 years ago, when teams would gather near the end of the month and review how they were tracking projects using spreadsheets and paper forms.
Technology now allows company manag ers to better understand the production process and whether it is economically ef ficient, as well as the regional characteristics of markets and customer requirements. All these digital benefits result in streamlined processes and improved customer experi ence.
How important is digitalization for BTD?
Digitalization is one of our top priorities and a key factor in the modernisation of the whole local industry. This is exactly why our company has accelerated its digital transfor mation across all business areas since last year to ensure high efficiency and flexibility, allowing us to react more rapidly to new market conditions. Simultaneously, the team at BTDConstruct & Ambient is focused on operational optimisation and improved planning of construction phases, without compromising on the quality of the work.
In recent years, it has become clearer that sustainable projects will occupy the spec trum of new buildings. We have been strong supporters of the industry's move toward
resource efficiency. One positive aspect is that the need for sustainability is being bet ter acknowledged in general, not just in our country’s construction industry. For example, all the developers with whom we are working have implemented nZEB standards and have included sustainability elements into their projects, and BTD has integrated them in all phases of construction. Recently, there has been a lot of progress in the construction sector along these lines, but the transition process is complex and changing practices will take time. However, a paradigm shift in
tive methods that not only solve an existing problem, but also anticipate future needs. Our company encourages sustainable and efficient development and respect for the environment, our customers, suppliers, and employees and it pays particular attention to risk prevention, health, and safety at work.
Our sustainable development solutions in volve close collaboration between stakehold ers so that the construction’s impact on the environment is minimised. We were among the first companies to integrate sustainable solutions such as thermal insulation, waste
real estate development—from the focus on construction costs to the lifecycle or sus tainability of a building over time—is also essential. Moreover, the concepts of sustain ability and energy efficiency must first and foremost be embraced by real estate develop ers and included in the projects they intend to develop. We are optimistic that we will soon begin to see the industrialisation of the construction sector (to include prefabrication and integrated systems), which will lead to a higher level of optimisation.
What are the most important sustainable initiatives the company has implemented so far?
We rely on sustainable development solu tions and on the continuous improvement of our products and services, an asset that allows us to offer our customers alterna
management, and enhanced practices to reduce the construction site's impact on the surrounding community. More precisely, last year we recycled over 2,000 tonnes of waste, we implemented special noise control and anti dust discharge panelling in construc tion sites where the landscape allowed, we acquired new, state of the art construction machinery, and we are constantly striving to use more sustainable construction materials.
Development plans for the next few years are based on the same orientation towards sustainable and energy efficient projects, as our objective is to strengthen our position in the industry as a quality and detail oriented general contractor and builder. We are also working towards becoming a full service pro vider by integrating new lines of business.
While the European Union has put forward the Startup Nations Standard of Excellence in a bid to boost the creation of entrepreneurial firms, Romania is working on its own legislation that aims to support newly founded firms that are proposing innovative products and services.
By Ovidiu PosircaThe executive arm of the EU has already proposed a common approach for the startup sector, covering aspects ranging from legislation to access to finance and diversity
The need to overhaul the legislation around startups has been highlighted by Sebastian Burduja, the minister of Research, Innovation, and Digitalization.
“Our legislation is 32 years old. I support a new law for commercial entities; I know it’s a ‘Pandora's Box,’ I know many say it’s impossible, but our aim should be to create a new type of commercial entity for innovative startups. They will have much more flexibili ty and will be able to experience much higher growth here, in Romania. This is an impor tant item on our list of goals. And we will need your help, because we are going to have endless discussions in Parliament, with com mercial lawyers, banks, and other entities,”
said the minister during the Investors’ Day event organised by Techcelerator. Burduja further quoted World Bank data which shows that Romania has plenty of startups, but that many of them get shut down rather quickly compared to those in other countries.
“Specialists have told us to find a way to finance them. Look at what they have done in Israel, in Silicon Valley, look at Ireland and many other countries. And I came up with this idea of the Romanian Innovation Fund, a ‘fund matching’ initiative through which the government will match the financing of private investors—both VCs and angels. The selection will be made using private sector criteria and methodologies. The state will
finance this instrument, but it will interfere as little and as efficiently as possible,” the minister added. The European Commission, the executive arm of the EU, has already proposed a common approach for the startup sector, covering aspects ranging from legisla tion to access to finance and diversity. We have many programmes supporting general ist startups and some initiatives targeted to wards tech startups, but we are still followers instead of leaders in this regard, according to Ionut Tata, CEO of Iceberg Plus.
”Legislation should represent the transla tion of public policy into reality, therefore I would be glad if, at a policy level, we could agree to turn tech startups into a priority
and not just adopt FOMO type measures. Let’s not pass laws only to add bureaucratic hurdles to the already complicated life of Romanian startups,” Tata told BR.
The EU’s Startup Nations Standard of Excel lence declaration states that across member states, an entrepreneur should be able to establish a startup (legal entity) both online and offline, within one day, for a fee of no more than EUR 100. The EU is also proposing that each member state open a helpdesk that can support startups and scaleups from other European countries that may want to enter its market.
“All day to day interac tions between startups and authorities (such as company creation, filing of taxes, participation in public procurement opportunities, electronic ID and digital signatures) are designed to be carried out in a digital first manner,” according to the declaration.
Marius Ghenea, managing partner at Catalyst Romania, points out that Romania is relatively advanced in terms of implement ing some EU regulations tailored for startup support, such as the ECSP (Equity Crowd funding Service Provider) legislation. The law was adopted by the Romanian Parliament a few months ago and the first providers are currently undergoing the approval process. Following that, they will be able to passport the authorisation issued by the Romanian FSA (Financial Supervisory Authority) to any other EU country. This will be useful in matching startups in Central and Eastern Europe (CEE) with providers of capital in Western Europe. At the same time, Ghenea suggests that passing a single startup law in Romania would not necessarily represent the silver bullet in fostering the growth of the local ecosystem.
“The problems that startups face are complex, starting with financing needs where the crowdfunding law could help, but we need to continue with public policies that also involve public funding, especially in
the form of grants, particularly for research, development, and innovation. Furthermore, bureaucracy needs to be eliminated or at least reduced for startups, and there should be more entrepreneurial education, mentor ing, and other forms of support for startups,” the Catalyst Romania managing partner tells BR. Better policy and education are needed in Romania to encourage the launch of new businesses, according to the Global Entre preneurship Monitor. Established Business Ownership (EBO) in the country remains low (4.1 percent), although the economy has a relatively strong early stage entrepreneurial activity despite the pandemic. The report’s authors point out that if more new businesses could grow into the established phase and have highly visible success, then confidence might gradually increase among the general population, fos tering a stronger entrepreneurial culture and ecosystem in Romania.
“Policies that help new businesses grow and establish themselves will be particularly valuable, such as tax incentives for invest ments and hiring or matching grants that can persuade lenders to increase their entre preneurial portfolio,” authors of the Global Entrepreneurship Monitor add.
The adoption of a new startup law is part of Romania’s bigger ambition to become a hub for entrepreneurial companies. The research minister noted that that up to RON 12 billion (around EUR 2.4 billion) in funding will target emerging companies in Roma nia until 2030 under the National Plan for Research, Development, and Innovation. Additional funds can be unlocked through
the National Plan for Recovery and Resilience (PNRR) and the Operational Programme for Intelligent Growth, Digitalization, and Financial Instruments (POCIDIF). Asked about more advanced startup related regula tory frameworks that could serve as models for Romania, Ghenea notes that the UK and Estonia are among the top achievers in this field. He points out that we have seen better cooperation between Romania and Estonia lately, both in terms of private business projects expanding from Estonia to Romania or the development of various joint business concepts. Estonia has already had 10 startups reach unicorn status, with valuations of more than USD 1 billion, while only one startup with Romanian roots has ever reached the same level, namely UiPath, which is now a pub lic company.
The Startup Estonia government agency acts as a one stop shop for entrepreneurs, provid ing an online platform where they can find all the documents and informa tion they need to start a firm in the country. A company can be founded in Estonia in just 15 minutes, while taxes can be done in just 3 minutes through e government solutions. The Romanian min ister did not mention Estonia as a model for the new local legislation for startups, but the best practices mentioned in the EU Startup Nations Standard of Excellence could also serve as a development model.
As the EU aims to reach autonomy in strategic industries, ranging from energy to battery and chip production, innovative startups are needed to generate the Union’s economic growth in the coming decade. The stakes are especially high as Europe is com mitted to becoming the first carbon neutral continent by 2050. "Germany, for example, recently announced a EUR 30 billion public fund to support technology focused startups, and that is the kind of bold move that I would love to see in Romania as well. We won’t be able to compete with 300 million, which is the amount we might have available for the same purpose under current Romanian policy instruments," concluded Iceberg Plus' CEO.
With the Organisation for Economic Co-operation and Development (OECD) having initiated accession negotiations with Romania at the beginning of this year, the Italian Embassy in Bucharest held a special workshop on the Anti-Bribery Convention, which is a critical instrument in the country’s efforts to become an OECD member and build a transparent trade and investment environment.
By Ovidiu PosircaThe workshop, jointly organised with the Romanian Justice Ministry, was attended by high ranking officials in both countries.
“Today's event proved useful in explain ing to practitioners, magistrates, lawyers, and people dealing with corporate compliance programmes about the effectiveness of the OECD Convention in preventing and fighting foreign bribery. Romania has already taken some important steps in this regard,” Alfredo Durante Mangoni, the Ambassador of Italy in Romania, told BR. He added that the event was also aimed at sharing Italy’s experience in terms of corporate criminal liability in the context of the Anti Bribery Convention.
As for Romania’s ongoing negotiations to join the OECD, the ambassador pointed out that the country must respond to different standards and benchmarks that are estab lished within each of the 26 technical com mittees that are called to issue their opinion on Romania.
“As far as Italian companies are con cerned, we would of course be very pleased to see that Romania adopts and implements the same integrity, anti corruption, account ability, and good governance practices, all of which also have an impact on securing foreign investments,” the ambassador added.
Mangoni went on to explain that Ro manian companies—be they private or
state owned—that go abroad to carry out international trade and investment must act in compliance with the Anti Bribery Conven tion.
According to Antonio Gullo, professor of criminal law at the LUISS Guido Carli Uni versity in Rome, the conference was a great opportunity for the two countries to share experiences in the field of anti corruption, which is key in the general strategy to fight economic crimes. Efforts to combat corrup tion are already supported by Romania’s European Union membership, which brings important rule of law benchmarks.
“I would just highlight one, namely the whistleblower protection policy, also a cru
cial element in the fight against corruption. I believe that many synergies can be exploited in terms of implementing both EU law and OECD standards,” Mangoni argued.
a host of related measures that make this effective. It is the first and only international anti corruption instrument focused on the “supply side” of the bribery transaction, according to a description provided by the
review) and the proposal of recommenda tions for their improvement. Currently, Romania participates as a member or associ ate in 22 committees (procedures are ongoing for another 3), and as a guest in more than
OECD accession has been one of Romania’s foreign policy objectives since 2004, when it first applied for membership. The Foreign Affairs Ministry (MAE) points out that the country “could join the OECD in the medium term” as it has a “generally favourable assess ment” from the organisation, which cur rently counts 38 members including states in Central and Eastern Europe such as Poland, the Czech Republic, and Hungary.
Lorenzo Salazar, Vice Chair of the OECD Working Group on international bribery, told BR that Romania could become a full mem ber of the OECD by mid 2025 if it gets the approval of all technical committees.
“Once you will have fulfilled all the obliga tions and effectively implemented the OECD convention against bribery, I believe it will be in the interest of not only Romania, but also the OECD to receive you as a new party in the organisation,” Salazar said.
The OECD Anti Bribery Convention estab lishes legally binding standards to criminalise bribery of foreign public officials in interna tional business transactions and provides
organisation. Asked if OECD accession would help Romania attract more foreign invest ment, the Italian ambassador pointed out that it could enhance the country’s business relations with non EU states.
The MAE points out that as an OECD mem ber, Romania would be acknowledged as a functional market based economy and a con solidated democracy, which would positively impact the country’s rating and its ability to attract foreign investment.
Romania will also benefit from support regarding public policies from OECD member states through periodic evaluations of the country’s policies in specific domains (peer
40. The country has also adhered to 54 OECD legal instruments and has applied for adher ence to 12 others. “The fight against corrup tion is a crucial challenge for the interna tional community, and it cannot be overcome without the active participation of societ ies in partnership with the public sector,” professor Gullo argued during the workshop, according to a press statement. “On the road to ensuring a level playing field, the integrity of society will also be achieved through the implementation of effective strategies to combat economic crime. Italy has devel oped an internationally acclaimed model of criminal liability for legal persons, with the aim of involving legal persons in the joint management of corruption risks through the adoption of compliance programmes.”
Coca-Cola HBC Romania started publishing sustainability reports before they became mandatory. Business Review sat down with Alice Nichita, Corporate Affairs & Sustainability Director, to talk about the actions the company is taking as a result of its com mitment to a sustainable future.
By Anda Sebesi
What are the main issues being brought to light by the 8th edition of Coca-Cola HBC Romania’s sustainability report?
Our 2021 Sustainability Report shows the concrete steps we have taken in key areas, such as reducing resource consumption and CO2 emissions, responsible packaging, sup porting people and communities. Above all, the report stands as proof of our commitment to leaving a better world #AfterUs. This is our eighth sustainability report, as we started reporting on this topic before the European directive made it mandatory.
To summarise our progress, we have managed to reduce water intensity in the pro duction process by more than 6 % compared to 2017. We have reduced carbon emissions from direct operations by switching to 100 percent clean and renewable electricity and by using rPET in our packaging. We’ve replaced coolers supplied to customers with energy efficient ones, reaching 42 % energy efficient coolers in 2021. We continue to invest in training and development for our people and to provide equal opportunities for all of them, in an inclusive work environment.
In 2021, through our After Us platform, we continued to support vulnerable groups and youth, with our programmes reaching over 8,000 beneficiaries. We got over 15,000 consumers involved in our public awareness campaigns, which were aimed at correctly separating and collecting recyclable waste. Moreover, through the Big Belly network of smart containers we installed in Bucharest,
we supported the collection of 34 tons of recyclable waste.
Coca-Cola HBC obtained the Alliance for Water Stewardship certification for all its production facilities in Romania, becoming the sole beverage manufacturer on the local market to hold this type of certifi cation. What does it mean for the company, its consumers, and the local economy? Water is the main ingredient in our drinks, and access to water is fundamental in our production activity. At the same time, it is a vital resource for communities. We therefore carefully monitor consumption, and our strategy sets clear targets for reducing water consumption and treating wastewater in our production processes. The AWS certification confirms our commitment to responsible wa ter use and motivates us to further invest and innovate, attaining better results every year.
Last year, Coca-Cola HBC adopted a Net Zero target by 2040, which refers to carbon emissions across its entire value chain. What are the key measures the company will take, both in Romania and elsewhere, to achieve this goal?
In 2021, the Group made a commitment to re duce emissions across its entire value chain to net zero by 2040. It is the final destination of a journey that started many years ago. At the group level as well as locally, we are imple menting a series of initiatives that will help us meet our ambitious target. In Romania, these
include increased use of rPET, with lower carbon emissions, taking important steps towards a circular approach, switching to 100 percent clean and renewable electricity, providing our customers with energy efficient coolers, and transitioning to transport solu tions with reduced or zero carbon emissions through our "Green Fleet" programme.
Only by working together with customers, partners, suppliers, authorities, and local communities can we have a greater impact and contribute to a better world.
What can you tell us about the innovations brought by Coca-Cola HBC in terms of the green packaging of its portfolio of soft drinks in Romania?
All our packages are 100 percent recyclable and 20 percent of our PET portfolio, repre senting the entire mineral water portfolio, is bottled in rPET. Moreover, in 2021, we intro duced KeelClip™, an innovative, minimalist paperboard packaging solution to replace plastic wrap on our multipack cans with recyclable, biodegradable cardboard. We are currently making an investment of over EUR 10 million in our Ploiesti plant, which will allow us to become the first local soft drinks company to produce rPET in house and will support our ambition to expand our rPET packaging portfolio. In addition, as the leader of the soft drinks industry, we are offering our full support for the successful implementa tion of the Deposit Return System, the bi ggest circular economy project in Romania.
Business Review sat down for an exclusive interview with Cristi Movila, Eastern Europe General Manager at VTEX, to talk about how headless com merce is set to change digital commerce, the future of on line stores, live shopping and its impact on online sales, and the e-commerce industry as a whole.
By Mihai Cristea
From a purely technical standpoint, headless commerce is the separation of the front end (what users see) from the back end (what store admins see). From a business perspec tive, being able to manage the customer facing aspects of the brand separately from the technology behind them creates multiple opportunities. It allows brands to create and integrate a wide range of shopping experiences without the fear of disrupting the transactional aspects of their business. Moreover, headless commerce is an approach that accelerates the evolution of digital com merce, as it allows retailers to integrate the latest available technologies without making massive changes to their infrastructure or business logic. For a webstore, headless commerce is not just a new technology; it is a strong business strategy that can help it attract new customers and grow rapidly on a competitive market. It is the freedom to adapt to an ever growing market.
The rise of headless means that the future will not be about what online stores want to create, but about what customers expect to see. In other words, the stores of the future
will have to be everywhere the shopper is. If the shopper prefers video content, then Live Shopping should be the standard. If most of their activity is on social networks, then social commerce should be integrated. It’s that easy. Furthermore, it’s worth noting that traditional and online retail will merge, and we will most likely only be talking about retail. This means that omnichannel delivery will become the new normal.
Additionally, we believe that areas such as B2B will continue to grow and that these B2B stores are going to quickly outgrow the traditional limitations of their market: they will enhance the user experience, offering subscriptions and turning their websites into educational hubs for their business custom ers.
How will live shopping impact online sales? Are companies interested in adopt ing the live shopping solution?
If we were to look at China, where the live shopping craze started, we would see that the websites that implemented it correctly saw consistent growth in both conversion and retention rates. For instance, whereas a traditional webstore has an average conver sion rate of anywhere between 1.5 and 2.5 percent, the conversion rate of a website that sells through live shopping may vary between
15 and 30 percent on average, according to a study conducted by Gartner, KPMG, and Ali baba. Obviously, this applies to websites with constant live shopping programmes, whose buyers are coming back for the content as much as they do for the products. While we haven’t seen rates this high in Europe, almost 70 percent of customers say that they expect companies to communicate with them in real time, according to Salesforce. This means that live shopping is here to stay.
How would you describe the evolution of B2B ecommerce?
B2B ecommerce is exploding on the local market. Until recently, B2B products were mostly sold by phone or via email, but nowa days the online segment is getting stronger, as more and more stores or marketplaces are being launched in the Romanian online envi ronment. The B2B niche has started to adopt modern e commerce technologies, from inte grated marketplaces to omnichannel delivery and even live shopping. A good example of this is Macromex, one of our clients, whose digital business yields great results, even though it is a rather recent development. This is in part due to the implementation of cutting edge technology, but also to excellent segmentation and the company’s great efforts of educating the market.
What is headless commerce and how does it change digital commerce?
After the enthusiasm around tech financing during the first few months of 2022, the last two quarters have been defined by caution. Over half of all investors have either postponed their planned investments or stopped them altogether.
By Claudiu Vrinceanufrom Brussels in the order of millions of eu ros. Romanian IT startup Amsimcel attracted mixed financing of EUR 4.8 million through the European Innovation Council (EIC) ac celerator. Amsimcel is a Romanian deep tech technology startup developing a platform for verifying state of the art chips.
Romanian venture funding for the third and fourth quarters of 2022 continues to decline, gliding to its lowest level in nearly four years as early stage investment shows clear signs of prudence. We find that only two or three tech startups managed to attract funding of over 1 million euros in the second part of the year. In con trast, in Q1 and Q2 2021, more than ten tech companies raised funding of 1 2 million euros. Yarooms is one of the Romanian IT startups that managed to get significant financing, raising EUR 2 million. The SaaS (software as a service) startup creates office work manage ment software and offers solutions for office and meeting room booking, hybrid work planning, and digital signage. The investment round was led by GapMinder and also had the participation of SeedBlink.
"Macroeconomic events, the outbreak of the war in Ukraine, inflation, and rising energy prices have influenced the general sentiment among investors. The figures for the third and fourth quarters of 2022 reflect the reality of the entire tech ecosystem. Tech solutions are attracting interest and there is an appetite from the market and inves
tors because they are at the heart of the development of all economic sectors today. The third quarter shows a return on invest ment intention, but not at the same level as in the first quarter of 2022. A possible cause of these developments may be the decrease in the number of new startups entering the Minimum Viable Product stage. A relative decline in seed rounds can also be observed, alongside an increase in the number of series A rounds," says Malin Iulian Stefanescu, President of TechAngels.
This downward trend for Romanian venture funding in the past quarter falls in line with global and European trends. For example, early stage funding declined by more than 40 percent quarter over quarter and year over year, according to Crunchbase. This signals that European venture capital firms have scaled back their investment pace due to the global economic downturn. The most noteworthy change in European venture in the third quarter was seen in early stage funding, which sank below USD 5 billion for the first time since the start of 2021.
Equally large sums are more accessible to day through European grants coming directly
Another venture that stood out was OxidO, a deep tech company in the automotive in dustry, which finalised its first round of seed investments totalling EUR 1.2 million.
At a lower level, there have been sev eral startups that have raised hundreds of thousands of euros in the last two quarters. While 2021 saw were more than 20 startups announcing investments of this size, their number decreased considerably this year. For example, Footprints For Retail, a Romanian startup that operates a media retail platform, has secured EUR 275,000 from eight inves tors and seeks to attract another EUR 225,000 from an investment fund.
Parol, a Romanian end to end technology startup that helps doctors and medical clinics provide better patient care, has secured EUR 450,000 in funding in an investment round led by The Mavers Ventures and three other angel investors (ex UiPath). Meanwhile, local startup ialoc, which developed a platform for reservations and quick payments at the table for the food service industry, has reached to tal investments of EUR 800,000 after recently announcing that it had raised EUR 500,000 from MaxyGo Invest Holding.
The Romanian government has finally approved the es tablishment of the Romanian Agency for Investments and Foreign Trade. To envision the ideal design of the new agency, we should look at the development course of Invest Romania, the earlier version of the country’s foreign in vestment promotion organ isation, which the new agency will absorb.
By Claudiu VrinceanuInvest Romania comes in 8th in Europe's overall ranking of investment promo tion agencies, which is based on Emerg ing Europe's annual investment promotion survey. Romania ranked in the same place as last year, having seen its highest ranking in 2019 in 5th place, and its lowest in 12th place in 2018. Remarkably, Invest Romania scored high this year for validity of information and support for community building, but obtained low scores in other categories, namely online presence and ease of use, innovativeness, creativity, and response to current develop ments.
WHERE ROMANIA
Romania’s current agency ranks well in terms of the validity of the information provided to stakeholders. This component looks at how reliable, valid, and up to date the content of an IPA’s website, social media, and news letters is. For example, the website of the promotion agency should offer up to date information about available incentives, its social media channels should be used regu larly, and posts should target global investors with relevant information. Another critical criterion is the agency’s capacity to offer up to date information about the country's tax system and macroeconomic conditions.
Invest Romania, in partnership with Adecco Romania, launched a 2022 Guidebook for Investors that shows how the covid 19 pandemic has impacted the growth and stability of the Romanian market, as well as how the impact was mitigated by swift eco nomic measures. Furthermore, fresh official data were released during the drafting of this material: in April, the International Monetary Fund launched the World Economic Outlook, which estimates an economic growth of 2.2 percent of real GDP by the end of 2022.
Since 2018, Emerging Europe has been researching how the region's 23 national investment promotion agencies (IPAs) com municate their value proposition and how they use their digital channels to grab the attention of potential investors and highlight the various business opportunities offered by key sectors.
This year, the Invest Moldova Agency dropped out of the top five but still reached the top 10, holding the seventh position. Despite its lower score for the validity of information component, the Moldovan IPA improved its scores in the other categories.
By comparison, Invest Romania is doing well in terms of support and community building, which means that its online plat forms provide information regarding what forms of assistance IPA staff can offer inves tors in the country and explain how its advis
ers handle inquiries from potential investors and how they manage aftercare.
For the third year, Invest Estonia and Invest Lithuania have taken the top two spots in the ranking. This year they were followed by CzechInvest, Ukraine Invest, Invest in Geor gia, and the Investment and Development Agency of Latvia (LIIA).
The Estonian IPA has been leading the ranking for three consecutive years and it is the only agency to have received the maxi mum score for the innovativeness and cre ativity component. Interestingly, in the first edition of the ranking, Estonia ranked 14th. Invest Lithuania, the winner of the first two editions of the list (2018 and 2019) received a higher score than Invest Estonia for online presence and ease of use.
What can we learn from Estonia's case study? The agency is using technology to help potential foreign investors learn about Esto nia's business opportunities. Better informing potential investors can help overcome one of the biggest global issues around FDI, namely the problem of asymmetrical information among business decision makers. This is especially acute in the case of emerging mar kets, where there are often limited resources for investment promotion.
2022 has been marked by many changes, challenges, and uncertainties in the tech financing landscape, but it has also brought the first exits by venture capital funds to strategic investors and private equity funds as well as new startup funding through the European Innovation Council (EIC) Accelerator.
By Claudiu VrinceanuThe tech startup ecosystem has developed significantly in the last five years, having recorded somewhere between 500 and 1,000 new startups being born. Of these, 200 300 got financing from business angels and ven ture capital funds. As a result, we’re starting to see the first exits by venture capital funds following their investments in Romanian tech companies. A prime example this year was the transaction in which MedLife purchased the bulk share package in SanoPass, one of the most active Romanian ventures in the health tech space. MedLife has also started investing in tech after its multiple takeovers of clinics and fitness networks. We also saw the first exit carried out by Cleverage VC, an investment fund launched by several Roma nian investors specialising in health tech.
Meanwhile, SeedBlink also made its first exit from a tech startup, two and a half years after the initial listing. MedLife also bought part of the shares that had been sold to indi vidual investors through the crowdfunding platform.
In general, Romanian founders fall into one of four main scenarios. The first one is the "acquihire" or masked hiring, whereby a corporation buys the startup for its team. A second option is a startup being acquired by a corporation for its advanced technology.
There is also a scenario where the startup gets purchased by a corporation for its customer (user) base it has built up over time. And finally, an exit scenario involves the purchase of a startup by a corporation that is existen tially threatened by the new technology or business model being developed by the firm’s founders.
Another first recorded in 2022 in the Roma nian IT field was the involvement of private equity funds in tech startups. Previously, only venture capital funds had invested in Romania’s tech industry, but this area is also becoming relevant for private equity funds, which generally invest in large companies with a proven track record and mature firms with an established business model.
By comparison, venture capital invests in enterprises that have not yet been proven successful but that show significant potential and provide an opportunity to make back higher than typical returns if they deliver on that expected potential. The significant dis tinction between private equity and venture capital has to do with size and risk levels.
More specifically, Abris Capital Partners, a private equity investor, supported Alsendo in acquiring a majority stake in Innoship, to sup port the growth of the delivery management
company in Central and Eastern Europe, to gether with its four founders. Gapminder, the leading venture capital fund that invests in technology companies, sold its entire stake in this transaction. Innoship will help accelerate the transition of Alsendo, which already has a presence in Poland, the Czech Republic, and Slovakia, to a specialist supplier of advanced delivery management technology throughout Europe.
According to data published by the Eu ropean Innovation Council, until this year, .lumen had been the only Romanian company selected in the Horizon Europe programme, following a rigorous process, having obtained funding of EUR 9.4 million. Recently how ever, Romanian startup AMSIMCEL, the first GPU-Powered Physical Verification Frame work with High Performance Computing capabilities, raised EUR 4.8 million in blended financing through the European Innovation Council (EIC) Accelerator. The company ranks among the 75 innovative European firms that will receive financial support worth EUR 400 million, all in the form of grants and equity investments from the European Innovation Council (EIC) Accelerator.
International specialists say that it’s easy to get caught up in chasing new developments and expanding tech capabilities when your team should really be championing what you already have and thinking creatively about how you can put it to better use. But the most important thing that marketers and advertisers can bring to e-commerce is creativity, and not just in terms of design and visuals, but in new and innovative approaches to doing just about anything in the retail space.
By Romanita OpreaAs pointed out by the Digital Marketing Institute, video is a versatile and en gaging content format that not only gives us a real life picture of what is going on, but it’s also easy to share across multiple plat forms. In fact, 86 percent of businesses are already using video as a marketing tool. Con sumers like it because it’s easy to digest, en tertaining, and engaging, while marketers like it because it can provide a potentially huge return on investment (ROI) through many channels. According to Anca Ciuluvica, digital media planner at Spoon, these days, when there are so many brands and products and when we, as consumers, are constantly being bombarded with all kinds of information, we need something to catch our attention, and this “something” is a combination of creative
ideas, media strategies, and messages. “In the retail space, with most products now being sold online, you need to find the perfect mix of creative formats, messages, and platforms to attract customers and get their attention.
If we’re talking about e commerce, where the shopping experience is quite similar from one brand to another, the way you can stand out is through the type of communication you use, through design and visuals, as well as through media placement. The right mix can bring you loyal customers, and that is what keeps the business rolling in the long run.”
Vlad Giogu, group creative director at pas tel, says that championing creativity should be a constant process that continuously develops and grows. And if you care about the creative process and the idea that results
from it, then you must provide that idea with the best possible delivery. “The delivery should make use of the latest tech solutions and the latest research data to ensure that the message gets delivered to the exact audience you want and in the way you want it. Creativ ity is always important, just as long as you are not creating for the mere sake of it. Of course, there should be a never before seen and ar tistic element to what you are creating, but at the end of the day, you’ll have measurable re sults that need grounding in reality. Creativity is more about connecting existing dots in the right context and reaching the right audience rather than re inventing the wheel.”
According to Andreea Ghenoiu, creative partner at Jam Session Agency, creativity in e commerce communication can give heart
to a system that delivers customer satisfac tion and trust through the product itself. And building love for the brand around story telling helps this customer satisfaction last longer and generates empathy even when the product/brand does not deliver flawlessly. “Love triggers loyalty. It depends on how we define this ‘always new’ or ‘never done before.’ It’s hard to state that something has never been done before; I would say that it depends on how it gets re done. If the idea has been done before, but the execution is
ative partner at 35Creatives Studio by Galeriu & Partners, who says the creativity is key can be both true and false, at the same time. Yes, creativity is important, but so is the tech. He doesn’t see a conflict between those two, but rather an osmosis. “Yes, you can be creative without using technology. But imagine using that tech to upgrade your creativity. It’s not 2.0 or 3.0; it’s infinity.0. Today, we’re seeing a democratisation of technology. People are getting access to things that weren’t even imaginable 5 6 years ago. Prices are dropping faster than we can assimilate new tech. So
But it also depends how we define creativ ity. Some people define it as something that sells, while others see it as something crazy. “In both cases, whether we like to admit it or not, creativity plays a major role in business development. Everyone must be creative, from a young person making their first steps inside an ad agency to an entrepreneur. In today’s business environment, you must constantly reinvent yourself, and this is a cre ative process in itself. So, everything revolves around creativity. Even in our personal lives, let’s think about that everyday question,
fresh or the storytelling angle is different, it means that it is new. Sometimes the way you say something becomes even more important than what you say.”
“The first and best option is always the one you can rely on. Creativity is agencies’ ‘in house’ weapon and it should always be exercised on complicated briefs. The e commerce industry is perfect for this because there are lots of challenges, whether we’re talking about the absurdly limited space in offline retail or the flood of online communi cation. Well, when the obstacles are tough, the journey to the mind of the consumer is creativity driven, and lots of great ideas are waiting to be discovered,” thinks Cosmin Baba, creative director at Oxygen. A balanced view is also put forward by Radu Olteanu, cre
why should we be afraid of putting technol ogy to a good use? Let’s bring creativity and technology together.”
In this context, how much weight does cre ativity still carry and how much room is there from something that’s never been done be fore, especially in a world where creation and innovation have always been sought after? “Creativity can really make a difference, and the context of a certain time and place can be used as a source of inspiration. Some more courageous brands have even integrated political topics and gained popularity by do ing so (e.g., Burger King’s Brexit campaign). It is important to provide information in a way that people can remember and resonate with, so they’ll start to love it and yearn for it. Creativity might also mean saying something that impacts people’s way of thinking and generates real changes that can benefit us and the planet. As such, there will always be room for new things, because they grab attention in a world that’s full of information,” said Anca Ciuluvica.
‘What should we eat today?’—the response is a creative one as well,” Radu Olteanu argued. We can watch beautiful inspirational speeches on YouTube, describing epiphanies and creative breakthroughs, but in reality, ev erything is much simpler. Every decision we make involves a certain amount of creativity.
His point is buttressed by the Oxygen rep resentative, who believes that there’s always an amazing new campaign right around the corner of the mind. Nowadays, retail and e commerce brands can be found in the most unexpected places, but they end up making sense for consumers thanks to their innova tive campaigns.
But how far should creativity go without being considered exaggerated or disturbing? “It can go super wild, but what we want to maintain is relevance and truthfulness to the brand. Never forget that ‘your art is commis sioned.’ The storytelling, the influencers, the innovation… all of these should speak as a whole in the name of the brand. We tend to put video on a pedestal. We’ve somehow
developed a system in which ideas are au tomatically translated into videos, and only after we see the idea as an amazing video can we develop the campaign as a whole. That does not mean we don’t do campaigns without video; it simply means that we tend to first imagine the idea as a video,” Andreea Ghenoiu of Jam Session explained.
While pastel’s group creative director believes that creativity shouldn't have limits and that it's a process that ends when the creator is almost certain it needs more, Radu Olteanu argues that creativity is not a product we can measure. Is not something like pota toes, which we can buy per kilo. “Creativity is good as long it serves your purposes. When
client will be happy about your deliverables if they merely follow trends but don’t actually help them reach their goals. So, let’s be smart, not lazy! Content creations is not a highway. Is rather a car on the highway. And thar car must ride on your strategy. You can have a Mercedes Benz, or you can have a Dacia 1300.
If you choose a Mercedes, people will see you in the feed. It’s up to the client. But here is the magic. This Mercedes doesn’t have a 70k euro price tag. It’s a luxury car, with an incredible price, that most of the companies can afford it,” added Radu Olteanu.
35Creatives Studio operates in the niche of tabletop videos/photography for food, drinks, and other products. They are a one stop shop
many platforms, which makes video a must have component of almost every campaign. TikTok has also had a great impact on this format, as many users have moved to this platform and vertical video content is now in high demand as users want to get their infor mation in a quick and entertaining way.
it crosses that line and it starts to affect your job or your business, I don’t think I can still call it creativity. It’s only called that when it has a positive impact on your life or your business.” At 35Creatives Studio by Galeriu & Partners, video and photo production for social media is a mélange between different areas of interest, with Olteanu seeing himself simultaneously as a filmmaker/photographer, as someone who understands social media, and as a marketer who can see what people take from his productions, identify the message that sticks, and find the triggers for reaction. He thinks trends are only useful for lazy people, who will grab at trends as if their lives depended on it. In his opinion, one must do everything to achieve the client’s goal, whether it requires them to deploy trends from 2008 or 2018. “There is no such thing as a recipe for success or a standard solution for a brief. Some ‘old trends’ could be useful for a new problem. If we only follow the latest trends, we risk being too much like everyone else. They represent guidelines, options that may or may not be useful. I don’t think your
where clients can receive full photo and video production services: concept, pre produc tion, production, and post production, all at reasonable costs. Their productions are mainly used on social media and YouTube, but they are trying to keep their standards high, using some of the best equipment, from lenses and motion control systems to post production facilities. Besides the tech, they are always trying to improve their shoots and have an out of the box approach.
“I think there is a limit and that brands need to be aware of how their actions and their communication may affect people and the environment, but besides that, there is no other limit to creativity, especially now, when AI and automation are playing such big roles in our lives. Creativity comes from the soul and it can’t be replicated easily; it needs a human touch. Through video, a brand can provide more details and make the consumer part of their story,” said the Spoon representative. In recent years, and especially in 2022, Ciuluvica and her teams have seen video performing better than static assets on
“A video can be the star of a campaign if it hits the right goal for the brand, meaning that it should be part of something bigger, and that integrating it into the campaign map of deliverables should make its purpose sud denly become clear. Once you understand its role, video becomes more than just a passive way to deliver information, and it can be creatively integrated into the life of the con sumer. On this one I would say we all need to reset our mindsets,” said Cosmin Baba. Young generations feel different about video campaigns and the way stories are being told. The key is to be interesting while pitching the product to them, without overkilling it or reaching cringe levels. “For us, the target is the trendsetter when talking about video content, and what we try to do is take it to the next level and provide them with a video product that’s worth their attention. So, we keep up with them by acknowledging their creativity and mixing it with the technology that serves the right purpose,” added Oxy gen’s creative director.
Wunderman Thompson Benelux has appointed Sandra Bold to the newly created role of Chief Creative Officer. In her new role, Bold will work across Wunderman Thompson offices in Amsterdam, Antwerp, and Brussels, to lead the agency’s creative output and drive excellence across its client portfolio in the region. In addition, Bold is the president of the IAB MIXX Romania 2022 jury—another reason for BR to sit down with her and find out more about all those new challenges and opportunities.
By Romanita OpreaHow did the proposal from Wunderman Thompson arrive?
I’m a strong believer that most things in life happen for a reason. We might not under stand why some things pop up in our lives, but they do, and it’s our duty to give them a chance. I’m thrilled to take on this new Chief Creative Officer role for the Benelux region. From the creative work they produce to the way they collaborate across areas of expertise, it’s clear that Wunderman Thompson sees the potential in its offices in Antwerp, Brussels, and Amsterdam working together as one.
If you’ve worked in Romania’s advertising in dustry, then you know that you can take any crumb and turn it into a Michelin star dish. Wunderman Thompson has this same vision of locking in and creating opportunities whatever it takes.
What made you decide to take the job, given the great position you held at that
time as Global Creative Director at Publi cis Milan?
I once read in a book that when you are of fered a seat on a rocket ship, you don’t ask what seat it is.
What were the first decisions you took in the new role and what are your main goals?
My goal is to create less spam. We’re in the business of barging into people’s lives, so we might as well barge in with something that entertains them, not just spam them by flash ing a product in their faces. All my decisions tend to go towards keeping that principle alive.
How did you decide to choose advertising and keep on doing it over and over again?
I always thought it was cool that you could think of something and put it into the advertising machine and then it can go out on the market, for everyone to see. There’s some kind of magic there. Being responsible
for how a brand speaks and what it does for people: whether it makes them laugh, think, act, react, and more. The part about enter taining people attracts me the most.
How would you characterise yourself as a creative? What about as a leader of the creative department?
My ultra secret formula, ready in a micro wave minute, is that I’m not pretending to be something that I’m not; I’m trying to not fall in the trap of “a leader should or would, therefore I should or would.” And what is equally important is asking for advice when you feel like you need it.
What are the biggest challenges in your new role?
I’ll be honest: there are plenty. But if I were to pick a big one, it is all the travelling. I am still not used to it.
How would you describe the 2023 advertis ing industry?
I’ve been scared to predict the future since I thought that 2020 would be The Best Year Ever—and we all know how that went. Now, in 2022, we’re dusting the pandemic off and it feels like we’re starting to have fun again.
What do you think will be the top trends around advertising creativity in the com ing year, and why?
I’m not sure about trends, but what I know for sure is that we need more entertainment.
What is your wish for 2023, professionally speaking?
Being able to create work that makes people not want to change the channel.
is a board member at the Romanian-Swiss Chamber of Commerce and the managing partner of Albini Prassa, a Swiss watch distributor. He is also one of the few local businesspeople who actively supports sports initiatives, with a focus on rugby.
By Oana VasiliuIon Schiau lived in Switzerland for several years, where he worked for the Swatch Group. He returned to Romania for busi ness purposes and he rapidly became an avid supporter of sports. His company supports several sports clubs, including the rugby club from Gura Humorului (Suceava county) and the rugby team from Alba Iulia. In 2018, in partnership with Tissot, he created a limited edition of 500 watches in collaboration with the Romanian national rugby team.
Why was a sports working group created within the Romanian-Swiss Chamber of Commerce?
First, we believe sports are a driver of change in society, health, and education. Further more, Switzerland has excellent know how around sport management, with dozens of international federations and schools focused
on sports. We know Switzerland has strong communities that constitute the backbone of elite and performance sport. Most Swiss companies have an important role in these communities, starting from the local level and reaching the regional and national levels. We believe our initiative to create a sports group can have a significant positive impact in the long term.
What is the current stage of the project and what has been the response so far?
All companies from the Romanian Swiss Chamber of Commerce have been ap proached, and we will have the first consoli dated feedback ready in the coming weeks.
In a previous interview, you mentioned that your objective was to create a consultancy hub regarding sports sponsorships.
Good question. The ambition here is to consolidate what we believe to be good practices, useful tips, coherent presentations and pitches, all of which are being efficiently implemented at a professional level in Swit zerland. I’ve sadly noticed a major lack of such tools and practices among Romanian sports clubs. Enabling local structures to build up their offers—in a sense, their products— and consolidate long term relationships is key in engaging communities.
In your opinion, what types of companies should invest in sports? And why?
There’s absolutely no restriction. The base of the pyramid has to be as large as possible, with contributions from RON 100 to RON 1 million; support is important at any level. Now, of course, in order to engage companies in this process, you must build trust, and that can only be achieved through transparency.
I would be truly happy to see companies that are strongly engaged in sports in Swit zerland finding adequate ways to relay their communication and involvement in com munities in Romania. This would represent a coherent extension of their policies.
What’s the most important lesson you’ve learned in the arena of sports management? And what can you tell us about us ing sports as a communication tool for the brands you’ve represented?
Well, I guess that consolidating a partnership over the long term is the hardest thing to do. We often assume that the handshake and signing a one year contract is the ultimate goal, but it’s actually only the beginning of a long term effort. Another point I would make is that no matter the sport, if you have a coherent message and dedicated teams, you’ll create a great story and ultimately have a strong impact that is well received by your audience.
If you’ve recently walked on Elisabeta Boulevard, near Universitatii Square, maybe you’ve noticed ALTRNTV, a concept that combines a store and a coffee shop, all dedicated to a sustainable lifestyle. BR went inside to talk to owners Alina Tiplea and Daniela Staicu.
By Oana Vasiliu
As the sustainable fashion industry in Romania is just starting to take off, there are no certified sustainable clothing manufacturers in the country. Until recently, there were no shops that promoted a circular economy model by gathering and selling sustainable fashion from local producers. Atelier Merci, the NGO behind the ALTRNTV brand, aims to address this situa tion by offering handcrafted clothing made from sustainably produced vegan and organic materials. The social enterprise is committed to circular economy practices, using textile scraps from clothing to create decorative home products and bags and offering recy cling services for its customers’ used clothes.
All profits from the new ALTRNTV shop will be used to fund the Merci Charity As sociation, Atelier Merci’s parent organisation, which supports children with medical needs.
ALTRNTV features sustainable products for women, men, and children, whether it's clothes, accessories or interior decorations. The store currently hosts 60 designers who work with natural, organic materials or use upcycling or recycling techniques. 94 percent of them are Romanian designers and 11 per cent are social businesses.
“We are a social business. Our NGO found a creative way to raise funds for our health care projects, by creating a social tailoring workshop. And because the impact of our ac tions is very important to us, as it is our main driver, we want to not be a burden on the planet, and instead do good for the communi ty. We have therefore started to find sustain able solutions in our social business, which are also applicable in the tailoring workshop,” Alina Tiplea explains.
It seems that sustainability is a trend ing word; but when asked how they would characterise the local sustainable clothing market, the owners explained that there are actually very few initiatives that offer truly sustainable and durable solutions. “It is a market that’s still in its early stages, and there is plenty of room for more such initiatives,” Daniela Staicu argues.
In the ALTRNTV concept, sustainability does not only refer to the material from which a product is made. It should be a much more complex concept, because it includes several other aspects like responsibility, transparency
or impact. “A sustainable brand is concerned not only with the type or quality of its materi als, but also with the quality and lifetime of its products, the quality of its working envi ronment, and with all related issues that are directly or indirectly linked to the business, such as the waste it generates, the sourcing of fabrics, transport practices, packaging choices, etc.,” Alina adds.
Their business is quite new, but the two owners are keen on continuous learning. “We like to innovate and find solutions to the problems we encounter on our way to a greener world,” Daniela says.
Asked about the smallest change consumers could make to become more eco conscious, the ALTRNTV owners noted that before mak ing a purchase, they could at least ask them selves some questions: who, where, how, and why. “A consumer should take a look out at the transparency of the brand. Read the label, just as you would for a food product. You need to be given information about the product beyond just its size and price. Look out for local brands and support small busi nesses,” Daniela concludes.
Bucharest is becoming one of those places where there’s always something to do or somewhere to be. The city’s perpetually bustling with activities, new venues, festivals, and new places to eat, shop or experience.
An urban terrace appeared recently behind the Novotel hotel, called Kraft Market (8-10 Matei Millo Street). There’s generous open space featuring a central bar, a children's playground, and kiosks serving international cuisine. The space is based on the artisan concept and the idea of creating a place where a community of en thusiasts and artisans can meet and enjoy the magic behind each craft. Several interesting street food trucks are available here, including Smokăreală (slow cooked, smoked Texas barbecue),
Central pizza bar (122 Calea Vic toriei) is another new place that serves contemporary Neapolitan pizza. The menu has 9 pizza op tions, and you can also buy half a pizza or combine two different halves into one, so you enjoy more taste variety.
Smith Eatery (39 Carol Davila Street) offers eclectic street food, inspired by global travels and cooked with local products. As
a bonus, they have a small bar truck outside, where you can get wine, beer, gin, and bubbles.
PLACES WITH A TWIST Privé ArtWine & Fromage (32 Corbeni Street) is the place where artisanal cheeses from all over the world (but mostly France) and over 200 wine labels—among them all the wine regions of France as well as New World and Romanian wines—are delighting guests. The location hosts several events every week, so check them out online to see what they have in store.
Animaletto House (4 Dianei Street) is divided into several areas: the ground floor features a bar, sofas, and comfortable armchairs; in the attic, you’ll find the dining area of the house, so everything is different includ ing the music, the design, the lights; and the courtyard is pretty generous too. The venue’s menu is based on sharing dishes and having a meal at home with your loved ones.
Sonder Coffee & Bites (3 Vasile Alecsandri Street) has a Scan dinavian vibe, with a menu inspired by the Nordic cuisine. Best known as a brunch place, it has plenty of vegan and vegetar ian options as well.
Hushimo (Asian: Thai – Viet –Indo), Nahuas Tacos, and Meana Macedonian Kitchen Centrale Pizza Bar
