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