WHERE ROMANIA TALKS BUSINESS December, 2017 / Volume 21, Issue 10
www.business-review.eu
LOCAL REAL ESTATE MARKET PREPARES FOR BUSY 2018
6
COMPANIES SOUND ALARM OVER TAX CHANGE FRENZY
22
OUTBOUND TRAVEL TO GERMANY SEES BIG BOOST
32
A CORKING BUSINESS: WINE-ING IT UP IN ROMANIA AND BORDEAUX
40
HO HO HOping for a Christmas bonus
www.business-review.eu Business Review | December 2017
EDITORIAL 3 REAL ESTATE
• Editorial •
6 Local real estate market
Anda Sebesi
prepares for busy 2018
9 Forte Partners lays out
• Editor-in-Chief •
ambitious strategy for residential investments
10 Forte Partners looking to expand real estate portfolio in Bucharest
COVER STORY 12 Christmas fever spreads among retailers and consumers 16 Ho ho go: local holidaymakers hit the road for the festive season
Hoping for a better 2018
19 Christmas fairs in Romania 20 Made in Romania Christmas ideas
2017 has been a year full of major social and political events at both local and international level. With Donald Trump taking office as president of the United States and Angela Merkel winning the election in Germany, to name but a couple, the international scene looks set to face big challenges. Even the future of the EU is questionable. In such a difficult and complex context, Romania must keep pace with European competitiveness. Although local business representatives have reiterated the need for political and economic stability in order for the country to attract new foreign investors and encourage existing businesses to remain and extend their operations here, the current situation is different. With two governments occupying Victoria Palace so far since December 2016, when the Social Democratic Party won the elections, the general mood in the business community is rather gloomy. Although GDP expanded by more than 8 percent in the third quarter, while in the first nine months it grew by 7 percent, enthu-
MEDIA & ADVERTISING 28 Brand Minds: content to improve your business and life
30 BTL advertising market – fragmented, highly competitive and digitalized
siasm is low. The raft of fiscal changes adopted by the government in early November, despite further street protests, might result in higher costs for companies, warn business representatives. Last but not least, legislative changes are the current government’s latest Achilles’ heel. Recently over 25,000 people were protesting in Bucharest, while several thousand more took to the streets in the biggest cities nationwide, to oppose planned changes to the law. In this context, the only way for Romania to sail on through such choppy waters is to provide a more stable economic environment. Let’s hope 2018 brings it!
CITY 40 A corking business: wineing it up in Romania and Bordeaux
44 Film review 45 Expat eye 46 Restaurant review
FOUNDING EDITOR: Bill Avery, EDITOR-IN-CHIEF: Anda Sebesi, DEPUTY EDITOR-IN-CHIEF: Simona Bazavan JOURNALISTS: Georgiana Bendre, Georgeta Gheorghe, Otilia Haraga, Daniela Oancea, Romanita Oprea, Ovidiu Posirca, Oana Vasiliu HEAD COPY EDITOR: Debbie Stowe, COPY EDITOR: Eugenia Pupeza, PHOTO EDITOR: Mihai Constantineanu, ART DIRECTOR: Raluca Piscu PUBLISHER: Bloc Notes Media, ADDRESS: No. 10 Italiana St., 2nd floor, ap. 3, Bucharest, Romania, LANDLINE: Office: 031.040.09.31 EXECUTIVE DIRECTOR: George Moise, BUSINESS DEVELOPMENT DIRECTOR: Oana Molodoi, SALES DIRECTOR: Ana-Maria Nedelcu MARKETING: Marius Andronic, Patricia Neamtu PRODUCTION: Dan Mitroi, DISTRIBUTION: Eugen Musat EMAILS: editorial@business-review.ro, sales@business-review.ro, events@business-review.ro
Publicație auditată pe perioada Apr 2015 - Mar 2016
ISSN NO. 1453-729X
www.business-review.eu Business Review | December 2017
4 NEWS
WHO’S NEWS
Romania. “I believe that smart city,
BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at georgiana.bendre@business-review.ro
e-city, cities, sectors and city halls that have started to implement concepts – these are the future,” added Cramer. There is not currently a standard in the implementation stage of IoT, and solutions have to be adapted depending on the demands of customers, explained Silviu Neghina,
Dragos Mircea Rebegea appointed country manager of Ericsson Romania and head of sales for Romania and Moldova in November. With over 21 years’ experience in the telecom industry, including the last 17 at Ericsson, he has held several leading positions in South-Eastern Europe in technical sales and general management, including country manager position at Ericsson Albania from 2012-2015 and key account manager for Telekom Romania.
IoT sales manager at Orange
telecom operators. It is up to us to educate the market and we are playing an important role. Still, we are far from having smart cities and other such things,” said Neghina, who added that Orange is among
By Ovidiu Posirca
the key players in the smart city pilot project in Alba Iulia.
With 100 billion connected
mated, as well as the transport
devices estimated to be linked
and logistics sector,” said Marius
through the Internet of Things
Coman, IoT country sales man-
industry suggested that the
(IoT) at global level by 2025,
ager, Vodafone Romania, during
upgrade of the network to 5G
telecom players in Romania
the eighth Focus on Technology
standards will further contrib-
suggest this market segment
& Telecom event organized by
ute to companies’ adoption of
has significant growth poten-
Business Review.
IoT technologies.
The public sector also has the
Players in the telecom
Romania plans to tender
potential to grow in this segment,
the spectrum for 5G in 2018.
“IoT has big potential to
according to Andreea Cramer,
The technology should become
grow in manufacturing, where
management segment direc-
commercially available from
a lot of processes can be auto-
tor, business division, Telekom
2020.
various sectors.
page 5
“It is an advantage for us,
Telecom players expand focus on IoT
tial as demand comes from
Miron Radic is taking over the operational management of amb Wine Company in Romania, effective from January. Radic has been part of the Liliac team since the winery’s official launch in Romania, in 2012, handling the export sales and the marketing until 2015. That year, he was appointed managing director of amb Wine Company, alongside Victor Ciuperca. He has over eight years of experience in the wine industry, and also wrote his dissertation on the subject of Romanian wines, at the University of Economics and Business in Vienna. Ciuperca, the current general director of Liliac, keeps his role of managing director of amb Holding.
Romania.
Left to right: Ovidiu Posirca, Business Review; Marius Coman, Vodafone Romania; Andreea Cramer ,Telekom Romania; Silviu Neghina, Orange Romania
Government survives vote of no confidence The center-left government
By Ovidiu Posirca
nians whose lives we have to
of Mihai Tudose survived a
improve,” said Tudose in Parlia-
no confidence vote held in
ment, asked about the concept
late November in Parliament,
of a “parallel state” that was
with the National Liberal Party
promoted by the head of the PSD,
(PNL) accusing the leadership
Liviu Dragnea.
of the Social Democratic Party
Meanwhile, tens of thou-
(PSD) of “acting as an enemy of
sands of people protested in late
democracy”.
November, asking for the resigna-
“I am focusing on the gov-
tion of Tudose’s government over
ernment. We have a state we
controversial changes planned to
have to handle, with Roma-
the judiciary.
The motion had only 159 votes in support and it needed at least 233
www.business-review.eu Business Review | December 2017
NEWS 5 mission, the executive arm of the EU. “Going forward Eurobank will concentrate on and further develop its key markets. I would like to thank all our colleagues in our Romanian subsidiaries for the close and fruitful cooperation all these years as well as the fellows of BT for this successful outcome,” said Stavros Ioannou, deputy CEO of Eurobank.
Banca Transilvania is the second biggest lender in Romania by assets
Banca Transilvania takes over Bancpost in strategic deal
At the same time, Horia Ciorcila, chairman of BT’s board of directors, said that the acquisition would “complement BT’s organic growth strategy so that we may further strengthen and consolidate our market
Cristian Busu has been reappointed president of the Electrica SA board, of which he has been a member since 2014. Over November 2015-January 2017 he was state secretary within the Energy Ministry, and from 2009-2013, he was economic director of Fondul Proprietatea and member of the representatives’ committee. Before that, Busu was an economic counselor at the government economic department for four years. Over 2000-2005, he worked for Prudential Financial, New York.
position.” BT is the second largest lender in Romania with assets worth EUR 11.9 billion and a
By Ovidiu Posirca
market share of more than 13
Banca Transilvania (BT) has
Competition Council. According
percent. It has over 7,000 em-
struck a deal with Greek
to the transaction’s timeline, BT
ployees, 2.2 million branches
financial group Eurobank to
aims to receive the green light
and around 500 units. Banc-
purchase Bancpost, ERB Retail
from regulators by the second
post, meanwhile, has a market
Services and ERB Leasing, in a
quarter of 2018. Until then, the
share close to 3 percent and
bid to consolidate its opera-
two lenders will continue to
total assets worth EUR 2.5 bil-
tions in Romania.
operate independently.
lion. The lender employs over
The deal is pending the
Eurobank has sold the assets
2,000 people, serving 1 million
approval of the National Bank
as part of a restructuring program
customers. Bancpost has a net-
of Romania (BNR) and the
approved by the European Com-
work of around 150 branches.
Radu Simion has joined the law firm Simion, Nere & Iordache as coordinator of the real estate and energy department. Simion graduated from the Law Faculty at the University of Bucharest and has been a member of the Bar since 2005. He is specialized in mergers and acquisitions, construction and real estate.
Daniela Serban has joined McGuireWoods Romania as PR and strategic communications coordinator. Serban has 12 years of experience in the capital markets in Romania and the surrounding region, having held various roles in public relations, government relations, financial communication, digital marketing and project management at the Bucharest Stock Exchange.
www.business-review.eu Business Review | December 2017
6 REAL ESTATE
Local real estate market prepares for busy 2018 With the real estate investment volume set to reach EUR 1 billion next year, consultants say the demand for projects will remain high across the board, with a focus on the office segment. The market might see more deals in niche sectors like hotels, while the overall attractiveness of Romanian property will also be bolstered by higher yields than the rest of Central and Eastern Europe (CEE). By Ovidiu Posirca
T
Codrin Matei, Crosspoint
Robert Paulson, CBRE
Mihai Patrulescu, Colliers International
Horatiu Florescu, Knight Frank Romania
he property sector will likely see a
the end of this year, driven by the retail and
record year in 2017 in terms of invest-
office sectors, and backed by a significant
7.5 percent for office, 7.25 percent for retail
In 2017, prime yields in Romania stood at
ment volumes, looking at the last
volume of transactions in the industrial and
and 8.5 percent for industrial, according to
decade, suggested Horatiu Florescu, chair-
logistics sectors. The consultancy points out
data provided by Knight Frank.
man & CEO of Knight Frank Romania, the
that foreign funds accounted for more than
real estate consultancy, and Valentin Lupu,
99 percent of the total investment activity on
associate director, capital markets, at the
the local market.
same firm. “In the first three quarters there was sig-
“We are starting to see a significant
LIQUIDITY TO GROW IN THE OFFICE SEGMENT Meanwhile, experts forecast an expansion of
increase in demand for hotels in Romania,
the office segment throughout 2018, which
nificantly increased activity in the Romanian
which we have not seen before, even pre-
also translates into bigger surfaces delivered
real estate investment market, indicating the
crisis,” Andrei Vacaru, associate director,
for each project.
growing confidence in Romania’s macroeco-
capital markets at JLL Romania, told BR. In
nomic environment. Also investor demand
terms of market trends, he said that liquid-
ment services at Colliers International, says
remained focused on top quality assets and
ity in secondary cities is improving, while
that typical office projects had a surface of
some new investors have entered the market,
demand is still focused on prime properties,
more than 70,000 sqm in recent years, com-
while other already established investors
with secondary properties starting to grow
pared to an average of 20,000 sqm after 2009.
continued acquisitions, thus sending positive
as well.
signals to potential investors who are still
Mihai Patrulescu, senior associate, invest-
“Additionally, we believe there is increas-
“However, we see a significant gap be-
ing scope for liquidity from assets that are
reluctant to enter the market,” the represen-
tween sellers and buyers in terms of pricing
being traded for the second time. Overall,
tatives of Knight Frank Romania told BR.
expectations. While demand is clearly in-
we expect liquidity on the office investment
creasing, it is mainly coming from investors
market to increase from approximately EUR
investment volume reached EUR 585 mil-
trying to benefit from the yield delta between
250 million in 2017 to more than EUR 500
lion, according to data from Knight Frank.
Romania and other CEE markets such as the
million in 2018,” Patrulescu told BR.
The market could grow to EUR 1 billion by
Czech Republic or Poland,” said Vacaru.
In the first three quarters of 2017, the
Furthermore, the market is set to record
www.business-review.eu Business Review | December 2017
8 REAL ESTATE
leased, a fact that encourages developers
solidation of portfolios, with the growth
DRIVING FORCES FOR INDUSTRIAL AND RETAIL SECTORS
rate hovering at around 10-15 percent, adds
Posting the biggest result in the European
head of industrial and logistics at Crosspoint,
Codrin Matei, managing partner, head of the
Union, the Romanian economy expanded by
told BR.
office agency, capital markets and business
7 percent in the first nine months of this year,
development at Crosspoint, the real estate
with economists saying the expansion was
trial and logistics sectors look different if we
consultancy.
driven mainly by the increase of domestic
take into account the residential segment,
large transactions due to the recent con-
to extend their portfolios,” Emilian Podaru,
The growth stories from the retail, indus-
consumption. This also generated more busi-
which is far more sensitive to financial deci-
comprising Politehnica/Grozavesti will be
ness for players in the industrial and logistics
sions.
targeted primarily by tenants in the IT and
segments.
In the Bucharest office market, the area
BPO sectors, say experts.
“As long as mortgage interest rates remain
“Having in mind the strong GDP growth
at current levels, demand will not be affected
Simona Urse, associate director of the of-
in Romania, which is primarily based on two
by the slight increase in prices and the trend
fice agency at Crosspoint, suggested that the
factors: industrial production and retail con-
seems to be just that, at least in the short to
vacancy rate in the office segment will hover
sumption, demand for industrial properties
medium term,” Bogdan Iliescu, associate resi-
at around 8 percent, as the new deliveries
such as logistics and production will continue
dential at Crosspoint, told BR. He went on to
that will follow in 2018-2019 will balance the
to rise. We expect leasing activity to remain
say that Romanians are gaining more interest
demand.
strong in the short and medium term,” Paul-
in quality residential projects, but demand
son told BR.
will largely remain stable for all kinds of
“In their need for expansion, large companies will likely shift their focus towards re-
With high consumption, the retail segment
gional cities like Timisoara and Cluj-Napoca,
is set to continue to attract investments going
cities where currently, even with new projects announced, supply and
buildings.
forward. In 2016 alone, the
MORE INVESTORS EXPECTED IN ROMANIA’S PROPERTY SECTOR
Bucharest market
demand are roughly at the
recorded
same levels,” Urse told BR.
Real estate experts largely
record de-
agree that Romania is in a
She added that there
liveries
good position to attract
is a growing interest from
of more
fresh investors on the
companies in green and
than
market next year, but the
plaza type buildings (mixed
100,000
stability in the political
function projects with ac-
sqm of
cess to food courts and retail areas). Demand for office space will reach
arena also plays an impor-
gross leasable
tant role.
area. Cosmin Grecu, head of valuation and research
“The year to date shows an increase in the number and variety of
412,000 sqm this year. In the retail market
at Crosspoint, suggested that developers will
investors from Belgium to Israel and beyond,
the increasing demand is fueled by the
focus on retail investments in secondary loca-
particularly for value-add and speculative
growth of domestic consumption, says Rob-
tions, while the expansion of e-commerce
real estate. Given the parties presently in due
ert Paulson, head of investment properties
will further decrease the need for retail space.
diligence, we should expect several further
at CBRE, the real estate consultancy. He says
“Demand will come mainly from new
new entrants. Enquiries from the Middle East
the strong economic growth will also have a
players entering the market. Retailers will
and South African funds have been gaining
positive impact in the industrial and logistics
have to merge their online and offline pres-
pace over 2017 and we might expect further
segments.
ence in order to keep up with the changes in
action from those quarters. Additionally,
the consumer’s needs. The more and more
there are a number of Western European
relocations and new demand on the market
dynamic lifestyle of the consumer will create
funds whose CEE focus is shifting further
are expected to be the main drivers of office
the demand for all-in-one spaces, where
eastwards as supply tightens in more core
take-up, as tenants will be looking to move
work, shopping and entertainment combine,”
markets,” said Paulson of CBRE.
their headquarters/back offices or consoli-
Grecu told BR.
The Knight Frank representatives say that
date their operations into new premises and new players will be coming onto the market. Most of the office deals in the first nine months were for spaces of over 5,000 sqm, holding a 46 percent share of the take-up. “Headline rents are expected to remain stable over the next year,” said Florescu and Lupu of Knight Frank.
In the industrial sector, meanwhile, CBRE
Matei of Crosspoint adds that we might see more investment funds from the US and
estimates that demand will exceed 500,000
UK that are already looking for real estate
sqm by the end of 2017.
opportunities, alongside players from South
The industrial sector fared very well this year, with a current vacancy rate of under 5
Africa. “In order for the market to steadily grow,
percent in Bucharest and 2 percent at national
we need to see new investors, the feeling
level, according to Crosspoint.
of loneliness being still present among the
“Most of the newly built space is pre-
‘usual suspects’,” concluded Matei.
www.business-review.eu Business Review | December May 2016 2017
COVER REALSTORY ESTATE14 9
Forte Partners lays out ambitious strategy for residential investments After building a brand in the office segment, Romanian real estate developer Forte Partners will accelerate its investment in the residential sector in Bucharest, having delivered three boutique buildings of luxury apartments in the city center. By Ovidiu Posirca
Londra 27
T
Aviatiei Park
he company has already announced
have built so far have been sold, but they
this success story of ours, and to keep on
that it will invest EUR 37 million in a
were smaller projects on the high end of the
making good quality projects.”
residential project in north Bucharest
market,” said Margescu.
that will have 352 units.
The project is designed to have four
With the company already developing office projects in the central and central-
Geo Margescu, founder & CEO of Forte
10-storey apartment blocks. The building
western parts of Bucharest, the core question
Partners, told BR in an interview that the
footprint stands at 3,700 sqm, while over
is whether Forte Partners will take a strate-
entire Aviatiei project will be completed at
11,000 sqm will host plazas, alleys, access
gic step into developing buildings that also
the start of 2019, with 40 percent of the first
roads and sports facilities on the grounds of
include residential components. Key players
phase having already been sold. He also de-
the complex.
in the property sector have kicked off mixed-
scribed how the company had decided to get into this segment. “Only recently, at the beginning of last
used projects in Bucharest and other large
EXPLORING MIXED-USE PROJECTS
cities such as Timisoara and Cluj-Napoca.
Margescu says that Forte Partners will not
Investors say they are looking to build com-
year, we decided to expand the focus from
stop here and new projects will be made pub-
munities in which people spend little time
offices to residential too. It was not easy.
lic in the residential sector in the near future.
traveling from home to work, giving them
We believe that there is great demand on
“We would like to develop some more. We
more time to spend with their families and on
the residential market and a lack of good
are inventing our opportunities; we do have
quality products. This is why we started
some land of our own and we are actively
a new department, within Forte Partners,
looking for new plots. We’ll announce anoth-
gescu’s eyes, and he says that Forte Partners is
and we wanted to take on the whole learn-
er residential project maybe at the beginning
thinking of doing such projects, although it’s
ing curve. We didn’t want to make mistakes
of next year,” said the executive.
not easy.
jumping into big projects from the beginning,
He added, “We don’t have a timeline of
leisure activities. This is something that has caught Mar-
“We do see the value of mixed-use proj-
therefore we did small projects. We’ve seen
announcing one project after the other, but
ects, when they are possible. Some of our
the cycle of such a project and now we are
we are very committed to the market and we
future projects have both office and residen-
ready to deliver ones with hundreds of units,
would like to capitalize on what we have done
tial components, and a bit of retail,” says the
Aviatiei being one of them. All the others we
so far, both office and residential, to continue
executive.
www.business-review.eu Business Review | December 2017
10 REAL ESTATE
Forte Partners looking to expand real estate portfolio in Bucharest Geo Margescu, founder & CEO of Forte Partners, tells BR that the company’s office portfolio is valued at EUR 200 million, with the focus set to remain on the Bucharest market. Margescu says the developer will continue to expand in the residential sector, while in the office segment the firm is looking to invest in the downtown area of the Romanian capital.
ABOUT GEO MARGESCU founder & CEO of Forte Partners With 15 years’ experience specializing in development management and construction, Geo Margescu is the founder & CEO of Romanian real estate developer Forte Partners. During his career, he has developed several landmark industrial, office and residential projects in Romania, which have been recognized and awarded internationally.
Photo: Mihai Constantineanu
By Ovidiu Posirca
What is the current value of Forte Partners’ portfolio and what is your strategy going forward, let’s say through to 2020?
Not for the time being. We want to be very
The first phase of the project is now com-
focused on the type of development and the
pleted and fully leased. The tenants have
area too. Secondary cities in Romania have
already moved into their spaces so they are
The portfolio is split between office and
already experienced local developers and
all starting their activity inside the building.
residential. In residential, there are ongoing
they are doing a great job.
For the second time, after the Stefan cel Mare
processes. We don’t keep apartments on the
Our main focus is to stay in Bucharest
long term, so on the residential side it’s the
and to develop as well as we can. This is one
on time with not even one day of delay. This is
value of the development, not the portfolio
of our values – a longer commitment with
something we are proud of and we would like
itself. The value of the office portfolio, I think,
our tenants, our financing banks, with our
to continue with this good pace of develop-
is somewhere in the range of EUR 200 million,
buyers. We have a long term partnership with
ment, thus keeping our promises to our ten-
delivered projects, under construction and
Bucharest.
ants and financing institutions.
What are the plans for The Bridge office complex following the completion of the first phase?
the second phase, which is a slightly smaller
During construction, we decided to start
under permitting.
Is the developer looking to expand outside Bucharest?
building, we delivered those spaces exactly
building – 21,000 sqm of leasable area – and it will be delivered in January 2019. There is
www.business-review.eu Business Review | December November 2017 2017
REAL ESTATE 11
a lot of interest with the first phase being so
easy to build downtown; responsibility must
We are targeting buyers who appreciate this
visible and well received by the market. A
be assumed when delivering such a building
added value and are ready to pay the price to
lot of tenants were interested in the second
in a historical location, especially where we
enjoy this valuable project.
phase. No lease agreements have been signed
are doing so – we are next to Palatul Tele-
so far, but we are very confident of having the
foanelor and the other historical buildings
second phase fully leased.
there, so we pay great attention to design,
Are you looking to buy new land and if so, in what areas?
details, architecture in general, and we hope
We have land in the north, some in the center,
Will you have an anchor tenant for the second phase of The Bridge?
that our projects will be seen as such.
some in the south and west. We really value
It won’t be the same as in phase one, when
the residual value calculation can be made.
we signed with BCR very early in the con-
Do you have a timeframe for finishing the office project near Palatul Telefoanelor?
struction phase. We are taking our time; we
I will not give an exact deadline; we are in the
company so even if we have land nearby and
have several big and good tenants to occupy
permitting phase, which is not always very
find a better plot we have no problem buying
the building.
predictable. We do an urban plan, a zoning
a new one and selling the existing one.
the land when we have a project on it and We believe that we are quite an open-minded
plan, so it’s difficult for me to say now. What
How are you financing all these developments?
I can tell you is that we are paying full attention to starting the building in due time.
We always start with our own equity and at a certain moment during construction we sign loan agreements with banks.
On the office segment, are you targeting certain areas in Bucharest?
Do you have an exit strategy for your projects? As we are not an investment fund, so it is not
Has the northern part of Bucharest reached its potential for office development?
in our DNA to hold assets for ever, we don’t yet have an exit focus. Our main aim is to deliver high quality buildings and then
For the time being, it’s very
eventually to exit,
crowded. I guess this will
but when the time
change in the future, in let’s say 5 to 10 years,
comes.
We make our
with further infra-
Are you grappling
own opportuni-
structure projects to be
with delays in
ties. We are the first to deliver in the center-west of Bucharest and we would also like
construction due
built, other areas being
to lack of workers
opened, so for sure the
on the building sites?
north is not done. Things will
This has been cited as one
come back for the north once the infra-
to do so with downtown. There
structure is ready, once the other projects are
aren’t many constructions downtown and
developed; therefore the focus on the tenants
one has to be very daring when starting a
will be dispersed throughout the city.
of the main challenges facing the market. It is not easy, but we are doing a great job of managing with the contractors and
construction in such a historical area from
When is Forte Partners aiming to fully deliver the residential project at Aviatiei and what’s your sale strategy?
construction in general. This is not the only
tions and Matei Millo is one of them. We
We are investing a lot in design, in communal
approached the challenges one by one and
would like to develop a landmark building
areas, gardens, facades, in all those details.
so far, so good. We have a very good internal
there.
So we are taking our time with the construc-
construction team. We don’t do construction
tion. The project is due to be completed at
management ourselves; we always work with
What are the advantages and challenges of delivering a project in downtown Bucharest?
the beginning of 2019. We’ve sold 40 percent
general contractors. Each time we start a new
of the first phase and we are planning to start
construction we do a tender; we try to get the
the second phase too by spring 2018. We are
best price, quality, and time as possible.
First of all, there are not that many plots of
encouraged by the market, by the way in
land and there is a lot of demand for down-
which the construction is moving. There is
town locations. It is, of course, the proxim-
10,000 sqm of green space in this project – we
ity to all the facilities, all the amenities of a
are investing in alleys, parks, and sport facili-
What are the plans for Forte Partners’ team next year? Are you looking to expand?
downtown location, the connectivity with the
ties. We looked a lot for land in the city as we
We don’t want to expand the structure too
metro, bus lines, all the public transportation
wanted enclosed condominiums where the
much. We have always wanted to keep a core,
in general. So, if you find a downtown loca-
owners can walk, run, do sport and have time
competent structure. We have 30 employees
tion you are able to build on, then the project
for themselves, without having problems
at the moment. We would like it to remain
is pretty much half way to success. It’s not
with the city traffic and noise.
around this number.
the perspective of permits, architecture and construction. We have a big interest in downtown loca-
challenge; others are the design, financing, construction and deliveries. We have
12 COVER STORY
www.business-review.eu Business Review | December 2017
CHRISTMAS FEVER SPREADS AMONG RETAILERS AND CONSUMERS With retailers rushing in the winter holiday season by starting their promotional campaigns at the end of October, Romanians have more time to spend on Christmas gifts. BR asked specialists whether local consumers are ready to open their wallets and start the winter holiday season two months before Christmas, at least from the gifts perspective. By Anda Sebesi, Romanita Oprea
www.business-review.eu Business Review | December 2017
COVER STORY 13
I
kea, Carrefour, Mega Image, KFC, Coca-Cola and Tuborg, just to name few, started pushing the pedal early on, rolling out their marketing and communication campaigns for this Christmas
season. This year, Romanians began seeing festive preparations at the end of October, earlier than previous years. The last months of the year generate the largest sales for market players, with December reaching peak volumes, pundits say. Retailers have therefore made use of their entire arsenal to capitalize on this business opportunity. Moreover, what better moment to do this than for Christmas? “December is full of emotion and effervescence, when people are keen to buy things and give presents to their friends and family. So it’s a good moment for retailers to boost their marketing campaigns to highlight their products and services, attract new customers and maintain their existing ones,” says Ruxandra Serban, founder and CEO at Erka Synergy Communication, a communication agency specialized in retail clients (which put a foot on French ground last year). According to her, about half of Americans start their Christmas shopping before Halloween, while Romania is only now catching up to this trend. “For example, France and England have started their official winter season in November for many years now,” adds Serban. Echoing the same idea, Hortensia Nastase, vice-president creative services at Lowe Group, says that the American giant Walmart starts Christmas fever as early as November 14, when it begins sprinkling holiday music into its regular in-store mix. Retailers are not the only ones that have begun the battle for Romanians’ wallet at Christmas time. Some manufacturers have already increased their portfolio with traditional products for this time of year. For example, at the beginning of November, Tuborg announced the launch of its traditional Tuborg Christmas Brew, a special beer that has been marking the beginning of the winter season since 2000. On the first Friday of November the limited edition is launched simultaneously on many European markets, including Romania - continuing a 36-year tradition that began in Denmark in 1981. “Our limited edition Tuborg Christmas Brew represents a symbol of the winter holidays in Romania and has become a traditional messenger of Christmas time spent with friends and family,” stated Paul Markovits, marketing vice-president at URBB. In addition, KFC has included its traditional “Christmas Bucket” in its menu, a product ‘baked by Mothers’, along with its limited edition Seattle’s Best Latte, a specialty coffee with gingerbread aroma and chocolate topping – two symbols of the winter season. “Christmas remains the most important holiday for a family and the mother plays a significant role when it comes to cooking large Christmas meals with passion. Thus, our brand’s fans will enjoy the authentic taste and typical atmosphere of the winter holidays,” said Monica Eftimie, chief marketing officer at KFC. Many feel that mid-autumn is not quite the proper time to start marketing campaigns for the Christmas season. However, as Serban says, consumers responded positively to earlier winter campaigns, with Black Friday being an example in this regard. “There is a real culture in Western countries about how ‘it’s never too early’ to get into the winter holiday spirit. Consumers are attracted by the magic
14 COVER STORY
www.business-review.eu Business Review | December 2017
of Christmas and the general feeling of wellbeing and family time,”
sions. As Ondina Olariu, business director at Geometry Global, says,
added the Erka representative. Companies therefore bet on the
this is a strategy to attract customers and secure shopper spend for
psychological and emotional impact and know how to capitalize
various brands and retailers. “The long-term impact of such a strat-
on emotion to increase their sales during this time of year. “Creat-
egy is a decrease in impulse buying along with a more structured
ing the Christmas atmosphere is one of the most effective and least
shopping list and more options for where to buy from,” said Olariu.
expensive marketing strategies that gives
According to her, at Christmas time super-
great results during the winter holidays. It
markets rely on gift and impulse categories
is important to transport customers into the
like wine, chocolates and flowers, increas-
Christmas atmosphere and make them feel
ing threefold the number of impulse gifts
important and spoiled, by offering them
they stock and often finding new places to
special gifts, promotions, discounts or other
put the merchandise. Meanwhile, discount-
features,” adds Serban.
ers, known for having a limited choice,
According to Bogdan Nitu, general
often boost their assortments for Christ-
manager and partner at Webstyler, online
mas. “For example, Lidl, with a base level
consumers follow an international trend
of about 1,800 SKUs (stock keeping units)
where shopping for the Christmas season
can surge to 3,600 in new stores around
sometimes starts as early as September.
Europe. Aldi states that it goes from 1,600
Most agree it helps them spread out their
SKUs during a normal week to over 2,600
spending and avoid the holiday crowds. The
during Christmas,” added Olariu.
agency’s client research shows there is a growth in sales during the holiday sea-
As Oana Mirila, director of qualitative re-
son; even those clients that do not have a
search at GfK Romania, told Piata magazine
seasonal product or service allocate budgets
earlier this year, expectations for consumer
to campaigns during this period, as people
spending are optimistic for this Christmas.
have a certain energy when it comes to
“It remains to be seen who will have the
Christmas. Digital content is also adapted
most effective and creative way of blending
to this energy during the period as brands try to connect with people
empathy with technology and digitalization. The stake is to build
and respond to their real needs.
communication and to create different experiences,” she said.
According to compari.ro, Romanians are more open to making online purchases during the winter season and will spend about RON
HOW BRANDS DO CHRISTMAS ABROAD
660 on gifts this year, 6 percent
At international level, Coca-
higher than in 2016. Clothes,
Cola’s campaign for this year
cosmetics, toys, watches,
extends to packaging, with
jewelry and books are among
limited edition packs featuring
the most popular presents with
the image of Father Christmas
Romanians. The same research
enjoying a bottle of coke. The
finds that, despite significant
marketing campaign is the
financial limitations for many
biggest ever, with the company
buyers, during the winter
set to spend over GBP 7 million
holidays retailers can count on
during the Christmas period.
increased demand for TV sets,
The media investment extends
smartphones and tablets. Ac-
to experiential, radio, cinema,
cording to the same source, this
OOH – with a bespoke bus for-
Christmas, Romanian netizens
mat that adds a twinkle to the
intend to buy an average of six
ads – and digital. Coca-Cola has
to seven gifts for their relatives.
also partnered with Snapchat
In addition, 66 percent of respondents intend to buy gifts for their
and will offer a variety of filters and lenses throughout the Christmas
children, parents or siblings and spend RON 118 on average. Asked
season in the UK and Ireland, according to marketingweek.com.
what kind of presents they intend to give, 60 percent of the respon-
Another American giant, Amazon, is hoping to spread some
dents said that they want to bring joy through quality gifts, consider-
Christmas cheer with a festive campaign that shows its boxes having
ing the quality-price ratio when weighing up a purchase.
a sing-a-long to Give a Little Bit by Supertramp, as they head off on
Rushing the Christmas promotions season impacts both the way consumers interact with brands as well as their purchasing deci-
a “magical journey” from the warehouse conveyor belt around the world via planes, boats and trucks. The message is held together by
www.business-review.eu Business Review | December 2017
COVER STORY 15
the story of a female commuter buying a
we look at what happens across the world,
gift for a little girl, says the same source.
we can forecast that the battle of who’s going to capture Christmas sales will encom-
Coca-Cola and Amazon are just two examples of brands that vie to draw consum-
pass new dimensions: personalized gifting,
ers’ attention on the international market,
variety or customization to the level of
striving to be associated with the spirit of
exclusivity and gourmet offers when reach-
Christmas in their customers’ mind.
ing out to the Christmas meal makers,” said the Geometry Global representative. Added Olariu, “For example, this year,
IT’S ALL ABOUT THE SALES However, bottom line, is there a growth in
‘Handmade by Amazon’ has expanded
sales? Are Romanians starting to buy Christ-
to include over 5,000 artisans that offer
mas-related products earlier or is it just a lot
unique gift items, all part of the Market-
of fuss for almost nothing? Nastase of Lowe
place offers. The retailer Target implement-
Group says that we don’t realize the level
ed GiftNow on its website, a new feature
of skill, expertise and budgets that brands
through which guests can send an e-gift
invest in communicating around this
box, of which the recipient can switch the
proudly or sheepishly admitted addiction
color or size, or change the item. Discount-
to the holidays. Studies have shown that
ers are thriving on their luxury brands, up-trading to gourmet propositions for the
playing Mozart or Vivaldi in a wine store can make shoppers buy more expensive wines, and that slow music
Christmas meal already.”
in restaurants makes diners linger longer and spend more. Starbucks
When it comes to the amount of creative local work versus the ad-
employs two dedicated people to curate the Spotify playlists used in
aptations of global brands’ advertising, Nastase believes that it’s hard
all its coffee shops. “It actually keeps its holiday music plans under
to make a reliable split between adapted and local, but adapted work
tighter wraps than even the design of its hotly-awaited holiday cups.
still unfortunately forms the majority. However, she is hopeful that
And if some brands work the entire year on their Christmas cam-
we will continue to see more brands doing local work for Christmas,
paigns, why not have consumers enjoy it for more than a month?,”
and not only in advertising. This would require more courage from
said Nastase.
clients, both in vision and in budgets.
In turn, Olariu of Geometry Global says that most channels report growth in sales at Christmas time, while online players report sensational results. But, in this context, the real question for both brands and channels is how they measure success: how much of their growth is postponement of spend left on the seasonal list or fore-spend that will impact Q1 next year, or how much extra sales
What will influence the purchasing decision this Christmas?
were the figures they relate to as previous year results. Another good indicator of growth in sales is the forecasted seasonal budgets consumers allocate to the winter holidays, which is on an upward trend on the local market. As pundits say, consumers’ budgets are split into two categories: gifts and the Christmas meal and decorations, with food items growing more in spending intent versus gifting. “Shopping by channel needs to be looked at in a larger, occasionrelated context. What we notice is that the Christmas gifting occasion is shifting from its traditional meaning, into new territories. We can speak of the ‘family investment’ items that make it to the Christmas gifting list and are driven mostly by Black Friday. Therefore, the investment in new gadgets, electronics or white goods for the family is concentrated around Black Friday, but also fulfils the wish list for Christmas. If we consider this, a considerable amount of sales for Christmas are happening in the online environment, both in value and volume,” outlined Olariu. Another territory is the “check list” area, with convenient, standardized gifts, where the hyper/super formats play with most of the traditional categories, with investment in packaging and formats. “If
Customers will concentrate on quality and tend to satisfy their curiosity or pleasure by focusing on high-end brands or categories meant to pamper them. Romanians’ need for authenticity, tradition in recipes, ingredients and products in general: they will look for products that inspire authenticity, quality and know how to tell a success story. Romanians’ need for safety and confirmation of confidence: we’re still a society that focuses on confidence and trust and is reluctant to risk. Romanians’ need for freedom of choice and customization. Retailers can meet this specific need by coming with customized offers and special promotions. Association with values, ideals, aspirational choices – all of these make consumers feel proud of their association with a specific retailer or manufacturer. The use of technology to support brand promises such as comfort, fast and funny, as people are often very busy during the winter holiday season. Source: Piata Magazine
www.business-review.eu Business Review | December 2017
16 COVER STORY
Ho ho go: local holidaymakers hit the road for the festive season Romanians’ Christmas spending has been on an upward trend in recent years, and in an attempt to secure their piece of the (mince) pie, local travel agents have put together a wide range of packages for Christmas and New Year’s Eve.
D
By Anda Sebesi
espite a very tur-
average EUR 1,800/per-
bulent year, with
son on holidays outside
acts of terrorism
Europe and typically
shaking some of the most
make reservations four
important European capi-
months before the winter
tals for tourism and hur-
holidays. “They travel
ricane Irma leaving a string
abroad from December
of small Caribbean islands
25 or 26. The number of
devastated, it’s Christmas
Romanian tourists that
time and some are making
travel at Christmas time is
big plans for the season.
now twice that posted two
Many Romanians prefer to
years ago,” adds Stoica.
spend their winter holidays abroad or visiting local agents have started to fo-
JINGLE BELLS AT EUROPEAN CHRISTMAS MARKETS…
cus on them since the end
From the middle of No-
destinations and travel
of the summer, adapting
vember until Christmas,
their offers to customers’ wishes. If they have ticked off almost all
Vienna’s prettiest squares transform into magical Christmas mar-
the European highlights, Romanians wanting more from their winter
kets. The aroma of Christmas baking and hot punch sets the mood
holidays choose their destination depending on the experience they
in the run-up to the big day. As Raluca Anghel, tourism consultant
want, traditional and local or foreign and exotic.
says, in recent years, Romanians have started to discover the appeal
As Sorin Stoica, CEO at Eturia says, his customers often opt to
of short holidays at the well-known Christmas markets held in big
spend their Christmas holidays outside Europe. “Their interest in
European capitals. Moreover, as Christmas is often about stereo-
brighter and hotter destinations than Europe is understandable, con-
types, Vienna is at the top of their list.
sidering their keenness to ‘escape’ from the Romanian or European
According to Anghel, there is a visible increase in the number of
winter season. They have already visited the Christmas markets in
Romanians who visit new Christmas markets each year, especially
European capitals and now choose exotic beaches and destinations,”
before Christmas Eve. “The campaigns that the large local tour
says Stoica. He adds that Cuba, Cancun, the Dominican Republic,
operators run every year enhance Romanians’ appetite for discover-
the Maldives, Mauritius and Seychelles are some of the most popular
ing new Christmas themed markets. In addition, they have started to
destinations for the end of the year, while the Maldives, Japan, Peru,
offer destinations that are usually less known for Christmas markets.
the USA, Tanzania, India and China are the hottest destinations out-
There is an upward trend and I am sure that in time, it will generate
side Europe this Christmas season.
profits for tour operators,” adds Anghel. Prague, Lisbon, Dresden,
“In general, someone who is open to trying something new
Frankfurt, Venice, Lille, Paris, Glasgow, Seville, Copenhagen and
chooses from these destinations. They are looking for interaction
Tallinn are some of the European cities now attracting many tourists
with the specific culture and locals, are interested in high quality
with their Christmas markets.
services and have found that these destinations have spa and wellness facilities that exceed their local or European experiences,” adds
… WHILE BACK HOME THE AROMA OF COZONAC FILLS THE AIR
the representative of Eturia. According to him, Romanians spend on
While some Romanians prefer to spend Christmas abroad, many
www.business-review.eu Business Review | December 2017
18 COVER STORY
choose to stay connected to local traditions and enjoy Christmas in Romania. “Traditional” is the word that best describes the vibe. According to Marius Zamfir, general manager of Transilvania Ho-
Which tourists... Go exotic:
tels & Travel, Bucovina and Maramures are among the most popular local destinations at Christmas time. “I can see increasing interest in destinations that offer a mix of mountains, winter sports and wellness and spa integrated packages. So destinations like Baile Felix, Tusnad, Covasna and Buzias are now on tourists’ radar. But Brasov and Predeal are still favourites when it comes to spending Christmas Romanian style,” says Zamfir. For example, in Baile Felix prices vary from RON 466 and RON 1,366 depending on the hotel’s star rating and the package of services (e.g. special events, spa). Asked about what local destinations Romanians like to visit during the winter holidays, Zamfir says that while Valea Prahovei, Brasov and Predeal are among the popular destinations for New Year’s Eve, Bucovina and Maramures are pre-
They want to try something new as they have already visited almost all European destinations Are entrepreneurs, middle and top managers Want to combine their vacation with an experience (a beach, an adventure, spa, wellness, a cultural experience)
Stay Romanian:
ferred for the Christmas holidays. “Destinations that offer wellness and spa services have become very attractive to Romanians in the past two years and Baile Felix is in demand when it comes to winter holidays that combine different facilities,” concludes the representative of Transilvania Hotels & Travel. As Anghel says, a Christmas holiday spent in Romania will become an emotional one, because through their offers, hotels allow tourists to relive many of their childhood habits and traditions. But let’s hope Santa is generous: “Often, Romania can be more expensive than other European capitals when it comes to spending a Christmas holiday,” adds Anghel.
Families with children Have an average budget to spend on holidays and want to relax Are attached to the traditional Romanian winter holiday and want the hotel that accommodates them to offer local Christmas traditions including gastronomy, thematic parties, wellness and spa services
www.business-review.eu Business Review | December 2017
COVER STORY 19
Christmas fairs in Romania By Oana Vasiliu
It’s nearly Christmas so everything goes festive, from city centre’s to shops. Where to go and what to expect? BR is on hand to help you navigate the festive maze through the top cities of Romania. You just have to be prepared for chestnuts roasting on an open fire.
SIBIU OPEN NOVEMBER 18-JANUARY 3
BUCHAREST OPEN DECEMBER 1-27 IN PIATA CONSTITUTIEI
Event organized by an NGO and City Hall
Event organized by City Hall in partnership with Creart, its own
EUR 100,000 invested in 2016 (source: Hotnews.ro)
cultural institution
RON 4,000-9,900 participation tax for vendors in 2016
RON 7.2 million invested in 2016 (source: Hotnews.ro)
Vendors selected by the organizer
RON 1.5 million spent on Christmas decorations – little houses,
Considered the most beautiful Christmas fair in Romania
ice rink, nativity scene (source: Stirile ProTV)
Christmas tree is 20 meters high
RON 2,500-6,000 participation tax for vendors in 2016
Over 100 exhibitors
Vendors selected through contest
28 projectors used for lighting design in Sibiu’s Main Square
Over 100 exhibitors
RON 154,700 for maintenance of Christmas lights
Christmas tree is 30 meters high
RON 73,543 for Christmas light figures
Free entrance to the ice rink
Over RON 800,000 collected in 2016 for hotel taxes
Over 3 million Christmas lights to decorate the city in 2016
CLUJ-NAPOCA OPEN NOVEMBER 24-JANUARY 1
BRASOV OPEN DECEMBER 7-JANUARY 14
Event organized by City Hall in partnership with a dozen commu-
Event organized by City Hall
nication & events coordination specialists
Vendors selected through highest bid
RON 5 million investment (source: Stirile ProTV)
Only 40 Christmas houses available
One of the streets will be decorated by a local resident who won
RON 235,000 for the investment in 2016 (source: Hotnews.ro)
a Christmas design contest organized by City Hall
Linz (Austria) and Nurnberg (Germany) city halls, will exhibit typi-
Matei Corvin statue will stand in the middle of the ice rink
cal local products and will participate as twin towns of Brasov.
www.business-review.eu Business Review | December 2017
20 COVER STORY
Made in Romania Christmas ideas The most wonderful period of the year has arrived, when most central city streets suddenly acquire a sparkle and spontaneous caroling is on the order of the day. The lights are on, the parties have started and it’s a bit bone-achingly cold. Yes, it’s Christmas time and Business Review’s Christmas shopping guide is now ready. Merry Christmas, one and all! By Oana Vasiliu ATELIERUL DE PUFOSENII CATEGORY: TOYS
These tiny handcrafted music
by colors, shapes and textures
Madalina is a Romanian il-
boxes will bring true pleasure to
inspired by nature.
lustrator who draws inspira-
all music lovers, especially those with a fondness for classical.
CUP&CANDLE CATEGORY: HOME DECOR Orders at www.cupcandle.ro
tion from traditional fairy
LYRIA CATEGORY: LEATHER GOODS Orders at www.lyria.ro
tales, folklore, love and happy thoughts, never forgetting the magic of where she comes from. Whether you’re looking for illustrations, ceramics, books, postcards or even pieces of clothing painted by her, you will love her work.
MADE IN ROSIA MONTANA CATEGORY: CLOTHING Orders at www.madeinrosiamontana.ro The Timisoara toy manufacturer is probably the most child
The online store sells both
It all started with stories painted
(and adult) friendly place in
beautiful pieces of crockery, such
on bags. The most recent collec-
Romania. Toys are brought to
as teapots and cups, as well as
tion includes bags with remov-
life by Lia Pffeifer, who person-
incredible scented candles deliv-
able covers which can be changed
ally designs and creates each
ered, of course, in a cup. Worth
in order to suit your look to the
and every one. The materials
trying, as the scents are amazing.
occasion.
IUTTA CATEGORY: LEATHER GOODS Orders at www.iutta.ro
MADALINA ANDRONIC ILLUSTRATIONS CATEGORY: CONTEMPORARY ART Orders at www.madalinaandronic.com
used are premium and specially treated in order not to provoke allergies. Check Atelierul de Pufosenii on their Facebook for orders.
BOLTOM CATEGORY: MUSIC Orders at www.boltom.ro
Around 30 women from Rosia Montana are making additional income from doing what they love: knitting. “Made in Rosia Montana is not a business that aims to make anyone rich, but rather one where people work passionately and ethically with their own two hands to help move things forward and bring people closer to ancestral values and this wonderful place in
Romanian brand Iutta, a leather
Romania. Working with wool is
shoe, bag and accessory produc-
a beautiful thing because high
er, offers products with tradi-
quality products come to life,”
tional motifs, everything defined
is their promise. Some of the
www.business-review.eu Business Review | December 2017
COVER STORY 21
money is invested in educa-
cause) with the money raised
pieces are made with clean raw
tional programs.
from the items going to a project
materials, with knowhow passed
called Zana Maseluta (the Tooth
from generation to generation,
Fairy), a program for children
skillful hands and immediate
who need dental treatment.
usefulness. Most of the products
MERCI CHARITY BOUTIQUE CATEGORY: CLOTHING Orders at www.mercicharity. ro
DIZAINAR CATEGORY: HOME AND DECO Orders at www.dizainar.ro
are made from copper.
MESTESHUKAR BUTIQ (MBQ) CATEGORY: HOME DECOR Orders at www.mbq.ro Mesteshukar ButiQ (MBQ) is a
PLANTWEAR CATEGORY: ACCESSORIES Orders at www.plantwear.ro If you are a fan of wooden prodThis store offers a wide variety of designer products for those interested in decorating homes and offices with Romanianmade pieces of art. Dizainar’s portfolio is comprised of over 200 pieces from furniture, lighting, clocks and graphics to
The charitable tea house has
ucts, a search on the Plantwear
personal accessories, decora-
opened its own fashion brand,
network of social economy enter-
website will meet your needs.
tions, toys, glassware and ce-
Port cu mine o fapta buna (I’m
prises aiming to revalue tradi-
The designs and cuts of this eco-
ramics which come from more
wearing/taking with me a good
tional Roma craftsmanship. The
friendly brand are interesting.
than 130 designers.
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at national level and covered all relevant
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such as large cities (including Bucharest,
In less than a year, Telekom Romania
Timisoara, Cluj-Napoca, Iasi, Constanta,
doubled LTE coverage, continued upgrading
Suceava, Brăila, Tulcea), middle and small
and optimizing mobile network initiatives and
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Cernavoda, Tecuci, Sebeş, Dej and many
Telekom Romania mobile network achieved
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others), as well as the connecting roads
the highest score for data services following
Romania can offer its customers the best
selected by P3 communications for this
the performance tests on all mobile
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purpose.
networks in Romania conducted in August
The testing campaign of P3 communications
Currently, Telekom Romania’s 4G network
this year by the independent auditor P3
has confirmed what Telekom Romania has set as
covers 98% of the urban population and
communications. Telekom Romania achieved
objective. The certificate demonstrates the good
83% of the entire population (urban and
the highest score, 508 out of 600, for mobile
performance of Telekom Romania’s mobile data
rural). In addition, Telekom customers who
data services. P3 score is a universally
network in terms of a number of key indicators
are not in 4G coverage areas can enjoy the
accepted and an internationally applicable
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4G experience thanks to the advanced 3G
scoring method conceived to evaluate the
in the use of Telekom data services. Thus,
HSDPA technology that allows speeds of up
quality and the performance of the networks.
Telekom Romania has the best performance for
to 43.2 Mbps.
When Telekom Romania declared
video content on YouTube, having, on average,
Last but not least, Telekom Romania, in
#netliberare for all the users in the country,
the shortest time to display the video content on
partnership with Ericsson, made the first
it had to make sure that it has the best and
the user’s screen.
live demonstration of the capabilities of 5G
most reliable means to take this revolution of the internet available to anyone. That is why
The testing campaign was rolled out from 11 to 31 August 2017 on a representative sample
technology in South East Europe, in June 2017, in Bucharest.
www.business-review.eu Business Review | December 2017
22 TAX
Private sector rings the alarm bells over Romania’s tax change frenzy The raft of fiscal changes adopted by the government in early November, despite street protests, might result in higher costs for companies, warn consultants and business associations. Some 261 articles in the Fiscal Code have already been changed in the first 11 months of 2017, according to the association representing SMEs (CNIPMMR), which has been calling for a more stable legal framework. By Ovidiu Posirca
Lucian Barbu, NNDKP Consultanta Fiscala
T
Teodor Blidarus, ANIS
PM Mihai Tudose
he general mood in the business com-
companies that have a combined turnover
munity is rather gloomy, although
of over EUR 50 billion yearly and more than
IT SECTOR BLOWS THE LID ON REAL FISCAL IMPACT
GDP expanded by more than 8
600,000 employees.
In short, the main change that has triggered
percent in the third quarter, while in the first nine months it grew by 7 percent.
After the minister of finance, Ionut Misa,
criticism from trade unions and companies
claimed that over 150,000 companies had
is the shift in the payment of social security
failed to pay social contributions for more
contributions from employers to employees.
will answer for the missed opportunities and
than 2 million employees, the coalition said
The heads of trade unions say that employ-
the placement of Romania in another league
that if there were cases of public or private
ees will lose money from this move, while
for investors, due to the massive changes
companies evading taxes, they should be
companies complain that this shift could cost
made to the Fiscal Code in 2017 just seven
brought to justice. The organization added
them more next year.
weeks before their enforcement?” said the
that the business environment in Romania is
Coalition for Romania in a letter to PM Mihai
mostly fair and produces prosperity for the
impact, which includes adaptations to IT and
Tudose. The association comprises over 2,000
country.
reporting systems and which could be quite
“Mister prime minister, ultimately, who
“Apart from the estimated administrative
www.business-review.eu Business Review | December 2017
24 TAX
significant in some cases, companies are
try in which they are considering investing,”
multinational firms in Romania, saying
reluctant about this shift of social contri-
said Barbu of NNDKP.
they should pay their fair share of taxes and
butions, mostly because of the potential
Nevertheless, players in the IT sector have
additional costs that they may face in the
issued some of the starkest warnings follow-
future – that is, there is concern that the shift-
ing the shift in contributions.
ing of the social contributions by placing the
IT employees benefiting from the income
respect Romanians and the country. Among the provisions brought in by the directive is a limitation of the tax deductibility of financing costs.
bulk of social security costs in the hands of
tax exemption will see their net wages go
the employees will open a new door for the
down by at least 6.5 percent despite the hike
the first states in the region to implement the
government to increase charges applicable on
in the gross wage, warned the Employers’
ATAD Directive and also does it in a rather re-
the employer (from the 2.25 percent provided
Association of the Software and Services
strictive manner, e.g., the country has set the
by the new legislation), or to introduce new
Industry (ANIS).
deductible threshold at EUR 200,000 while
levies, in the relatively near future,” Lucian
In an industry in which the unemploy-
“It must be said that Romania is one of
the directive allowed for up to EUR 3 million,
Barbu, tax partner at NNDKP Consultanta
ment rate is practically zero, productivity
and deductible percentage at 10 percent of
Fiscala, told BR.
per employee stood at EUR 45,000 this year.
EBITDA while the directive allowed up to 30
The sector had a combined turnover of EUR 4
percent,” said the NNDKP Consultanta Fiscala
slashed by 2 percentage points, while the
billion and had 100,000 employees, according
tax partner.
number of contributions will be
to ANIS.
Social contributions for wages will be
Barbu added that the limita-
slashed from nine to three
“Romania is in direct competi-
(CAS – Contribution
tion on the global market,
for Social Insur-
tions will also apply to bank loans, which
with all the relevant
might generate a sig-
countries invest-
nificant impact for
Health Insurance
ing massively in
several categories
Contribution; and
the development
of investors, such
ance; CASS – Social
the labor insurance contribution). Misa said that the social contributions payable by employers will stand at 2.25 percent as of next year, while employees will pay 35 percent.
of the IT sector.
as those active
Unfortunately,
in the real estate
changes to fiscal
sector. Under the
policy in the short term
old thin capitalization
have a strong impact on the
rules, interest deduct-
industry and investors and can undo the progress that has been made in the last ten
ibility was not subject to limitations.
years by Romania as a relevant actor on the
“The introduction of a new anti-abuse
cy government ordinance that also brought
global market,” said Teodor Blidarus, ANIS
provision is also worth noting, as it essential-
in a turnover tax of 1 percent instead of the 16
president, in a statement.
ly supplements the existing principle in the
The changes were included in an emergen-
Fiscal Code, and its application in practice by
percent corporate tax rate for companies with
the tax authorities has the potential to give
EUR 1 million. The draft bill was submitted
ROMANIA TO ENFORCE ANTI-TAX AVOIDANCE DIRECTIVE
to Parliament for approval and may undergo
The package of fiscal measures approved by
concerning the exit tax and controlled foreign
other amendments before enforcement. The
Tudose’s center-left government also includ-
corporations would likely have a limited
government also plans to cut income tax from
ed the adoption of the Anti-Tax Avoidance
overall impact in the near future, considering
16 percent to 10 percent and expand the tax
Directive 2016/1164. In preparation for the roll
that such operations are relatively rare on the
deductibility system for low earners. The
out of the directive, the minister addressed
Romanian market,” concluded Barbu.
annual turnover between EUR 500,000 and
rise to fierce debates. The other measures
minimum wage was also set to grow from a gross RON 1,450 to RON 1,900, but this measure was still under review. “While the changes in individual taxation and social security contributions may be viewed by investors as somewhat neutral at best, one can hardly consider any of the fiscal measures recently introduced as favoring foreign investments. In fact, the package seems to mean quite the opposite, as investors are very sensitive to the level of uncertainty and to the lack of predictability shown by a coun-
“IN FACT, THE PACKAGE SEEMS TO MEAN QUITE THE OPPOSITE, AS INVESTORS ARE VERY SENSITIVE TO THE LEVEL OF UNCERTAINTY AND TO THE LACK OF PREDICTABILITY SHOWN BY A COUNTRY IN WHICH THEY ARE CONSIDERING INVESTING,” LUCIAN BARBU, TAX PARTNER, NNDKP CONSULTANTA FISCALA.
www.business-review.eu Business Review | December 2017
BR EVENTS 25
Foreign investors looking for calmer waters in Romania’s business environment Despite posting a handsome growth rate of 7 percent in the first nine months of 2017, the private sector in Romania is dealing with swift changes of legislation and exacerbated pressure on labor markets, which sees new investment initiatives shelved, said speakers during the fourth Foreign Investors Summit (FIS) organized by Business Review in early November. By Ovidiu Posirca “Analysts say that Romania’s economic development is not sustainable due to labor shortages, especially in the blue collar category. We have to tap into human resources that are blocked,” said Dan Petre, partner at D&D Research. For instance, Czech utility CEZ is planning fresh investments focusing on smart meters and charging stations for electric cars in cities. “We have invested over EUR 2.5 billion in Romania, mainly in the infrastructure in Oltenia (the region – e.n) where the results have improved yearly,” added Borotea. The director said that CEZ has two charging stations for electric cars in Craiova and Pitesti, with the company aiming to install another 40 stations with EU funds and national grants.
“
The FDI panel during the Foreign Investors Summit 2017
Meanwhile, Razvan Copoiu, industry vice-president, South & Eastern Europe, at Schneider Electric, said that it was important for
Romania’s priority for 2018 is calming down the business
municipalities to invest in having smart activities by teaming up with
environment,” said Alex Milcev, tax & law services leader at EY
private contractors.
Romania, the professional services firm. He underlined the fact
Looking at other sectors with high potential, Raul Pop, senior man-
that Romania’s flat corporate tax rate of 16 percent attracts investors,
ager, climate change and sustainability services at EY Romania, said,
adding that the country has one of the best networks of bilateral taxa-
“On economic activity, we have not yet started a discussion about the
tion agreements in the world.
circular economy, which could become a gold mine for Romania.”
“It means investors coming from foreign countries have the framework to make their investors comfortable in Romania and avoid
OPPORTUNITIES IN REAL ESTATE
double taxation,” said Milcev.
Moving to the real estate sector, investment volumes are set to hover
Against the backdrop of the 18.5 percent fall in foreign direct invest-
around EUR 1 billion this year, the same as last year, according to
ments (FDI) to EUR 2.5 billion in the first eight months of the year ver-
Silviana Petre Badea, managing director & head of capital markets at
sus last year, a state aid scheme could have convinced more investors
JLL Romania.
to lend an ear to Romania’s potential. Manuela Furdui, managing partner of FiNEXPERT, said there were delays in the approval of fresh funding for the state aid scheme (807/2014), which covers investments larger than EUR 10 million. “I had more than 20 meetings with potential investors, with more than EUR 10 million of investments, and we don’t have any solution for them. For this year for sure we missed this investment because they can’t wait and I can’t give them an answer,” said Furdui. Dragos Anastasiu, president of the Romanian-German Chamber of
She added that the amount of Romanian investors in the real estate market has remained limited, citing among other reasons the access to finance. Geo Margescu, CEO of Romanian real estate developer Forte Partners, confirmed, “Banks are still cautious about financing real estate projects.” Elsewhere, the managing director of Vastint, Antoniu Panait, said that big cities that host universities will generate demand for offices, suggesting that the company might decide at some point to expand its
Commerce and Industry (AHK Romania), put it more bluntly: “We are
presence outside Bucharest. In the capital, the developer is working on
talking about having some measures on Friday and the final decision
two office projects, with plans also to invest in the residential compo-
on Monday. For Romania this is the challenge for the next two years.”
nent.
However, large players have continued to expand their operations
Investors are continuing to pay attention to Romania’s property
in Romania despite the ongoing challenges, be it related to the poor
market, but cannot find mid-project offices with values from EUR 30-
road infrastructure or the lack of skilled workers.
70 million, according to Vlad Tanase, partner at law firm NNDKP.
www.business-review.eu Business Review | December 2017
26 INVESTMENTS
Romania set to attract more investments in manufacturing in 2018 Approximately 1 in 10 of all enterprises in the EU’s non-financial business economy – about 2.1 million firms in total – were involved in manufacturing in 2014. The sector employed 29.9 million people that year and generated EUR 1,710 billion value added.
“I think it’s about getting the work force to the level of our expectations, both technically, but mostly at the level of ‘soft skills’, which currently don’t meet our expectations. It’s a big medium-term challenge,” Bogdan Stanciu, general manager of Timken, told BR. Timken is a global manufacturer of bearings,
By Georgiana Bendre
related components and assemblies. Stanciu notes that Romania is a friendly environment for investors and attracting new investments in 2018 requires the maintenance of this environment. Furthermore, he adds that some state aid schemes were stopped this year and it would be beneficial to continue them in 2018 to attract foreign investors. He also mentions competition between Eastern European countries for investments.
FIRMS LOOK EAST FOR INVESTMENTS Mihai Teodorescu, general manager of ICT Our country could attract new investments next year through the openness of eastern Romania
D
Logistics, a company specialized in providing transport and logistics solutions, told BR that Romania could attract new investments
ue to the number of employees and
system solutions based on steel and other
next year through the openness of eastern
their added value, in 2014, accord-
metals.
Romania, which has seen relatively few
ing to Eurostat, manufacturing was
Scheidleder told BR that in order to attract
investments.
the largest contributor to the non-financial
new investments in 2018, Romania needs to
economy value added (at 26 percent). Accord-
improve its stability, such as by improving
secure sustainable growth in 2018 is to raise
ing to the National Bank of Romania (BNR),
VAT collection, in an efficient and transpar-
the level of investments,” said Teodorescu.
out of the EUR 4.5 billion of foreign direct
ent manner, and avoiding bureaucracy. In
investments in Romania in 2016, EUR 2.02 bil-
addition, she says that Romania has proved
was based on consumption, this won’t last
lion went into manufacturing. Moreover, new
to be successful in attracting European funds,
forever, therefore sustained investments are
orders in the sector went up by 11.3 percent
but there are still many projects that were
required.
year-on-year in the first nine months of 2017,
not realized as they could have been, so it
say data from the National Institute of Statis-
is important to attract new FDI in this area,
lenge for the next 5-10 years is the competi-
tics (INS). New orders rose by 5.1 percent in
alongside in infrastructure and education.
tion between Western and Eastern transport-
September year-on-year due to growth in the
Moreover, she believes that the already an-
“The main thing that Romania needs to
He adds that although the growth this year
Teodorescu concludes that the main chal-
ers. Currently there are discussions within
wider consumer goods industry and interme-
nounced projects should be put into practice
the European Parliament, which he claims is
diary goods.
in order for Romania to secure sustainable
trying to protect Western transporters from
growth in 2018.
the newcomers in the EU, so the challenge
“Romania has done a lot in the past;
will be the support offered to one group of
I think it has done a great job in terms of stability to attract direct investment,” Martina Scheidleder , managing director of Voestal-
DIGITALIZATION POISED TO SHAKE THINGS UP IN MEDIUM TERM
pine Romania, told BR.
Scheidleder predicted that the challenge in
Voestalpine is a technology and capital
manufacturing over the next 5-10 years will
goods group, combining material and pro-
be digitalization, as it will change the whole
cessing expertise. It focuses on product and
environment, bringing many possibilities.
countries.
2.02
EUR
billion
investments in manufacturing in Romania in 2016
www.business-review.eu Business Review | December 2017
28 INTERVIEW
Brand Minds: content to improve your business and life On May 11, local businesses and creative leaders will take part in what is being called one of the most inspirational business events of 2018, Brand Minds. Sophia, the humanoid robot, and big names from the branding and business world, such as Seth Godin, Shed Simove, Robin Sharma and Daniel Goleman, will all take the stage. BR sat down with the owner and general manager of Brand Minds Europe, Avi Cicirean, to get insights into the event and its future.
ABOUT Avi Cicirean owner and general manager, Brand minds europe Creative and self-motivated person. Emotional experience visionary. Sensory branding expert. Challenger, adaptable, sociable and funny. Former creative services director at Radio 21,Vibe FM and Radio Zu, former voice over and producer at Music Channel and Activ Band Romania, Avi (Flaviu) Cicirean has been, since August 2005, owner and creative director at Brand Emotion Bucharest and, since February 2017, owner and general manager at Brand Emotion Singapore.
By Romanita Oprea ences that encourage people to act in their lives. We work to bring some of the world’s most inspiring leaders and iconic personalities for people to hear their stories and get a taste of their knowledge.
How long does it take to convince someone like Seth Godin or Gary Vaynerchuk to be a speaker in Romania? This is the main problem when organizing business events. The speakers have very busy schedules and you have to book them a year or two prior to the event. After you establish a relationship with them, it’s easier, but it’s challenging until you reach that point.
How difficult is it financially to organize such an event and how are you positioned on the Romanian business events market? Brand Minds has become the Central and Eastern European business summit of the year. There are a lot of people coming from nearby countries, a fact that encourages us
When did you first have the idea of organizing a big event with international public speakers and why?
on growth, with the best world-changers.
to keep striving to grow and support as many communities as we can. Financially speaking, these kinds of events
Brand Minds started in 2013 as a necessity on
How did Brand Minds first appear and how did you choose the speakers?
are very expensive, but with the help of our
the Eastern European market. We noticed that
We chose the speakers based on their impact
sponsors, they become sustainable.
there was so much potential when it came to
in different areas. For example, we brought
supporting business communities and helping
Karim Rashid to share his outstanding vision
people achieve their maximum potential. We
on design, but also Martin Lindstrom, who is
What were the main challenges in organizing the event?
therefore decided to bring value to our busi-
a highly respected marketing expert.
The main problems are related to finding the
ness community by organizing events focused
Our mission is to create amazing experi-
best venue. Most of the time it’s either too
www.business-review.eu Business Review | December 2017
INTERVIEW 29
small or too big. Furthermore, since our main
will leave with at least three ideas that will
sold out soon. Over 2,500 participants will
focus and objective is to offer our attendees
improve their life or business.
have the chance to meet world-changers like
the best experience possible, the venue plays a very important role.
Seth Godin and Robin Sharma. Also, people will have the opportunity to see Sophia, the
All the events were sold out and, to our
What were the main differences between the Romanian and the Asian versions (besides the speakers and locations, of course)?
an AI robot, we are offering people the op-
delight, people left with their expectations
The Romania and Singapore markets are
portunity to get a wider perspective of what
exceeded.
quite different, from the cultural insights to
the future is going to look like, to learn about
the way they consume content. In Singapore,
it and to have a better understanding.
What were the results of the first runs?
AI Robot, for the first time in CEE. However, besides the fancy idea of seeing
How did you decide to organize Brand Minds 2017 Asia?
for example, there are a lot of free events.
After becoming the Central and Eastern Euro-
government to help startups grow and young
What feedback have you received so far (both in Romania and internationally)?
pean leader in the business events industry,
entrepreneurs develop their businesses.
In Europe, we had companies that attended
Besides this, there is a lot of support from the
we focused on the next level and chapter of our journey. Therefore, the decision to choose
with up to 70 employees and the feedback
What are the main lessons you learned from those experiences?
was fantastic! Seeing the impact we have on
Asia came naturally in our growth process. Additionally, it complemented our vision: to
The entire experience gave us a global per-
continue what we’re doing.
inspire people to create a better world every-
spective of the events market, which helps
where we go! We had the opportunity to book
us a lot.
Gary for our event there, so we decided to
people’s lives with our events motivates us to In Asia, the feedback exceeds our expectations as well. From entrepreneurs saying that 25 October was the best day of their lives, to
bring him to Singapore for the first time.
Do you plan on organizing a new one next year?
people coming all the way from Australia and
How would you characterize this year’s event? What are your feelings and impressions?
Yes! Next year in November we will organize
business influencers saying that they hadn’t
the next big event in Singapore.
experienced such a vibe at a business event
There is a hunger for great content. When we curate the speakers, we have the mindset
What are your plans and expectations for the 2018 event?
pays off and people are actually leaving our
that every person who attends Brand Minds
Brand Minds Europe 2018 will definitely be
events with a mindset to change the world.
Indonesia to join the event. We also had local
before. We are so grateful to see how our work
www.business-review.eu Business Review | December 2017
30 BTL
BTL advertising market – fragmented, highly competitive and digitalized With 2018 looking set to bring bigger budgets, due to clients’ clearer views and understanding of the need for direct contact with consumers, and that qualitative interaction requires investment, pundits say the Romanian BTL advertising market seems more and more promising in creating relevant and innovative experiences for consumers, doubled by creativity.
in planning, but also the courage to always do more, bigger, more glamorous, more impressive. The more is put in at the planning phase, the more natural it all seems to those enjoying the experience you’ve prepared for them,” said the Tempo BTL representative. The newly launched division enters a very competitive market, where big and experienced agencies are fighting for clients with
By Romanita Oprea
smaller agencies, run by experienced people that have been working in the industry for more than 15 years. Moreover, consumers now have more power: they can pick up the remote and change the channel to avoid adverts or block advertising on the internet. “In BTL we are used to that since forever, because in a oneto-one interaction you have only one chance to convince a consumer to listen to you or to involve him or her in a brand activity. BTL is like a play: you have one chance to show what you want and if you miss that chance, Corina Grigoriu, Tempo Group
Adrian Paculea, Mercury360 Communications
you cannot take another shot,” said Adrian Paculea, executive director at Mercury360
T
because Tempo’s business model of working with entrepreneurs is based on shareholding,
to them. That’s why most campaigns are now
general director of MediaPro Studios. Zahiu
rather than employment, therefore they were
treated as integrated. In this context it also
returns to the agency at which she started
partners in this new venture. “A new struc-
becomes clear that BTL has a role in almost all
working as junior executive in the BTL de-
ture was needed as clients and key people are
integrated campaigns, big or small.
partment in 2004. “Any moment is optimal
different from Tempo Advertising. We like to
According to Paculea, Mercury360 is
to have a great proposition for our clients,
motivate our key professionals and help them
receiving more and more open briefs from
this time specifically BTL services. Basically,
achieve not only impressive professional
its clients, describing the problem with no
this agency is the fruit of our special relation-
performance, but also financial performance.
channel already decided. The challenge is to
ship with Carmen and her team, a marriage
This results in a higher degree of motivation,
understand the target consumer, the places
between their creative and executional skills
responsibility and accountability, more atten-
where they can be influenced, and how to
and our power to support entrepreneurs in
tion to detail and care for the business, which
talk to them depending on their mood at that
advertising. Think of the careers of highly
is why our companies were always attractive
moment. “How we interact with consumers
visible and successful professionals such as
to investors,” added Grigoriu.
to be relevant in a store is different from in a
Communications. Therefore, brands and The idea of launching Tempo BTL came
advertisers need to find the best way to reach
its events division, Tempo BTL, which
their consumers, to bring the brand message
is led by Carmen Zahiu, the former
empo Advertising recently launched
Radu Ionescu of Kinecto or Eliza Rogalski and
When it comes to the agency’s position-
park where they have time to listen/play or
Alina Damaschin of Rogalski Damaschin PR,
ing, Zahiu said that the vision was to bring a
an event where they want to have fun. But at
and you will find Tempo at the base of their
show business approach to BTL work. As any
the same time, we have the same brand mes-
foundation, on which they manage to build,
event or activation is a show, the firm wants
sage we want to communicate. So, this is the
using their exquisite skill sets, very valuable
to impress, inspire emotions and reactions,
challenge: to integrate all these touchpoints
businesses,” said Corina Grigoriu, managing
and start conversations with people. “For this
and be relevant. It’s a dialogue, no longer a
director of Tempo Group.
we need rigor and maniacal attention to detail
monologue, and we often adapt our cam-
www.business-review.eu Business Review | December May 2016 2017
COVER STORY BTL 31 14
paigns in real time taking into consideration the feedback that we receive from consumers,” said Paculea. According to Marinela Guina, chief operations officer at g7, the BTL market is still a young one for marketing services overall, and, in her agency’s view, what’s happening today in BTL is shaped by three major forces. First of all, the labor costs. “Working with people is still a relatively inexpensive communication solution in Romania. That’s why we can roll out over 1.000 promoters each week throughout the country. As we are part of the EFMP
Carmen Zahiu, Tempo BTL
group, we can see clearly the difference be-
Marinela Guina, g7
tween Romania and some developed markets. In the West, having brand ambassadors in
ness and communication functions. And this
quality to achieve an artificially low budget
the field is a premium solution, used more by
shapes the communication solutions that
are easily seen where it matters: technical
high-value industries, like technology, rather
they are willing to buy. Breaking down the
equipment, video productions, catering, print
than FMCG,” noted Guina.
silos requires resilience, but we see encourag-
and stage design and so on. BTL agencies that
ing examples, as clients also strive to achieve
are part of a larger communication group,
balance towards retailers. “We are constantly
better results and to innovate,” declared the
like us and others in the market, are often
faced with the question of whether the
g7 COO.
best positioned to offer a great product at fair
The second factor is the shift of the power
prices. That’s because they have the volumes
retailer will be on board with this idea. This is
In her turn, Zahiu believes that BTL is
changing, as retailers are also starting to value
very much a practical discipline, as well as a
to help them get good deals from suppliers
the shopping experience more and in some
creative one. “Some of the boutique agencies
without compromising quality. And, just as
cases even partner with brands to deliver
have small, inexperienced teams. They com-
importantly, they have the support of differ-
a better experience for shoppers. The third
pete by offering unrealistically low costs and
ent types of expertise in the group – whether
notable issue is the fact that clients struggle
then disappoint when it is time for implemen-
it’s creative, PR, digital, branding and so on,”
with internal collaboration between busi-
tation. The consequences of compromising
said the Tempo BTL representative.
www.business-review.eu Business Review | December 2017
32 TOURISM
Romania’s outbound travel to Germany sees big boost In 2017, overnight stays by Romanian travelers are set to hit the one million mark. Romania’s fast economic growth, the intensification of its bilateral relations with Germany - a strategic partner - and the rising profile of Timisoara and Cluj, have contributed to demand for the launching of new air routes between the two countries and, for the first time, to a boom in outbound tourism to Germany.
placing Romania in the top 18 source markets
By Georgeta Gheorghe
which saw the volume of overnight stays
for Germany, worldwide,” says Cristian Sallai, marketing & sales manager for Bosnia and Herzegovina, Bulgaria, Croatia, Montenegro, Romania and Bulgaria. “This is a huge development and makes Romania one of the hotspot markets for Germany’s incoming tourism.” While this is part of a steady growth trend, increase by 140 percent between 2008 and 2016, according to Sallai, the 2017 peak is attributable to a mix of reasons.
MORE VALUE FOR MORE MONEY Romania’s economic expansion is a major factor in the boom in outbound travel to Germany. After recording 3.7 percent growth in 2015, its biggest since 2008, the economy continued to fare well, increasing by 4.8 percent last year, outperforming all other EU member states. For this year, the outlook is equally positive, after the economy expanded by 5.6 percent in the first quarter, and the second and third brought steady gains of Photo: Cowin Andrew
5.7 percent and 8.6 percent year-on-year, respectively. According to Sallai, the fact that Romania’s economic growth is constant, and has brought a higher and more stable income to many Romanians, is all the more important Neuschwanstein Castle in southwest Bavaria
A
in a market with a high desire to travel. Plus, the value for money is excellent in Germany,
s Annett Biener, international mar-
tions for Romanians travelling to Germany
he argues. “If you compare the value for
keting manager with the Frankfurt
were in four southern and eastern states.
money between, let’s say, Berlin and other
Tourist+Congress Board puts it, right
Bavaria, which attracted 27.2 percent of all
European capitals you will see that Germany
now, “Romania is one of the hottest exporters
overnight stays, followed by Baden-Württem-
is very attractive to Romanian tourists.”
of travelers to Germany.” In the past year, the
berg, North Rhine-Westphalia and Hesse, all
Eastern European country has become one of
at between 15 and 13 percent.
the source markets with the highest increases
Moreover, the outlook for 2017 is very pos-
DIVERSITY IS KEY Most Romanians travelling to Germany, ap-
in terms of overnight stays by foreign tourists
itive. While January and February brought a
proximately 44 percent, are holiday-makers.
visiting Germany.
whopping 26.4 percent year-on-year increase,
Germany’s tourist offer is very diverse,
between January and October, the overall
with attractions ranging from city visits and
German National Tourist Board, Romania
growth rate stood at 25 percent. “According
events, such as concerts and exhibitions, to
generated over 800,000 overnight stays in the
to our estimations, in 2017 overnight stays by
nature getaways. According to Sallai, this
country last year. The most popular destina-
Romanians are set to reach the 1 million mark,
makes Germany a very attractive destina-
According to figures released by the
www.business-review.eu Business Review | December November 2017 2017
33 - PARTNER CONTENT -
Vodafone Romania offers dynamic subscriptions for the business environment with adaptive costs according to the monthly communication needs Vodafone Romania portfolio includes a
Thus, the company has 100% control over the
Vodafone Romania’s portfolio includes
dynamic mobile subscriptions suite for
data cost and does not pay more than the
fixed internet solutions for businesses
Romanian companies. The innovative
predefined limits. The new portfolio includes
and is available with an extensive range
solution automatically adjusts the monthly
three types of dynamic subscriptions: with
of additional services that meet the
cost to the employees’ communication
mobile data for national use only, with mobile
most demanding and complex business
needs in the current month. Thus, the
data in roaming in the European Economic Area
challenges. These include internet port
cost of each subscription type in the
(EEA) and with mobile data for laptop and tablet
monitoring, mobile VPN integration or
Dynamic portfolio decreases if the data
for national use only.
redundancy through a backup connection on
traffic included in the subscription is not
Supernet 4.5G. Recently, Vodafone Romania
consumed, while the maximum cost remains
Moreover, companies that opt for dynamic
launched a new offer of fiber-optic internet
the one stipulated in the contract.
subscriptions also benefit from the advantages
services for companies, which guarantees
offered by Supernet 4.5G, the fastest mobile
users to benefit from dedicated bandwidth
Regardless of the size or industry,
network in the country, according to tests run by
that provides speeds of up to 1Gbps both
companies can now enjoy the benefits of
customers in Q3 2017 using Speedtest by Ookla.
for download and upload, regardless the
dynamism: even if they have a contract for
The most popular speed test application in the
network loading level. The solution is
a longer period, the subscription adapts
world summed more than 250,000 tests during
dedicated to companies across the country,
automatically to provide the optimum level
July-September 2017 performed by users in our
regardless of their size and industry.
of benefits that the user needs for a specific
country. Whether they are located in urban locations,
month. For example, the Dynamic Prime National subscription includes, beside the
All this shows that Vodafone Romania’s network
industrial platforms, logistic parks, outskirts
voice benefits, 1GB of mobile data for 6
provides the highest average download and
of large cities or even in locations without
euros. If an employee uses 1.5GB of mobile
upload speeds, as well as the lowest latency.
terrestrial communications infrastructure or
data, the price charged for that month will
Vodafone Romania has also been awarded the
hard to reach, companies will have internet
be of 7 euros. Also, if another employee uses
fastest mobile network in the country in Q2–Q3
access through a permanent, fast and
only 0.5GB of mobile data, the company will
2016, for its download and upload performance,
secure connection, with non-stop dedicated
be charged only 5 euros for that month for
as well as for the lowest latency, according to
support, quick installation, prompt
the subscription.
tests run by customers using Speedtest by Ookla.
intervention and dedicated sales consultant.
www.business-review.eu Business Review | December 2017
34 TOURISM
foreign investment is high, Romanians’ entrepreneurial spirit is also developing well,” the AHK Romania representative argues. “We have noticed rising interest from Romanian producers in the manufacturing industry for the German market, who become suppliers for German companies or sell their products on the market directly.”
TIMISOARA AND CLUJ BECOME MORE CONNECTED The growing number of direct flights from Photo: Ziegler Philipp
Romanian cities to Germany, is yet another important factor behind the 2017 record outbound travel figures. The number of Romanians who choose to fly to Germany has been increasing substantially over recent years, he Bastei rock formation in the Elbe Sandstone Mountains
says. “The high number of direct flights from
tion for Romanian tourists, who treasure
tional statistics body. Overall, this represents
Romania to Germany makes the latter a
diversity. Moreover, their holidays are highly
23.1 percent of Romania’s total exports and
very accessible destination for Romanians,
customized. Out of those who choose to
19.9 percent of imports, respectively.
increasing its attractiveness.”
vacation in the country, more than half opt
Currently, around 7,500 companies with
As the general manager of Lufthansa
for touring holidays, which allow them to
German capital are active in Romania. Here,
Romania & Moldova, Antonio Tassone, points
explore more destinations. The other 15
they “make a decisive contribution to gross
out, high demand for daily flights to Germany
percent head to Germany for city breaks or
value added, but also increase competitive-
made Lufthansa introduce two new routes
to attend particular events, such as concerts
ness through the transfer of know-how as
between the two countries in autumn. The
and festivals, while only 13 percent choose to
some of the most important employers,”
two daily flights, operating since October 29,
spend their holiday in the country’s tradi-
Sebastian Metz, general manager of AHK
connect Cluj-Napoca and Timisoara – already
tional tourist regions.
Romania, told Business Review.
linked via daily flights to Munich for a decade
According to Metz, the Romanian regions
– to Frankfurt, the airline’s biggest hub.
BUSINESS TRAVEL HAS ROOM FOR GROWTH
that profit the most from German investment are, besides the capital Bucharest, the west-
unwavering success, so Lufthansa gradually
Business travelers represent 29 percent of the
ern and central parts of the country. Home to
increased its offer to three flights per day to
total number of Romanians who visit Ger-
numerous German manufacturing compa-
and from the Bavarian capital. As a result of
many. Most of them, 82 percent, went for tra-
nies, especially in the automotive sector, as
high demand, both from the business com-
ditional business trips, while the remainder
well as those active in trade and services,
munity and private travel, we are now able to
took business trips for promotional purposes,
cities such as Timisoara and Cluj are enjoying
connect Lufthansa’s biggest hub, Frankfurt,
mostly to attend exhibitions and trade fairs.
a rising profile. Their well-developed infra-
to these two cities on a daily basis,” Tassone
According to Sallai, the constant increase in
structure, friendly business environments,
told Business Review.
the number of companies that have invested
high standards of living and the presence of
in Romania plays a major role in the increase
several major universities make them stand
shown of late “an impressively steady and
in travelers to Germany.
out and attract foreign investments.
healthy dynamic. We have seen big interest
Figures released for the first half of 2017
Moreover, investment breeds investment,
“Since the beginning we have enjoyed
According to Tassone, the two cities have
from international companies to invest here,
reflect a further intensification of the trading
Metz points out, and the current emphasis on
in particular from the IT sector and automo-
and economic activity between Romania and
research and development is a strong founda-
tive industry,” the Lufthansa representative
Germany, cementing the latter’s position
tion for a business ecosystem that focuses
said. “The new routes represent a capacity
as the country’s main economic partner. In
on innovation, attracting even more foreign
increase of 5 percent, which means an addi-
the first half of 2017, exports to Germany
companies and boosting local entrepreneur-
tional 60,000 seats per year to and from Cluj
increased year-on-year by 18.2 percent to
ship.
and Timisoara.”
EUR 7.2 billion, while imports went up by
“The positive effects of foreign invest-
Not least, those who visit friends and
7.9 percent year-on-year, to EUR 7.3 billion,
ment were proven by several studies that
relatives represent 27 percent of total travel to
according to data released by Romania’s na-
showed that in the regions where the level of
Germany.
www.business-review.eu Business Review | December November 2017 2017
INTERVIEW 35
UiPath, the Romanian-born global company that plays a different game In a market set to exceed USD 5 billion by 2024, UiPath, an RPA software vendor with a Romanian connection, is trying to help reinvent the future of work. After seeing a 600 percent growth in direct sales, the company expects a turnover of USD 35 million and is preparing two major releases for next year. Boris Krumrey, UiPath’s Chief Robotics Officer, explains what makes the difference in a highly competitive market. By Georgeta Gheorghe can still download and use. Not only that, but
ing for the launch of the UiPath product new
once tens of thousands of specialists started
version to enable these previously mentioned
using our product, we continued to innovate
highlights. Our schedule is full!
it based on constant feedback.
How have you used the USD 30 million financing from Accel Partners so far?
What releases are you planning for next year? We are planning two major releases next year.
The financing is being directed to hiring the
Both of them will introduce new cognitive
best people, growing the sales, technical
and several closely integrated technologies
customer service organization and product
that will realize a more human-like capabil-
development, expanding into key markets
ity of our RPA platform. With each release
and an infrastructure that is globally expand-
we will aim to improve RPA implementation
ing. Apart from the headquarters in New
in reducing time and effort by 20 percent to
York City, we now have offices in Australia,
enable business agility. These releases will set
France, India, Japan, Romania, and the UK,
out a platform that is designed for large-scale
and an employee base of over 400 people.
business operations, an RPA platform that is
Right now, we are focusing on growing and
easily integrated into a large organization by
strengthening our partnerships with our ser-
collaborating with the users, robots and AI
vice integrators, service providers, consulting
Services as one would do orchestrating tasks
UiPath has fast become a top global RPA software vendor. What is your competitive advantage?
partners and technology partners. Especially
amongst humans. In the second release we
with the integration of leading technology
will also introduce more granular controls that
partners such as Oracle, Celonis and ABBYY,
go beyond role-based security levels.
It would be hard to settle for just one. We
we have realized an expandable and business
have managed to weave into the fiber of the
agile RPA platform that can actually realize a
company two major attributes – a relentless
“digital workforce”.
commitment to providing a superior technology and a truly customer-centric approach.
What is your advice for other Romanian tech startups that want to take over the world?
are UiPathians, and they have built an open
In the past few months, you have announced partnerships with Oracle, Deloitte Spain and Celonis. What’s next?
platform that is now able to integrate not only
We are of course continuing to sign new
be a visionary and a pioneer in a field, hard
with the latest AI technologies, but also with
strategic partnerships with technology part-
work should not be discounted. UiPath is cer-
the strongest security and compliance solu-
ners, but also commercial ones. You will see
tainly not the first company to offer RPA, but
tions, allowing our product to respond to a
further strategic partnerships in the Digital
it’s clearly the one that puts the most effort
wide array of our customers’ needs.
Process Automation/BPM and Case Manage-
and dedication into creating an outstanding
ment areas as well as in Cognitive Comput-
product. A good idea needs to be matched
How did you get here?
ing, Deep Learning, Digital Assistants, and
with a strategic approach, a lot of hard work,
It all started with our managers, who decided
Process Intelligence. In our core platform we
and a team of brilliant, dedicated people. One
to play a different game. We were the first to
will focus on further reducing the operating
particular characteristic of our Romanian CEO
discretize our product and launched its Com-
effort with monitoring, intelligent scheduling
and founder that has shaped this company is
munity Edition that everybody in the world
and additional Data Analytics. We’re prepar-
the ability to learn and adapt.
The best minds in software development
It all starts with a good idea that responds to a specific market need. While it helps a lot to
www.business-review.eu Business Review | December 2017
36 - PARTNER CONTENT -
Amendments to the current tax framework. Impact on greenfield investments the company fell under the microenterprise tax regime cannot be offset against future profits. The profit tax regime applicable in Romania is still defined by a flat tax rate of 16% applied to the taxable basis. The principle governing expense’s deductibility has been positively re-defined in 2016 and, presently, an expense is deductible provided that it was incurred for business purposes. Previously, an expense was considered deductible for tax purposes as long as it was incurred in order to derive taxable income. As the development of greenfield projects may require financing which can be contracted from banks, or from shareholders (by way of share capital injections or sharehold-
Elena Gogoneata, tax manager, FiNEXPERT
er loans), the selected financing structure would need to be thoroughly analyzed in
Despite of an unsteady political environ-
provide a potential investor with an overview
terms of tax efficiency. In this context, we
ment, a shifting tax framework grounded
of the Romanian changing tax framework. The
outline the fact that the national interest
by an unpredictable tax policy, Romania has
question which arise is whether and how all
expenses deductibility rules have been
still remained attractive for foreign direct
these amendments will harm business/invest-
significantly amended in order to align them
investments over the years. According to the
ments in Romania and how the business environ-
to the Anti Tax Avoidance Directive. Starting
World Investment Report for 20171 released
ment will react.
2018, the current rules (i.e. interest limitation and thin capitalization rules) are repealed.
by the United Nations Conference on Trade and Development, Romania has lately seen
WHAT’S NEXT IN 2018
Thus, according to the new rules, exceeding
an upward trend of the foreign direct invest-
In terms of corporate tax, starting 1st of January
borrowing costs (i.e. difference between
ments inward flows. Also, according to the
2018, any newly set-up company is required to
borrowing costs and interest revenues) up to
same publication, the announced greenfield
apply the microenterprise tax regime irrespec-
EUR 200,000 are fully deductible for profit tax
investments during 2014-2016 have outpaced
tive of the field of activity. This means that the
purposes. What exceeds the Lei equivalent of
the volume of the cross-border M&A’s opera-
company will be taxed on the turnover derived
EUR 200,000 are deductible within the limit
tions showing thus the higher appetite of
depending on the number of employees, i.e. 1%
of 10% of the EBITDA indicator irrespective
foreign investors for “ground-up” ventures in
or 3% (for no employees). Starting 2018, taxpay-
of the financing source (bank/shareholder
Romania; however, the figures did not reach
ers falling under the microenterprise tax regime
loans). If the EBITDA indicator is negative or
the ones from the pre-crisis period.
will no longer be able to avoid this regime by
NIL, the exceeding borrowing costs are non-
increasing the share capital up to RON 45,000 as
deductible in the reporting tax period but
Unfortunately, in the last quarter of 2017,
the current tax framework provides for. Once
are allowed to be carried forward over an in-
the Romanian Government stuck to what
the turnover of the company exceeds the EUR
definite period of time. By way of exception,
we have been used lately: erratic tax policy.
1,000,000 threshold (increased from EUR 500,000),
independent companies do not fall under
The aim of this paper is to capture the main
the company is required to shift to the standard
these rules, being allowed to fully deduct the
amendments which are expected to come
profit tax regime. The main drawback is that the
exceeding borrowing costs.
into force starting 1st of January 2018 and to
losses incurred during the set-up period when
Repatriation of profits is also a key topic for
http://unctad.org/sections/dite_dir/docs/wir2017/wir17_fs_ro_en.pdf
www.business-review.eu Business Review | December 2017
37 - PARTNER CONTENT -
greenfield investments. The withholding
2018, a standard employee will owe the following
decisions issued by the tax authorities and,
tax on dividends is NIL provided that the
mandatory social contributions applied to the
in many cases, to further administrative
dividend recipient is an EU entity which has
gross salary: 25% pension fund contribution and
procedures in court.
held a minimum 10% of the share capital of
10% health insurance contribution, while the
the Romanian company for at least 1-year
employer will owe only a 2.25% generically called
TO SPLIT OR NOT TO SPLIT
uninterrupted period. Alternatively, the
“work insurance contribution� aimed to replace
Last but not least, a very controversial topic
Romanian tax law provides for a 5% with-
the former contributions.
which is nowadays ardently debated is the new VAT split mechanism. According to this
holding tax rate (which remains unchanged in 2018) or lower tax rates by virtue of double
In terms of value added tax, we highlight that
mechanism, starting 1st of January 2018,
tax treaties concluded between Romania
the VAT tax rate has been subject to changes
taxpayers registered for VAT purposes are
with the residence countries of the dividend
over the years. Currently, the standard VAT rate
required to manage a separate VAT account
recipient.
is 19% with lower tax rates, exemptions and
for cashing in and payment of VAT amounts.
reverse charge mechanism for certain sectors. As
Further to strong disapproval of the busi-
Significant changes were brought in the area
greenfield investments are likely to accumulate
ness environment, a new draft version of
of personal income tax. Starting 2018, the
costs during the set-up and preparation period,
the Ordinance setting forth the VAT split
personal income tax is reduced from 16%
the main challenge would be the reimbursement
mechanism provides as being mandatory
to 10% (except for dividends which are still
of the input VAT related to the acquisitions per-
only for state-owned companies, companies
subject to the reduced 5% tax rate); special-
formed. In this regard, we would like to highlight
undergoing insolvency and taxpayers having
ists working in the IT field will still enjoy the
the importance of gathering and making avail-
outstanding VAT liabilities at the end of 2017.
salary tax exemption.
able strong back-up documentation attesting
However, as the draft Ordinance was subject
that the works were effectively performed. Our
to various changes, we expect the final ver-
In addition, the social security system has
practical experience shows that, in lack of com-
sion to be published in the Official Gazette
been restructured by way of: (i) reducing the
prehensive justifying documents, tax inspectors
of Romania. The goal of this paper was to
number of mandatory social contributions
are very likely to disregard the input VAT related
provide a potential non-resident investor
and (ii) transferring the burden mainly to
to such acquisitions. Such approaches regularly
with a tax overview for Romania as well as
the individual. Thus, starting 1st of January
lead to time-consuming appeals against the
the pitfalls which may be met in practice.
www.business-review.eu Business Review | December 2017
38 INTERVIEW
The recipe for success: ‘hard work and no shortcuts’ Patrick Nordstjærne is a Dane who came to Romania in late 2010. He decided to leave the corporate world and start out on his own. The founder of the social network Let’s Meet in Romania, in 2014, he developed Sibus – Simplicity in Business, an online platform that connects small and medium-sized companies with local professionals: accountants, auditors and lawyers.
ABOUT Patrick Nordstjærne Founder and owner Sibus, Simplicity in Business He holds an MSc degree in Business Economics and Auditing from Copenhagen Business School. For 11 years, he worked as a Financial Auditor in Copenhagen for companies such as E&Y and KPMG - specializing in international activities within the Technology/Banking/Medico/Pharma sectors. Furthermore, he headed group finance teams for Danish companies such as Radiometer Medical, Carlsberg Breweries and Firstline Real-Estates.
By Daniela Oancea Has the business environment changed much since 2010, when you first came here? No, I don`t think so. I recognize that we have financial growth in certain sectors, but overall, the business environment hasn’t changed much. The
yes and trying to understand.
it and failed, I`d be like: give it to me! When I see something and I know it can be done, I
What made you leave your corporate position as a financial manager, for entrepreneurship? I was always stuck in an office,
need to do it. So why did I quit my corporate work? Because it was time, and I’m realizing this today and I want other people to realize it too.
businesspeople and the foundation
getting paid for doing something
No matter how good I am at something, I can
of business in Romania are the
very specialized, but inside I
be the best in anything I want to be. Also, no
same. There is the same level of not trusting people, and this is the core reason why this country
was thinking: of course I can do this, I have proven that I can, but I can do a lot more. I wanted to go
is not moving
there. Just like in the
forward. Here,
playground when
matter how good I am, someone could come up to me and say: You are fired! And when you are fired, it forces you to rethink everything that you were and everything that you are and it forces you to look ahead and see what’s out there. I think this is typical for many people
when two people
your mother tells
today. They sit and keep on sitting and forget
meet, they think:
you to play here
that the future is ahead of them, and this is
“I don’t trust
where she can see
what we need to prepare for.
him, he is going to
you. And every
cheat me and he`s
time she looks
making a whole lot
away, you are
more money than
crawling over
What is the business model behind Sibus and what makes you think it will be successful?
me.” Because they
there, because
We have not created anything revolutionary;
think like this, it’s easy to step away. This is mainly because people
the bigger toys are there, and you want to play with
this business relies on one main principle: that businesspeople need to meet. Businesses – they all need an accountant at some point,
were cheated in the
them. And every
an auditor or a lawyer, that’s a fact. These
past. They are used to
time she sees you’re
people over here are looking for those people
thinking: “This man is
leaving, she pulls you
over there. No matter how good you are, there
going to cheat me.” In
back. I was always
always will be ups and downs. We provide a
this country we say no
like that: if I saw that
service to the businesses; we help our part-
to things, without even
something could be
ners find what they need, at times when they
understanding why we
done and nobody
need it. When do they need it? Well, maybe
say no. We just say no. To
else was doing it,
they just lost a client; maybe they have an
say no is safer than saying
or they tried to do
employee with available resources. We are
www.business-review.eu November 2017 2017 Business Review | December
INTERVIEW 39
here and we can offer a steady supply of new
medium-sized companies). Where do you go
business to our partners. That`s what we do:
when you are looking for stuff, today? You go
What kind of skills do you look for in people?
we connect businesses online.
online, to Google and you write: Accountant
People skills. I need to work with people that
in Bucharest. In Berlin they write: “Ich suche
are positive and smiling, that are energetic
You told me that you almost failed as an entrepreneur in 2014. Why was that?
einen Buchhalter in Berlin”. We are spending
and trustful. I need to work with people who
EUR 30,000 per year on Google advertising
think that this can be done, I train them every
I wouldn’t use that term. My attention to my
in Romania, but my advertising budget on
morning; we talk about everything that can
first business, Let’s Meet, failed. I started
Google in Germany is planned to be EUR
be done. I hate negativity: “No, I cannot do
Sibus in May 2014. The idea came to me after
300,000 next year.
it; no, it is wrong.” I am like: “Move forward, let`s do it!” And when you start thinking like
Let`s Meet (2011) – when we started bringing business people together – this is the core of
that, the whole world opens up to you be-
dealing with small businesses – these people
What are your recommendations for a young entrepreneur who would like to start a business?
need to meet. I am an example of this myself.
Online, online, online, don`t do anything
When I arrived here in 2010, I had 60 friends
physical. I see people opening up stores and
a little bit crazy when you do what I do. You
on Facebook. I knew no Romanians. Three
shutting them down all the time, and if you
have to believe it can be done, even when it`s
years later, I had 1,500 Romanian friends on
start to consider how much money it takes
almost impossible, and you still do it. You
Facebook, I had founded the social network
to open up a coffee shop or a bar, you will
have to do it, it needs to happen!
Let`s Meet and I was meeting people all the
see that you get nowhere with EUR 30,000,
time. Everything that I have today
while with EUR 10,000, you’ll have an online
anything that happens in this world. We are
is because I was meeting
business. You need money to start, and
people then. What I do
cause you realize that everything can be done and trust me: IT CAN!! I am a little bit crazy and you have to be
What are your expectations for 2018?
I am not saying you need a lot,
now is done online. I
My business, Sibus, will
because you can definitely
can sit in Bucharest
be four years old next
work smart with less
year and I intend to
and do business
money. You get it from
in Sofia, Chisinau,
people who know
We are going to be
Cluj, Timisoara,
you and trust you, in
in six countries.
Oradea. We have
the initial stage. This is
started doing business
important, because at the
in Berlin, Hamburg and
initial stage nobody trusts you:
Munich now. Online allows
make it an empire.
you are just another amateur, like all
Next year we`ll be in Spain, Italy and France. If I can find German speakers in Bucharest,
us to go to places in the blink of
the rest, and this is how people look at you.
an eye. I can start an advertising campaign
They look at you and think: “You will fail!”
Italian, Spanish, Hungarian, too. Can I find
tomorrow, at 10 am in Paris, and by noon, I’d
And if we look at the statistics, they are right,
English-speaking people in Bucharest? Yes,
have my first client looking to meet a profes-
because 95 percent of start-up businesses die
then let`s do business in the UK, in Ireland, in
sional from my database.
in the first year.
Canada and the US.
The other thing you need is to trust in
I`ll find people who speak French,
I would like to make at least EUR 1 mil-
How much have you invested in this platform?
yourself. You need to have confidence, to be
lion in revenue. I think that Germany will
really good and hard-working. You will not be
bring me EUR 600,000, and the rest is going
Everything! Everything I own has been
successful in this life just because you think
to come from a combination of Austria,
invested in this platform over time. In terms
you deserve it, because you have rich parents,
Hungary, and either France or Italy. I am also
of money, I invested EUR 25-30,000 my-
or because you think that your idea is good.
looking for investors. I want people to know
self. I have been in Romania for seven years
No! You need to work your ass off.
that investing in this business is going to be
now. Even if I don’t speak Romanian, when
The recipe of success is: hard work. There
a gold mine. We are going to produce a very
people ask me why am I here, I reply: I am
are no shortcuts. And if you think that you’ve
here because I believe so much in what I’m
discovered a shortcut to make you rich and
doing, that I invested everything I had in
you think you are the only one who has seen
on the Bucharest stock exchange and that’s
it. My business relies 100 percent on online
it and nobody else sees it, you are an idiot.
exactly what we are going to do. A business
advertising, either on Google or Facebook.
What does it take to make an online busi-
that relies on connecting people is based on
In Germany right now, Google is produc-
ness work in Romania, then? You must have
trust. I try to build trust with every person
ing 90 percent of our revenue. My business
a good idea; you must have money and good
I meet, everywhere I go. I try to produce
model works like this: it is free for the client,
people around you. But you also need to be
benefits for all the people I meet, all the time.
he can ask for my help for free. Our partners
there at the right moment. Timing is every-
I am looking to see what you need and she
pay us money to meet the clients (small and
thing.
needs and say: Meet!
successful story – made in Romania. My ambition is to get my company listed
www.business-review.eu Business Review | December 2017
40 WINE TOURISM
A corking business: wine-ing it up in Romania and Bordeaux Are you one of those drinkers who find the concept of wine appreciation and wine tasting intimidating, or purchase bottles based on the picture on the label or the price, rather than the taste? To assess the bouquet of this intoxicating business, Business Review talked to two specialists, both Romanian, one active at home and the other in Bordeaux, France.
and creative people. In 2014, I founded CrameRomania.ro, a non-profit project which is the only bilingual online database of Romanian wineries. The following year, I started ReVino. ro, a wine tourism trip advisor, promoting wine tours in Romania, accommodation at the wineries or close by, impressive vineyards, tastings, events, gourmet restaurants
By Oana Vasiliu
and wine stories directly from the producers. The year after, I organized the first edition of ‘ReVino – Discover Wines from Romania’ at the Bucharest Wine Fair, where wine enthusiasts and experts can taste premium wines and discover how to visit a winery directly from its representatives.” Iancu told Business Review what a winery visit entails – whether for an enthusiast or an expert. “There is a presentation of the technological process involved in making wine, a tour of the winery, tasting of 3 to 10 wines accompanied by snacks (bread, cheese) and
Photo: Alina Iancu
water and a walk in the vineyard (on request, if the weather is good).”
PAIRING TOURS AND PEOPLE Welcome to the almost unknown story of the Romanian wine tourism
M
Some tourists are connoisseurs; some are just learning the basics of wine tasting. How can a guide manage such a diverse group? Iancu
any industries are increasingly
into seven regions: Crisana and Maramures
said that, before starting to organize a tour or
capitalizing on travel experiences,
(which has 23 wineries), Transylvania (23),
wine tasting, she asks the participants if they
putting their products on the tour-
Banat (7), Oltenia and Maramures (66),
are connoisseurs or enthusiasts in order to
ism map. Wine tourism experiences are inten-
Moldova (24), Dobrogea (18) and Southern
best arrange the kinds of wines to include in
sively advertised and more and more people
Romania - Danube shores (3). These wineries
the tasting. Tours can include premium wines
are signing up. Some go just for the fun of it,
produce enough plonk to put Romania in 14th
from different years, vertical tastings as well
whereas others intend on becoming profes-
place in the world, in terms of wine produc-
as food and wine pairings.
sional connoisseurs. What’s more, the experi-
tion. And what’s more, 70 of them have
ence itself doesn’t cost a fortune and can offer
opened up their gates to guests.
a fun and informative outing, especially if you find a passionate sommelier to explain every-
TOP TOURS IN ROMANIA According to ReVino, the most popular winer-
thing from the manufacturing process to the
DOING JUST VINE: HOW IT’S DONE IN ROMANIA
chateau stories behind the brand.
Wine tourism isn’t very widely known in
ies are in the Dealu Mare and Dragasani wine areas. The average cost of a wine tasting, which
Romania, so BR asked Alina Iancu, founder
includes five wines, is RON 50 without
ROMANIA, THE LAND OF ALMOST 200,000 HECTARES OF VINEYARD
of ReVino, how she started a business in this
nibbles, or RON 80 with nibbles such as
domain. “Over the past six years, I have done
bread, cheese and salami. The average cost
According to ReVino, the first platform to
a lot of travelling through Romania, visited
of a meal (or catering) at the winery is RON
promote Romanian wine tourism within an
over 65 different wineries and discovered
80-100. Iancu strongly recommends a meal in
actual map of the country, Romania is divided
wonderful landscapes, vineyards, wineries
between tastings in order to enjoy the wine at
www.business-review.eu Business Review | December 2017
its best. “For example, a one-day visit to two wineries in the Dealu Mare/Muntenia wine area, between Ploiesti and Buzau, for a group of minimum seven people departing from Bucharest, will cost about EUR 95-115/person. The tour includes winery visits, tasting of approximately ten wines, lunch, a walk in the vineyard if the weather is good, transportation by bus Bucharest-Dealu Mare-Bucharest
WINE TOURISM 41
Grape expectations in Romania a winery visit lasts around 2 hours bookings are made about 10-30 days in advance, depending on the period on request, lunch or dinner can be included (hosted at the winery or, most of the time, by a catering company) accommodation can be at the winery or, usually, near the wineries, about 3-7 km away transportation can be by personal car or by bus, which has to be booked in advance
year for the entire Bordeaux wine region, caught the attention of collectors and wine enthusiasts from all over the world. Most of the Grand Cru Classé Chateaux started to open their gates and to receive more and more visitors from all over the world. Understanding the Bordeaux wine region’s ‘terroir’, the wine making process, exploring a chateau and everything else which makes a bottle of wine unique, as well as paring wine and food, are only a few of the highlights of wine tour-
(or by personal car if participants prefer) and a guide. A two-day visit costs EUR 185-205/
because I have done some tastings in castles
ism,” Ghita said at the start of a presentation
person which includes all meals and accom-
and chateaux,” suggests Iancu.
of the region he is touring.
FRENCH FINDINGS
DOING BUSINESS IN BORDEAUX
ROMANIA’S MOST SPECTACULAR WINE STORY?
When I started to research this article, I was
For Ghita, it all started with an international
truly hoping to find a Romanian wine story
scholarship. “A scholarship through a Euro-
Of course, this is a trick question. “Spectacu-
outside the country. And I found it, thanks to
pean exchange program allowed me to choose
lar stories are those where you identify with
some good friends who are passionate about
between several French cities and I chose the
the group you are in, friends or simply wine
wine. For a while now, Bogdan Ghita, founder
city of Bordeaux and the University Michel de
lovers, where the wine tasting is done by a
of Bordeaux Vertigo, has been touring prob-
Montagne. This is how everything started…”
wine lover, whether you are on a hilltop, in
ably the most famous wine region of the
a vineyard, in a cellar or in a modern tasting
world, Bordeaux.
modation,” Iancu told BR.
He went on, “During my student years in Bordeaux, after my first scholarship ended, I
room. I have beautiful memories of small
“First of all, Bordeaux is one of France’s
had to work to finance myself. After several
places with small groups, where I had the
largest wine regions, and definitely one of the
student jobs, I came across the intense wine
opportunity to really enjoy the wine and meet
oldest. Wine tourism progressively started to
activity, in which many people from Bor-
new people and the good wine was not the
develop in the early 2000s. The ‘millennium
deaux are involved. This was the first time I
only thing that made us feel good. I say this
vintage’, which happened to be a very good
discovered the vineyards, the chateaux, and I
www.business-review.eu Business Review | December 2017
42 WINE TOURISM
become interested in wines. I started to read,
quite satisfying when people who are just
with excellent picture opportunities of the
explore, to ask many questions and to taste
discovering wines start to realize that the
vineyards during the harvest,” he adds.
various wines. After spending a few years
color of a red wine comes from the skin of the
working for a company providing wine tours
grape, for example. Each person who shows
when visiting Bordeaux. The medieval village
for tourists coming to Bordeaux, I decided to
interest in wine is different, each person will
of Saint-Emilion, a UNESCO World Heritage
start out on my own.”
have a unique perception of the wine and ap-
site, enchants whoever wanders its old,
preciate it in his or her own way.”
narrow and steep streets, Roman ruins and
The Saint-Emilion wine region is a must
picturesque vineyard hills. But Bordeaux
DRINKING IN THE EXPERIENCE Most of Bordeaux Vertigo’s tourists come
HITTING THE ROAD
is not only about its wonderful wines and
from North America, mainly the US. There are
At Bordeaux Vertigo, most people take the
vineyards; it is also a great place for seafood.
quite a few people from Canada too, as well as
two-day Bordeaux wine tour, called the Es-
The Atlantic coast boasts endless beaches
from Europe: the UK, Switzerland, Belgium,
sential of the Bordeaux wine region. In other
with golden sand dunes, pine trees and oyster
Holland and Northern European countries.
words, spending a full day discovering the
farming.
In the last decade, more and more people
Saint-Emilion wine region (also called the
from Asia have started coming to Bordeaux,
right bank), and another full day exploring
especially from Hong Kong and Singapore,
the Medoc wine region (left bank), will give
BORDEAUX’S MOST SPECTACULAR WINE STORY?
but also Taiwan, the Philippines, Japan and
people a good understanding of the Bordeaux
I once more posed my trick question. “Maybe
South Korea.
wines, some of its “fairy-tale chateaux” and
I have not come across the most spectacular
“People’s wine interest can vary a lot, from
their history. “Each wine tour I organize is pri-
story about this wine region yet, or maybe
a real connoisseur to a neophyte. The age gap
vate and tailor-made. I always adapt to people
each bottle of wine which has a story to tell is
is also quite wide: I have toured with people
and to their demands and needs. On average,
a spectacular story in itself. Still, I can say that
in their late 20s, but also with those in their
I charge EUR 450 for a full day’s private wine
the Bordeaux wine region feels like one of the
late 70s or even older. Some of them have
tour,” says Ghita.
most international and cosmopolitan places
a deep interest in wines, the wine-making
in the world, not only due to its history and
process and the history of the Bordeaux wine
VINTAGE BORDEAUX
people, but especially due to the wine itself.
region, whereas others are simply driven by
Ghita suggests the best time to visit Bordeaux
Like the Latins say, Bonum vinum laetificat
curiosity, those that are more ‘social drink-
is spring. “Also, the grapes ripen during fall
cor hominis, in other words, good wine en-
ers’,” added Ghita. “On the other hand, it’s
and the end of September provides people
chants man’s heart,” concludes Ghita.
www.business-review.eu Business Review | December 2017
44 FILM
God’s Own Country DIRECTOR: Francis Lee STARRING: Josh O’Connor, Alec Secareanu, Ian Hart, Gemma Jones ON AT: Grand Cinema & More, Happy Cinema, Cinema City Cotroceni, Europa
A
FILM REVIEW
By Debbie Stowe
Johnny’s only relief from his hardscrabble existence comes from the odd quick fumble with local lads (he’s gay). His lot changes when Romanian immigrant Gheorghe (Secareanu) comes to work on the farm. Emotional literacy is not a strong point
British Brokeback Mountain is the
in Johnny’s family, but Gheorghe bring his
obvious sound bite for this assured
gentle nature to bear on his colleague as well
and thoughtful love story, set in
as the animals.
the desolate Yorkshire countryside. There
Remarkably, God’s Own Country is direc-
is strong local interest too – Romanian actor
tor Francis Lee’s debut. It’s a quietly powerful
turns as Johnny’s gruff father and grand-
Alec Secareanu has a starring role.
film, conveying more with silences, looks
mother. Lee is more interested in the personal than
For twenty-something farmer Johnny
and tangential shots than inferior movies can
(Josh O’Connor), life is as bleak as the moors
manage with all their violent explosions and
the political, but there’s recognition of the
on which he tends his sheep. With his mother
high drama.
hostility that hard-working immigrants like
long gone and his father struggling to recover
It’s also beautifully acted. O’Connor con-
Gheorghe face in provincial England, and
from a stroke, the day-to-day running of the
vincingly conveys Johnny’s loneliness and
though it goes unmentioned, the specter of
family business has fallen to him. Days are
hopelessness, and while Gheorghe’s psychol-
Brexit looms over events: what will happen
spent out in the cold with livestock, evenings
ogy is less of a focal point, the Romanian
to our country and businesses without the
bickering with his grandmother, and nights
actor gives his character understated strength
diligent Gheorghes and Georgetas who keep
getting steaming drunk in the local pub, all
and dignity. Veteran British performers Ian
us from going under?
ending in coming home and vomiting.
Hart and Gemma Jones also give striking
It adds a timely note to a timeless story.
Murder on the Orient Express FILM REVIEW
By Debbie Stowe
DIRECTOR: Kenneth Branagh STARRING: Kenneth Branagh, Penelope Cruz, Willem Dafoe, Judi Dench, Johnny Depp, Josh Gad, Derek Jacobi, Leslie Odom Jr., Michelle Pfeiffer, Daisy Ridley ON AT: CinemaPRO, Glendale Studio, Movieplex Cinema, Grand Cinema & More, Happy Cinema, Hollywood Multiplex, Cinema City Cotroceni, Cinema City Sun Plaza, Cinema City Mega Mall, Cinema City ParkLake
[
department, with Albert Finney working the little gray cells as the super-sleuth and Lauren Bacall, Ingrid Bergman, Sean Connery, John Gielgud and Vanessa Redgrave among the suspects. This time around we have Penelope Cruz, Willem Dafoe, Judi Dench, Johnny Depp and Michelle Pfeiffer on the passenger list. It’s also got the impediment that this is practically the only Christie book whose big reveal is impossible to forget, owing to
beginning, and Poirot doesn’t seem particularly bothered at the child labor used to bring him his breakfast eggs. A high number of suspects is always a
the unusual nature of whodunit. So, as with
problem with the two-hour murder mystery
Warning: potential spoiler in the third
Columbo, most viewers will have to get their
format, as it can be difficult to acquaint and
paragraph]
kicks from something other than trying to
familiarize the audience with them all before
work out who the killer might be.
the first victim is dispatched, but Branagh
After 25 years in the role, it’s hard
to associate Detective Hercules Poirot with
Branagh (who also directs) has delivered
deals well with this challenge, and by the time
anyone other than David Suchet. But, British
an appropriately lavish production for a
the train is chuffing out of Turkey, we pretty
thespian Kenneth Branagh has now donned
luxury-travel murder, and there are plenty of
much know who’s who.
the twirly moustache for an all-star modern
visual delights. The awkward 1930s attitudes
remake of this classic Agatha Christie who-
have also had a contemporary reworking –
needed, but with a big hint at the end that
dunit. It’s got tough competition: the most
one character even gives another a lecture
Death on the Nile may follow, it looks like
memorable adaptation of the novel, the 1974
on racism – although an incidental female
Branagh may be back in the moustache again
movie, was similarly shimmering in the cast
character gets unpleasantly short shrift at the
soon.
It’s questionable whether this version was
www.business-review.eu Business Review | December 2017
EXPAT EYE 45
Bargain-basement Bucharest or rip-off Romania? Back in Bucharest after half a year in the UK, BR’s resident expat resumes her post (ably filled in her absence by her colleague repat), and in her first column back, tries to work out if living in Bucharest is really as cheap as it’s always made out to be.
1
By Debbie Stowe Most expats – Western ones at least – will tell
date is significantly discounted – seems
you that they have a better quality of life here
embryonic in Bucharest. Time your shopping
than in their home country. Foreign adven-
trip cannily in the UK, and you can pick up
tures and careers aside, this largely comes
RON 0.1 pineapples and the like. (The excep-
down to money: your cash goes further here,
tion here is the fabulous fresh bread, which
so if you have any sort of Western income
in the UK is still a middle class indulgence.)
– not even a particularly impressive one –
Anyway, UK food prices are on the up since
you’re laughing.
the calamitous Brexit vote, so this category
I’ve always felt affluent in Bucharest.
2
7
may be reassigned in a future article.
Having gone from student to backpacker to journalist – none of which are synonymous
ENTERTAINMENT – CHEAP!
with having wads of cash to throw around – it
When a group of my friends came to visit for
afford a bona (nanny) and having willing and
was splendid to arrive in Romania and sud-
the Kylie concert some years ago, we worked
able grandparents on hand, most of the busi-
denly be able to afford restaurants, taxis and a
out that including their flights, it was almost
nesses that cater to kids here seem to be in
city center apartment.
cheaper than seeing Kylie in London. Ticket
collusion to denude parents of their every last
prices have gone up since then, but whether
euro. Fees at international schools can exceed
downtown café, enjoying my second RON 13
it’s live music (from pop to opera), the cinema
EUR 20,000 – over half as much as Eton, and if
latte while congratulating myself for mak-
or clubbing, it’s usually much better value in
your child goes there they have a good chance
ing such a shrewd life choice by moving to
Romania.
of becoming prime minister! Activities, toys
However, as I was sitting recently in a
Eastern Europe, I got to pondering whether Bucharest is as good value as it has always
4
and medical subscriptions all push up the cost
TRAVEL – CHEAP!
of breeding.
seemed. So here it is, the lowdown on which
As the cost of the London travel card soars
aspects of living here are cheap as chips, and
ever higher, it’s a joy to be able to scoot
which are a right rip-off.
around town on buses, the metro or even in
And therein lies the rub. Putting a roof over
taxis, for a pittance. I remember the outrage
your head anywhere you might want to live
when the ten-journey metro pass jumped
in the UK is so exorbitant, that it matters
Meals out are a big part of the expat experi-
from RON 10 to RON 15. A surge in relative
little that your weekly shop includes some
ence, and they can be superb value. The
terms, but still just GBP 0.3 a ride! Now it’s
cut-price pineapples. Bucharest property is
last pasta dish I had at a posh hotel here
RON 20, or GBP 0.4 per trip – but you could
so affordable to expat eyes, that with rent or
was around RON 40, or less than GBP 8. I’d
pay ten times that on the London tube. And
mortgage being most people’s main outlay,
struggle to find any pasta dish in the UK for
taxis – while a cab to the airport here costs
we’re on easy street. It’s even possible to buy
that sum, let alone in a five-star eatery. (A
less than EUR 10, in the UK it can often come
your home outright – nobody but rock stars,
caveat is the drinks: we paid RON 25 (!) for a
to more than the flight itself!
premiership footballers or criminals would be
1
EATING OUT – CHEAP!
big bottle of water with the same meal.)
SUPERMARKET FOOD – EXPENSIVE!
5
6
ACCOMMODATION – CHEAP!
doing this back in London.
CHILDREN – EXPENSIVE!
Not the acquisition thereof, but feeding,
7
COFFEE – EXPENSIVE!
Overall, prices of supermarket food are fairly
clothing, cleaning and keeping them enter-
Yes, you can still drink street coffee for a few
similar in the UK and Romania – which, given
tained. Starting a family certainly tips the
lei, but given how lovely Bucharest’s best
the lower salaries in the latter, make it rela-
balance of how economically you can live
cafes are (hipsters notwithstanding), you
tively costly here. Plus, the “bargains aisle”
here as a young adult. While I’ve written
probably don’t. Sit back, think of your rent,
system – where food about to reach its sell-by
previously about how great it is being able to
and neck that RON 13 latte with smugness!
www.business-review.eu Business Review | December 2017
46 RESTAURANT REVIEW
A FORGOTTEN HERO
T
>>> Sharkia at the Park Inn, Luterana 4, tel 0374 143 471 <<<
his restaurant is housed directly be-
for us’, and appeased our primeval natures by
hind, and attached to the Radisson.
going carnivore.
And yes, it is part of the Radisson
So away to a ‘kibbeh’, three quenelle-sized
lemon juice. So now to our meat mains. Blondie ordered a sumac chicken kebab. Sumac is
itself. But make no mistake, the menu is
fried minced lamb bullets with fresh pine
an Eastern spice derived from a variety of
different from its big brother; so are the
seeds. Those gorgeous soft pine seeds are
flowers. It is strong, red and sweet with a
kitchen, the chef and the staff. It is in all
the most expensive and luxurious nutty veg
unique flavor which can only be described
respects a separate entity.
in the world. And, oh, what a flavor! It was
as… sumac. It came with a dish of mint
So I urge you not to walk past it and as-
perfect, save for the fact that our charming
couscous. For those of you who have never
sume it is another hotel nosh house. Come
waiter did not know that Blondie and I had
tried couscous, I urge you to ‘go cous’ and you will never eat rice again.
inside with me, and you will get a pleasant
At this point I must state that Lebanese
surprise.
cuisine, unlike European cuisine, does not
It is essentially a Lebanese chophouse,
‘plate up’ into a work of art at your
and those of you who are conver-
table. It is basically the same
sant with Lebanese cuisine may
as Greek ‘mezza’, namely a
well find the choices on the menu to be rather limited
multitude of small dishes
compared to the endless
on round plates. And my next round plate
boasting of menu selec-
of shredded beef,
tions you may have
marinated in pome-
encountered in other
granate sauce, was
Lebanese outlets in
simply superb.
town. But fear not, for they have fine
All this was
honed their skills
accompanied by
into making this
an endless supply
the best Middle
of superb olives,
Eastern eatery in
dipping oil and
the city.
excellent bread, baked in-house in a
The décor leaves
wood oven. But do I
a lot to be desired;
have any downers on
basically it is brown
this House? Yes! I asked for
wood, and that’s that.
a side of ‘harisa’, an Arabic/
Equally unattractive are the
Tunisian dip made from blister-
clientele, who are a scruffy lot
ing hot chili seeds. But no. This is
of UIP’s (unimportant people) who
Bucharest, and the House dumbed it
are staying in the hotel, but are savvy
down to accommodate the local ignorami
enough to sniff out a bargain even though
who are too traditional to ‘go with heat’.
they are just passing through Bucharest. And this is a shame, for the well-heeled,
travelled the Middle East in peaceful times, so
Likewise with every dish containing chili
glamorous residents of the town’s Victorei
we knew what was missing – a side of tahini
and pickle.
area would be well advised to make it their
(chickpea) sauce and a mountain of lemon to
own chosen place.
squeeze. We got it.
So let’s eat. The menu has all the usual
A simple side of hummus carne (hummus
suspects for starters, together with all the
topped with lumps of minced lamb) followed.
Mediterranean dishes you could so easily
Again, this simple dish of hummus was per-
predict. So Blondie and I passed on all the
fect. Make it at home with a blender: simply
green stuff we are constantly told is ‘good
chickpeas, tahini sauce, garlic, olive oil and
In conclusion, if you do not know Lebanese cuisine, go here and ease yourself into its attributes. If you do know Lebanese cuisine, go here and see it cooked at its best.
Michael Barclay Mab.media@dnt.ro