BR/10/2018

November 2018 / Volume 22, Issue 10

www.business-review.eu

HR TEAMS BECOME CREATORS OF EXPERIENCES FOR EMPLOYEES

16

ROMANIA HEADING TOWARDS EUR 5 BLN FOREIGN INVESTMENT TARGET

20

ANGEL INVESTORS HELP LOCAL STARTUPS LEARN ‘BUSINESS ROPES’

26

DRAWING ON EXPERIENCE: TOP TIPS FOR ART INVESTMENTS

30

Well worth it: investing in Romania’s health

www.business-review.eu Business Review | November 2018

EDITORIAL 3 REAL ESTATE

• Editorial •

Anda Sebesi • Deputy Editor-in-Chief •

6 Boutique offices continue to bloom

8 The fat of the land COVER STORY

10 A healthy business: persuading patients to prioritize prevention

Investing in health and in business

HUMAN RESOURCES

W

ith Romania ranking among the worst countries in

16 HR teams become creators of

Europe for deaths caused by heart disease, stroke and different types of cancer, and local life expectancy

experiences for employees

18 Digitaljob– the platform that

nearly six years below the European average, prevention must be a priority for both local authorities and medical operators, be they

matches digital talent and digital employers

private or public.

In this context, Fady Chreih CEO at the private healthcare

FDI

network Regina Maria, told BR he is calling for a national prevention strategy where, ideally, both the public and private systems come together in a multi-year prevention campaign, persuading

20 Romania heading towards

Romanians to go to the doctor for annual check-ups and tests, in an

EUR 5 bln foreign investment target

attempt to catch any serious issues early. Earlier this year the Romanian minister of health, Sorina Pintea, said it was imperative for

24 Follow the flag: US businesses

Romania to have a code of laws for the healthcare system, starting

march into Romania after troops

with prevention, malpractice, transplants and vaccination.

Meanwhile, Romania as a whole also still has significant poten-

SUSTAINABILITY

tial for investors. The flow of foreign direct investment (FDI) into the country might break the EUR 5 billion barrier in 2019, potentially reaching a sum that hasn’t been seen in more than a decade.

And smaller companies active in different sectors are also on investors’ radar. Although few in number, angel investors are a growing force on Romania’s entrepreneurial scene, with the capacity to provide up to EUR 250,000 in fresh funding or even more if the right conditions are in place. All in all – a positive prognosis!

32 Crate expectations: Brewers barrel towards packaging law change

34 Upcycling junk into ready-to-use art

FOUNDING EDITOR: Bill Avery EDITOR-IN-CHIEF: Ioana Erdei DEPUTY EDITORS-IN-CHIEF: Sorin Melenciuc, Anda Sebesi JOURNALISTS: Anca Alexe, Aurel Dragan, Georgeta Gheorghe, Romanita Oprea, Oana Vasiliu, Razvan Zamfir CONTRIBUTOR: Ovidiu Posirca COPY EDITOR: Debbie Stowe PHOTO EDITOR: Mihai Constantineanu ART DIRECTOR: Raluca Piscu PUBLISHER: Bloc-Notes Media Network ADDRESS: 58 Stirbei Voda Street, 3rd Floor, District 1, Bucharest, Romania­­­­ LANDLINE: 031.040.09.31 EXECUTIVE DIRECTOR: George Moise BUSINESS DEVELOPMENT DIRECTOR: Oana Molodoi SALES MANAGERS: Radu Fireteanu, Alexandra Rosca EVENTS MANAGERS: George Darie, Mara Dragoiu EVENTS & MARKETING: Luiza Luca 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 | November 2018

4 NEWS

WHO’S NEWS

Corina Popescu is the new interim general manager of Electrica, and will hold the position until a new general manager is named by the company’s administration council. Popescu has been general manager of the power distribution company Muntenia Nord, part of the Electrica Group, since June. She is a graduate of the School of Power Engineering of the Bucharest Polytechnic University, and has previously held key positions at E.ON Romania and OMV Group.

Edwina Udrescu has joined regional law firm Wolf Theiss’s infrastructure and construction practice. The senior lawyer, who has extensive experience in coordinating international construction and infrastructure projects, will play an important role in consolidating the firm’s local presence, both by identifying potential business opportunities for Wolf Theiss clients in Romania, and by offering them support in developing such projects.

Before joining the law firm, Udrescu coordinated the legal department of a major international construction company’s Romanian subsidiary. She has a Master’s Degree in Construction Law and Arbitrage from King’s College London.

page 5

Dreamstime

BR welcomes information for Who’s News.

Submissions may be edited fo­­­r length and clarity.

Get in touch at anca.alexe@business-review.ro

Romania fares better in terms of ICT adoption

Romania ‘world’s 52nd most competitive economy’, below Bulgaria

By Sorin Melenciuc Romania has been ranked

Croatia (68th) and Greece (57th).

Germany were ranked the most

the 52nd most competitive

The Global Competitiveness

competitive economies in the

economy in the world this year,

index is based on several criteria

world this year, while Chad,

just below Bulgaria, according

regarding enabling environment,

Yemen and Haiti were the least

to The Global Competitiveness

human capital, markets and in-

competitive. Germany (3rd in

Report 2018 released by the

novation. Romania fares better

the world), the Netherlands

World Economic Forum.

in terms of ICT adoption (36th in

(6th) and the UK (8th) are the

the world), market size (41st) and

EU’s most competitive econo-

the country held in the global

institutions (46th), and worse

mies, according to the report.

ranking last year. In the EU,

for its financial system (101st),

The Global Competitiveness in-

Romania is the third least

health (72nd) and skills (69th).

dex captures the determinants

competitive economy, after

The United States, Singapore and

of long-term growth.

The position is the same as

Romania has 19,000 members of the global elite, Credit Suisse says

1 percent of people in the world, Credit Suisse’s Global Wealth 2018 report shows. According to the report, Romania has 16,000 millionaires, and 443,000 individuals in the world’s wealthiest 10 percent of people.

Romanians are now, for the first time in history, wealthier than any neighbouring nation, including the Hungarians, the Credit Suisse report indicates. In

By Sorin Melenciuc

2018, average wealth per adult

Romania has 19,000 citizens

42,282, compared with USD

who rank among the wealthiest

41,118 in Hungary, USD 30,224 in

in Romania is estimated at USD

Romanians are now, for the first time in history, wealthier than any neighbouring nation

www.business-review.eu Business Review | November 2018

NEWS 5

Central bank reduces general indebtedness rates Gheorghe Mihailescu has been named by the board of directors the general director of Romsilva for four months. He has been the director of the Valcea Forest Directorate for the last six years. Mihailescu is a graduate of the School of Forestry and Forest Exploitation of Transylvania University in Brasov, and he has worked as a forest engineer for 21 years, during which time he has held various executive and management positions.

By Sorin Melenciuc The National Bank of Romania (BNR) board has decided to limit indebtedness-to-income rates for all individuals taking out loans from banks to 40 percent for RON loans and 20 percent for hard currency loans from January 1, 2019, the central bank said in a press release.

BNR strategy consultant Adrian Vasilescu said, after the BNR’s announcement, that the new rules for loans passed by

The new rules for loans passed by the BNR cover mostly small loans

the BNR cover mostly small loans, which are also the most

States 20 percent of loans were

also have a higher income,”

dangerous, but that there

for consumption and 80 percent

Vasilescu said. The current

won’t be any major changes to

for mortgages, and coming over

indebtedness-to-income rates

mortgages.

to the UK, France, Germany, the

are 47 percent (market average)

“Larger loans, for homes,

share of mortgages also stood at

for mortgages and 45 percent

have generally had low non-

around 70 or 80 percent, around

for consumer loans, according

performing rates. The most

50 percent in Poland and the

to central bank data.

non-performing loans were

Czech Republic, and 40 percent

for smaller credits. Gener-

in Hungary – in Romania, mort-

removed all other conditions

ally, there hasn’t been an

gages don’t cross the 20 percent

for granting loans to individu-

avalanche of home-buying

threshold of the total number

als and allowed banks to ignore

in Romania and there won’t

of loans. We’ll stay around this

new indebtedness-to-income

be one anytime soon, unfor-

number. Generally, people who

rates for 15 percent of their new

tunately. While in the United

have money to buy a home

loans portfolio.

Bulgaria, USD 19,582 in Serbia,

were the norm.

USD 5,204 in Ukraine and USD

But this year, Romanians are

3,837 in Moldova, the report

twice as wealthy as Argentineans

found.

or Russians and three times

However, Romanians remain

richer than Brazilians, accord-

much poorer than their coun-

ing to Credit Suisse. However,

terparts in Western European

Romanian nationals are still

nations, such as Britons (USD

poorer than the Polish (USD

314,842 per adult), the French

53,511 per adult) and the Czechs

(USD 281,339), and the Germans

(USD 62,340).

(USD 250,856). In 2000, Romania

Dreamstime

The central bank has also

The total wealth of Roma-

had a wealth per adult of only

nians is USD 659 billion this year,

USD 3,300, much lower than that

compared to USD 322 billion for

of Hungary (USD 11,882) or even

the Hungarians and USD 174 bil-

Georgia (USD 4,494), as wide-

lion for Bulgarians, Credit Suisse

spread poverty and corruption

says.

Andreea Stanescu has been appointed general manager of the London Stock Exchange Group (LSEG)’s Bucharest technology and operations hub. Stanescu will oversee the Bucharest branch as it provides services to the group and its clients across the world. She will work closely with the group’s other operational hubs to deliver technology and data services across LSEG’s global business entities.

Edvin Abdulachim has joined the top management team at Altex Romania, as a commercial director, starting in October. He will coordinate and develop commercial relations for all of Altex’s sales channels – traditional trade, e-commerce, the Altex marketplace and B2B for private and public companies. Previously, Abdulachim worked at Samsung Electronics Romania for nine years, where he was a sales manager. He has worked at Altex Romania before, between 2002 and 2009.

www.business-review.eu Business Review | November 2018

6 REAL ESTATE

Boutique offices continue to bloom Bucharest’s real estate market is starting to fill up with small and chic office blocks which have borrowed the name from hotels and become boutique office buildings. With an area between 1,500 sqm and 7,500 sqm, and located, especially, in premium locations, this year Bucharest will see eight such buildings delivered.

By Razvan Zamfir

Atlantis Office Building has 3,865 sqm GLA

B

buildings with premium locations

demand from companies, institutions, and

areas (such as Dacia, Opera, Romana, Unirii

and finishes will have entered the

organizations for which image is very impor-

and Universitate) with three in the north-

office market in Bucharest, with a total area

tant and must not be lost as an identity along-

center (Aviatorilor, Dorobanti and Casa Presei

of 31,949 sqm, according to analysis by ESOP

side other brands in large office centers. They

Libere).

Consulting. Most projects are scheduled to

are looking for class A office projects with

open in the last quarter of this year.

premium, but small size finishes up to 10,000

delivered this year range from 1,500 sqm to

sqm with stylish designs and in prestigious

7,500 sqm.

y the end of 2018, eight boutique

In 2017, five such buildings were completed and three more remain for next year.

“In this market segment, there is steady

neighborhoods in well-positioned areas such

into use this year are located in ultra-central

The surfaces of boutique office buildings

One good example is the D’OR Business

as Dacia, Aviatorilor, Cotroceni, Dorobanti,

Center office project on Calea Dorobanti near

boutique offices include Douglas, Visa, the

and Opera Square,” says Alexandru Petrescu,

the Bucharest Academy of Economic Studies

Norwegian Embassy, AT Kearney, McCann

managing partner at Esop Consulting.

(ASE), which will be inaugurated this quarter.

signed pre-lease agreements in the TEADS,

BOUTIQUE OFFICES DELIVERED THIS YEAR

market segment inaugurated this year or last

Macromex and Goethe Institut buildings.

Five of the eight buildings that will come

are Victoria Stylish Office Building, Bookase,

Tenants who have recently moved into

PR, Total, and Mediafax, some of which have

Other representative buildings for this

www.business-review.eu Business Review | May 2016 2018 November

COVER REALSTORY ESTATE14 7

Square, Sheraton Hotel, British Council, and the Academy of Economic Studies (ASE).

D’OR D’OR Offices is composed of three buildings: one with historical value that will be restored, a multifunctional pavilion and a class A office building.

The construction will have nine levels of 600 sqm each and will include 90 underground parking spaces.

The building process gave a special importance to the principles of sustainability and energy efficiency (the building being BREEAM certified), and as well to the rationality and

Bookase has a leaseble office space of 2,137 sqm

flexibility elements of interior design.

VICTORIA STYLISH BUILDING Victoria Stylish Office Building Bucharest will have three underground levels (which will contain parking spaces), semi-basement, ground floor and five upper floors, with a 5,000 sqm leasable area.

The minimum leasable area is 320 sqm and the maximum, 482 sqm.

Bicycle tracks are available in the area and there is a bicycle rack on each basement level.

The three basements will offer 178 parking spaces and electric car charging stations.

The office spaces are open plan and the ground floor has a bright, high-tech reception.

Finishes and interior equipment are premium, from suppliers such as Philips, Kludi,

D’OR Offices will nine levels of 600 sqm each

Samsung, Legrand, Mooi, Masiero, Tork, and The Hub Office and Park Avenue. Boutique office projects are also under construction in

The project’s neighborhood includes Herastrau Park, Romana Square, Victoriei

Italgraniti. There will also be a restaurant in the building.

the Romana, Opera, Universitate and Unirii areas.

BOUTIQUE OFFICES IN BUCHAREST BOOKCASE In total, the Bookase building has a leasable open-space office space of 2,137 sqm, commercial spaces on the ground floor, 24 underground parking spaces and 12 on the surface.

The project is available on seven levels – basement, ground floor, three upper floors plus two derelict floors.

The minimum leasable office area is 123 sqm.

An IT company leased more than 500 sqm in the first half of this year and the owner is in talks with other potential tenants.

Victoria Stilysh Center has 5,000 sqm leasable area

www.business-review.eu Business Review | November 2018

8 REAL ESTATE

The fat of the land The land market became interesting again two or three years ago, for developers and real estate investors, after a few years as the preserve of companies operating big box retailers. The developers’ offensive is creating competition on the market, but prices still remain around half of the levels seen ten years ago.

By Razvan Zamfir will contribute to improving the city’s overall image, as well as living conditions, working environment and shopping experiences,” said Alexandru Mitrache, head of land development, C&W Echinox.

Among the largest transactions in 2018 were AFI Europe taking over a four-hectare plot adjacent to the AFI Palace Cotroceni mall, the sale of the former nine-hectare Helitube platform in Colentina to the Belgian group Mitiska, the acquisition by One United of a 2.6 ha area on the Lake Floreasca shore and the transaction through which Speedwell bought a plot of 4.6 ha in the Jandarmeriei Baneasa area.

Moreover, both in terms of the traded surface and its value, the residential sector continues to be the one that generates the highest land demand. The office segment has also been boosted by the appetite of new players in the investment market, both Dreamstime

foreign and Romanian, as developers are still motivated to deliver new products, therefore securing new locations for that purpose, both in established office areas, but also in new C&W Echinox monitored 24 medium and large land transactions between January and September, with a value of EUR 170 million

L

ones, such as Tineretului and Pajura – Bucurestii Noi. Developers who have secured land for new office projects include AFI Europe, Portland Trust, Globalworth, and Speedwell.

and in Bucharest has continued to

more than 50 percent of the total volume.

attract the interest of real estate

Along with them, investors from Israel (AFI

developers this year: in the first

Europe, Hagag), Belgium (Mitiska, Speed-

signed this year herald the development of a

nine months of 2018, estimated plots with

well), Turkey (Opus Land) along with retailers

new retail park in Colentina, the expansion

a cumulated surface of over 60 hectares on

from Germany (Kaufland, REWE, Lidl) have

of the AFI Palace Cotroceni shopping center,

which around 8,000 dwellings, 180,000 sqm

also been involved in land transactions in

and also the construction of a new Kaufland

of offices as well as commercial spaces were

Bucharest.

hypermarket in northern Bucharest, an area

developed, according to analysis by Cushman & Wakefield Echinox.

The firm monitored 24 medium and large

“As we anticipated, 2018 has turned out to be a good year for the land market in Bucha-

On the retail segment, the transactions

which has not yet been properly covered by the German retailer.

rest, with demand coming from all the key

transactions between January and September

sectors of the real estate market. The most

MARKET EVOLUTION

with a total value of approximately EUR 170

gratifying thing is the fact that large land

In parts of Bucharest, land prices increased

million. As in 2017, Romanian developers

plots were transacted in all areas of the city

more than tenfold in the years leading up

have been the most active, accounting for

for the development of projects that we hope

to the financial crisis. For instance, Col-

www.business-review.eu Business Review | November May 2016 2018

COVER REALSTORY ESTATE14 9

Land transactions outside Bucharest Land plot Buyer Seller Surface (sqm) Price (EUR mln) Teba Iasi Prime Kapital Local investor 100,000 28 Electroputere Craiova Catinvest Electroputere SA 38,000 10 Former industrial platform near Craiova

Clariant

Local investor

10,000

NA

Teren Oradea Lidl Imotrust Partners Management 9,000 2 Simeria Bosch Local investors 420,000 NA Fartec Brasov NA Echo Investment 50,000 NA Targoviste Prime Kapital Local investors 70,000 NA Ploiesti Prime Kapital Upetrom 1 Mai 65,000 NA Source: JLL

liers reports dating back to 2003-2004 show

sellers are the buyers from back then, having

that prices in the Herastrau-Aviatiei area

taken a significant financial hit.

of Bucharest were around EUR 200 to 400/

It is likely that 2007 will remain the historic

industrial / logistic, retail and office.

The largest transaction is the sale of Teba Iasi, 10 hectares, by Prime Capital, for EUR 28

sqm; in the first half of 2008, an investor paid

peak in terms of market activity. Bucharest

million, where a mixed-residential and office

around EUR 4,500/sqm in the same zone; the

alone saw land deals of over EUR 850 million

project will be developed.

all-time record (and likely still unsurpassed)

that year (probably well over EUR 1 billion

was for a small plot in the Aviatorilor area

for the whole country) compared to around

where the Germans from Bosch bought 42

which sold for EUR 7,000/sqm. As the global

EUR 230 million last year (or EUR 350 million

hectares from local investors to build a wash-

financial system was hemorrhaging money,

nationwide).

ing machine factory. In fact, the investors,

The largest transaction was in Simeria,

with the exceptions of Bosch and Lidl, were

domestic banks stopped handing out funding in the second half of 2008 and activity froze.

TRANSACTIONS OUTSIDE BUCHAREST

only real estate developers, mainly Prime

It would take until 2014-2015 for the market to

Eight major transactions involved land that

Kapital, a company launched by Martin Slab-

start thawing and, ironically, many of today’s

will host commercial real estate projects:

bert, the former CEO of NEPI Rockastle.

10 COVER STORY

A HEALTHY BUSINESS: PERSUADING PATIENTS TO PRIORITIZE PREVENTION With Romania being among the worst countries in Europe for deaths caused by heart disease, stroke and different types of cancer, and with a life expectancy nearly six years below the European average, prevention is mandatory for the national health. BR sat down with Fady Chreih, CEO of private healthcare network Regina Maria, who talked about how important both prevention and education are and how Regina Maria has made its contribution to these two facets of Romanians’ wellbeing.

By Anda Sebesi

www.business-review.eu Business Review | November 2018

www.business-review.eu Business Review | November 2018

COVER STORY 11

I

n March, the Romanian minister of health, Sorina Pintea, told evz.ro that it is imperative for Romania to have a code of laws for the healthcare system. “Healthcare laws need to be drawn up.

We need to start with prevention, malpractice, transplants and vaccination. All of these laws need to be compiled in a code and need to be consistent. We have a working group within the Ministry of Health which includes notable members of the medical community.

Their job will be not to write the laws but to set up their structure.

For this we accessed a grant of EUR 650,000 to harmonize the local legislation,” stated Pintea.

Having said that, the local authorities have given the green light for medical operators to push the pedal on prevention among Romanians. But how does the country stand when it comes to prevention? “Unfortunately, Romania is still lagging behind most European countries in terms of prevention and medical education. It is somewhat understandable, since in many parts of the country there are no medical facilities – private or public, however unacceptable,” says Fady Chreih, CEO at the private healthcare network Regina Maria.

He comments that in terms of Romanians’ mindsets, the country has a major gap between large urban areas, with a more active and educated population – people who go to the doctor at least once or twice a year for their annual check-up and lab tests – and smaller cities, where most people visit the doctor only when the pain becomes intolerable or when they have aggravated symptoms.

“We need a national prevention strategy, a plan where, ideally, both the public and private systems come together in a multi-year prevention campaign, stimulating Romanians to go to the doctor, to have annual check-ups and tests, in an attempt to diagnose any serious issues early,” says Chreih. He warns that Romania is among the worst countries in Europe for deaths caused by heart disease, stroke and different types of cancer, and that local life expectancy is nearly six years below the European average. “This is one of the effects of having the lowest per capita healthcare spending in the EU, not even a third of the EU average,” adds the representative of Regina Maria.

And here the private medical subscription comes into play, as it is, in itself, a prevention tool. Although at the beginning it was mainly targeted at young, active people working for corporations, recent years have seen an increase in the market for individual subscriptions. This means that more and more people are choosing to buy this product for their families too – children and elderly alike.

“A subscription gives you unrestricted access to a pool of doctors, lab tests, investigations which can be done for free or with a substantial discount. By not paying every time you access services, people feel encouraged to actually use them. The product has a very high usage rate, of over 80 percent,” says the CEO. It can cover check-ups and exams in most medical fields, hundreds of lab tests, compulsory investigations and screenings for men and women (Pap test, ultrasounds, mammograms, PSA). According to Chreih, in addition, there are two more components that promote prevention within the Regina Maria subscriber base: medical workshops and medical screening campaigns developed for and with its corporate clients (subscriber companies).

www.business-review.eu Business Review | November 2018

12 COVER STORY

“We have also initiated several screening campaigns for any

According to the same study, most of the Romanians who used

Romanian who wants to get tested at Regina Maria, by offering

the private medical system chose Regina Maria (38 percent). Chreih

promotional screening packages and discounts, in order to make

says that there are two main reasons for this: service availability

prevention more accessible to the general public. We’ve had over

(triggered by network expansion) and service quality. “Increased

7,500 screenings in the past year and we intend to further increase

usage comes as a natural development of regional expansion. Fur-

this number, as it is still very low,” he adds. In addition, Chreih says

thermore, we also invest heavily in quality. We are market leader in

that for the companies in Regina Maria’s portfolio, its doctors have

terms of the quality of medical services, which means we have the

held over 850 workshops since 2016, ranging from stress manage-

capability to manage complex medical cases in modern and safe

ment, cardiovascular risks, nutrition (for example, employees who

conditions; we recruit the best doctors and train top medical teams

rarely eat fruit, vegetables and

and many more. Currently,

other low-fat foods at work

we are the only healthcare

were 93 percent more likely to

provider in Romania with three

see a greater loss in productiv-

internationally-accredited hos-

ity, according to studies in the

pitals for quality and patient

US), anti-smoking, to first aid,

safety,” he says.

He adds: “In addition to the

women’s health and others.

According to stats, Roma-

high-quality services accessible

nians who have private medical

to all our patients, we also have

subscriptions used medical

a unique medical program

services more often that those

for Romania, available in our

without. “Having a subscrip-

Private Care VIP clinic: it’s a

tion encourages people to

personal medical consultant,

go to the doctor. The medi-

dedicated to each patient, who

cal subscription acts a safety

advises and helps patients

net, which one can use either

across their entire medical

for treatment or prevention.

journey. This doctor coordi-

And it is, of course, cheaper

nates the medical process,

to prevent than to treat. It is

makes your appointments, sets

cheaper to use a subscription

up meetings with teams of dif-

that costs EUR 10-11/ month,

ferent specialists for a holistic

than to pay out of pocket every

approach to your health and

time you use private healthcare

offers personalized recommen-

services,” explains the Regina

dations for a healthy lifestyle.”

Maria CEO.

At its VIP location, Regina Maria offers a one-day check-up, an integrated medical evaluation that

PRIVATE MEDICAL SYSTEM PREVAILS

includes all investigations, lab tests and medical exams necessary for

According to a study on the performance of the private medical pro-

a full health assessment, in just one day. This is especially targeted at

viders conducted online by the research company GfK, in November

highly active but busy people, expats or businesspeople who travel

last year, 62 percent of those who used medical services in 2017

often and who don’t have the time to schedule multiple doctors’

chose the private healthcare system, with 31 percent of them having

appointments.

subscriptions at a private supplier. The question is what should be done to increase their number? “It’s all a matter of infrastructure and

PRIVATE HEALTHCARE IS STILL IN ITS INFANCY

increasing operational capacity, at which private suppliers have done

According other GfK study, Omnibus Health Prevention, April 2018,

a great job. The top three players on the market have invested mas-

the main advantages of the private medical system cited by respon-

sively in the development and modernization of health infrastruc-

dents nationwide include the fact that players are well-equipped

ture in Romania,” says Chreih. According to him, Regina Maria alone

(cutting-edge medical equipment, availability of instruments,

has put around EUR 70 million in the last seven years into network

consumables) and offer good conditions for in-patients (fewer infec-

expansion, as well as state-of-the-art equipment. “I’m sure that if a

tions, short waiting times, good organization, enough time dedi-

more in-depth study of the private medical sector were made, the

cated by physicians to patients in consultations, good remuneration,

actual investment figure of the top players would round up to EUR

and sufficient and friendly auxiliary stuff). In this context, is the

200 million. And, of course, this yearly expansion has been reflected

Romanian private medical system converging to the standards of

in an annual increase in patients and accessibility, and in the number

medical service providers from abroad? Why are there still so many

of subscribers – all with double-digit annual growth,” he adds.

Romanians who choose to get treatment abroad?

www.business-review.eu Business Review | November 2018

COVER STORY 13

“Regina Maria hospitals

or children’s healthcare. This

provide care standards similar

is why we’ve seen an annual

to those offered by hospitals

increase in the 60+ and 0 – 14

abroad, at prices as much as

age groups,” adds Chreih.

ten times more accessible than those outside Romania. However, let’s bear in mind that pri-

PUSHING THE PEDAL ON CUSTOMIZATION

vate healthcare is still scarcely

With the support of a sales

available outside Bucharest

team in Bucharest and all

and another two-three big cit-

major cities in the country

ies in Romania,” says Chreih.

where Regina Maria is present,

In addition, he notes that

specialized in large corporate

some medical units don’t have

clients, retail and SMEs, the

the capability, medical exper-

medical provider promotes its

tise or equipment to perform

medical subscription product

specialized surgery for severe

in a sustained manner with

pathologies. Furthermore, it is

the aim to attract potential

true that the Romanian health-

customers and increase its

care system is understaffed

availability. “One of the most

– it lacks specialists in certain

important ways to increase

medical fields, or the existing

availability is to offer personal-

specialists cannot cover the

ized packages. We started out

number of patients who need

with subscriptions for large

assistance. “This is, I would

corporations but, during recent

say, the main reason why some

years, we were also the first to

Romanians still prefer to get

launch several types of medical

treated outside the country,”

subscriptions for individu-

he says.

als (adults and children), for SMEs and start-ups,” says the

THE GOLDEN NEST

CEO. The medical provider

At present, medical subscrip-

also has ongoing partnerships

tions generate 30 percent of

with most expat communities

Regina Maria’s business and

and, fortunately, it is the top

Chreih says that the company

provider of health services for

is satisfied with this number. “Of course, the subscription market

expats and international patients who need to be treated in Roma-

will continue to grow in value and volume, together with the entire

nia. “We do our best to adjust our offer to the actual needs of each

business. We have already had annual double-digit growth for the

segment.”

past few years, and I’m sure we will continue to see a rise, especially

When customizing packages for its clients, Regina Maria looks

since medical subscriptions are now tax deductible,” adds the CEO.

first at the industry – what risks it involves; what is the environment

Apart from being a business generator for private healthcare

that employees work in; is it office or factory work? Then it looks at

networks, studies indicate that medical subscriptions are among

the age groups and gender split. “Fortunately, having over 20 years

the benefits offered “by default” in the additional benefits pack-

of experience is very useful since we have a database with informa-

age. Employees expect to receive one from any company they work

tion on every industry, which allows us to evaluate certain charac-

for. It has already become a standard in the industry. Furthermore,

teristics for each industry, assess the company profile and how it

although there are not yet any studies in this regard on Romania,

compares to other organizations in our portfolio, that are active in

research in the US shows that making wellness and healthcare more

the same industry or field,” says Chreih.

of a priority in a company helps with establishing a company culture that attracts and keeps the best talent, decreases work-related stress

FOCUSING ON ORGANIC GROWTH

by 12 percent, increases job satisfaction and productivity, and im-

Speaking of its business strategy, the CEO says that the company

proves happiness. And, what’s more, these programs have a 1:3 ROI.

has continued its recent expansion strategy and focused on organic

“The largest age range for subscriptions is 25-45 years old (almost

growth as well as acquisitions. “We have signed five transactions

60 percent), followed by 45-55. But we also have individual subscrip-

this year, strengthening our medical imaging and laboratory divi-

tions and corporate subscribers who decide to pay for their parents’

sions. Aside from M&A, we have directed most of our investments

14 COVER STORY

towards our hospitals: Ponderas

www.business-review.eu Business Review | November 2018

The company has already in-

Academic Hospital, where we

vested many resources in offering

made available robotic surgery

this type of service to its subscrib-

through a EUR 3 million financ-

ers and retail patients. It has also

ing; the new hospital in Cluj which

turned its website into an educa-

is almost ready to receive its first

tional platform where people can

patient; Euroclinic Hospital – the

find information on probably any

third medical unit in our network

medical condition or seasonal rec-

to receive international accredita-

ommendations. “With the growing

tion as a center of medical excel-

access to the internet, people must

lence.”

turn to reliable and trustworthy

According to him, Regina Maria

sources of medical information

is now the only healthcare provider

and we feel we have the obligation

in Romania to have three hospitals

to help them differentiate between

awarded with international ac-

what is credible and specialized

creditation. As for the cities which

information and what it is not,”

contribute the most to Regina

concludes Chreih.

Maria’s business, Chreih says that for the private medical provider there are two healthcare capitals:

FEEDBACK CHANNELS ARE CRUCIAL FOR THE BUSINESS

Bucharest and Cluj. “Cluj is the city

As Chreih says, it is crucial for the

where we made our second largest

medical provider to have a con-

investment after Bucharest, of over

versation with its patients, which

EUR 9 million in the past seven

is why Regina Maria has about six

years. To this we add another EUR

feedback channels, online and

15-16 million which represents

offline, where people can give their

the cost of developing the first

feedback. It also has a dedicated

integrated private hospital in town,

customer care department, which

which we will open this year,” says

ensures that all messages and

Chreih. However, Regina Maria has

inquiries are answered and that it

a very good presence in other parts

finds solutions for most problems.

of Transylvania as well, such as

“The organization is growing at a

Targu Mures and Brasov, but also

very fast pace; at the same time,

in Oltenia (Craiova and Slatina)

our expectations and our patients’

and in the south of the country,

expectations are increasing and

especially in Constanta. “We are

there is a need to find some sort of

present in 16 counties right now,

balance in order to function prop-

but we have nationwide coverage

erly,” says the CEO.

through our extensive network of

Because people have a lot of

290 partner clinics,” adds the CEO.

medical questions or uncertainties, the company launched “Intreaba

EDUCATION IS THE KEY

un medic” (“Ask a doctor”), a spe-

Apart from its role as a private

cial section on its website, where

medical provider, Regina Maria aims to play a crucial role in educat-

people can upload medical questions and even documents and send

ing Romanians when it comes to prevention. “I believe that any

the inquiry to its team of doctors who reply within one or two days.

player in this field should invest in and promote the importance of

It’s a free service, used so far by over 3,000 people.

healthcare education and prevention. I am confident that private

Plus, because Facebook has turned into a customer service chan-

companies can be reliable partners for the public healthcare system

nel, Regina Maria launched a new Facebook page, Regina Maria

in developing and supporting a nationwide prevention network.

Raspunde (“Regina Maria answers”), which is managed by the cus-

Top private players already have the infrastructure (a number of

tomer care department. “It is also now possible for our patients to

clinics in the country, medical equipment etc.) necessary to provide

make their doctors’ appointments online and not go through the call

prevention services and screenings as part of a national program,”

center. This was just another way to promote ease of access and give

says Chreih.

people control of their time and health.”

www.business-review.eu Business Review | November 2018

16 HR

HR teams become creators of experiences for employees Luiza Müller, HR director at Orange Romania, tells Business Review about the evolution of the local HR market in the last two decades and explains how digitalization will reshape the local workforce in the future.

By Anda Sebesi extraordinary one. The recruitment methodology has changed during recent years; we can even say that we are dealing with a paradigm shift. As the personnel deficit increases, the candidate is the one recruiting his/her company.

Compared to the previous years, when the salary and recruitment-related positions were the basis of HR activity, we currently have new specializations, roles dedicated to employee retention, as well as employer brand programmes.

An HR programme or policy that is adequate for today may very well not be relevant in 3-6 months. At Orange, we believe that it is important for every HR team member to be connected to the business realities, irrespective of their HR specialization or hierarchical position.

Continuous attention to the market evolution and adaptability are essential. Getting to know potential candidates and employees via specific tools, traditionally used in marketing only up to this point, and understanding

How has the local HR market changed in the past 20 years from the perspective of both employees and employers?

In this context, employees have become

the dynamics of motivational factors are key

clients of their own organization, with all that

for lively and adaptable HR, prepared for the

this entails: the freedom to choose work-

‘nonstandard’ solution to become the new

The labour market has kept up with the evolu-

time and work space, to be acknowledged as

standard.

tion of the business environment; we could

individuals with specific needs, to opt for the

even claim that there is an acceleration, due

teams and projects in which they believe and

to the demographic context and influenced

with which they identify themselves. Thus,

by migration. Consequently, many industries

HR teams have become creators of experi-

reached their maturity in these 20 years,

ences for employees, facilitators of well-

How would you describe the new generations of employees in terms of financial expectations, professional interests and level of specialization?

while companies’ strategic objectives have

being, agents of change and innovation in

An HR professional has the opportunity

gone beyond the increase of their client base

work methods.

to interact with candidates from different

or sales volumes. The digital era brought the need for integrated solutions, partnerships,

generations. As far as the next generations of employees are concerned, it is highly useful

the need to personalize services and to bring

How have HR policies evolved in the past two decades when it comes to retention and attracting employees?

added value to the client experience.

Currently, the dynamic of HR policies is an

to them, but not of utmost importance in

the emergence of new business lines, but also

to notice their specificities – namely, the way in which financial expectations are important

www.business-review.eu Business Review | November 2018

HR 17

To conclude, I believe that the most effec-

relation to the choices that they make when

the new generations look closely at the CSR

it comes to being recruited. Any newcomer

strategy of the company that they choose as

tive way to preserve a solid employer image

will mention financial aspects as a top reason

their employer. A recent study we conducted

is to have happy employees, recommending

in making a decision. This is, nevertheless,

helped us happily discover that our brand im-

you to their friends or acquaintances. For this

accompanied by expectations regarding the

age is associated with strong social involve-

reason, a very important part of an employer

work environment and professional develop-

ment.

branding strategy is represented by company ambassadors.

ment opportunities provided. However, an important aspect remains the desire for their time to be respected, as well as the need to have a direct manager who understands and fosters their passion.

In recent years, non-financial benefits have overtaken financial ones. When did this trend emerge on the local market and how has it evolved?

What can you tell us about the development of the employer branding concept in Romania and how important is it for the workforce at this point?

Is intrapreneurship a new trend among companies active in Romania? Do you see it as a powerful incentive for employees?

In a very competitive HR market, like the one

Intrapreneurship is a concept used by com-

in Romania, each employer wishes to attract

panies when they are looking for a candidate

the best candidates. Within the digitalization

characterized by autonomy, innovation, and

context, traditional recruitment methods

the skills to transform an idea into a profit-

turn out to be insufficient and help may

able project. The market notes an evolution

There was never an

come straight from

towards freelancing, ‘digital nomad’-type

actual turning point,

a coherent employer

jobs, involving entrepreneurship skills and

rather a continuous

branding strategy.

great freedom of choice.

The complexity of

tendency to diversify

At Orange, these skills are already sought

benefits, so that they

employer branding

after and stimulated by internal programmes.

respond to the needs

has increased. For

The employees are the core of any HR cre-

of all generations.

example, the trend is

ation project and the designers of their own

This trend has been

to borrow marketing

experience, at the same time. We use tech-

determined by at

notions like brand

nologies based on design thinking in order

least two essential

activations, perso-

to provide our employees with the freedom

elements: needs

nas, omnichannels,

to create or redefine programmes suitable to

are becoming more

digital marketing, or

their needs, while HR ensures the enforce-

diverse (entirely new

‘conversion funnel’.

ment of these projects. The effects were vis-

elements

This makes compa-

ible in the commitment level and the quality

appear from one year

nies’ employer brand

of the results obtained.

to another) and the employees’ actual need

strategies more and more sophisticated,

for acknowledgment (targeted, individual

almost as elaborate as the strategies for pro-

programmes for acknowledgment).

moting the commercial brand.

In your opinion, what do current employees appreciate most when it comes to choosing to work for a company?

brand, with the reputation and popularity of

Most of the time, in order to be able to answer

a company as an employer acting as impor-

Digitalization is a process that has already had an impact on the local market. How do you expect this phenomenon to evolve in the Romanian market and how significant will its impact be on the local workforce?

tant criteria when candidates choose the

Digitalization is dubbed as a ‘megatrend’.

organization for which they wish to work.

Adopting new technologies and implement-

this question, one needs to take into account

Prior to applying for a job, three out of four

ing certain concepts at extra speed – like

the category of employees envisaged: from

candidates get informed on the employer

virtualization, artificial intelligence, or

baby boomers to millennials, the region of the

brand of the organization.

machine learning – bring about changes on an

We pay special attention to the employer

country where the employees live and work,

For us, at Orange, talking about employer

economic and social level. We are faced with

their marital status, etc. As a general observa-

branding equals talking about authenticity

a digital revolution, frequently called ‘the 4th

tion, people tend to appreciate the remunera-

and the pleasant experience that we wish to

industrial revolution’, impacting demand in

tion and the package of benefits, without

provide to all candidates applying for roles

the labour market and redefining labor force

disregarding the work environment (e.g. the

available in our company. There was also a

skills.

location of the headquarters, the means of

more pressing need for an online presence.

transportation available to get there, etc.) or

To this end, we run well-targeted campaigns

we are going through create the optimal

the professional development (not only the

on Facebook, Instagram, and LinkedIn.

opportunities for the emergence of new ser-

learning paths or a variety of development

Also, the career websites of universities are

vices. As a consequence, particularly the IT/

solutions, but also career paths and accessible

environments where we try to be present, via

software development area will continue to

solutions for career progress). Furthermore,

various partnerships.

be in the limelight of recruitment teams.

The digital transformation processes that

www.business-review.eu Business Review | November 2018

18 HR

Digitaljob– the platform that matches digital talent and digital employers Looking for a job is an endless process for many people. Not only to get better payment but also to evolve, to grow and to find a place that fills better your needs. This is why having a platform that allows you to find the best offers for your qualifications is paramount. Digitaljob, Marius Dascalu creation, is one of the ultimate data driven job board that offers that and tries to find the best way match the offers with the request.

By Aurel Dragan competed with them. I had already left my former job and said I did not want to do programming any more in my life. I do not want to write any more code,” tells Dascalu, talking about his beginning.

“I never had a sales department but that was not a problem because what we were doing was selling smoothly and our customers were looking for us. We worked with Porsche, Audi, Volkswagen and many others. I made an original project when launching Seat Leon.

A project that I’m sorry I did not submit to Cannes,” says Dascalu.

“I got the awards I wanted, but it came with a price as I discovered I have rhinopharyngeal cancer. The treatment was pretty rough, but I got over it. Unfortunately, because the tumor had to be irradiated, a beam of radiation passed through my small brain,” tells Dascalu.

It was 2006 and Marius Dascalu decided to have the treatment at Fundeni Hospital instead of going outside the country. The beam that got out of control damaged the small brain, the part of the brain that controls the moving functions. The cancer cured, but the damage got worse over the years up to the

”

point where, a few months ago, he was almost unable to walk anymore.

“Basically, the small brain sends an order

Around 20 years ago I was a program-

Romania.” Marius Dascalu, from Suceava,

mer and I was preparing my final

came to Bucharest after the university and

to the muscles and needs to receive a re-

project. I did a research on Artificial

started working as a programmer. “But it was

sponse, which he does not receive anymore. I

Intelligence, simulating a neuronal network,

something that did not attract me anymore,

have done a lot of treatments all over Europe

that was reading some parameters,” says

it created no challenge. Then I read about the

and in USA, but there is no treatment for this

Marius Dascalu, Founder, Head of Strategy &

Green Pixel, the winner of the prize agency

kind of brain degeneration,” says Dascalu.

Creative Development DigitalJob. ”My project

of the year at Internetix Awards. Through

coach later went to Dublin and tried to take

2001-2002 they were making websites, among

ment, developed by an American guy that

me with him to continue work in this field,

others, web design. So, in 2003 I decided to

experimented on himself and it has optimistic

but I was too young and a didn’t want to leave

open my own agency, 2Fresh, with which I

results. “The treatment should get me to over

He is now taking an experimental treat-

www.business-review.eu Business Review | November 2018

HR 19

85 percent of the normal capability over one

ment, including technologies like Artificial

quality is to save time by promoting a culture

year,” says Dascalu.

Intelligence and Blockchain,” says Dascalu.

of relevance and transparency In the future, it

“Through Digitaljob, we aim to create what

will have more relevant results as the number

DEVELOPING THE PLATFORM

we call Global JOBalization and get to the

of applicants and job offers increases,” says

The health problems didn’t stop him from

point where anyone, no matter their gender,

Dascalu.

working. After looking for a programmer and

age, location or race, has the opportunity to

The goal is that, in the future, we will

a designer in 2015 and not identifying suitable

work for any company in the world. Simply

support our community of digital experts

candidates anyone, he decided to make its

put, we channel our passion and efforts in

with relevant courses and knowledge sugges-

own platform for finding people for the job.

offering digital professionals a development

tions by addresing areas to improve in order

platform where they can boost their career

to reach full potential. Learnability, which

line and we had an immediate reaction from

potential by accessing the best jobs, compa-

depicts the desire and the ability to develop

the companies that immediately contacted

nies and knowledge in the digital industry,”

skills that make somebody employable for

us. Everything was free then, and this was not

says Dascalu.

the long-term, is a key point in ensuring one’s

“By August 2015 we managed to get it on-

success in the world of tomorrow. There are

necessarily positive. Companies were asking us how much it costs to post ads to us and

THE MAGIC SYSTEM

they were disappointed when they said it was

All job platforms have a small

free. The investment at the time amounted to

problem: companies cannot

30,000 euros, and the platform was dedicated

figure out the skills of the ap-

exclusively to the IT industry in Romania,”

plicants only after interviews

says Dascalu.

or tests it after an interview or .

“But we did not have time to take the proj-

“For example, I need a mid-ex-

ect to the next level. We realized we had to

perience man, that knows PHP or

add more jobs,not just in the IT industry, but

Java 5 out of a 10 points scale, not

getting into the whole digital sector, where

the maximum, and is better to

marketing and design are also needed,” says

see this from the very beginning.”

Dascalu.

But things didn’t go as smoothly as he

many very good people in this field who do

“Moreover, Digital skills can be quantified. From 1 to 10, each

would like and the condition forced him to

determines the level at which they can work,

not have diplomas from accredited insti-

go for the second time in Peru trying to find

plus what they are working with. And these

tutions as skills are more important than

a cure.

are very important for a job because it hap-

diplomas.

“In 2016 I was working for a company in

pens that more people cannot work together if

“People in the digital industry are very

Germany who appreciated us a lot. We had

they do not use the same tools,” says Dascalu

responsible and do not lie because they have

enough time to work at Digitaljob and re-

showing that there are a variety ofprograms

to produce something and have results.,” says

sources as well. But then I left for the second

used now in companies and knowing this

Dascalu. There are over a thousand and five

time in Peru, and when I was back I did not

information can help both companies and

hundred users and over 150 companies on

have the contract. They were looking for us to

people save time and be more efficient

the site. “This after GDPR deployment, which

sign the contract for a one-year extension, but

On Digitaljob companies can show from

reduced the number of users.” Also, there are

I did not have a phone in the Amazon jungle.

the beginning what they offer by completing

about 100 job offers now on the site, from

Soon after, I met with Ionut Georgescu (an IT

an infographic type job post . “By combin-

Austria, Belgium, UK or remote jobs, where

& waste management entrepreneur), and he

ing data from job posts with data from a user

you do not have to work from a specific place.

took over 50% of the DigitalJob project. He

profile we can better fit the offer with the de-

was more than a business partner, but also a

mand, so that digital experts will see the job

500,000 and the goal for 2019 is to reach

good friend, by helping me investigate other

posts that match their digital talent. . So we

1,000 companies that pay for job posts and

treatments in US,” says Dascalu.

created a unique matching system algorithm

30,000 users.

As they started to develop the platform

to find the candidates most suitable for a job,

The value of the investment so far is EUR

“Monetization will only come from

again, they also decided to go international.

and vice versa, the jobs that best match the

companies. In addition, a company can post

“We needed to make some improvements,

candidate’s profile,” says Dascalu.

job ads for teams, two people or more. Hire

especially as technology progressed so fast.

A matching algorithm that gives you the in-

a team option was created for those looking

Now we have about a year and a half since

formation that you need and ask for, nothing

for development teams (programmer and

we started working on the new platform.

more. “We also like to called it Magic System,

designer) or art and copy in marketing, and

We have at least three years of work on the

a complex formula on what we still have a

of couRse forr startups who only need some

platform until we reach the platform ultimate

little work to do in order to develop it as an

specific things to create or further develop,”

potential and we have many ideas to imple-

Artificial Intelligence, but its most important

says Dascalu.

www.business-review.eu Business Review | November 2018

20 FDI

Romania heading towards EUR 5 bln foreign investment target The flow of foreign direct investment (FDI) into Romania might break the EUR 5 billion milestone in 2019, potentially reaching a sum that hasn’t been seen in more than a decade. In terms of sectors with high potential to drive new investment, every industry linked to the growth of private consumption is set to remain on the radar of international investors.

Dreamstime

By Ovidiu Posirca

Romania remains a growth market among the CEE countries for foreign investors

T

The association cites automotive, agri-

he manufacturing sector already

its components, we see that almost half of

attracted some EUR 1.2 billion worth

all FDI has been in the industrial sector (FIC

culture and IT among industries with high

of FDI in 2017, mostly in the petro-

report regarding FDI in Romania, 2017).

growth potential, while the biotech industry

chemical and transport fields, according to

These investments are long term and capital

also has room to grow.

the National Bank of Romania (BNR). Most of

intensive which should have dispelled the

the share capital increases, also accounted for

myth/rumors of ‘Romania’s deindustrializa-

tive at regional and global levels, are integrat-

in the FDI statistics, were in the construction

tion’,” representatives of the Foreign Inves-

ed into international production chains and

and real estate sectors (EUR 800 million).

tors’ Council told BR. FIC members employ

export high quality products, said the FIC.

“Looking at the Romanian FDI stock and

around 200,000 people in Romania.

Romania has sectors which are competi-

www.business-review.eu Business Review | November 2018

22 FDI

POTENTIAL FOR EUR 5 BILLION

the investor on the management of the local

mainly expansions of current facilities or

For the first eight months of 2018, FDI flows

enterprise. “The activity of direct investment

newly established branch offices in so far

fell by around 3.1 percent to EUR 2.8 billion

enterprises as a whole has had a positive

untapped geographical areas,” Gerd Bommer,

compared to the same period of last year.

impact on Romania’s foreign trade, their con-

commercial counselor at Advantage Austria, told BR.

Globally, FDI fell by 41 percent to USD

tribution to total exports and total imports

470 billion in the first six months of the year,

of goods standing at 73.4 percent and 66.0

according to the preliminary figures from

percent respectively,” the Romanian central

trian companies in Romania has reached EUR

the United Nations trade and development

bank said in a recent report.

9.58 billion, equaling 12.6 percent of total FDI

agency UNCTAD. This was the lowest amount since 2005 and the fall was triggered by US president Donald Trump’s American tax

At the same time, direct investment enterprises account for 53.0 percent of exports of services and 48.0 percent of imports thereof.

He says that overall investment by Aus-

in Romania.

Historically, Austrians have remained some of the most active foreign investors in the local economy, alongside the Dutch,

reforms. US firms have repatriated a net USD

Germans, French and Americans.

Locally, the amount of foreign invest-

ROMANIA REMAINS ATTRACTIVE INVESTMENT MARKET IN CEE DESPITE CHALLENGES

ments has being growing steadily in the past

The competitiveness of the local economy

tion of existing capacities, which means that

few years, but flows haven’t recovered to

has remained largely unchanged in 2018

they have remained committed to the local

the levels recorded a decade ago, when they

compared to last year, judging by the World

economy.

217 billion from foreign affiliates following the major fiscal change.

Bommer says that the Austrians are mainly investing in the expansion and moderniza-

reached a record USD 9.5 billion. In 2017, FDI amounted to EUR 4.8 billion and this year’s result is set to remain broadly the same.

“Considering the last two-three years’ trend, the FIC believes it is possible for FDI flows to grow slightly above the EUR 5 billion threshold in 2019; however, this could change if the European or global economy enters a downturn or if current investors find themselves facing increasing lack of predictability in the design and application of public policies,” said representatives of the FIC. At end-2017, the FDI stock in Romania amounted to EUR 75.85 billion, of which EUR 52.75 billion was equity stakes, including reinvested earnings, and EUR 23.1 billion net Economic Forum ranking which tracks 140

“Romania, however, still has room for

economies. Romania was in 52nd position,

improvement in certain sectors, increasing

stock at end-2017 were the Netherlands (25.9

while neighboring Bulgaria and Hungary

its attractiveness as an investment location.

percent of the FDI stock), Germany (12.8

were ahead at numbers 51 and 48, respec-

Investment decisions are based on long-term

percent), Austria (12.6 percent), Italy (6.2

tively.

planning and strategic development, which

credit from foreign investors.

The top five countries by share of FDI

The international report notes that Ro-

are significantly influenced by confidence in

mania’s 10-year average annual GDP growth

the acting government and the predictability

CAPITAL CAPTURES THE MOST FDI

stood at 2.4 percent, while its 5-year average

of the country’s direction of development.

From a territorial point of view, FDI went

FDI inward flow accounted for 2.1 percent

Trust in political stability as well as reliability

mainly to the Bucharest–Ilfov region (60.3

of GDP. In the business dynamism pillar, for

and predictability of political decisions are

percent). Other development regions which

instance, the local economy came 9th out

of the utmost importance for international

attracted significant FDI inflows were the

of 140 for the cost of starting a business. In

investors,” said Bommer. He adds that cut-

center (8.9 percent), west (8.5 percent),

the attitudes towards entrepreneurial risk,

ting red tape, workforce development and

south-Muntenia (6.3 percent), and north-west

Romania was in 125th spot.

reform of the education sector are other areas

percent) and France (6.2 percent).

(5.6 percent).

Foreign direct investment is considered

“After a period of slight uncertainty for one or two years, we have recently seen an

in which decision-makers can act to support private sector growth.

The availability of adequate workforce

a long-term investment relationship be-

uptake in investment interest in the market:

tween a resident and a foreign entity, usually

There have been several takeovers, merg-

remains one of the biggest challenges for lo-

involving significant influence exerted by

ers and new factory openings, which were

cal and foreign companies, with an unem-

www.business-review.eu Business Review | November 2018

FDI 23

ployment rate of 4.3 percent. For months, the

in an amended version a state aid scheme

jobless total has hovered around decades-low

designed to support investments. The most

rates.

important change is that the minimum

“Tensions on the labor market have

investment sum for which a company can

increased since the unemployment rate

ask for state aid has been lowered from EUR

reached minimum levels and the number of

10 million to EUR 3 million. This move aims

vacancies is continuing to increase. This will

to encourage more Romanian firms to ask

affect Romania’s competitiveness,” says the

for state assistance. By late September, there

FIC.

were 32 requests for state aid with projects

Meanwhile, the FIC’s latest business senti-

amounting to RON 1.38 billion (EUR 295 mil-

ment index reveals that there is a continued

lion). Out of the total number of submitted

dichotomy between FIC members’ expect-

funding requests, 18 came from firms with

was in the full process of privatizing big com-

ing higher revenues and business growth in

domestic capital and the rest from foreign

panies and banks, culminating with the sale

the short term, but being concerned about

players. The scheme can be used to fund

of a 36.8 percent stake in BCR – Romania’s

the lack of infrastructure and stability of the

greenfield investments or the expansion of

biggest bank at that time – to Austria’s Erste

regulatory framework

current operations. The starting budget for

Group for EUR 2.2 billion.

“FDI flows grew by only 7 percent in 2017 compared to 2016, although it was a period

this year is RON 614 million (around EUR 131 million).

of high economic growth. If we look over

But despite the poor financial health of many state-owned companies and overwhelming presence of the government in

the figures, we will observe that in 2015 and

FAR FROM PRE-CRISIS LEVELS

sectors like energy and transport, there are no

2016 Romania had economic growth rates of

FDI in Romania peaked just before the finan-

plans for further privatizations in Romania.

around 4 percent and an increase in FDI flows

cial crisis, according to official data. In 2008,

of 30-40 percent, while in 2017 Romania

foreign companies made direct investments

last year, FDI benefits developing countries,

had 7 percent economic growth and a small

in Romania totaling EUR 9.5 billion, an all-

bringing in technical know-how, enhancing

increase in FDI flows,” said the organization

time record, following investments of EUR

workforce skills, increasing productivity, gen-

representing foreign investors.

7.25 billion 2007 and EUR 9.1 billion in 2006.

erating business for local firms, and creating

Meanwhile, the government has re-started

In that period, the Romanian government

According to a World Bank study released

better-paying jobs.

www.business-review.eu Business Review | November 2018

24 FDI

Follow the flag: US businesses march into Romania after troops The US is still a small investor in the Romanian economy, despite the strong presence of American military personnel on the territory, but this may soon change as key US investors have entered the local market this year.

By Sorin Melenciuc market and in Central and Eastern Europe.

“Piraeus Bank Romania has a solid business and a strong team, acquired from one of the most prominent banking groups in Europe.

Together with Piraeus Bank Romania, we will join forces to create an active player for the Romanian banking market with improved products for the bank’s clients,” said J. Christopher Flowers, CEO of J.C. Flowers, following the acquisition.

The former subsidiary of Greek financial group Piraeus will change its name into First Bank this year, following a decision by the bank’s board.

Another major US investment in Romania this year is the acquisition of generic drugs producer Zentiva by Advent International, one of the largest US private equity investors in the world.

Dreamstime

Zentiva has a strong presence in Romania, where it owns one of the biggest pharmaceutical producers – Zentiva SA, formerly known Romania exported goods worth EUR 1.1 billion to the US market in 2017

T

as Sicomed factory.

Following the acquisition, this factory is owned by a major US investor.

he Americans have two major military

Greece (2.3 percent), Belgium (2.1 percent),

bases in Romania, in Deveselu –

Spain (2.1 percent) and the Czech Republic

STRONG IT PRESENCE

hosting the US Aegis Ballistic Missile

(1.9 percent).

But another major investment could follow

Defense System – and at Mihail Kogalniceanu airport.

But American businesses and money

this acquisition. This year, US e-commerce gi-

BANKING AND MEDICINE

ant Amazon has opened a large development

However, American firms have increased

center in Bucharest, employing 1,300 people.

didn’t really follow US troops into Romania

their presence in Romania this year, follow-

until this year.

ing several takeovers of local businesses in

velopment center in Romania, after the first

key sectors like banking and pharmaceuti-

one opened in Iasi, the biggest city in Roma-

cals.

nia’s part of the historical Moldova province.

According to official data, the US is only the 14th largest foreign investor in Romania, just below the Czech Republic, with total FDI of EUR 1.13 billion at end-2017.

US companies have a share of only 1.5 percent of total FDI in Romania, lower than much smaller international investors like

In June, Piraeus Bank Romania was

This is Amazon’s second – and largest – de-

American firms already have a strong pres-

acquired by JCF IV Tiger Holdings, an entity

ence in Romania, as the country is renowned

belonging to American fund J.C. Flowers.

for its well-educated IT specialists.

This was the first investment made by the investment fund on the Romanian

Oracle runs its biggest European center in Romania and employs more than 4,500

www.business-review.eu Business Review | November 2018

FDI 25

people in its local businesses, including IT

prudent scenario. Much of this investment

Mobil assigned the first sectorial acquisition

and support services.

could come from the US as ExxonMobil has

contract related to the future exploitation of

already started to find local contractors and

Neptun Deep, for the supply of equipment

to expand its local businesses.

and underwater components needed for the

Another US tech giant, IBM, has more than 3,000 employees in Romania, where it has operated since 1995. Last year, IBM’s business

In June, ExxonMobil Exploration and

in Romania exceeded USD 200 million in

Production Romania, the local branch of the

turnover and the group plans to expand.

American energy giant, applied to obtain a

IBM could open a European and National Romanian Innovation Cognitive Hub to focus on the development of advanced cognitive technologies.

building of the offshore hydrocarbon production facility.

The winner was OneSubsea UK, which has

natural gas supplier license from the National

oil equipment factories in Romania, oper-

Energy Regulation Authority (ANRE).

ated through the local subsidiary Cameron

The license allows the company to supply gas to clients in Romania, through bulk

Romania SRL. OMV Petrom and ExxonMobil are expect-

and retail operations and

ed to make the final investment decision for

transactions, both in the

this project at the end of this year.

regulated regime and on the competitive market, as well

FOLLOW THE FLAG EFFECT

as to sign contracts with

The study “Following the Flag: Troop Deploy-

the national gas transport

ment and US Foreign Direct Investment”, by

operator Transgaz and with

Glen Biglaiser and Karl DeRouen Jr., indicates

distribution network and gas

that a selection effect and follow the flag fac-

storage operators.

tors are influential both in the selection phase

The amount that Exxon

Microsoft is also present in Romania through support and development centers in

and in the main equation for US investors.

Mobil could extract from the

In contrast to the 19th and early 20th centu-

Neptun Deep perimeter is

ries, the effects of security factors on foreign

6.3 billion cubic meters per

direct investment have received limited inter-

year, according to Richard

est in the post-Cold War era.

Tusker, lead country manager of Exxon Mobil Romania.

Using panel data for 126 developing countries between 1966 and 2002, and controlling

“These discoveries gave us the oppor-

for macroeconomic conditions, economic

nesses are increasing every year as demand

tunity to increase Romania’s economy by

reforms, and level of democratization, the

for these services is growing fast on the global

developing these projects, and also for the

essay tests the effects of “follow the flag”

market.

long run, given the potential incomes and

variables on US FDI.

Bucharest and Timisoara, and these busi-

other industries that can grow around these

According to the authors, security factors

FUTURE IN ENERGY

projects. Not only do they increase energy

can affect FDI in two stages: the initial deci-

Another major investment sector for US

security but they also bring the ability to im-

sion over whether to invest and the second

groups in Romania is energy. US giant Exx-

prove infrastructure,” Tusker said in July.

stage, which involves the amount invested.

onMobil is already present in offshore gas explorations.

ExxonMobil and its partner OMV Petrom operate the Neptun Deep block, estimated at up to 84 billion cubic meters.

This volume of gas represents more than

“Our results indicate a selection effect and

half of Romania’s current gas production,

that follow the flag factors are influential both

which is about 11 billion cubic meters per

in the selection phase and in the main equa-

year.

tion for US investors. However, such results

This US investment also brings jobs for

are not found for global investors, suggesting

Romanian employees. Exxon Mobil has

that positive links between economic and

discoveries of gas deposits, but commercial

launched this year an auction to contract

security goals only hold for US firms,” the

production has not yet started.

several staff leasing firms, which will supply

study says.

The two companies have announced

A recent study by Deloitte estimates that investments in Romania’s Black Sea oil and gas sector will generate revenues of over USD

temporary employees for the project’s operations.

ExxonMobil needs technical and non-

According to its authors, based on recent experiences in Afghanistan and Iraq, “it appears that US FDI follows the flag”.

26 billion for the public budget and an ad-

technical staff for engineering, geoscience,

ditional USD 40 billion for the country’s GDP

operations, project management and execu-

EUR 1.1 billion to the US market – or 1.8 per-

until 2040, as a result of total investments of

tion, research and technology, security,

cent of total exports, making the US only the

USD 22.2 billion.

safety, health and environment, drilling,

14th largest foreign market for Romania – and

equipments, quality, IT, office activities,

imported from the US goods worth EUR 1.09

close to 170 billion cubic meters of natural

administrative, light industrial activity,

billion – 1.4 percent of total imports, accord-

gas in Romania’s offshore fields, based on a

business and others. In April 2018, Exxon-

ing to official data seen by Business Review.

Deloitte estimates total production of

In 2017, Romania exported goods worth

www.business-review.eu Business Review | November 2018

26 ANGEL INVESTORS

Winging it: Angel investors helping local entrepreneurs learn the ‘business ropes’ Although small in numbers, angel investors are a growing force in Romania’s entrepreneurial scene, with the capacity to provide critical help in the early stage of startups. Once the initial capital dries up, entrepreneurs could start negotiations with angel investors that are willing to put skin in the game and provide up to EUR 250,000 in fresh funding or even more if the right conditions are in place.

Dreamstime

By Ovidiu Posirca

The local startup ecosystem has dozens of angel investors looking for business opportunities

enerally, local angel investors bridge

G

“Many entrepreneurs nowadays, espe-

a gap in funding and knowledge that

cially in the tech area, are looking directly at

entrepreneurs face. But this doesn’t

accelerators from abroad, primarily because

mean that owners of early-stage startups

they are seeking a direct connection to the

ner at EY Romania, the professional services

can’t decide to skip this support and aim di-

next round, and perhaps some knowledge

firm, angel investments can be anywhere

rectly for bigger funding abroad. For instance,

provided by the accelerators,” angel investor

between EUR 5,000 and EUR 250,000, while

Romania’s first unicorn (a startup with a valu-

Sergiu Negut tells BR. He has six active com-

the market average stands at EUR 25,000 –

ation of over USD 1 billion), UiPath, secured

panies in his portfolio and provides average

EUR 50,000.

its first financing from three funds outside

investments of EUR 50,000.

Romania.

Negut says that in general funding from

business angels in Romania ranges between EUR 10,000 and around EUR 200,000.

According to Ioana Mihai, associate part-

“There are few angel investors that grant above EUR 200,000 and maybe up to half a

www.business-review.eu Business Review | November 2018

28 ANGEL INVESTORS

million or EUR 1 million,” says Negut, who

tion are barely available. Therefore business

will increase in the early stages, hence busi-

estimates that there are around 20 to 30 busi-

accelerators and incubators are needed to

ness angels will either increase their initial

ness angels on the local market “willing to

attract more such investors,” says Mihai of EY

contribution or tend to partner up in venture

show themselves as business angels”.

Romania.

funds to collect higher amounts to provide to

MATCHING ENTREPRENEURS WITH BUSINESS ANGELS

ecosystem, the role of angel investors is twice

While entrepreneurs are expected to treat the

they have to provide business education

an angel investor.” For instance, in one of his

angel investor like a team member once the

aside from the financial effort.

investments he had a syndicate of nine busi-

Mihai added that in the Romanian startup

funding is approved, getting to this stage is

as hard as in developed economies, because

“Besides actual cash, business angels will

challenging and negotiations can fail due to

educate the new entrepreneur, create rel-

different visions of the business.

evant business links, create premises for the

businesses,” says the associate partner of EY Romania.

Negut adds that “everyone can become

ness angels out of which only three had previous investment experience.

If you have some EUR 10,000 to EUR

replication of success and change mentali-

30,000 in a bank account and are looking

wrongly seen by entrepreneurs, as another

ties from a short-term approach towards the

to make a riskier investment with a higher

source of money aside from parents and

longer term. They will cultivate further the

return potential, then you might already

friends. I say this because the lack of initial

most important entrepreneurial behaviors:

have the right ingredients to venture into the

capital is not a real problem for an early-stage

planning, risk calculation, attracting talent,

entrepreneurial waters as an angel investor.

startup. In my case, the less money I had

inclination to serve, constant learning, pri-

“I happen to see many kinds of startups.

at the beginning the better it was. The real

oritization, constant looking for opportuni-

Some of them have crazy ideas, some of them

under their belt “can guide entrepreneurs to-

ties. The more successful startups, the more

have very serious and down to earth ideas;

wards a repetitive labor methodology – build

stable the economy, as in time it will balance

some of them are built by very young and

something minimal – gather feedback – adapt

current dependency on large companies,”

enthusiastic entrepreneurs, others by very

the product and restart the cycle.”

says the EY Romania representative.

senior and very experienced people. I think

“My opinion is that angel investors are

challenge is to grow the value a lot, to gain new abilities and competences that you can’t afford to pay for and to find the minimal technical solutions in order to get a product on the market as fast as possible,” Vasile Tamas, CEO of startup Beez, told BR. He founded a fin-tech startup offering a platform and mobile app which helps people to save money when they shop online.

Tamas adds that angel investors can provide valuable help in the business development area for young companies. He says that angel investors with startup experience

The Beez founder says that he had some

Negut agrees that entrepreneurs in

what’s important to keep in mind is that at all

encounters with angel investors but it didn’t

Romania have strong technical knowledge,

times the team is the most important thing

result in any funding deals. “I didn’t know

but they could receive more support on the

– team and teaming ability. The market, the

exactly what to expect because in a startup

business side, which includes marketing and

idea, the prospect to exit, all of these are es-

the predictions are based on suppositions,

commercial development.

sential,” says Negut.

An angel investor also has to play the long

and angel investors treated the investment as if they were buying shares on the stock

DISRUPTED ANGELS?

game in an investment. The EY Romania as-

exchange.”

With technology generating new business

sociate partner says that angels’ exit is much

Another entrepreneur told BR she had

models and new job demands, it invites the

later, after new rounds of venture money

spoken to three angel investors, but was able

question of whether angel investors run the

from specialized funds are attracted into the

to secure funding through an accelerator. She

risk of being disrupted.

business.

was looking for up to EUR 100,000 in funding

Mihai of EY Romania says that technology

“They bring their own business experi-

and suggested that she might try again to

is actually stimulating angels’ activity right

ence, cash, business focus and often sit in

negotiate with angel investors.

now and their role will not change on the

the boardroom. Expected returns could go

short term.

up from two to 40 times their investment

“The financing activity of business angels is not regulated, therefore under the radar; hence studies on size, accessibility and loca-

“With the advancement of technology it is likely that startups’ cash requirements

within three to eight years from the moment of investment,” concluded Mihai.

www.business-review.eu Business Review | November 2018

30 INVESTMENTS

Drawing on experience: top tips for picture-perfect art investments Although art is increasingly seen as a way of safeguarding value, most investors build collections out of sheer passion. Fine art collectors Florian Nitu, Cristian Preotu, and Ovidiu Sandor shared with BR their motivation behind buying art and a wealth of dos and don’ts for aspiring collectors.

By Georgeta Gheorghe

W

hen the financial markets are in turmoil, many investors incorporate art as an alternative asset

class into their portfolios in the interest of diversification. Moreover, art has a potential low risk and brings higher returns than traditional assets. Nevertheless, only a very small percentage of art buyers regard art as a financial product or see art collecting as a pure investment. According to Deloitte’s Art&Finance Report 2017, most collectors on the art market (65 percent) are driven by the social and emotional aspects of collecting art, combined with the potential to increase and safeguard value.

DON’T BUY ANYTHING WITHOUT A CONTRACT, AVOID OFF MARKET DEALS

Cristian Preotu, Le Manoir

Lawyer Florian Nitu bought the first piece of his collection, a sketch by Romanian portraitist Corneliu Baba (1906-1997), back in his

thy,” he says. “I don’t valu e much theoretical

buys off market from individuals, never pays

student days, in the ‘90s. Now the managing

distinctions, schools and trends within artis-

cash and has never purchased any artwork

partner of Bucharest-based law firm Popovici

tic thought. Instead, I believe that educating

without a contract. “There is a black mar-

Nitu Stoica&Asociatii, he is largely recognized

your own aesthetic empathy is the best way

ket I don’t want to support,” he says. Then,

as one of the most experienced M&A local

to describe one’s main drive for collecting art

“authenticity is crucial – the biggest problem

legal counsels, and, in the relevant circles, as

– the joy you feel while looking at something

on the local market is fakes. In Romania there

a consummate art collector.

beautiful.”

is an enormous secondary ‘fakes market’,” he

With a collection built around Romanian

In fact, for Nitu, who is well grounded in

says, adding that, as a lawyer he has always

art spanning the ‘60s through to the ‘90s, he

the local art market but updates his outlook

advised in favor of destroying fakes, regard-

is mainly drawn to conceptual art. Despite

by regularly visiting international vernissages

less of their aesthetic value.

being extremely well-connected and enjoying

and art fairs such as Frieze and Art Basel,

wide exposure, when he buys art he does so

education is an important keyword. “I advise

fully through the terms and conditions of the

independently, and, as a collector, he covets

aspiring collectors to go to museums. To see

auction house,” he cautions. “In Romania,

secrecy. “I do not have advisors. I know hun-

all Romanian museums, go on a tour. Also, to

most auction houses place the liability for the

dreds of artists and I know their views but I

visit the memorial houses that have excep-

certification of origin and authenticity on the

never take anyone’s advice on whether to buy

tional collections. After that they will get a

insurer,” he explains. The market is evolving

or not to buy,” he says, adding that he never

feeling for it and know what to do,” he says.

though, spurred by the biggest local auction

Then, buying from certified sources is

house, Artmark, he says, with which his law

paramount. “Buy from the regulated market

practice has partnered to create the Index of

exclusively,” he advises, adding that he never

the Art Market.

buys for investment.

“For me, the act of collecting is nothing but an occasion for a profound aesthetic empa-

“Then, when buying, always read care-

www.business-review.eu Business Review | November 2018

INVESTMENTS 31

Ovidiu Sandor, Mulberry Development

Florian Nitu, Popovici Nitu Stoica&Asociatii

DON’T GO AGAINST YOUR INSTINCT, START WITH THE CLASSICS

the so-called ‘sure values’ and try to get them

Sharing with Nitu an appreciation for the

open for young artists and choose the ones

us and making us contemplate the world

works of Romanian artist Gheorghe Petrascu

that show talent. It might be a bet, but, if it

with different eyes.” Having bought his first

(1872-1949) is entrepreneur Cristian Preotu,

proves it was the winning one, you might end

artwork seven years ago, he confesses that

owner of Bucharest-based Le Manoir Group.

up making a small fortune from your invest-

every time he buys a piece he starts from the

A seasoned collector, he buys art to hone his

ment,” he advises. “Still, to anticipate an art-

work and not from the artist. “The artwork I

appreciation for beauty, as well as to enhance

ist’s success, you need to have a trained eye,

buy has to speak to me, to convey to me that

the experience patrons have when dining in

experience and knowledge. You can’t place a

‘thing’ that makes me connect,” he says.

his restaurants.

bet on the future, without knowing very well

Preotu, who believes that ‘genuine art is an incentive to think,’ has amassed a collec-

at the best price.” Alternatively, “keep an eye

the history of art,” he cautions.

“Stay connected to museums and galler-

collecting a public function.

To Sandor, “art has the role of provoking

The core of his collection is represented by works by Romanian contemporary artists.

Periods such as the historical avant-garde of

tion focused on Romanian classical painters,

ies,” advises Preotu – who regularly attends

the ‘20s up to the ‘40s are also particularly

with some contemporary and modern notes.

private tours in Europe’s biggest museums

well represented, Sandor says.

He started collecting in his 20s, when he pur-

and was one of the ambassadors of the latest

chased a canvas from painter Sorin Ilfoveanu.

edition of Art Safari, Bucharest’s flagship art

strategy when it comes to sourcing art for his

fair. And his involvement with the local art

growing collection. He buys from a variety

genre is akin to learning a new language and

scene will soon go up a level. In a bid to bring

of sources, such as art galleries, local and

overall an experience that “goes beyond the

private art collections closer to the public,

international auction houses, direct from

image. As with music and gastronomy, the

he is currently working to set up a museum

the artists themselves, and also from other

further you go, the more you understand

of private collections. Planned to open in

collectors.

it, the bigger the satisfaction,” he says.

June of next year, the private museum will

Moreover, to him, art is a means to beautify

be located near the Bucharest Atheneum, the

“sends a message that becomes instantly ac-

ordinary, day-to-day experiences. “It is quite

epicenter of his HoReCa business.

cessible to a community, including many who

For Preotu, discovering a new artist or

Networking lies at the center of Sandor’s

According to Sandor, art in public spaces

otherwise may have limited interaction with

marvelous to have dinner next to a painting

artworks.” Moreover, to him, collecting art

the moment, making it more memorable,”

BE AWARE OF OUR MISSION, AS WELL AS ART’S IMPACT ON SOCIETY

he says, adding that his entire collection is

In the same vein, Timisoara-based real estate

the state and museums do not have the

displayed either in his home, office or restau-

developer Ovidiu Sandor, founder and CEO of

means to make significant acquisitions, the

rants. Preotu’s chief advice is to “buy only

Mulberry Development, sees collecting art as

current generation of collectors has the role to

what you love” and to read as much as pos-

a means of capturing a worldview and, at the

supplement public policies. I am certain that

sible about the artist beforehand to be able to

same time, sharing it with the wider commu-

in the future a part of these private collec-

assess prices correctly and avoid traps. As for

nity. Creator of Art Encounters, an art biennial

tions will become a starting point for private

first-time investors, they should “find the big

that works as a platform to showcase relevant

museums or will end up in public museums,”

names that have already earned appreciation,

Romanian art, he advocates for lending art

he says.

by Nicolae Tonitza, because it adds value to

now has a strong social dimension. “Because

www.business-review.eu Business Review | November 2018

32 SUSTAINABILITY

Crate expectations: Brewers barrel towards packaging law change Julia Leferman, general manager of the Brewers of Romania Association, tells Business Review about the impact of the new legal framework regarding the management and recycling of packaging waste on producers and how the beer industry has prepared for this change.

By Anca Alexe packaging, to be applied from March 31, 2019, as well as a deposit system for non-reusable packaging from 2022 onwards.

How will this new legal framework impact producers in general?

It is difficult to evaluate the overall impact of the new legislative framework, considering the large number of changes it brings to the waste management system in its entirety.

However, the most important way to have a positive impact is to implement these changes, as it’s the only way to increase the collection rate of packaging waste in the municipal network. We are extremely concerned by the low collection and recycling capacity of municipal waste, as the share of packaging waste in the municipal network is 60 percent, and at the moment the selective collection rate for this type of waste doesn’t even reach 5 percent.

Maintaining the current state of the municipal waste management system has a significant negative impact on the environment and the health of the population, with long-term effects when it comes to the new objectives of recovery and recycling, from the point of view of the provisions in the circular economy package, as well as for Romanian consumers, through artificial price increases caused by the system’s inefficiency.

How has the beer industry prepared for the new legislation on the management and recycling of packaging waste?

In short, what’s new in the legislation regarding the management and recycling of packaging waste?

responsibility; the establishment of a com-

For several years now, the beer industry has

mission that oversees producers’ extended

been voluntarily applying a recovery and

responsibility; ensuring the implementation

reuse system for packaging in the HoReCa

The new legislation covers the following as-

of obligations regarding the selective manage-

network. In this network, the share of reus-

pects: provisions for producers and organiza-

ment of waste at a local level and implement-

able packaging coming from beer producers

tions that implement producers’ extended

ing a mandatory deposit system for reusable

is 20 percent, and this includes bottles, crates

www.business-review.eu Business Review | November 2018

SUSTAINABILITY 33

are practically forced to take on in their net

ering the packaging is easier: customers leave

What are the costs of applying the new waste recycling and recovery rules?

the beer bottle on the restaurant table, which

The impact of the new legislation is difficult

who are not part of competitive markets, but

makes it easy for producers to recover them

to estimate. This is why we’ve asked for

instead have monopolies in the areas where

straight from the place of consumption.

studies to be carried out to establish the new

they operate. It is contrary to the principle

measures’ economic, social and environmen-

of a functional market economy for produc-

tal impact, before they are adopted.

ers to directly cover the costs of sanitation,

and kegs/barrels. In this case, however, recov-

What Ordinance 74/2018 tries to do is expand this system from HoReCa to the entire market. We hope that the new regulations will

The introduction, starting in 2021, of a

costs the inefficiency of sanitation operators

as is suggested by the new rules, without a

lead to an increase in the share of reusable

deposit system for primary non-reusable

competitive pressure being applied on these

waste on the market, in line with the envi-

recyclable packaging has not been discussed

costs, as competition has the role of guar-

ronmental objective, or at least that the new

in any of the public debates and is not based

anteeing that a buyer (the producer) won’t

circumstances don’t lower the current share

on an impact or opportunity study. European

have to pay for the inefficiency of a seller (the

of reusable waste on the market.

regulation only establishes targets for recy-

sanitation operator).

cling and recovery, but not the target achieve-

The authorities say the waste management law includes clarification of the role of each actor in the waste management chain.

In this context, how will the producer’s role change in this chain compared to the current situation?

It is clearly necessary for the elements

ment mechanisms, although there are clear

that make up the costs of sanitation operators

recommendations regarding the implementa-

or Intercommunity Development Associa-

tion of packaging waste collection systems on

tions (IDAs) for the recyclable waste flows to

several flows, depending on materials. In the

be completely transparent. Transferring an enhanced waste authority to IDAs does not actually resolve the main

Producers will take responsibility,

issue – the lack of separate waste

as part of the Producers’ Extended

collection from the public. Further-

Responsibility principle, for manag-

more, Emergency Ordinance 74/2018

ing packaging waste in order to fulfil

contains no penalties for these

their recycling and recovery targets,

associations’ lack of performance.

but this responsibility should not be

As stated above, we believe there

understood as being exclusive. We

is a risk producers may be forced to

need a clear attribution of roles and

absorb the inefficiency of the waste

responsibilities for all participants in

collection system in their net costs.

the system: producers, responsibility transfer organizations (RTOs), merchants, public and private packaging waste

absence of an impact and feasibility analysis,

Do you think the new legislation will be applied from January 1, 2019?

collection and treatment operators, munici-

we won’t be able to evaluate Romania’s capac-

Until now, although a legislative framework

palities and citizens.

ity to implement this type of system.

has been in place, the absence of penalties

Furthermore, producers are ready to cover

As for the net costs taken on by producers,

has led to very few local authorities develop-

the necessary costs of efficiently managing

we also believe an impact study is necessary,

ing a selective waste collection system. At the

packaging waste, but only as long as they are

based on methodology agreed by the Environ-

moment, Romania does not have a functional

established in a transparent and predictable

ment Ministry, which can be used to define

selective collection infrastructure to reach

way. For this purpose, we support the trans-

the way these net costs are calculated, in the

the minimum objectives for the recovery and

parency of consolidated data in the reports

spirit of transparency.

recycling of packaging waste based on pack-

made by all licensed players and participants

At the moment, the fees charged by col-

aging types as Ordinance 74/2018 requires.

in the system (producers, collectors, recyclers,

lective systems (RTOs) are certified by the

This infrastructure must be created through

local authorities).

competent authorities and these fees must be

investments in the integrated management

At the same time, incomes from the sale

applied uniformly to all producers. To a large

systems of municipal waste and IDAs, which

of secondary raw material packaging waste

extent, they follow the characteristics of free

may be unachievable within the deadlines set

must be included in determining producers’

market prices, as RTOs are incentivized by

by the ordinance.

net costs. We support the implementation of

their competition to charge lower fees in order

financial instruments, including the Pay as

to attract a higher number of producers.

A similar risk can be seen in the activity of organizations who take over the produc-

You Throw principle, along with the introduc-

On the other hand, separate collection

tion of the landfill tax, in order to increase the

services carried out by sanitation operators

licenses end on December 31, 2018. In this

collection and recycling rates for packaging

are not traded on a free market in competition

case too, the authorization deadline set by

waste and discourage the current tendency to

with collection services provided by other

Ordinance 74/2018 is very short, and there is a

eliminate household waste through landfills.

authorized operators. This way, producers

risk the process won’t be completed on time.

ers’ extended responsibilities, whose current

www.business-review.eu Business Review | November 2018

34 SUSTAINABILITY

Upcycling junk into ready-to-use art More and more entrepreneurs running creative businesses in recent years are now based in Sibiu. Understandably – as the medium-size town is a true magnet for tourists from around the world.

By Oana Vasiliu of upcycled objects prove their inventiveness and mastery of their craft. It’s much harder to fashion something out of an object / material that had a previous life than to work on new material. It’s about a certain amount of compromise and a lot of creativity, hence the translation into Romanian of upcycling as creative re-use,” says Oprea.

He adds, “After a half-year analysis of Sibiu’s creative space, I noticed that there is a generation of old craftsmen who have devoted their entire life to their traditional craft, but there is also a wave of new artisandesigners, who bring traditional skills to new territories. (…) On behalf of this type of collaboration that pushes the boundaries of creativity, we created this campaign and we searched for artists who are now on top form, as shown by their products that I have admired during this period of study, remaining faithful to the craftsman/artist-created objects that fit perfectly with a contemporary lifestyle.” Romanians have long been upcycling. Perhaps it started because of Life in plastic can be fantastic

O

the poverty and the goal of not throwing anything away, then evolved – because of the practicality. “The first upcycled object that

ne local entrepreneur who believes

usually junk which is considered “unrecycla-

became a cult was the bicycle messenger bag

in and promotes healthy living,

ble”. But beauty is in the eye of the beholder,

from Freitag, Switzerland, a company that

Adrian Oprea of Sibio juice bar,

fashions change rapidly and exceptional art-

just upcycles truckloads and which, with

has managed to find local creatives to craft

ists are few, far between and very expensive.

heavy marketing, brought this field into the

special products under the slogan MADEinSB.

After the great invention of Pinterest and

limelight. Through consumerism, upcycled

So they did an upcycling edition, due to a

all the DIY programs, many erstwhile junk

objects became sought-after, commendable

general nationwide theme of smart cities and

objects simply get “upcycled” into a different

products in homes, wardrobes, the lives

how we can improve the space we live in. So

form that will find its way to becoming use-

of the cool, urban trendsetters over 2000-

in the small Sibio juice bar, we found recycled

ful. Whether this is art is debatable, but what

2010. Since then, the market has normal-

glass, cans, banners and mashes and old

you get from the small Sibio store is quite

ized, people looking for cool have returned

cameras.

impressive. “Upcycling remains an impor-

to classic brands or are geared towards eco,

tant part of urban life, in some form, with a

biodegradable, reusable,” says Oprea of the

certain lifestyle. But beyond that, the creators

theme of this edition of MADEinSB.

Upcycling is defined as the process of turning waste into something useful or of value,

www.business-review.eu Business Review | November 2018

ADVERTORIAL 35

Timflow, the most advanced satellite tracking system for log transport and trailer license plate numbers.

3. The driver takes photos of the truck. All data, including the GPS coordinates of the loading point, are submitted to the Timflow servers.

Along the way 4. The GPS tracker, safely encased inside the dashboard, must be turned on for the entire duration of the trip. It submits the route automatically, making deviations from the regular route visible. From the loading point to the factory gate, the precise route of the truck is logged into the cloud servers.

TRACEABILITY MATTERS

PIONEER USER

Legal requirements and the need for trace-

The first company to implement Timflow is

5. When the truck reaches the gate, the

ability connect companies, clients, partners

a leader of the European wood processing

transport documents are verified. Then

and other stakeholders around a common

industry: Holzindustrie Schweighofer is using

an employee reviews the route using GPS

objective – the sustainable use of timber in

it for its Romanian sawmills since April 2017. All

data.

Romania.

trucks delivering saw logs to the company are

6. The employee then compares the truck

At the destination

monitored by Timflow. The datasets – including

with the photos taken at the loading point

by the Government, such as SUMAL Wood

photos of the load and precise routes recorded

and confirms that it’s the same cargo that

Tracking, are important tools to ensure sup-

via GPS – are offered to registered users on www.

left the loading site.

ply chain traceability. But the ability to iden-

timflow.com.

7. After 24 hours, the transport informa-

Legislation and instruments developed

tion is available to registered users on the

tify and track timber origin from its source to the mill gates needs a new and innovative

PROOF OF ORIGIN

approach.

Each recorded transport creates one dataset,

Timflow was created for this reason and

with route, documents and photos from the

is viewed as an optimum solution for wood

loading site – perfect to prove the origin of the

traceability.

timber, based on real life data, not solely on paperwork.

TIMFLOW IN BRIEF Timflow is an integrated wood traceability

SECURE INFRASTRUCTURE

system, developed using state-of-the-art

The system uses built-in secure GPS trackers and

cloud services and GPS technology for

operates on a secure server architecture, de-

recording and monitoring wood transport

signed by technology leaders, in order to protect

data.

the data.

Timflow records the precise routes of the transports, documents of origin and images

HOW DOES IT WORK?

of the load, offering a complete control of

At the loading site

the product’s origin.

Using Timflow for monitoring wood

www.timflow.com portal.

TIMFLOW FIGURES • IT HAS BEEN DEVELOPED BY 100 SPECIALISTS, IT LASTED FOR 1 YEAR AND IT COST 1 MILLION EURO • OVER 40,000 TRANSPORTS ARE AVAILABLE ON THE PORTAL • OVER 800 TRUCKS, FROM OVER 500 TRANSPORT COMPANIES ARE ENDOWED WITH A GPS DEVICE

1. The logs are measured and marked according to official regulations, then loaded onto

transports meets demands for traceability

the truck.

and sustainability and helps protect valuable

2. After the load is secured, the driver records

natural resources for the future.

all the transport data, together with the truck

• OVER 350 REGISTERED USERS ON THE PORTAL HAVE CHECKED OVER 6,000 TRANSPORTS

www.business-review.eu Business Review | November 2018

36 SUSTAINABILITY

ANDREEA ZAHARESCU, UPSIDE DOWN

tagline “the incredible life of

transform and reinvent them. As

afterwaste” because all in one,

an adult, he handcrafted lamps

HORATIU OLTEAN, STYCLE

that is what we do: we transform

in his spare time, for himself and

Passionate about glass and the

useless things from the urban en-

for friends. He fell in love with

idea of protecting nature by

vironment into new, cooler and

old cameras and transformed

reducing waste, Horatiu Oltean

higher-value products and we try

them into lamps, putting many

decided to combine both, creat-

to persuade people to adopt the

hours into the upcycling process.

ing new objects from used glass

same way of thinking and doing

After his corporate career took

containers. Through the Stycle

things.

him from Sibiu to Vienna to

and Transylvania Glass projects,

Bucharest, he returned to Sibiu

Horatiu makes glasses, candles,

to devote himself to his passion

jardiniere, vases, cylinders, and

for reinterpreting light in what is

lampshades. A new life not only

now known as 1001 Craftings.

for glass objects that would otherwise not have been recycled but especially for his father’s old glassware workshop in Medias (Sibiu county), which Horatiu managed to reinvigorate.

Two ingredients are essential in Upside Down’s recipe: creativity and the fact that any waste can be a resource. The creative recycling begins with us obtaining the materials, then we clean and disinfect them with professional products. The other stages of the process are the manual cutting

CATALIN DRAGHICI, 1001 CRAFTINGS

and the transformation into the

Catalin Draghici remembers

final products. What we do is

doing handcrafting since forever

best described by the company’s

– in childhood, he broke things to

DANIEL BACIU, STUDIO CREPUNDIA “MADEinSB is a campaign through which Sibio juice bar targets artists and craftspeople from various areas who live or work in the county of Sibiu.

For our most ambitious project implemented under the motto ‘Buy local – live local’, in which I act both as a customer and as creative director, we bring together the most creative designers, illustrators and craftspeople from Sibiu,” says Adrian Oprea of the initiative.

Since childhood, Daniel Baciu has been fascinated by the idea of flying and building a fairytale world. In adulthood, he continues to dream of creating objects from fairy tales. His latest project, Flying Cars – in fact, decorative items – is based entirely on manual construction, from natural materials. The craftsman is interested in both new artistic visions – he has lived in the US for five years – and the functionality of working tools, which he considers a source of inspiration.

www.business-review.eu Business Review | November 2018

38 TECHNOLOGY

Viavi CTO Sameh Yamany at IMWorld 2018: 3G technology will disappear in 3 years 5G technology is coming, with expected commercial release in 2020. This will change everything – and by “everything” we mean that even phones based on 3G connections, still in use in rural areas, will be obsolete. Those who want to keep up with the new technology will need new devices that can connect to 5G.

By Aurel Dragan 114 Kbps and some email plus web browsing on top of the voice and SMS services. It is the technology that can still be found in many parts of the world, including in some parts of Romania, as it is cheap to use and has good coverage. And apparently it is also good enough for some IoT devices to log on and send/receive signals, so it will stay in place.

Of course, it will still cover voice.

3G came a decade after 2G, with UMTS and EVO technology, reaching speeds of 2 Mbps, covering large emails and MP3 downloads. It was the time for the Symantec operating system and the “almost” smart-phones. But the smartphone industry really took off after the launch of 3.5G, the HSPA+ that would go up to 10 Mbps. That’s when iPhone and Android The next step in communication is only two years away

phones took over the world.

More recently, 4G technology came in the

S

talked about the 5G Network Revolution at

series. The advance is so high and it will

IMWorld 2018, an event organized by Univer-

change so much that I don’t think there’s a

service in 2020, around a decade after the

sum Events. The next step in communication

6G down the road,” says Yamany. “Back in

previous launch. “5G will be the first technol-

is only two years away and has already been

the 2000s, when 3.5G was launched, we were

ogy that will not focus on communication but

tested in many countries around the world,

already talking about 4G. The same when we

on connecting every device. It will be the first

including in Romania. Orange and Vodafone

launched 4G – we were already waiting for

Massive Machine Type Communication,” says

are working on “beam technology,” with Or-

5G. But now nobody is talking about a next

Yamany.

ange very committed to setting it up as soon

step, about 6G.”

2010s with speeds of over 110 Mbps going

ameh Yamany, chief technology officer

technology, meaning that we are ready for

up to 1 Gbps. It is the world we have today,

at Viavi Solutions, a company that

the next step.

including 4.5G or 4G+, and we have all the

works on every part of 5G technology,

“5G technology will be the last in this

speed we need.

All being well, 5G will be a commercial

On top of that, there will be enhanced mobile broadband, ultra-reliable and low

as possible. Around Europe, Deutsche Telekom is also working on 5G, and that means

THE HISTORY OF MOBILE TECHNOLOGY

latency connectivity and, of course, operat-

that Telekom Romania will be able to adopt it

In the 1980s the signal over mobile had

ing, managing and monetizing the network

as a ready-made solution later on.

a speed of 2.4 Kbps, with 1G technology

will be radically different. ”It will be the age

capable only of voice and not at good quality.

of connectivity. Even automobiles will be

from 1G, in the 1980s, to 4G four decades

In the 1990s 2G appeared, with a speed of 64

aware of their surroundings instead of what

later,” says Yamany, pointing out that the big

Kbps, carrying voice, SMS and some digital

is happening inside the car as of today. Cars

steps were made every ten years, but with

signals. That was when the mobile phone

will be able to receive information from the

some middle ground like 2.5G and 3.5G. And

industry took off. A few years later came

road, from the network, from the city grid,”

we also have 4.5G or 4G+ pushing the 4G

2.5G, GPRS or EDGE technology, capable of

the Viavi director outlines.

“If we look in the past we can see a road

www.business-review.eu Business Review | November 2018

40 BRANDING

Tapping into a fresh image Ramona Dumitru, communications director at Veolia Romania, tells Business Review about the process of repositioning the company and its new visual identity, and outlines the importance of this for its customers.

By Romanita Oprea identity. At the perception level, the aim is to give the company a more tangible feature, for a better understanding of the extremely complex process of water production and distribution.

Also, in order to underline Apa Nova’s connection to a solid multinational company, we were inspired by the Veolia logo (our mother company). The new Apa Nova logo is in line with our field of activity. The symbol represents a water drop through a section of pipe, while the font used is a modern one.

The brand tagline “Your water, our responsibility”, talks about the responsibility, of both company and each and every employee, in delivering services.

What were the key elements you had in mind and kept a close eye on throughout the process and why?

At visual identity level, we followed the endorsement recommendations in Veolia’s visual identity brand book and we opted to connect the brands.

At image level, the new identity was the first step towards developing an image campaign. One of the key elements of the whole process was to develop a more personal relationship with the customers, by communicating the activities that our company undertakes when it comes to the treatment and distribution of water. Our intention is to explain the vital role that our company plays in the city’s daily life.

Why did Apa Nova decide that this was the right time for a repositioning and new visual identity?

refreshed with greater orientation towards

What were the main aspects in the brief you sent to agencies?

the customer. The company is more and

It all started with research and planning. The

more perceived as modern and innovative,

first step was evaluation, of course. A percep-

For the last two years, the company has been

in line with the current pace of the economy.

tion study was conducted and its results

going through a modernization process with

The decision came naturally. We took the op-

showed that the brand is very well known.

visible results on the quality of Apa Nova

portunity to align the company’s image with

However, consumers didn’t know exactly

services. The organizational culture has been

the new trends, introducing a new visual

what Apa Nova does. Based on the study’s

www.business-review.eu Business Review | November 2018

results, it was established that a facelift,

BRANDING 41

What were the main challenges of the whole process?

appropriate. This was the starting point for

How important is sustainability in your day-to-day activities and what do you do above what the eye sees?

the agency. Then, the image campaign was

Apa Nova supports sustainable development

implementation process will take until 2019

developed in order to deliver targeted key

through investments in a more efficient

when the new logo is on all our touchpoints.

messages meant to give simplicity and con-

water and sewage network, a continuous

It’s quite a challenge, but the rebranding is

sistency to almost abstract concepts. Besides

business reengineering process, the digitali-

a natural step for Apa Nova and at the same

the TV spot that explains how the water gets

zation of the company’s internal operations,

time it is a statement for our customers and

from the river into our glasses, we also have

the sewage treatment at Glina, a continuous

stakeholders: we are a modern, performance-

KVs talking about: the length of the water

reduction of paper usage and a customer-

oriented company. Also, Bucharest is Europe’s

network, total investments by Apa Nova, nu-

oriented approach. At international level

tenth largest city, so reaching out to over 2

merical water analysis conducted and figures

our group has put sustainable development

million people and informing them about Apa

on drinking water production.

issues at the forefront of its strategy (water

Nova can be quite a challenge. At the end of the

service management and protection of water

campaign we plan to conduct a new study, so

What do you hope the rebranding will bring to your company over 2018-2019?

What are its main objectives?

resources, promoting its treatment, recycling

we can assess our results.

Through our image campaign, which includes

and fight climate change).

rather than a complete rebranding, was more

a TV spot distributed also online, as well as

Apa Nova is a large company; hence the facelift

and recovery, optimization of energy consumption to conserve energy, reduce carbon Based on digital technology, smart solu-

What are the main elements of the communication campaign following the rebranding and how long will the campaign last?

creative executions for the digital environ-

tions are designed to improve the infor-

We have already started the rebranding at

ment, we want to communicate the respon-

mation and convenience for users and to

building signage level, stationery, and com-

sibility that Apa Nova undertakes daily in

optimize the environmental and economic

mercial communications. The media campaign

Bucharest when providing services. The cam-

performance of the services provided by the

was launched immediately after the rebranding

paign’s main objective is to familiarize people

company. Consequently, Apa Nova has now

process was announced. Along the way, the

with the services offered by the company, and

positioned itself as a natural player in smart

new logo will be on the company’s vehicles, on

to get across the daily responsibility that each

city solutions and the sustainable city of the

the uniform of intervention crews. The whole

employee carries out in his or her work.

future.

process will cover all these elements by 2019.

www.business-review.eu Business Review | November 2018

42 ADVERTISING

Local digital advertising– immature but creative Despite not being among the top advertising investment markets in Europe, the Romanian online domain is growing at a pretty fast speed compared to other media and attracting some of the most talented people in the sector. The new technologies are improving customer experience daily and bringing about innovation and entertainment.

By Romanita Oprea “Video content and display are still king(s).

Online has become a strong number two, after TV, as both these media channels showed an increasing trend. Despite the fact that we are in 2018, for many marketers, the digital medium is equivalent to social media. Therefore, a consistent part of their efforts is allocated to this dimension of digital marketing,” said Chiritescu.

In her turn, Andreea Gavrila, group creative director at Kaleidoscope Proximity, said that Romanians are bigger TV lovers than any of their fellow Europeans (the latest studies indicate an average of six to seven hours/day of TV consumption), while YouTube is on the rise and Facebook is seen more and more as a video-sharing platform. “Moreover, it is no secret that the Mobile Generation is here (over 90 percent of Romanians now own a smartphone) and that one out of three Romanians checks their phones before getting out of bed.

Therefore, the best channel is the one that Andreea Gavrila, Kaleidoscope Proximity

A

works best in a strategic sense: one thought of within a cross-channel funnel and that addresses each player as having an active role,

ccording to the Media Fact Book,

(especially in young ‘digital first’ generations,

a functional part within a bigger ecosystem,”

the yearly report issued by Initiative

but not only), significant growth of online

said Gavrila.

(the media agency of Lowe Group),

shopping and basically the commoditization

When it comes to budgets, Dinescu be-

the total value of online media is expected to

of the internet, the market will most likely

lieves that it is an ongoing cycle: increasing

reach around EUR 85 million in 2018, marking

keep its positive investment dynamic, with

purchasing power and a positive perception of

an increase of 16 percent on 2017. Google and

at least the same growth pace we’re used to,”

future incomes create a market on a positive

Facebook dominate the market in terms of

said Andreea Dinescu, managing director at

trend in many sectors. “As long as clients see a

attracted budgets, with almost 70 percent

Profero. Her opinion is shared by Stefan Chiri-

clear value and measurable results impacting

of total investment and with a higher pace

tescu, strategy director at Kubis Interactive,

their business KPIs, they’re willing to invest

of growth, while local display keeps a linear

who says that the Romanian online market is

to achieve their targets. And the better the

trend. A significant increase comes from

in line with the European market evolution:

business results, bigger budgets get invested

the programmatic area (excluding AdWords

the investment in mobile platforms, program-

into communication to further contribute to

tools), up by an impressive 80 percent. “Hav-

matic and search follows the same increas-

growth. I believe the focus is on measurabil-

ing in mind the ever-increasing statistics

ing rates (but from a small scale) as in more

ity, continuous optimization and smart usage

related to internet penetration, time spent

developed and stable markets.

of data as means to unlock growth.”

www.business-review.eu Business Review | November 2018

ADVERTISING 43

Andreea Dinescu, Profero

Stefan Chiritescu, Kubis Interactive

At the same time, according to Gavrila,

production costs, and able to calculate ROI

ways, for different targets. “We are reaching

digital metrics can surprise marketers, with a

for your creative products. “It’s the game of

enthusiastic people, no matter how young or

little effort and minimal extra budget. It’s just

maturity in a quite immature market.”

old; the Romanian audience is one of the wit-

a matter of smart planning. “This is why on-

In her turn, Gavrila considers innovation

tiest, most engaging and loyal communities

line advertising agencies have become more

a concept with as many facets as there are

in European advertising and this is for sure

immersed in the whole conversation – digital

brands in this industry. It all depends on how

a plus for any CRM or gamification strategy.

is now more than a channel, it has become a

thick your circle of trust is: if you have a last-

Moreover, brand people are young, passion-

must when creating any type of campaign.

ing relationship with your client, and the cli-

ate and open to ideas, however courageous.

And if you give data-driven arguments, ad-

ent has a lasting relationship with the brand

We as an industry have a bundle of talented

dress each digital touch point within a logical

– we may have a common understanding of

people that have shifted to digital, from ATL,

consumer journey, and use your content to

how the brand evolves and when it is time to

going through media and efficiency and rang-

drive brand performance, clients will find

move to the next level. The innovation card

ing down to BTL. What they have in common

that little extra and help you bring their brand

is also played by the Profero representative

is a mindset – that digital can impact our

more into users’ displays and digital lives,” added Gavrila.

So which types of campaigns are preferred and

who believes that innovation and new technologies are responsible for

culture,” said Gavrila, looking on the positive side of things.

changing the way of work,

Turning to what should be improved,

and that because we are

Chiritescu pointed out that omnichannel

why? According to Chiri-

surrounded by technology

might be the new cool word of the industry as

tescu, micro-campaigns

at every moment of our

well as the big data perspective, but from the

that have video content

lives, innovation has to be

nice and flashy ppts to the day-by-day imple-

intimately connected to

mentation is a huge distance. Despite the fact

at the core are best sellers.

They are simple to produce, distribute and amplify.

“The increasing trend of microcampaigns is the best thing occur-

increasingly effective means of achieving objectives. “As long as there is a direct correlation between innovative ideas and

that everybody is talking about digital transformation, a lot of fundamental processes from IT to customer support lack consistency and integration. “I strongly believe that

ring on our market. On one hand, these types

their impact on the business results, most

before talking about the best and most ef-

of campaigns help clients to see the power of

clients are actually open to try and innovate

ficient digital communication campaigns, we

the digital medium; on the other hand, video

and even ask for such solutions with every

ne help our clients understand how to adapt

content is what consumers enjoy the most,”

brief they send,” said Dinescu.

their companies, internal processes, products and services to the requirements of the more

said the Kubis Interactive representative. And convincing clients to take a more creative

THE PROS AND CONS

evolved and demanding digital consumer. We

route is not that hard anymore, as long as,

With Romania still a young and talented

need to fix the value offer before wrapping

Chiritescu points out, you are relevant for the

market, there are endless communication

it in a shiny and attractive communication

client’s business needs, reasonable with the

territories waiting to be tackled in numerous

package,” argued Chiritescu.

www.business-review.eu Business Review | November 2018

44 ROMANIAN CINEMA

Morometii 2: iconic Romanian film returns to silver screen Once upon a time, in Romania, lived Marin Preda, one of the finest writers of the last century, who knew exactly how to describe Romanian village life and gave our literature the extraordinary novel Morometii. Some 30 years since the first film adaptation was released, the same director – but an all-new cast – is currently the talk of the town. Who’s who and what’s new?

Photos courtesy of Transilvania Film

By Oana Vasiliu

Ilie Moromete played by Horatiu Malaiele

F

Capturing the picturesque Romania on screen

ollowing on from the 1985 production,

there is both an excellent model – the novel

30 years ago. It was fantastic that we could

Stere Gulea’s script is based on the

– and the first adaptation which, to my satis-

integrate once again in village life and that it

second volume of the novel Moro-

faction, became quite popular. This time the

could support us as part of it and accept us

metii, on Marin Preda’s 1977 partly-autobio-

action takes place in more turbulent times,

with the entire crew, set and needs,” Oana

graphical novel Viata ca o prada, and on other

as the new political system brings a lot of

Giurgiu, co-founder of Libra Film Produc-

works by the Romanian writer, following the

concern and anxiety. The world that we knew

tions, told Business Review. Shooting also

characters from the novel after WWII, when

disappears. This is what propelled me into a

took place in Bucharest and Slatina.

communism is installed in Romania and their

sequel, the idea of finishing the odyssey of

whole life changes. The entire cast from the

those characters who survived until the 50s,

cracks have started to appear in the mesh of

first adaptation has been replaced. The sequel

when nationalization took place,” said Gulea,

the traditional peasant family, a theme which

will star Horatiu Malaele (as Ilie Moromete),

quoted by Film New Europe.

Gulea, picking up from Preda, has man-

Dana Dogaru (Catrina Moromete) and new-

But while the cast is different, the home

In the new version, time is pressing on and

aged to convey, through the character of Ilie

comer Iosif Pastina (Niculae). It also includes

of the Moromete family is the same, as the

Moromete, the archetypal Romanian peasant.

popular Romanian actors such as Răzvan

filming took place in the same house and vil-

Pertinently, the film happens in Teleorman

Vasilescu, George Mihaita, Andi Vasluianu,

lage as 30 years ago – albeit with everything

county and Bucharest, two of the locations

Oana Pellea, Ion Caramitru, Gheorghe Visu,

having to be re-built from scratch. The village,

in the spotlight of current local politics. Are

Florin Zamfirescu, Marian Ralea, Paul Ipate,

Talpa, is in Teleorman county, some 120 km

things still as Preda saw them after WWII?

Cuzin Toma, Liviu Pintileasa and Dorina

southwest of Bucharest. “The entire village

Have we evolved or become more involved as

Chiriac.

participated in the shoot and some of them

society? The film, in cinemas from November

also had a part in the distribution of the movie

5, attempts to answer these questions.

“Morometii 2 is very challenging because

www.business-review.eu Business Review | November 2018

CONTEMPORARY ART 45

New private museum opens fresh chapter of contemporary art Embracing the global trend of opening new contemporary art centers, after Scotland’s Dundee Victoria & Albert Museum, the Guardian Art Center Beijing and Tai Kwun Center for Heritage & Arts Hong Kong to name but a few, Bucharest is currently under the global contemporary art spotlights. Some years since the last one, a new private gallery has appeared on the local radar: MARe (Muzeul de Arta Recenta/ Museum of Recent Art). How was it possible?

By Oana Vasiliu organized a series of exhibitions in major galleries in Bucharest, Sibiu, Craiova, and conferences throughout Romania. The owners have not yet made public the entire costs of the investments in both infrastructure and collection, arguing that it’s a private investment and they prefer to keep it that way.

“An art museum of today could and should be private. We live in a world of privacy, of Photo courtesy of MARe

ownership, of subjective, customized, and individual experiences. MARe mirrors and enhances these developments. It is made to boost unique experiences through a powerful impact with the works of art. This is why

T

our curatorial strategy focuses on increasing the proximity of the viewer to the works

he Romanian contemporary art

great projects is that everything must be there

of art, even with the risk of restoring them

scene is blooming. With a more and

for a reason – and this reason must be appar-

frequently. MARe diminishes the reflective,

more active international presence

ent. A key aspect of enduring and successful

purely speculative distance, while dramati-

at Biennales and art fairs, as well as the buzz

architecture is that it demonstrates restraint

cally changing museum contemplation into

surrounding Adrian Ghenie’s painting auc-

and reasoning.” And the museum lives up to

extreme impact. This is an innovative curato-

tions, the country is making the art world

these words. Viewed from the outside, the

rial strategy in itself, not only on the local art

take notice. At the beginning of this month, a

gallery seems to float above the ground, on

scene,” commented Erwin Kessler, the direc-

group of international journalists salong with

a transparent, fully glazed ground floor, an

tor of the museum.

Canadian artist Jeff Wall came to Bucharest

effect reinforced by the monolithic appear-

The permanent exhibition includes key

for the glam opening of the latest private

ance of a sealed bunker on the upper floors,

works by artists such as Ion Tuculescu, Andrei

art museum, an initiative which currently

clothed in dark, which references the recent

Cadere, Nicolae Comănescu, Ion Grigorescu,

features over 120 artworks displayed across

history of totalitarianism and Romanian isola-

Paul Neagu, Stefan Bertalan, Roman Cotos-

1,200 ssqm on five levels, designed by Youssef

tion. The interior of the building intentionally

man, Pavel Ilie, Diet Sayler, Alexandru Chira,

Tohme Architects and Associates (YTAA).

contradicts the expectations and preconcep-

Horia Bernea, Florin Mitroi, Marian Zidaru,

tions visitors may have when thinking of a

Ioana Batranu, Vioara Bara, Teodor Graur,

businessman Roger Akoury (also owner of

museum. Instead of neutral white cubes, the

Dan Perjovschi, Dumitru Gorzo, Victor Man,

Sensiblu Pharmacy), said of MARe, “This is a

building includes a maze of corridors and

Ecaterina Vrana, Vlad Nanca, Gili Mocanu,

perfect example of relevant and contextual

rooms, lights and decks, to encourage and

Anca Muresan, Ovidiu Fenes, Cristina David,

architecture. Within a historic building we’re

enhance visitor intimacy and the artworks.

Ion Barladeanu, and many others.

ing our knowledge with the latest design and

WHERE IS THE MONEY COMING FROM?

at 15 Primaverii Blvd, and is opened from

construction techniques. I favor a minimalist

MARe was created by the MARe Foundation,

11.00-19.00 all week, except Tuesdays. Entry

style of architecture, but I feel the key to all

which was founded in 2015 and has since

is RON 15.

The owner of the museum, the Lebanese

The museum is located in north Bucharest,

creating a contemporary space by combin-

www.business-review.eu Business Review | November 2018

46 CITY

Cultural calendar

By Oana Vasiliu

Havasi concert November 23-24, Sala Palatului

Havasi, the artist the Guinness Book of Records named the “world’s fastest pianist” in 2009, will return to Bucharest with three shows. Known as one of the most talented composers and performers of the new generation, and the holder of 11 platinum disks, Havasi shakes up the conventional formula of a piano concert, covering many musi-

KINOdiseea Film Festival November 9-13, Cinema Gloria, Cinema Pro, Cinema Eforie

The Nutcracker ballet premiere November 10-14, National Opera House

time is marking its 18th anniver-

cal styles. His show is eclectic,

sary. Tickets cost RON 50.

based on an impressive suite of compositions born from a fusion

Centenary of Romanian film music November 22, Sala Palatului

of styles and sounds, referencing artists from all over the world.

Tickets cost from RON 140-440.

AsiaFest November 24-26, Romexpo The first festival of Asian culture One of the premieres of this season is The Nutcracker, a new production staged by the National Opera House and probably one of

The Bucharest Symphony Or-

the most beloved Christmas sto-

chestra will perform the music

ries of all time. The scenography

of the most beautiful Romanian

is by Andreea Koch, while Iurie

historical films, offering a com-

Florea will conduct.

plete program for all audiences,

returns to Bucharest with a new

amateur films, historical movies,

edition, offering a multicultural

history, music or all combined

dialogue that promotes Eastern

in a unique interpretation that

traditions and customs. Japan,

will mark the importance of the

China, South Korea, Vietnam,

KINOdiseea is the largest film festival for children in Central and South-Eastern Europe, both by number of films and number

The Mission 18 year anniversary November 16, Romexpo

centenary through history and

Mongolia, Thailand, Indonesia,

audiences the latest kids’ movies,

Celebration time for fans of

art. The concert will feature

Malaysia, Burma, the Philippines,

such as Dorte Bengston’s Vitello,

electronic music: the Romanian

crowd-pleasing scores from

India, Pakistan, Bangladesh,

Angelina Jolie’s The Breadwinner

event that showcased electro

Romanian film. Tickets cost from

Azerbaijan, Kazakhstan and Tur-

and many others.

music and DJ gigs for the first

RON 50-150.

key will all be showcased.

of viewers. It brings to young