BR 10/2017

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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In less than a year, Telekom Romania

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Cernavoda, Tecuci, Sebeş, Dej and many

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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

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data services. P3 score is a universally

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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

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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