December, 2021 / Volume 25, Issue 11
www.business-review.eu
FLEXIBILITY IS KEY FOR FUTURE REAL ESTATE PROJECTS
10
SHIFTING TOWARDS A NEW REALITY
18
ROMANIA’S STARTUP ECOSYSTEM GAINS TRUST IN EUROPE
30
THE ULTIMATE CHRISTMAS SHOPPING LIST
45
ONLINE AND OFFLINE SHOPPING GO HAND IN HAND
www.business-review.eu Business Review | December 2021
EDITORIAL 3
• Editorial •
REAL ESTATE
Anda Sebesi
6 Real estate market sees modest activity in first nine months of 2021
• Editor-in-Chief •
8 Luxuria - a unique living experience 10 Flexibility is key for future real estate projects
COVER STORY
Hoping for a better 2022
T
he local retail market has had a difficult 2021 amid the many ups and downs of the covid-19 pandemic, even as Romanians have largely embraced the new normal.
It was a more challenging year than the previous one due to a
12 Retail 2.0: e-commerce goes hand in hand with offline shopping
combination of stressors: the ongoing pandemic and restrictions, rapid changes in consumer behaviour, increased psychological
MAIN STORY
pressure, economic and political uncertainty, changes in the supply chain, the energy crisis, and rising inflation. This mix of factors has created a lot of pressure and amplified unpredictability, even in
18 Shifting towards a
the short term.
new reality
21 Flexibility helps
As a result, the volume and value of sales have fluctuated sig-
companies attract and retain talent
nificantly, rising during periods with fewer restrictions and dropping once the pandemic hit new peaks. With a moderate growth recorded this year, e-commerce continues to be one of Romania’s star sectors. However, despite having a huge potential to grow in the coming years, online shopping will continue to complement
ENTREPRENEURSHIP
the offline experience, and not eliminate it altogether, because the
30 Romania’s startup
consumer experience and the human interaction factor are more
ecosystem gains trust in Europe
important now than they’ve ever been. In fact, a new report released recently by KPMG in Romania reveals that today’s consumers have very high standards. They expect to receive great value for money for the products and services they buy, and to have excellent interaction with employees as well as flawless service. Since it is clear that the pandemic will continue in 2022, it’s not
32 Startup funds say rising inflation has limited impact on financing environment
CITY
just the local sectors that will be impacted, but so will the entire labour market. With this in mind, companies should focus on accepting, adapting, being flexible, and providing constant feedback while seeing work as an output rather than an input. This is the only way they will be able to attract and retain talent that can create added value for both their companies as well as the entire economy. Here’s to a (more) successful 2022!
44 Another pandemic year for the cultural sector
45 The ultimate Christmas shopping list
46 New places in town
EDITOR-IN-CHIEF: Anda Sebesi JOURNALISTS: Aurel Constantin, Mihai Cristea, Romanita Oprea, Oana Vasiliu CONTRIBUTORS: Ovidiu Posirca, Sorin Melenciuc, Claudiu Vrinceanu COPY EDITOR: Anca Alexe PHOTO EDITOR: Mihai Constantineanu PHOTOS: Dreamstime ART DIRECTOR: Raluca Dumitru PUBLISHER: Bloc-Notes Media Network ADDRESS: 82-98 Calea Grivitei, 1st floor, Hotspot Workhub, District 1, Bucharest, Romania SALES MANAGERS: Radu Fireteanu, Alexandra Rosca MARKETING & SALES MANAGER: Luiza Luca PRODUCTION: Dan Mitroi DISTRIBUTION: Eugen Musat EXECUTIVE DIRECTOR: George Moise GENERAL MANAGER: Catalin Alistari USA MANAGER: Oana Molodoi FOUNDING EDITOR: Bill Avery EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu SUBSCRIPTIONS on Manpres Distribution Business Review is a member of Fwei
Publicație auditată pe perioada Apr 2015 - Mar 2016
ISSN NO. 1453-729X
www.business-review.eu Business Review | December 2021
4 NEWS
WHO’S NEWS BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at mihai.cristea@business-review.eu
Cargus opened nine new warehouses in 2021 By Mihai-Alexandru Cristea “All the efforts we’ve made to develop our logistics capacity and improve the experience of our customers allow us to ensure the best delivery rate on the Romanian market – 92
Carmen Ravon has been appointed Head of Retail Occupiers for the CEE region by CBRE. She is one of the most appreciated Romanian experts in retail, currently leading CBRE Romania’s Retail team, and will coordinate the retailer’s expansion in the entire CEE region as Head of Retail Occupiers. With more than 15 years of experience in retail real estate, Carmen has successfully and repeatedly signed lease contracts with international top occupiers and advised many major retailers.
Cristi Moga has been appointed as Head of the Capital Markets Department at Cushman & Wakefield Echinox. He will coordinate the team in charge with transacting real estate assets for investment purposes. Cristi joined CWE in October 2015 and in 2018 he was promoted to Head of Research, conducting research projects related to the retail, residential, office, industrial, and hospitality markets and being involved in more than 80 customised studies, delivering strategic solutions for development and investment projects worth more than EUR 2 billion.
page 5
percent of all deliveries reach their destination the day after receipt. A good example of such efforts is our Brasov warehouse, where Cargus invested around 2 million euros since 2018 to develop and equip this logistics centre. Furthermore, we expect to maintain at least a similar delivery rate next
Jarosław Sliwa, Cargus
year, while also estimating a 30 percent increase in volumes,” said Jarosław Śliwa, the CEO
As part of its strategy to im-
transit between destinations.
of Cargus. With a total area
prove customer experience,
Equipping the warehouses with
of 10,500 square meters, the
Cargus opened nine new logis-
semi-automatic sorting systems
Cargus warehouse in Brasov
tics warehouses this year, all
has doubled their operational ca-
operates both as a local base for
equipped with modern sorting
pacity, while the investment the
Brasov County and as a regional
systems. The new warehouses
company made at its warehouse
hub. By 2022, Cargus will invest
are located in Brasov, Buzau,
in Brasov, which now has a fully
in 16 other warehouses, 10 of
Miercurea Ciuc, Zalau, Cluj,
automatic sorting system, has
them being relocations and
Pitesti, Targoviste, Alba-Iulia,
tripled the served area’s opera-
upgrades, while 6 of them will
and Vaslui, ensuring faster
tional capacity.
be completely new.
KPMG: Value for money economy meets the connected customer The 2021 Customer Experience
“The research reveals that
Excellence Report released by
Romanian consumers expect
KPMG in Romania reveals that
to see very high standards of
today’s consumers expect to
customer service and expect the
obtain great value for money for
companies they buy from to pro-
the products and services they
vide the best value for money.
buy, as well as to have excellent
They want the full benefits and
interaction with employees and
convenience of a user-friendly
receive flawless service.
online experience where this is
Victor Iancu, Associate Partner Management Consulting and Customer Advisory Lead at KPMG in Romania
www.business-review.eu Business Review | December 2021
NEWS 5
Arctic’s Gaesti factory reaches 40 million refrigerators milestone By Mihai-Alexandru Cristea Romanian home appliances market leader Arctic recently marked the production of 40 million refrigerators at its Gaesti factory. Following Arçelik’s investments, totalling over EUR 154 million, the refrigerator factory in Gaesti is currently the largest appliance factory in Continental Europe, with a production capacity of 2.9 million units per year and almost 5,000
The performance of the Gaesti factory determined the expansion of Arçelik group’s operations in Romania
Ioan Maties is the new General Manager of JW Marriott Bucharest Grand Hotel. With almost 25 years of experience in the hospitality industry, he aims to continue the execution of the JW Marriott brand’s modern representation in the luxury category. Maties joined JW Marriott Bucharest Grand Hotel in 2000 as Director of Event Management and has since held several management positions within the group, both domestically and abroad.
employees. production hub, and we pledge
factory in Ulmi, Dambovita
ucts and 700 by-products
to continue these results while
County. Following a total in-
intended both for the local
also integrating our sustain-
vestment of EUR 153 million,
market and for consumers in
ability vision and mission. Our
the Arctic washing machine
80 countries—37 in Europe and
aim is to redefine manufacturing
factory in Ulmi, which kicked
43 on other continents. In 2021,
processes in line with circular-
off production at the end of
the company allocated EUR
ity principles, using natural
2019, integrates the latest
10 million for the modernisa-
resources responsibly,” said
technologies, being the only In-
tion of its Gaesti factory, with
Murat Büyükerk, Arctic’s Chief
dustry 4.0 manufacturing unit
investments being aimed at
Executive Officer.
in Romania and one of the few
It produces 75 main prod-
increased efficiency through
The performance of the Gaesti
in Europe. With the opening of
factory determined the expan-
its second production line, the
sion of Arçelik group’s opera-
plant will reach a capacity of
in Romania, given our goal
tions in Romania, leading to the
2.2 million washing machines
of turning it into a regional
construction of a new appliance
per year.
digitalization. “We will continue to invest
Ovidiu Zaberca is the new Business Development Director for the Transylvania region at EY Romania. With 16 years of experience in sales of services and business development, Zaberca will be responsible for EY’s strategy and go-to-market initiatives designed to strengthen its local presence as a leader in professional services for large and medium-sized enterprises and as a trusted advisor for entrepreneurial businesses.
appropriate, while also expecting excellent personal service in the physical environment. The companies that will succeed will be those able to rapidly adapt to new needs and purchasing patterns, those that treat each customer as an individual, and those whose employees are welltrained in making a personal connection with customers,” says Victor Iancu, Associate Partner Management Consulting and Customer Advisory Lead at KPMG in Romania.
Cristina Lupascu has joined Cushman & Wakefield Echinox as PR & Research Director. Cristina previously worked in the media for 14 years, mostly within the Mediafax news agency, covering the real estate area. Over the past six years, she was in charge of JLL Romania’s marketing and PR operations.
www.business-review.eu Business Review | December 2021
6 REAL ESTATE
Real estate market sees modest activity in first nine months of 2021 Development activity on the Romanian retail market was modest in the first nine months of 2021, with only three small projects delivered, but this year also saw new retailers and developers entering the market, according to real estate consulting firm Cushman & Wakefield Echinox. By Aurel Constantin grow their presence in Romania. Prime rents remain stable for the moment, even if the 90-day suspension of operations during the Rental levels in retail parks remained essentially flat
I
state of emergency from March to June 2020 had a strong impact on a number of tenants, which resulted in renegotiations that slightly
n total, new commercial spaces with a
Dusseldorf group, opened their first Central
cumulative area of about 31,000 square
and Eastern Europe store in Bucharest.
metres were delivered until the end of
Access to cinemas and indoor F&B units is
remained essentially flat, as these types of
September throughout the country, as the
only allowed for customers who present the
assets continued to produce positive results
modern retail stock in Romania reached 4.04
Digital Covid Certificate, as new restrictions
in spite of the governmental restrictions. The
million sqm, reflecting an average density of
were imposed in Q4 to mitigate the effects of
headline rent achieved for 100 sqm units in
209 sqm per 1,000 inhabitants.
the most challenging wave of the pandemic in
dominant shopping centres in Bucharest was
Romania so far.
of around EUR 75/sqm/month at the end of
Only one new retail scheme was delivered
decreased headline rents in several locations. However, rental levels in retail parks
Q3 2021, while in secondary cities, such as
in Q3 2021, namely Funshop Park Rosiorii de Vede (6,500 sqm GLA), the first retail park
NEW SCHEMES OR EXTENSIONS
Cluj-Napoca, Timisoara, Iasi or Constanta,
developed by the Polish group Scallier in
New schemes or extensions to existing proj-
headline rents in dominant shopping centres
Romania.
ects totalling around 120,000 sqm are under
ranged between EUR 40-50/sqm/month. In
construction and expected to be delivered by
tertiary cities, the level falls between EUR 27-
launched in H1 2021: Sepsi Value Center, with
the end of 2022, while other important proj-
32/sqm/month.
16,300 sqm GLA developed by Prime Kapital
ects amounting to more than 460,000 sqm
and MAS Real Estate, and the first phase of
are in different planning stages.
In addition, two other retail schemes were
“In line with our predictions at the beginning of the year, retail development
The most significant projects under
has slowed down in 2021, with developers
construction are the Prahova Value Centre
adapting their expansion strategies to the
in Ploiesti, the extension of Colosseum Mall
current market conditions. However, there
names entering the market during first nine
in Bucharest or the Barlad Value Centre in
are developers such as Scallier, Prime Kapital
months of the year. Cosmetics retailer My-K
the Moldova region. In terms of developers,
or Mitiska who have been betting on Romania
opened their first physical store in Timisoara,
Prime Kapital (in a joint venture with MAS
even during this period. The covid-19 crisis
while Anson’s, a multi-brand men's clothing
Real Estate), Scallier, and Mitiska still have
came at a time when developers on the retail
company, member of the Peek & Cloppenburg
the most consistent pipelines, all aiming to
market were in the process of shifting their
Fashion House Pallady, with 8,500 sqm GLA, owned by Liebrecht & Wood. On the other hand, we have also seen new
www.business-review.eu Business Review | December May 2016 2021
focus to convenience projects and to other
COVER REALSTORY ESTATE14 7
At the moment, there are new office
of 2020. The leasing activity was mostly
areas that had been unexploited before. The
buildings under construction and expected
driven by new demand, which accounted
low density of modern retail in most major,
to be delivered in the following 18-24 months
for 86 percent of the transacted volume.
secondary, and even some tertiary cities is
totalling around 280,000 sqm GLA. However,
Renewals accounted for only 14 percent of
opening the way for developers to move into
the new supply will gradually reduce, since
the transacted volume, so the vacancy rate in
new uncharted areas that can particularly
the pipeline for 2022 (138,000 sqm) is only
Bucharest continued to decrease, reaching 5.6
support small-scale schemes to complete the
slightly higher than the Q3 2021 completions.
percent, with an overall level of 4.7 percent
existing offer,” said Bogdan Marcu, Partner,
The office market remains attractive both
across Romania. Bucharest remains the pre-
for developers, who will remain committed to
ferred destination for companies in search of
the construction of new buildings in the com-
industrial and logistics spaces, having a share
OFFICE SPACES – NEW DELIVERIES IN BUCHAREST
ing period, as well as for investors, as they
of 65 percent of the Q1-Q3 transacted volume,
acquired office projects totalling almost EUR
while Timisoara, Brasov, and Cluj have been
In the third quarter of 2021, new deliveries
340 million in the first nine months.
the most active regional markets. Construc-
Retail Agency, Cushman & Wakefield Echinox.
of office spaces totalling 132,200 sqm were completed in Bucharest, making it the best quarter yet in terms of supply and bringing the total new supply in the first 9 months of the year to approximately 178,000 square meters. The new supply of office spaces during January-September 2021 was even higher than the level recorded over the whole of 2020, when new supply accounted for 155,000 sqm. The most relevant new office deliveries
“Office attendance is slowly starting to
tions went ahead at full speed on several sites
were J8 Office Park (46,000 sqm GLA) in
rise, with almost 50 percent of employees
during the summer, as developers managed
the Expozitiei area, U-Center I (32,800 sqm
having worked mainly from the office in the
to deliver new buildings with a total area of
GLA) in the Centre submarket, Globalworth
first half of the year, compared to just 36
over 130,000 sqm. The most significant deliv-
Square (29,100 sqm GLA) in Floreasca – Barbu
percent in May-December 2020. Moreover, a
eries were represented by LPP’s 22,000 sqm
Vacarescu and Dacia One (16,300 sqm GLA)
higher number of employees want to return
expansion of their distribution centre within
in CBD.
to the office for at least two days a week. In
WDP Park Stefanesti, while CTP completed
As such, Bucharest’s office stock has
this context, more and more companies have
the second phase of CTPark Bucharest North.
reached 3.13 million sqm (excluding owner-
configured their strategies pertaining to how
In total, the new supply reached 338,600 sqm
occupier buildings), while the vacancy rate
employees will work and therefore how they
in the first 9 months of the year, while prem-
recorded an increase up to 14.8 percent, a
will use the office space, which creates more
ises of over 260,000 sqm are under construc-
new record for the last 5 years. A significant
predictability on the office market,” said
tion and expected to be delivered by the end
gap remains in terms of the vacancy rates for
Madalina Cojocaru, Partner, Office Agency,
of this year. As such, the new supply for 2021
A and B class office buildings, with A-class
Cushman & Wakefield Echinox.
should exceed the 600,000 sqm threshold,
properties recording a vacancy level of 12.1
Prime headline rents in Bucharest
setting the scene for a positive 2022.
percent, compared to 23.4 percent for B-class
remained stable, ranging between EUR 18.00-
buildings.
18.50/sqm/month in the CBD area, while the
both consumption and industrial production,
Leasing activity significantly picked
Centre and Floreasca – Barbu Vacarescu sub-
developers are determined to expand their
up pace during summer, with 93,900 sqm
markets recorded values of EUR 17.50-18.00/
portfolios through new land or asset acquisi-
contracted in Q3 2021, thus bringing the total
sqm/month.
tions. Their optimism has been backed up by
for the first 9 months of the year to 212,900
“Encouraged by the positive evolution of
the strong demand recorded over the last 18
sqm, an 33 percent increase when compared
LOGISTICS AND INDUSTRIAL SPACES
months, which has materialised in a volume
to the same period of last year. Net take-up
The demand for logistics and industrial
of over 1.5 million sqm industrial and logistics
(excluding renewals) had a share of 56 per-
spaces reached 562,000 sqm during the first 9
spaces being leased in this period,” said
cent, a level mostly consistent with previous
months of this year, a slight decrease of only
Rodica Tarcavu, Partner, Industrial Agency,
quarters.
3 percent compared with the same period
Cushman & Wakefield Echinox.
www.business-review.eu Business Review | December 2021
8 REAL ESTATE
Luxuria - a unique living experience Developed by one of the biggest real-estate companies in Romania, Impact Developer & Contractor, Luxuria Residence is boosting the quality of living in the hottest development area in Bucharest. Modern architecture, large green areas, and upscale facilities foster the wellbeing of residents in this very well-positioned project near Expozitiei Boulevard, a location that provides easy access to transportation, office buildings, and entertainment in the north of Bucharest. All these unique features make Luxuria an excellent investment opportunity and a perfect place to live. By BR Team
L
uxuria comprises 9 buildings with
tioning, and generous indoor heights (2.8 - 3
designed Luxuria Residence with a keen
a total of 630 high-quality, move-in
metres), all of which perfectly complement
attention to green spaces and landscape de-
ready apartments. There are mul-
the overall high-class facilities of the project.
tails. There are around 10,000 sqm of green
tiple types of units, ranging from studios,
Luxuria is also the first BREEAM Excellent
spaces, covering about 43 percent of the total
flats with 2-4 rooms, duplexes, penthouses,
certified residential project in Romania, hav-
surface. Japanese gardens, modern urban
apartments with gardens or home office units
ing implemented the highest sustainability
furniture, and a fountain in the 2,500 sqm
designed to provide the perfect environment
standards.
condominium’s park are available to resi-
for home working. All the apartments have
dents all year round, offering a natural green
features such as sustainable construction
LIVING HARMONIOUSLY
oasis blended in a contemporary landscape.
materials, spacious terraces, efficient parti-
With healthy living in mind, architects
Luxuria’s upper class community can also
www.business-review.eu December Business Review | May 2016 2021
COVER REALSTORY ESTATE14 9
enjoy a modern, well-equipped fitness centre
surveillance, 24/7 human guard, and an
with exclusive access for residents. Network-
exclusive underground parking.
ing with other fine members of the community is facilitated by the 200 sqm lounge,
TOP-TIER LEASING
opened 24/7 for remote work, relaxation or
Leases are contracted directly with the
business meetings. Expats, local executives,
developer and come with an all-inclusive
and high-end professionals living at Luxuria
comfort package providing technical
benefit from concierge services, including
assistance, repairs, guarantees, registra-
reception services, controlled access, video
tion, and billing. Luxuria tenants get free access to the fitness centre and lounge area, as well as a guaranteed under-
The advantages of BREEAM Certification Designed to fit the energy class A and green buildings category, Luxuria is IMPACT's first upper-class project and the first residential development to receive this type of certification. The BREEAM level enhances residents' well-being while contributing to the protection of natural resources. The efficiency of the buildings means sustainability, green solutions, construction quality, consumption efficiency and, implicitly, cost reduction. To obtain this certification, starting from the initial stages of design and
ground parking space. The leased units are fully furbished and equipped with high-end home appliances such as electric stoves and ovens, dishwashers, double refrigerators, and washing machines. Flat amenities also include an underfloor heating system and air conditioning in all rooms. Luxuria's location completes the picture of harmonious living: 5-minute walks to the metro station and nearby academic campuses, 5-minute ride to Herastrau Park, 10-minute ride to Baneasa Shopping City, and 15-minute ride to the Bucharest International Airport.
construction, Luxuria Residence adopted strategies of sustainability and integrated design (intelligent design, special materials for increased energy comfort, smart partitioning) to ensure low energy consumption. There are multiple benefits for homeowners in BREEAM Excellent certified buildings: up to 13 percent lower maintenance costs; between 25 and 50 percent lower energy consumption; up to 39 percent lower CO2 emissions; up to 39 percent less water consumed; and up to 70 percent less waste. The efficiency of the natural light penetration inside the location brings the following advantages: the speed of learning increases by up to 26 percent, while productivity rises by up to 18 percent. At Luxuria Residence, the quality of indoor air is provided by wellchosen ventilation systems. Temperatures can be adjusted by each resident based on their preference. The standard for water consumption encourages the sustainable use of water both during construction and during operation.
"LUXURIA RESIDENCE IS OUR NATURAL ANSWER TO DEMAND FOR UPPER CLASS RESIDENTIAL PROPERTIES IN A FLOURISHING AREA WHICH HAS RECENTLY TURNED INTO BUCHAREST'S NEW BUSINESS HUB. WE ARE PROUD TO DEVELOP THE FIRST SUSTAINABLE COMMUNITY IN THE EXPOZITIEI AREA AND TO PROVIDE OUR CLIENTS WITH A HEALTHIER LIFESTYLE THROUGH OUR ECO-FRIENDLY BUILDINGS THAT MEET THE BREEAM EXCELLENT STANDARD AND OFFER GREAT AMENITIES TO RESIDENTS”, TINU SEBESANU, IMPACT DEVELOPER & CONTRACTOR
www.business-review.eu Business Review | December 2021
10 INTERVIEW
Flexibility is key for future real estate projects Fulga Dinu, Country Manager Operations at Immofinanz, sat down with Business Review to talk about the launch of the myhive flexible offices in Romania and discuss the company’s future projects on the retail segment. By Anda Sebesi What can you tell us about the refurbishment process at VIVO! Baia Mare and about the company’s future projects? Following the successful modernisation of VIVO! Cluj-Napoca in 2019, we are extremely pleased to have reopened the ground floor of
What does the concept of flexible offices look like and what can you tell us about the launch of the myhive flexible offices in Romania?
are negotiated or to how office spaces are
VIVO! Baia Mare, which is newly refurbished
used. It is essential to focus on clients’ needs
and ready to offer its customers a contempo-
and to meet them with professionalism. This
rary vibe, premium service, and improved
is our mission, as landlords: to support our
visit quality.
With our myhive office brand we have been
tenants in developing their business while
anticipating the hybrid work trend, offering
taking care of all aspects of the space in which
on the office segment, which aim to expand
a flexible and tailor-made office solution and
they operate, from providing greater flexibil-
the range of benefits we offer our tenants.
an overall upgraded office experience. We are
ity and an extensive infrastructure to offering
This year, IMMOFINANZ has continued the
currently exploring another level of customi-
a wide range of services and maintaining the
strategic expansion of its flexible interna-
sation to provide tenants with more flexibility
community spirit.
tional myhive office brand and acquired the
We also have two ongoing investments
Bucharest Financial Plaza office building
regarding contract terms, fluctuating office
(BCR). Current plans include its modernisa-
This product has already been implemented
In your opinion, what are the main trends on the office and retail market in Romania right now?
successfully in Vienna and Warsaw, and we
In the office segment, companies will con-
certification as a minimum. After the refur-
are currently working on its implementation
tinue to look for modern spaces to provide
bishment, the gross rental space is expected
across myhive buildings in Bucharest.
employees with the best working environ-
to total 27,700 sqm.
space needs, “all-inclusive” rental services or relocations within the myhive portfolio.
tion and conversion into a high-quality, green myhive building with a “Gold” sustainability
IMMOFINANZ constantly adapts to ten-
ment. However, we believe that there will
We have also signed a long-term rental
ants’ increasingly sophisticated needs, there-
be a greater focus on quality and adjacent
contract with Provita Group, a leading medi-
fore flexibility has become one of the main
services, which is why we will continue to
cal services provider, which will occupy a
pillars of the myhive concept.
invest in developing the myhive concept for
building in one of the largest office hubs in
all the office buildings in our portfolio.
Bucharest. This partnership will expand our
On the retail side, we have noticed the suc-
current offering with a high-quality medical
How are the myhive flexible offices unique from this perspective?
cess of centres with a wide offer of affordable
hub, increasing the location’s attractive-
Beyond companies’ growing concern for
products. Our STOP SHOP parks have proven
ness over the long term. The new hospital’s
health & safety and employee security, flex-
very efficient, with good returns and a flex-
opening is expected to take place in the first
ibility will continue to be highly sought after,
ible format that allows for a quick turnaround
quarter of 2022, after the required adapta-
whether it’s related to how rental contracts
in the event of a crisis.
tions are completed.
12 COVER STORY
www.business-review.eu Business Review | December 2021
RETAIL 2.0: E-COMMERCE GOES HAND IN HAND WITH OFFLINE SHOPPING The local retail market has had a difficult 2021 amid the many ups and downs of the covid-19 pandemic, even as Romanians have largely embraced the new normal. With a moderate growth recorded this year, e-commerce continues to be one of Romania’s star sectors. However, despite having a huge potential to grow in the coming years, online shopping will continue to complement the offline experience, and not eliminate it altogether, because the consumer experience and the human interaction factor are more important now than they’ve ever been. By Anda Sebesi
www.business-review.eu Business Review | December 2021
COVER STORY 13
2
021 was a more challenging year than the previous one due to a combination of stressors: the ongoing pandemic and restrictions, rapid changes in consumer behaviour, increased psychological pressure, economic and
political uncertainty, changes in the supply chain, the energy crisis, and rising inflation. This mix of factors has created a lot of pressure and amplified unpredictability, even in the short term. As a result, the volume and value of sales have fluctuated significantly, rising during periods with fewer restrictions and dropping once the pandemic hit new peaks. “It was quite a predictable evolution and it will unfortunately generate big gaps in the economy through a domino effect,” says Catalin Pozdarie, CEO at Hervis Sports Romania. But Adrian Ariciu, CEO at Metro Romania, says that the slight increase in sales this year has led to a relatively stable level for the local retail market. He adds that Romania has shown a high appetite for consumption in recent years, especially on the food segment, and hence he expects this upward trend to continue in the future, but at a lower pace. “There is a great opportunity to create added value in locally processed products,” says the CEO of Metro Romania. The company ended last year with a turnover of RON 6.1 billion, a 5 percent increase from 2019, and aims to post another one-digit growth next year. Currently, hospitality customers generate 20 percent of Metro Romania’s total sales, resellers account for 60 percent, while the remaining 20 percent comes from small enterprises (offices, associations, kindergartens). Also this year, Metro Romania has continued to rapidly expand its LaDoiPasi franchise network, reaching 1,630 stores nationwide. “As a result, it is the largest network of independent stores in Romania right now and we want to expand to 2,000 stores by 2023,” Ariciu says, adding that this expansion is the result of the development of convenience retail, which performed well during the pandemic. According to Sebastian Mahu, head of asset management at Iulius, 2021 will be well above 2020, but still below 2019, following the impact of the restrictions which are still in place. “Although there were times during the year (spring to summer) with footfall and sales results that were comparable to the pre-pandemic period, November 2021 saw a 25 percent decline from the summer levels, following the implementation of green certificate-based access to shopping centres,” he says. This year, the company has focused on supporting the local entrepreneurs and producers in its portfolio, who are finding it harder and harder to cope with the extended crisis period. “This year we launched the Go Local programme, helping local entrepreneurs enter Iulius projects with rent-free periods and advertising packages,” Mahu says. He adds that in Iulius’s case, building a relationship based on trust and mutual support with its partners has helped it find a balance in the tenant mix. “This has allowed us to continue our opening plans with new brands entering the portfolio, as well as to maintain a vacancy rate of around 1 percent while also signing important collaborations for projects we have under development, particularly Family Market.”
A ROBUST SHIFT IN CONSUMER BEHAVIOUR Consumer behaviour saw significant changes during the pandemic, with a majority of consumers having adopted online shopping and therefore retailers have had to quickly adapt to the new normal as well. “We saw many of our clients adopting a more active lifestyle and paying more attention to their food and quality of life. We also witnessed a shift towards locally made products in order to support both the Romanian economy and local producers,” Pozdarie says.
www.business-review.eu Business Review | December 2021
14 COVER STORY
Along the same lines, Geanina Ungureanu, Senior Asset and
and shops looking to join Glovo. “It is not just a way of making
Leasing Retail Manager at Immofinanz, says that another major
sure they’re able to continue operating during this period, but also
trend among Romanian consumers has been the reduction of
because consumption habits have changed a lot over the last couple
budgets for non-essential expenses, as the pandemic has led to con-
of years,” he argues.
siderable changes in buying criteria. As a result, quality became the
The resilience of retail business models or concepts amid differ-
main factor, followed by price. “The
ent crises might be what makes the
volume of purchases has increased,
difference between success and failure
with a migration to local products at
in the future, as uncertainty could be
the expense of imported ones,” she
the key word for both the business en-
says.
vironment and society. From this point
Fulga Dinu, Country Manager
of view, Ariciu of Metro Romania says
Operations at Immofinanz Romania,
that a customer-centric approach—a
shares the same opinion when it comes
business model that Metro has adopted
to consumer behaviour. She says
too—,which focuses on customers’
that visitors of the company’s shop-
needs and expectations, is crisis-
ping centres have developed more
resistant. This is because it is based on
targeted and well-defined objectives.
simple things like competitive prices
“Plus, they’re focusing on affordable
and shelf availability.
products and discount stores, which is
At the same time, Dinu of Immofi-
typical for difficult economic times.”
nanz Romania says that the company’s
But she says that recently, things have
STOP SHOPs are a cost-efficient,
started to return to normal, pre-pan-
high-yielding, and crisis-resilient retail
demic behaviour. Dinu adds that today’s shoppers are demanding a safe environ-
format. “An important aspect of these centres is their focus on low-cost convenience products, which are
ment, but also a smoother, more convenient shopping experience.
very popular with consumers in difficult economic times. This con-
She notes that the customer journey has been evolving for some
cept has proven successful during the covid-19 pandemic.”
time now. “It is no longer simply about visiting a store; it involves an overall brand experience through the omnichannel platform:
Last but not least, Ariciu highlights another trend that is starting to take over the Romanian retail market. “Some retailers have made
having done their research online,
the transition towards business models
customers arrive at the store knowing
like ‘buy online and pick up from the
exactly what they want.”
store.’ In fact, Metro has accelerated its
Asked about consumers’ shopping
digitalisation process so that through
behaviour during the pandemic, Mahu
its digital services—the Dish platform
of Iulius says that the pandemic has al-
for hospitality businesses, the Mshop
ready shaped new shopping habits and
ordering and delivery platform, and the
will continue to do so. “As an immedi-
Metro digital application that helps any
ate impact, we noticed a drop in the
professional customer easily manage
average number of visits per month,
shopping lists or invoices—the com-
while the length of the visits increased.
pany has streamlined its interactions
Similarly, we noticed that restaurants
with clients.
and outdoor spaces have become an important anchor, with people looking
OFFLINE SHOPPING WILL SURVIVE
for a safe space in terms of medical
"Although online shopping is increas-
safeguards for social interactions.”
ingly widespread, owners of shops,
Nowadays, he adds, the consumer is
small restaurants or cafes need to
less focused on access to products and
remain competitive and proactively
more interested in making the most
encourage customers to visit their
out of personal time, experiences, and socialising. As the pandemic’s strongest impact has been at the psychological
physical locations,” argues Ariciu of Metro Romania. He notes that despite the fact that it has contributed to limiting the covid-19 outbreak, social distancing has been a
level, the last two years have marked a shift in personal priorities.
double-edged sword: while it’s been good for the public health, it
That is why Glovo SEE regional general manager Victor Racariu says
has had a negative impact on all businesses, whether small or large.
that the company still sees growing interest from new restaurants
“As a result, retailers in every industry are looking for ways to keep
www.business-review.eu Business Review | December 2021
their customers by offering the right prices and offers,” Ariciu says. According to Dinu of Immofinanz Romania, digital transforma-
COVER STORY 15 model that allows it to grow through both the online and offline channels,” he notes.
tion will continue to evolve as fast as it has done over the past two years, and online shopping will complement offline shopping, but
BRIGHT FUTURE FOR E-COMMERCE
they will not eliminate each other, because the consumer experi-
For Hervis Sports Romania, its online channel played an impor-
ence and the human interaction factor
tant role this year too, as many of its
are more important now than they’ve
customers maintained their prefer-
ever been. “The 93.8 percent occu-
ence towards online shopping. But
pancy rate we have in VIVO! centres
the company will record lower sales
at the group level, the constantly
levels this year compared to 2020,
growing footfall figures, and the high
when it operated exclusively online for
demand for commercial spaces from
a long period of time. “We will not hit
international brands all stand as proof,”
a new record this year, but we are still
Dinu explains. “Shopping centres will
seeing growth compared with the last
need to build broader, more dynamic
‘normal’ year,” Pozdarie says. Speaking
experiences that people can’t find else-
about the development of e-commerce
where. Landlords and retailers need to
in the coming period, he predicts that
collaborate creatively to drive footfall
the digitalization trend will continue
and boost dwell times to increase their
next year too, regardless of situa-
revenue productivity,” she says, adding
tions that might be generated by the
that there are also strategies based on
pandemic. “We all know that Roma-
creating mixed-use spaces that bring
nians are big consumers of internet and
together residential, office, entertainment, leisure, health and wellness, and other novel experiences. Along similar lines, Ungureanu of Immofinanz says that retailers’ biggest challenge nowadays is to continue to improve the customer
technology. Hence, companies that will manage to deliver as quickly and conveniently as possible for their customers will be the winners in the near future.” Moving on to the hospitality sector, the pandemic has caused
experience and make the most of the advantages offered by offline
restaurants and businesses all over Europe and the world to cease
compared to online. She adds that despite the health crisis having
their normal operations. As a result, we’ve seen a noticeable growth
affected the majority of the company’s
of the delivery industry and of the
tenants, traffic is now recovering in
number of users of food delivery
VIVO! shopping centres.
services. “It’s safe to say that, even in
“Even with some restrictions in
the second year of the pandemic, we’re
place, we have returned to pre-pan-
still seeing an accelerated migration
demic footfall levels. We are confident
towards online ordering, thanks to the
that shopping centres will remain the
convenience and speed of delivery,”
main shopping destination for Roma-
says Racariu of Glovo SEE.
nians, and from this point of view, we
By the end of the year, the company
are preparing and adapting them to
estimates that it will reach a traded
the new market conditions. The most
value of approximately EUR 260 mil-
recent example is the refurbishment of
lion on the Romanian market. “The
VIVO! Baia Mare, which followed the
increase is also due to the continuous
upgrade of VIVO! Cluj-Napoca in 2019.
investment in the Q-Commerce depart-
Future refurbishments will include
ment. We launched Glovo Express in
VIVO! Constanta and VIVO! Pitesti,”
Romania this year, and so far we are
Ungureanu adds.
operating 12 Micro Fulfilment Centres
Nevertheless, Pozdarie of Hervis
(MFCs) in six Romanian cities: Bucha-
Sports Romania points out that inter-
rest, Brasov, Cluj-Napoca, Constanta,
national studies show that once consumers adopt online shopping,
Iasi, and Timisoara,” Racariu says. Glovo Express allows users to
many of them either never go back to their old offline shopping
order up to 2,500 products through the app. In addition, the com-
behaviours or only still visit physical stores extremely rarely. But
pany also recently launched Glovo Concepts, a brand new portfolio
there are also many customers who prefer to see and try out prod-
of virtual food brands designed to help partners grow their business
ucts before they buy them. “In such a context, it is important for
offerings while expanding the level of food choice and quality for
the retail sector to adapt to the new reality and find a new business
consumers.
16 COVER STORY
As for the future, Racariu says that Quick Commerce repre-
www.business-review.eu Business Review | December 2021
development depends on several factors—from digital literacy to
sents the evolution of consumer habits towards instant delivery.
synergies between e-commerce and the delivery sector. “Creating a
“Through it, consumers can purchase exactly what they need,
virtuous circle where we create value for our customers through in-
when they need it. So, I think that pandemic waves will have a
novation and continued investments in technology is the approach
strong impact on e-commerce, but also
we’re banking on to ensure the growth of
that e-commerce will continue to have a
the delivery industry,” Baltaru adds.
well-established place in our lives after the pandemic ends.” In his opinion, the future will bring more mobile shopping
INDUSTRIAL AND LOGISTICS GAINING MOMENTUM
and solutions that will respond to this new
2021 is considered to have been another
demand. Also, as e-commerce players will
excellent year for the local industrial & lo-
collect and leverage more data, they will be
gistics market, sectors that are still gaining
able to create new, amazing experiences for
from the momentum created by the disrup-
shoppers that will feel tailor-made. “In the
tive events of 2020. Although the first nine
future, even more than today, personalisa-
months of 2021 saw about 460,000 sqm of
tion will make the difference between a
industrial spaces being leased throughout
regular delivery service and one that is fast
Romania, 31 percent below the same period
and actually responds to a consumer’s im-
of the previous year, the Q1–Q3 total leas-
mediate need,” Racariu concludes.
ing activity (TLA) makes 2021 one of the best years for the industrial market.
MODERATE GROWTH FOR THE DELIVERY MARKET
“Romania is an emerging market that is growing and improving every year. This
The second year of the pandemic crisis brought a moderate increase
makes us very optimistic about the future of our sector, as we know
for the Romanian delivery market compared to 2020. Less restric-
that there is still plenty of space to evolve, develop new projects,
tive measures, the pandemic routine, and the adoption of an “inter-
and bring added value to the industry,” says Sinziana Pardhan, man-
mediary new normal” continued to influence consumer behaviour
aging director of P3 Romania. As for the company she runs, she says
and generated a less accelerated development of e-commerce in
that both locally and at the group level, P3 has recorded very good
Romania.
results over the past couple of years. “This year we have managed to
But Lucian Baltaru, CEO at Sameday, says that his company has
achieve outstanding results in terms of leasing, and by the end of Q3
kept its focus on value creation for its cus-
we are happy to report an occupancy rate
tomers and on making business decisions
of 96 percent across our entire portfolio.”
that truly address their needs. “Our invest-
According to CBRE data, at the end
ments thus increased to EUR 50 million this
of the third quarter of 2021, Romania’s
year, with a focus on technology in order to
modern industrial stock amounted to 5.42
optimise our delivery and sorting capacity
million sqm after the delivery of approxi-
and harmonise our internal processes with
mately 280,000 sqm throughout the year.
our clients’ expectations,” he says.
“Representing half of the country’s stock,
In addition, based on the rapid growth
Bucharest is the main scene of action for
of online stores, Sameday started its inter-
logistics players, usually being the first area
nationalisation last year. “One year after we
when they decide either to invest, develop
made this step, we’re seeing encouraging
or lease,” says Daniela Gavril, head of
results in Hungary, where we made over
research at CBRE Romania.
350,000 deliveries in November alone,” he
In terms of the new supply distribu-
says. The company has also invested in the
tion in Bucharest the same date show that,
development of the easybox locker net-
the west and north-west development
work, which has grown tenfold in the last
areas continue to add to their modern
two years, reaching more than 2,600 locations now. “The increasing
industrial stock, with established developers in the area expand-
adoption of this service proves the need for delivery solutions that
ing their premises. The north-west part of Bucharest is the city’s
give the customer control and provide them with flexibility and
newest industrial hub, accounting for 17 percent of the capital’s new
convenience. For 60 percent of the online shoppers, the existence of
deliveries. The largest surface delivered in this part of the city dur-
the locker system has an impact on their purchasing decision.”
ing the third quarter of the year was the second phase of the Chitila
In Baltaru’s opinion, there is huge potential for online retail
Logistics Hub developed by Global Vision, increasing the project’s
to develop further, both in Romania and in the region. But that
total leasable area to 37,400 sqm after the delivery of 15,000 sqm.
www.business-review.eu Business Review | December 2021
“If we look at figures, we’ll see that retailers and automotive players were the main drivers of demand in the first three quarters
COVER STORY 17 list for investors for two years in a row now,” Gavril concludes. As Pardhan of P3 Romania says, market conditions for the fur-
of the year, jointly claiming 39 percent
ther development of the logistics segment
of the total leased area. Two of the most
are looking very good. “With the accelerat-
disrupted sectors are strengthening their
ed adoption of e-commerce and the organic
positions in a rebound effort that proves
growth of the retail and logistics sectors
the strategic importance of our country for
which will require some players to set up
the companies operating in these fields,”
large regional hubs, we will definitely see
Gavril notes.
an increase in terms of demand volumes in
The analyst add that the logistic sec-
the coming period. I am positive that some
tor continues to play an important role
new projects, as well as expansion inten-
in the Romanian economy, and that new
tions will be announced during the course
infrastructure deliveries, though still
of the following year.”
insufficient, will further contribute to its importance. “Even if we do need more manufacturing companies, two thirds of the total leased area were generated by
HOW DOES THE FUTURE LOOK FOR THE RETAIL SECTOR? Looking to the future, the Iulius represen-
storage, distribution, and logistics as the main purposes for which
tative remains moderately optimistic about 2022, when uncertain-
tenants required an industrial space. These three segments are
ties related to the pandemic will continue to shape the general
responsible for 30 percent, 23 percent, and
outlook. “Fortunately, nowadays we have
15 percent respectively of the total leased
become more resilient and have new tools
area,” she says.
to do business in this new context. But I
The nearshoring and redesigning of
think success in retail and shopping cen-
supply chains has created a movement
tres will be built around extremes. Super
that will continue for a few years, and this
regional centres that focus on experience,
is a great opportunity for the Romanian
entertainment, and diversity in terms of
industrial & logistics sector to seize. “Al-
shopping will continue to grow; on the op-
ready under construction at the end of the
posite end of the spectrum, retail parks will
third quarter of the year are about 700,000
be champions in terms of efficiency and
sqm, which are expected to be added to
convenience. However, projects between
Romania’s industrial stock by the end of
these two extremes will have to suffer,
2022, pushing the country’s modern stock
failing to provide relevant services to
over a new threshold of 6 million sqm,”
increasingly demanding consumers,” Mahu
says Gavril.
predicts.
As for the main drivers of the industrial
He adds that as far as Iulius is con-
and logistics sector, Gavril says that e-commerce has established
cerned, he expects a V-shaped evolution, with lows generated by
itself in retailers’ businesses and customers’ preferences and thus it
pandemic waves and solid recovery periods in between. “By the
is expected to intertwine with the tradi-
end of 2022, our performance should be at
tional way of buying things. “It is only up
least comparable to our 2021 results,” he
to retailers to choose the way they integrate
says.
the omnichannel approach into their selling strategies.” “Moreover, with the ongoing uncertain-
In turn, Ungureanu of Immofinanz says that flexibility and adaptability are key nowadays. “We plan to further develop our
ties related to future pandemic restrictions,
VIVO! portfolio through these upgrades,
industrial players, whether they operate in
but we’ll also upgrade STOP SHOP, our
logistics, distribution, storage or manufac-
retail park brand. This will most likely be
turing, aren’t willing to confront any more
the biggest trend of the coming period—the
major supply chain disruptions and are try-
focus on medium and small cities, with
ing to strategically place themselves near
formats built on convenience, neighbour-
their customers. These factors, along with
hood, and the creation of community
others, should maintain the demand for
shopping centres where service diversity
logistics spaces on the upward trend that
and safe family areas will be paramount for
has placed this sector on the most wanted
customers,” she says.
18 MAIN STORY
www.business-review.eu Business Review | December 2021
Shifting towards a new reality Accept. Adapt. Be flexibile. Provide constant feedback. See work as an output rather than an input. These are some of the key principles that HR departments in both Romanian companies and multinationals operating on the local market should live by from now on. HR specialists attending the 6th edition of BR’s Working Romania #futureofwork event last month highlighted the biggest changes the pandemic has brought to the local labour market, focusing on remote or hybrid work as the new way of working—now and in the future. By Anda Sebesi
www.business-review.eu Business Review | December May 2016 2021
T
COVER MAIN STORY 19 14
he covid-19 pandemic has changed
future, because employees will be putting
the way we work, live, and socialise.
more pressure on their employers to work
As a result, hybrid and remote work
abroad, therefore companies will have to find
became one of the most visible trends on the
relevant solutions,” says Madalina Racovitan,
labour market, and it is predicted to become
tax partner and head of people services at
even more prominent in the future. Both
KPMG in Romania. In the current context,
locally and globally, the new way of working
she recommends that each company have a
has been adopted by many organisations that
remote work policy which might include a
must now find ways to adjust their interac-
series of details like the number of days that
tions with employees and their HR processes
can be spent in the EU zone.
in order to cope with this new normal. “Remote work is the new reality to which
In addition, in sectors such as oil & gas, workforce migration to the Middle East, the
we need to adapt. We’re seeing an upsurge
UK or Germany is based on the job security
in searches for remote jobs; it’s now among
these countries can offer. “There is no interest
the top three search criteria on our platform.
for this field in Romania, but we can increase
This proves that remote work is at the core
retention by adopting and implementing
of the new wave of employee expectations.
the offshore law, which could create around
Jobs listed on our platform as being remote or
40,000 jobs in related industries,” says Tecu
hybrid have a larger number of applicants and
of Procer.
we think that at the beginning of 2022, about
Along similar lines, Romulus Badea, tax
25 percent of open positions on BestJobs will
partner at Soter & Partners, says that working
offer one of the two options,” says Andrei
from home has opened up opportunities for
Frunza, CEO at BestJobs.
Romanians to work for foreign employers.
According to a global study conducted by
“American or British companies hire remote
Adecco, titled Resetting Normal: Defining the
workforce in Romania. Althoguh they still live
New Era of Work, just 43 percent of Roma-
in Romania, these employees are no longer
nians want to work remotely. By comparison,
available for local companies and this affects
53 percent of global workers incline towards a
the Romanian labour market. This is where a
hybrid work model, which implies that more
concept like employer branding comes into
than 50 percent of their time spent at work is
play, because we all need to remain competi-
remote. In addition, “7 out of 10 employees
tive on the local market, yet in an interna-
say that they have the logistics they need to
tional environment,” Badea says.
work from home now. Still, I think it should
Paula Rus, The Adecco Group: Companies are now trying to align their internal statements to both existing employees and talents and to the potential employees they might be looking to attract, either because their business is growing or because they want to develop it in a different way.
The so-called “great resignation” phenom-
be a compromise between what a company
enon, which is also increasingly visible in
can accommodate and what employees want
Romania, is another workforce trend of 2021.
as working conditions,” says Paula Rus, opera-
“The reason why this phenomenon appeared
tions manager at The Adecco Group.
was that last year, some employees who tried
But remote work is not an appllicable
Mihai Gavan, TotalSoft: The classic evaluation that would be carried out once every 6-12 months is no longer relevant, as the majority of employees are working from home and the company must understand how each of them is perceived by other teams.
to keep their jobs amid the high uncertainity
Andrei Frunza, BestJobs: I think we’re entering a new paradigm, where we’re beginning to define work as an output rather than an input. We can no longer look at the amount of time an employee spends at work, but at the result of their efforts.
solution for some sectors, including hospital-
came to the conclusion that their employers
ity and oil & gas. “In our industries, it is very
were no longer meeting their needs. In a situ-
difficult to work remotely because it is about
ation like this, organisations must act in order
operating personnel whose presence at work
to protect their entire business model,” says
is mandatory,” says Sorina Tecu, recruitment
Racovitan. Their action must be built in three
ested in professional options that meet better
manager at Procer WorldWide Technical Ser-
main directions: rethinking their organisa-
their expectations. This translates into a great
vices. The company provides project services
tional culture, streamlining their processes
challenge for companies when it comes to
and engineering and construction consul-
and offering a better working experience for
retaining these employees,” says Frunza.
tancy for sectors like oil & gas, power, civil &
their employees.
infrastructure, and other related industries.
But Frunza of BestJobs says that the great
Rus of Adecco Group shares the same opinion about staff retention and says that
resignation comes along with the great em-
companies are now trying to align their
become more interested in working abroad,
ployment, as a large number of fresh employ-
internal statements to both existing employ-
a trend that brings on a series of challenges
ees will be looking for a more suitable job.
ees and talents and to the potential employ-
for both employers and their employees.
“According to our data, there is a new pool of
ees they might be looking to attract, either
“Right now this trend is still in its infancy on
candidates – either new profiles or existing
because their business is growing or because
the local market, but it is going to grow in the
but less active ones – who are becoming inter-
they want to develop it in a different way.
As a novelty, Romanian employees have
www.business-review.eu Business Review | December 2021
20 MAIN STORY
Sorina Tecu, Procer Worldwide Technical Services: Professional reconversion is valid for many sectors, but I think that it could be done with the support of the Labour Ministry and in partnership with local companies, which can promote available positions that might require professional reconversion among unemployed individuals.
Romulus Badea, Soter & Partners: American or British companies hire remote workforce in Romania. Althoguh they still live in Romania, these employees are no longer available for local companies and this affects the Romanian labour market. This is where a concept like employer branding comes into play.
can no longer look at the amount of time an
that professional reconversion for operational
employee spends at work, but at the result
specialists working in the industry could be
of their efforts. It is a shift that brings some
implemented successfully in Romania, too.
important changes for every company. We
“This is also valid for other sectors, but I
need to rethink our performance manage-
think that it could be done with the support
ment,” says Frunza of BestJobs. In addition,
of the Labour Ministry and in partnership
Rus of Adecco Group says that one of the key
with local companies, which can promote
areas where to look for balance between the
available positions that might require profes-
needs of employees and employers could be
sional reconversion among unemployed
the staff’s productivity level, rather than flex-
individuals.”
ibility in terms of working hours. “This is an
Speaking about digitalization, Gavan of
area where some common ground could be
TotalSoft says that there are two sides of the
found between the two parties,” she notes.
phenomenon: the automation of HR process-
Last but not least, Frunza thinks that it
“In the past, recruiting and hiring processes
they start seeing their teams and employees
depended on physical presence, but today
as business partners, and that this could help
this presence could be minimal or inexis-
grow their business and profitability. “My
tent. We have processes that allow us to hire
recommendation would be to see the work
people using a chatbot, while the employee
as an output in terms of its effectiveness and
gets the hiring documents via email and uses
performance.”
an e-signature to sign them. In addition, all the needs of an employee could be met using
DIGITALIZATION IS KEY
technology, so their physical presence is not
The digitalization of HR and other business
required.” Gavan adds that digitalization has
processes that have a significant impact on
had an impact on the evaluation process, too.
the workforce is not something new on the
“The classic evaluation that would be car-
local market. But now, the role of HR depart-
ried out once every 6-12 months is no longer
ments becomes crucial. “Its role today is to
relevant, as the majority of employees are
understand those jobs that will be the most
working from home and the company must
affected by digitalization and to contribute to
understand how each of them is perceived by
the retraining of the most affected employees
other teams. It is all about constant feedback,
in order to find new jobs in the new way of
which can help an employee identify the
working,” argues Racovitan of KPMG.
skills they ought to improve at a specific point
Sharing her opinion, Tecu of Procer says Madalina Racovitan, KPMG in Romania Right now working abroad is still in its infancy on the local market, but it is going to grow in the future, because employees will be putting more pressure on their employers to do so, therefore companies will have to find relevant solutions. “There is a workforce shortage, and both white and blue collar workers have become
Global Sales Director at TotalSoft.
A PARADIGM SHIFT
• • • • • •
The significant changes on the labour market are testing companies’ ability to adapt to
•
the new reality and to redefine their internal processes. “I think we’re entering a new paradigm, where we’re beginning to define work as an output rather than an input. We
in time,” says Gavan.
8 facts about the local labour market
more selective regarding employers and working conditions,” says Mihai Gavan, HCM
es and the digitalization of employees’ needs.
could be a bold step forward for companies if
•
In 2022, companies should focus on multiculturalism and on the integration of foreign employees. The local market is experiencing a paradigm shift: in the past, in most sectors, candidates were the ones looking for jobs; today, we’re seeing a rise in headhunting. The number of employees working remotely has increased four or five times since the pandemic began. Investments in digital transformation and automation that were too bold before the pandemic have become key tools for survival in the current context. Companies should create specific frameworks for well-being in order to meet the needs of their employees and address their mental, physical, and financial health. Companies should pay greater attention to their team leaders in order to help them manage mixed teams that include employees working from home and from the office. Though many business processes can be digitalized, emotions, feelings, and human interactions that harness creativity cannot be moved online. Companies should create a mixed reality that combines digital and physical presence. All organisations will have to focus on flexibility, agility, and resilience, as well-being is a dynamic concept.
www.business-review.eu Business Review | December May 2016 2021
COVER MAIN STORY 21 14
Flexibility helps companies attract and retain talent On a labour market that is dominated by fierce competition between companies trying to attract and keep talent, employee retention is a serious challenge for HR departments. Regardless of their size or industry, organisations are making significant efforts to identify the elements that make or break an employee’s decision to stay in a company. By Anda Sebesi & Aurel Constantin our existing culture and the ways in which we work and interact with our employees,” Neamtu adds. Since it’s becoming abundantly clear that the future belongs to hybrid work, Luminita Florea, people & culture director at Philip Morris Romania, thinks that the common struggle for both employers and employees is the fact that we still don’t have all the answers about this new way of working. “Some companies conduct tests among their employees to see how they handle the mix between working from home and working from the office. But I think that the best approach is accepting the uncertainty and the fact that we are moving into a certain direction, testing things out, adjusting, and keeping the things that work,” Florea argues. With that in mind, she says that customising working schedules based on the needs of employees could be a valid solution. “We’ve conducted several surveys among our employees and found out that about 10 percent of them would prefer to go to the office on a permanent basis because they feel more productive there.” Florea adds that while the work from home option was rarely used by its employ-
“
If companies force the return to the old way of working from the office, they might not be able to attract new talent
ees before the pandemic, the outbreak of covid-19 made it crucial for the company to develop managerial skills that were adapted
In our view, retention starts with
says Gabriela Neamtu, head of corporate
to remote work. “We run a management
the ability to articulate what type of
centre & HR at Mol Romania.
development programme for managers of
organisational culture we have and
The Group has a programme called Calcio
remote teams as well as a series of trainings
with the beliefs and behaviours that make up
2030, which is intended to align the compa-
for these teams to help them understand why
this culture. If we hire people who resonate
ny’s organisational culture to the strategy it
the paradigm has changed. As a result, online
with these elements, then both retention and
has announced for 2030. “In order to support
collaboration is currently integrated at all
satisfaction among employees will increase,”
all the changes, we first need to understand
levels.”
www.business-review.eu Business Review | December 2021
22 MAIN STORY
According to the Philip Morris Romania
employees. “All these initiatives represent
representative, the company is now focused
a solid foundation for a coherent wellbeing
on imagining how its business and the lo-
strategy. We went from a reactive approach
cal labour market will look like in the next
to a preventative one,” Amza explains.
three to five years, trying to understand how Alina Amza, Superbet: Attention has shifted from performance, retention, and productivity towards caring for our people. The HR team has played a crucial role in supporting employees and keeping them connected while working online, allowing them to talk to a specialist when they faced stress or anxiety, and helping them feel safe from a financial perspective. All these initiatives represent a solid foundation for a coherent wellbeing strategy. We went from a reactive approach to a preventative one.
She adds that a key word related to
digitalization will impact the company’s
wellbeing—both in general and in Superbet’s
operations, and identifying the skills that
case—is co-creation or collaboration, mean-
should be developed right now in order for
ing that everything the company does in
current employees or those who will join the
this area is developed through collaboration
company in the near future to be successful
with its employees. “Wellbeing should be
in their careers. And this is even more impor-
multidimensional because it is influenced by
tant considering the fact that global studies
many factors. In addition, companies should
have shown that on average, people change
have a systemic approach, as all the employ-
their job 11 times during a 30-35-year work
ees and leaders of an organisation have a
life. “Advancement could be achieved by
role in enhancing the impact of wellbeing.
either improving existing skills or acquiring
Plus, there is a need to customise wellbeing
new ones,” says Daniela Vercellino, human
interventions according to the specific needs
resources director at Societe Generale
of a group of employees.” International research has
Global Solution Centre. The
shown that about 25 per-
company recently developed a redeployment
cent of the European
programme designed
workforce suffers from an undiag-
to create new Luminita Florea, Philip Morris România: Some companies conduct tests among their employees to see how they handle the mix between working from home and working from the office. The best approach is accepting the uncertainty and the fact that we are testing things out, adjusting, and keeping the things that work. We’ve conducted surveys among our employees and found out that 10 percent of them would prefer to go to the office on a permanent basis because they feel more productive there.
career opportuni-
nosed emotional
ties inside the
disorder such
company. “It was
as anxiety or
a large project that
depression, with
proved that rede-
the coronavirus deepened these emo-
when you provide the
tions even more. “We
right tools,” she adds.
therefore decided to focus on this area, alongside parenting-
HOW COMPANIES FOSTER WELLBEING FOR EMPLOYEES
related and online fitness workshops. Our HR
The pandemic has highlighted the fact that
department played by far the most important
mental and physical health are crucial for an
role, as it led our management to switch-
employee’s wellbeing. As a result, companies
ing focus from delivery and productivity to
decided to make wellbeing a top priority for
employees’ physical and mental wellbeing,”
both their HR departments and leaders. “At-
Vercellino adds.
tention has shifted from performance, retenCristina Mancas, Schneider Electric: This year we started the Employee Assistance Programme, which gathers colleagues from the South East Europe region to offer support for employees and their family members on different topics like career opportunities or remote management. We also implemented Open Talent Market, a platform where Schneider’s worldwide employees can register as mentors. The project has brought a high level of visibility and transparency regarding open positions at the group level and has eased collaboration on projects.
pandemic having
ployment is possible
Elsewhere, Neamtu of Mol Romania says
tion, and productivity towards caring for our
that the company has tried to provide as
people. The HR team has played a crucial role
much relevant information as possible to its
in supporting employees and keeping them
employees, using a wide range of internal
connected while working online, allowing
communication tools: newsletters on various
them to talk to a specialist when they faced
topics (including legal topics with an impact
stress or anxiety, and helping them feel safe
on the company’s activity), letters from man-
from a financial perspective,” says Alina
agement, periodic online meetings to present
Amza, group wellbeing & inclusion director
the activity of each department, a Yammer
at Superbet. The company implemented an
channel, internal surveys to collect feedback
assistance programme, launched the OPAL
about flexi-work and working from home.
project, created an internal newsletter,
“We always disseminated the results of these
organised 80 workshops on various top-
feedback exercises, as we believe it is impor-
ics, and constantly communicated with its
tant for us to be transparent,” Neamtu states.
www.business-review.eu Business Review | December May 2016 2021
COVER MAIN STORY 23 14
As for Schneider Electric, Cristina Mancas, SEE HR vice-president, says that the company had a dedicated committee even before the pandemic, which would come up with different wellbeing initiatives for employees. Since the pandemic began, the company has organised many online workshops with a high engagement rate, townhalls, and faceto-face teambuilding sessions with a limited number of participants. “This July, we also started the Employee Assistance Programme, which gathers colleagues from the South East Europe region to offer support for employees and their family members on different topics like career opportunities or remote management.” Last but not least, the company has implemented Open Talent Market, a platform where Schneider’s worldwide employees can register as mentors. “The project has brought a high level of visibility and transparency regarding open positions at the group level and has eased collaboration on projects.”
FLEXIBILITY AS A CORE VALUE According to Pluria Romania co-founder Andrei Cretu, it is clear that companies should provide flexibility to their employees, as the new way of working is no longer linked to the office and organisations have access to talents worldwide. “The problem is how we organise hybrid work. We are now overwhelmed by messages about the new way of working, but it is obvious that everything is moving towards higher levels of employee autonomy.” Cretu adds that the company he co-founded has operations in Romania, Spain, and Columbia, and that its platform is specialised in managing hybrid work. “Using an app, employees can book a meeting room or an office at their company’s office building or at one of our co-working spaces.” He also points out that society is now at a tipping point, and if companies resist the change and force the return to the old way of working from the office, they might not be able to attract new talent or even lose the people they have. “Some studies show that 70-80 percent of employees value flexibility when they choose to work for a company. Employees need trust and autonomy. Only companies that offer these benefits can become sustainable in terms of their workforce,” Cretu concludes.
OPINION • Irina Tache, SAP The pandemic has made the world aware that you can adapt very quickly to the unpredictable. In order to embrace resilience, companies need employees who are as motivated and supportive as possible. The Future of Work concept is based on innovative technology. Two years ago, SAP started a transition from Human Capital Management to Human Experience Management, a cultural shift towards recognising employees’ entire experience in any kind of organisation. Technologies such as machine learning, AI, chatbots, and others help companies gain a much better understanding of their employees. The user experience part focuses on how people consume technology, while AI shows how repetitive tasks can be automated so that employees are free to focus on the creative side. But AI cannot infer the existence of information that the system is not aware of, it cannot answer questions that have not been previously conceptualised. Therefore, organisations must focus on employees, not just on automating tasks, and on skills that cannot be replicated by neither Machine Learning nor AI. But employees also need to share more of what they feel, do, and want, to make it easier for the company to understand. A fundamental concept says that people's satisfaction depends less on their position in the company and more on what they actually do inside that organisation. The Success Factors Opportunity Marketplace solution is built on this concept, gathering all HR data to connect people with opportunities. Employees are looking for the best job and the best salary; organisations are facing a battle for talent, especially in a time of skill shortages. Therefore, companies that ensure internal mobility, where employees can easily evolve, are the ones that will win this fight. There are organisations that have already implemented this solution and have managed to bring it to an advanced level, but many are still just beginning. Last year, SAP announced that it would accelerate investment in cloud solutions and help companies move to cloud setups so that they could be as resilient as possible in the future, as change is now the only constant. Gartner predicts that 80 percent of companies will stop using on-premise solutions by 2025. For SAP, user experience, analytics, and timetracking are major areas of investments, as these are elements that improve the relationship between employers and employees.
Daniela Vercellino, Societe Generale Global Solution Centre: International research has shown that about 25 percent of the European workforce suffers from an undiagnosed emotional disorder such as anxiety or depression, with the coronavirus pandemic having deepened these emotions even more. We therefore decided to focus on this area, alongside parenting-related and online workshops. Our HR department played by far the most important role, as it led our management to switching focus from delivery and productivity to employees’ physical and mental wellbeing.
Gabriela Neamtu, MOL Romania: Retention starts with the ability to articulate what type of organisational culture we have and with the behaviours that make up this culture. If we hire people who resonate with these elements, then retention and satisfaction among employees will increase. The Group has a programme which is intended to align the company’s organisational culture to the strategy it has announced for 2030. In order to support all the changes, we need to understand our existing culture.
Andrei Cretu, Pluria: It is clear that companies should provide flexibility to their employees, as the new way of working is no longer linked to the office and organisations have access to talents worldwide. We are now overwhelmed by messages about the new way of working, but it is obvious that everything is moving towards higher levels of employee autonomy. Employees need trust and autonomy. Only companies that offer these benefits can become sustainable in terms of their workforce.
www.business-review.eu Business Review | December 2021
24 MACROECONOMY
Key moments for Romania’s business image in 2021
Several Romanian brands have managed to promote themselves internationally in key places in major world capitals
Despite all the negative news related to the covid-19 pandemic and the fact that authorities haven’t always handled the issue in the most appropriate way, 2021 has meant more for Romania, and especially for its business environment, which has been promoting the local market on the international scene, albeit with baby steps. By Claudiu Vrinceanu
ROMANIA'S PROMOTION TO "EMERGING MARKET" STATUS
16,000 large, mid, small, and micro market
Carpatica, which two years ago displayed the
capitalisation companies in 49 developed and
Romanian flag all day on monitors in down-
The promotion of Romania's capital market
emerging global markets.
town New York. Bitdefender also promoted itself this year in Times Square, in the context
to "emerging market" status last year was
of the 20th anniversary of its launch.
equivalent to achieving EU membership. This
UIPATH IPO ON NYSE
year also saw the first concrete results of this
After a successful Series F funding that raised
upgrade, which have improved the image of
USD 750 million in February 2021, Romanian-
IT KEPT THE COUNTRY BRAND ON ITS FEET
Romanian companies globally.
born company UiPath went public in April
Romania moved up a position in the 100
2021. Its evaluation on the first day of trad-
most valuable country brands ranking, to
tion in the FTSE Russell indices has increased
ing on the NYSE was over USD 38 million.
reach 48th place. Romania's brand value has
from three to seven companies, from a highly
Analysts expect UiPath to generate USD 870
increased by 11 percent in the last year, to USD
diverse range of sectors, from energy and
million in fiscal year 2022 and USD 1.2 billion
178 billion, according to the Nation Brands
financials to IT.
in 2023. For the first time, a team of Roma-
2021 report by British consultancy Brand
nians were on Wall Street as stars on the stage
Finance. The rate of growth exceeds the aver-
when OMV Petrom and TeraPlast shares
of world capitalism. For a whole week, major
age 7 percent advance recorded globally.
were included in the FTSE Emerging Markets
business publications were talking about
Indices, joining Banca Transilvania (TLikV)
Romania, with the country's name positively
national brand value is still far from the pre-
and Nuclearelectrica (SNN). The global index
mentioned across news, interviews, and
pandemic level of USD 216 billion, recorded in
provider’s decision to include the two compa-
analyses.
the 2019 Brand Finance Nation Brands rank-
In just one year, Romania's representa-
The first step was taken in September,
nies validated the potential of the Romanian equity market and its dynamism.
The 11 percent increase is good news, but
ing. Romania scored well initially, and the
OUTDOOR PROMOTION
economy has recovered quickly. Still, recent
The shares of two other Romanian compa-
Thanks to communication agencies and digi-
failures in managing the chaos generated by
nies are also going to be included in the FTSE
tal platforms, several Romanian brands have
the pandemic and the vaccination campaign,
Emerging Markets Indices from December
managed to promote themselves internation-
compounded by a government crisis, will
20: One United Properties, a Romanian real
ally in key places in major world capitals. One
require strong political will to keep things
estate company, and Transport Trade Services
example is TPS Engage, a Romanian startup
on track. According to this year's report, the
(TTS), one of the largest freight forwarders in
that allows clients to digitally set their adver-
Romanian economy has held up “relatively
the Danube basin.
tising content on screens around the world,
well” during the pandemic, avoiding a severe
including in Times Square.
recession. The pandemic has also increased
The FTSE Russell Emerging Markets Indices are part of the FTSE Global Equity Index Series (GEIS), which includes over
The first company to do so was one of Romania's largest water producers, Aqua
reliance on digital infrastructure, leading to robust growth for the local IT sector.
www.business-review.eu Business Review | December 2021
ADVERTORIAL 25
Arcadia Medical Recovery Hospital, innovation for a better life sionals and patients. This hospital, a first for Romania, will offer an important solution for patients who need medical recovery in order to reintegrate into society, and for a better quality of life” – Dan Fiterman, General Director Arcadia – Hospitals and Medical Centers.
AN INTEGRATED EXPERIENCE FOR PATIENTS Arcadia Medical Recovery Hospital incorporates also an unique element of reintegration after the recovery process within a replica-house of the patient's home located in the middle of nature and inside the hospital. This important step allows patients to experiment and understand the type of lifestyle they will have after the hospital Dan Fiterman, General Director, Arcadia - Hospitals and Medical Centers
A
rcadia - Hospitals and Medical Cen-
investments to develop projects lead by empa-
ters, the largest medical network in
thy, passion, and innovation. By the same token,
Northeast Romania, will launch early
with an initial investment of over 10 million
next year the Arcadia Medical Recovery Hos-
euros, Arcadia Medical Recovery Hospital is an
pital, an innovative concept for the medical
integrated concept that provides a state-of-art
recovery of Romanian patients, and beyond.
treatment base which is unique in Europe. The
The medical services provided by the hos-
open-space of approximately
pital will target various medical specialties
1,500 square meters will include top equip-
such as neurology, cardiology, orthopedics,
ment, innovative technologies and ultra-modern
neurosurgery (pre and post interventional),
robotics. As such, the hospital is designed with
as well as pneumology.
an emphasis on seven main areas: robotic
Located on a field of approximately
recovery, evaluation and functional recovery,
20,000 square meters, and structured on
isokinesis, physiotherapy, virtual reality, physical
5 levels with an area of over 6,000 square
therapy and occupational therapy. In addition to
meters, the hospital building is based on an
personalized treatment procedures, the hospital
unique circuit for optimal medical recovery.
introduces a new concept of nutrition and
Given that, its services will be dedicated to
proposes new behavioral patterns for a complex
discharge in order to maintain the effects
patients with post-traumatic, musculoskel-
recovery of patients.
of recovery, involving also the family in the
etal, rheumatic, cardiovascular, neurological
“We know that patients choose Arcadia -
process of returning to a normal life.
or respiratory disorders who need medical
Hospitals and Medical Centers because they
recovery to regain mobility and the ability to
understand that they have access to a new type
period of 5 years, is an important answer for
move independently.
of health system, one that puts their needs first.
patients who need medical recovery at the
This means
highest standards. Arcadia Medical Recovery
The whole concept, developed over a
INVESTMENT IN STATE-OF-ART TECHNOLOGY
strategy that we design following a careful analy-
inaugurated in the first part of 2022, and is
At the core of the Arcadia – Hospitals and
sis of the health services market, innovations in
an important part of the Arcadia Medical
Medical Centers mission are the continuous
this field, and the signals we receive from profes-
Network.
a complex development program based on a
Hospital, a benchmark in the field, will be
www.business-review.eu Business Review | December 2021
26 IT SECTOR
Challenges for Romanian tech in 2022 The elimination of tax breaks for IT employees, the growing shortage of programmers, and the lack of support for internationalisation ventures are the three most pressing challenges for the Romanian IT industry, which generates over 6 percent of GDP. By Claudiu Vrinceanu
T
here is a lot of talk in the public arena today about eliminating the income tax exemption for employ-
ees in the IT, construction, and research sectors. According to the Finance Ministry, this measure would bring an additional EUR 600 million to the state budget each year. From the data and information available so far, 2022 may be the last year for these tax breaks. However, the tax exemption for IT employees is the foundation of financial stability
Many local IT companies believe that the industry does not necessarily need tax breaks
and predictability that has allowed the sector to grow remarkably over the last 20 years, according to the Employers' Association of the Software and Services Industry (ANIS). The
estimates that the country will have a short-
relationships with chambers of commerce or
organisation points out that fiscal stability
age of several hundred thousand engineers
embassies.
and predictability are essential to maintain-
over the next ten years.
ing the robust pace of growth and boost the positive impact that this sector has had in
But in Romania, things related to export promotion policy have been stuck for many
LACK OF SUPPORT FOR INTERNATIONALISATION
years, while other European countries are
recent years on GDP growth. Last year, about 103,000 IT employees benefitted from the tax
Many local IT companies believe that the in-
with authorities coming up with various
facility.
dustry does not necessarily need tax breaks,
programmes and support measures for IT
but that internationalisation is essential. The
companies that want to expand internation-
SHORTAGE OF PROGRAMMERS
Romanian market alone cannot absorb the
ally. There is also a pressing need for a new
Although Romania is the envy of other
capacity and financial pressures they all face.
national export strategy that is adapted to the
countries in the region in terms of IT&C
Firms need expansion on the global market
current economic context (post-covid-19/new
specialists, our country still faces a shortage
and more concerted support from the state
normal) and maps out export opportunities
of more than 15,400 programmers, according
through an internationalisation strategy for
for each county and industry. In addition, IT
to a study by programming school Codecool.
Romanian IT.
is the only field that can make Romania inter-
boosting the role of economic diplomacy,
Romanian tech startups also say they
nationally competitive, so creating an inter-
has been dealing with two major challenges:
don't need grants from the state. Still, a gov-
nationalisation programme for the industry
the existing shortage of IT specialists on the
ernmental partner should offer them support
– to include startups and scaleups – would be
market and a low number of new specialists
when they want to expand to international
a good idea. The programme could focus on
being trained by Romanian schools. The rec-
markets, in a similar fashion to what hap-
financial grants and international match-
tor of the Polytechnic University of Bucharest
pens in Israel, where companies form strong
making actions for Romanian entrepreneurs.
For several years now, the local IT sector
www.business-review.eu Business Review | December 2021
ADVERTORIAL 27
Canadian investor Michael Topolinski: The highs and lows in 15 years of uncompromising faith in Romania “Romania has a systemic problem with corruption,” Michael notes, recollecting the times he faced such situations himself. “It’s ironic that I came here in the very year that the first big corruption cases were investigated. 15 years later, Romania has come a long way but we still see some corrupt politicians, state institutions, paid media, and even ‘old guard’ business people thriving. As a foreign investor openly opposing ‘the corrupt system’, I have personally been attacked several times. I refused to be intimidated and never traded my values for a business opportunity.” Michael recalls a very difficult episode for his family after their newest company, Naguma Medical Supply, won a Ministry
I
of Health tender for medical masks, in the
n Romania’s history, 2006 is remembered
is the second one.” Fast forward 15 years and the
as the year when the mandatory military
Topolinksi family now runs a successful business
service was abolished and the big anti-
beginning of the COVID pandemic. “We fairly won the contract based on the
in Romanian real estate. Their company InteRo
lowest price, thus helping the state save EUR
corruption offensive began. It’s also the year
Group has assets exceeding EUR 120 million
25 million from the initial budget. This win at
when Canadian-born Michael Topolinski first
and a strong balance sheet, with only EUR 7
such a low price upset the ‘corrupt system’
came to the country. The thriving economy,
million in debt. Landmark deals include the 2012
and triggered a chain of unfounded public
mesmerizing consumers with the promise
purchase of 78,000 sqm on Progresului for EUR 21
attacks and libelous accusations against
of a better life, made the young investor
million, where Vulcan Value Center stands today,
me. Eventually, the court ruled in our favor.
realize the long-term potential of Romanian
and the largest transaction of 2019, when they
Delivering nationwide 103 million medical
Real Estate, which outweighed the risks and
sold half of Dacia Textile platform to Skanska
masks was a huge logistical endeavor in a
challenges one can expect in an emerging
Property Romania for EUR 23 million. Here, the
country with major infrastructure gaps but
market.
two companies are developing an integrated EUR
we kept a tight schedule, and worked 24/7 to
300-million project, at 43 Bucurestii Noi, a 197,000
take the much-needed masks to Romanians
global meltdown of 2008, which wiped out
sqm environmentally-friendly, state-of-the-art
in 41 counties. Months later, the media were
more than half of his investments.
technology IT campus.
calling us investigating why masks were still
He could hardly have anticipated the
“That was the year when my children –
“Our shared vision with Skanska is repre-
being kept in storages, because local authori-
now 29-year-old Michael IV, Tyler (27) and
sentative of our family business standards and
ties had not been able to distribute them.
Ashton (25) – first joined me in Romania, so
ethics,” Michael states. “We make a purpose of
And all this time, unfounded public attacks
it was tough for both business and personal
working only with highly ethical and fair com-
against my family - the private investor that
reasons. The crisis was a major hit to our
panies like Skanska, Lidl, Kaufland, Libra Bank,
had actually completed 100% of its contrac-
financial projections,” Michael recalls. “In
global investment funds from North America,
tual obligations in good faith - continued.”
the end, our portfolio was reduced from
Asia and nearby countries. I strongly believe this
800 to 300 apartments and I was not able to
principle is the only winning ticket for sustain-
cover all necessary investment, including
able businesses and healthy economies.”
bank loans. I never thought about giving up
Admittedly, it’s not always easy in a country
Did he lose faith? “Definitely not. There is much more to Romania than this. My children and I work with and meet great Romanians every day,
on Romania, though. Failure is the first vital
that is still a battleground for business ethics
and we are deeply committed to this country
lesson one learns in business. Perseverance
and fair play.
and its bright future.”
www.business-review.eu Business Review | December 2021
28 MEDTECH
Romania’s medtech ecosystem: top players & key insights Despite the enormous difficulties faced by the Romanian healthcare sector, the local medtech ecosystem has experienced sharp growth over the past two years. 2021 has been a year when healthcare has continued to accelerate its move into the digital space. The covid-19 pandemic was not the start of this revolution, but it most certainly was a major enabler. By Claudiu Vrinceanu KEY INSIGHTS
nance no. 196/2020, which amended Law no.
The covid-19 pandemic pushed patients to
95/2006 on healthcare reform. The update
look for new ways to access medical services
made it possible for medical care to be pro-
Napoca that improves the performance of
without stepping foot into a doctor's office,
vided through telemedicine services by both
healthcare services by developing AI-based
which led to an unprecedented growth of the
public and private health units, regardless of
solutions for delineating tumours and organs
medtech industry, and especially the tele-
whether they were in a contractual relation-
at risk, closed a EUR 250,000 funding round
medicine segment. This growth continued in
ship with a health insurance company.
with the participation of investment fund
it with doctors, clinics, and hospitals. Synaptiq, a Romanian startup from Cluj-
GapMinder VC (through business accelera-
2021 as access to medical services broadened, combining telemedicine and traditional doc-
PLAYERS
tor Techcelerator), Cleverage VC, and angel
tor visits. In addition, companies providing
FreshBlood is a non-governmental organisa-
investors Daniel and Ioan Istrate. The startup
telemedicine platforms and services have
tion that supports health innovation by con-
is working on the development of Mediq
started to specialise in improving the quality
necting innovators to resources they might
platform, which reduces the evaluation time
of medical services.
need and by providing feedback and mentor-
of medical imaging in radiotherapy-based
ing. The NGO collaborates with engineers,
cancer treatment procedures.
In the last two years, in Romania, entrepreneurs and investors have developed a number
doctors, and anyone willing to help change
of medical technology startups that are
our world for the better.
already integrated into the traditional medi-
Seven of the most active and experienced
INVESTORS Healthtech has been getting attention world-
cal services ecosystem. The adoption and
Romanian medtech startups are Medicai,
wide in the context of covid-19, and there
acceptance of technology by physicians can
Xvision, Oncochain, SanoPass, Medicchat,
are plenty of investors and entrepreneurs
generate added value in diagnosing, moni-
Recomedica, and Synaptiq.
who are active in the medtech sector across
toring, and treating diseases. The legislative
Medicai offers an online, cloud-based plat-
Europe, including Romania. For example,
updates of the past year have also influenced
form that connects hospitals, clinics, doctors,
European healthtech startups have attracted
the development of such startups. Regula-
and patients in a virtual frictionless network
funding totalling more than EUR 1 billion in
tory changes had been necessary for a long
for chronic cases or rare conditions. It has
the last year. In Romania, the investment
time and became urgent in the context of the
raised its second bridge round from ROCA X,
landscape is still in its early stages, with
pandemic, according to Sanopass. Some good
which is part of Impetum Group. Through the
Cleverage VC being one of the country’s most
news regarding the country’s legal framework
Medicai platform, patients can seamlessly
active funds in this industry, with nine invest-
came last year, through Emergency Ordi-
store their medical imaging archive and share
ments made so far.
www.business-review.eu Business Review | December May 2016 2021
COVER INTERVIEW STORY 29 14
Success tastes like great coffee Roxana Dumitru, Coffee Marketing Manager for Romania & Hungary at De'Longhi, sat down with Business Review and highlighted the latest trends among Romania’s coffee consumers and explained how the coffee machine segment has evolved during the pandemic. By Anda Sebesi paign featuring a brand ambassador and it has placed the brand under the spotlight like never before.
Coffee machines have been very popular throughout the pandemic. How have your products in this segment performed in terms of sales?
Donna Elite or PrimaDonna Soul storing doz-
De'Longhi has a coffee machine production facility in Romania—which models are manufactured there and how many of them are sold on the Romanian market?
ens of recipes and being controlled remotely
We manufacture several full auto products
thorugh an app.
in Romania, including the Magnifica range,
automatic machines such as Maestosa, Prima-
which is among our best selling machines
These past two years have indeed been very
both in Europe and locally. To us it is a great
especially for the espresso machines that we
What types of coffee machines have Romanians been looking for lately?
sell. During the pandemic, people wanted to
Over the past two years, consumers have
praising Romania-made products for their
replicate some of their habits at home, and
gradually moved away from price being the
quality and reliability, proving that we are
drinking good coffee or sophisticated coffee-
only major criterion. We continue to sell our
indeed capable of manufacturing excellence
based beverages was one of those habits.
entry level manual products, but that is more
in this country. About 98 percent of the ma-
Since they could no longer go out, they made
based on the fact that some people like to be
chines produced in Romania are sold abroad,
sure they had the means to become baristas
in direct control of their espresso preparation.
with the remainder of 2 percent sold here on
at home. We saw sales of espresso machines
However, the highest growth was recorded in
the local market. We have to bear in mind
go up quickly, hitting record highs month
the full auto segment, with most consumers
that our Jucu production facility is not only
after month. We also noticed an overall upsale
treasuring the comfort and convenience of a
one of the best, but also one of the largest
trend, with many customers deciding not
great morning or afternoon coffee they can
units of the De'Longhi Group.
only to buy an espresso machine, but to buy
make at the touch of a button.
good for the coffee machine segment, and
the best espresso machine they could afford. Our high-end segment recorded the most
source of pride to see that our customers are
What are Romanians’ main coffee preferences?
By getting espresso machines for their homes,
You carried out a major campaign this fall, featuring Brad Pitt. How has it influenced your company’s performance?
people in major cities in the country are
The campaign started in September, so we
ment, and the one that took the longest. Now,
gradually moving away from Turkish or drip
would need to look at the year-end figures
under the influence of coffee shops and the
coffee and starting to appreciate the aroma of
to assess its overall impact, but so far all the
new urban coffee culture, younger genera-
the espresso and its contribution to a variety
awareness-related KPIs are excellent and the
tions are quickly moving from Turkish and
of coffee-based beverages – from cappuccinos
sales of full auto coffee machines have seen a
instant coffee to espresso and espresso-based
and flat whites to lattes. We have products
solid growth, De'Longhi having outperformed
beverages. Cappuccinos and lattes rank high
which are able to cover all taste preferences
the market by more than 51 percent in value
among Romanians’ preferences, after the
and requirements, with our high-end fully
this fall. This has been the first global cam-
espresso or the ristretto.
significant growth in both 2020 and 2021.
The step from the kettle to the drip coffee machine was the most important develop-
30 ENTREPRENEURSHIP
www.business-review.eu Business Review | December 2021
Romania’s startup ecosystem gains trust in Europe With around EUR 10 million invested in Romanian startups so far this year, GapMinder is maintaining its focus on innovative entrepreneurs that are shaping the post-pandemic economy. GapMinder VC founding partner Dan Mihaescu talked to Business Review about the evolution of the fund’s portfolio and the likelihood of a new unicorn startup appearing on the local market. By Ovidiu Posirca How did GapMinder VC do this year in terms of investment volumes and exits on the Romanian startup market? GapMinder has had a very good 2021, with about EUR 10 million invested this year alone. But the evolution of the companies in our portfolio has been even more impressive. The easiest to point to is probably FintechOS’s USD 60 million funding round, the second largest Series B among Romanianborn companies. A few Series A rounds have either been raised or are soon to be finalised by some of our portfolio companies. And there are already many excellent progress stories in our portfolio that are not yet visible and will stay under the radar for a few more quarters.
Do startup valuations risk going into bubble territory? No, at least not yet! I wonder what bubble territory even means in the startup world. Have a look at valuations in the US. They’ve been
www.business-review.eu Business Review | December May 2016 2021
ENTREPRENEURSHIP COVER STORY 14 31
talking about a bubble for more than 10 years
future. Businesspeople must build sustain-
always learning. On the other hand, while
now.
ability, support digital acceleration, and seek
they dream big, they do not always know
cross-industry collaboration as part of that
how to plan big – either because they don’t
ket is that more and more capital is trying to
future. Startups and investors both have key
yet have enough entrepreneurial experience
find a place for investments, and that is also
roles in building it.
or simply because they do not see them-
What is happening on the Romanian mar-
beneficial for the startup ecosystem at large.
GapMinder will continue to execute its strategy and focus our investments on B2B
Is the sharp increase in inflation having an impact on financing terms for entrepreneurial firms?
senior to them.
platforms enabled by deeptech, to accelerate
However, Romania is merely at the begin-
the digital transformation of proven business
ning of this great journey, and the wonderful
models.
thing about beginnings is that we have more to learn than to unlearn, which is a very good
Inflation has certainly impacted macroeconomic stability and the investment climate in
selves working with people who are equals or
position to be in.
keeping us all on our toes. However, while in-
How do you approach a potential startup investment and which elements are at the top of your agenda when assessing a financing deal?
flation does increase investment risks, it also
Unlike very early-stage investors, who have
Will EU funds play a bigger role on the local startup market considering the gradual implementation of the RRF?
makes it all the more necessary for inves-
fewer numbers to look at – which is why they
We shall see. On September 27, the European
tors to diversify their holdings and preserve
focus more on founders’ background and
Commission approved Romania's recovery
their portfolio value. The best way to protect
their ability to build, on team chemistry and
and resilience plan, thus unlocking EUR 14.2
against inflation is to invest in what makes
complementarity, on the value of the solu-
billion in grants and EUR 14.9 billion in loans
you the best and the most in-demand.
tion, and so on –, Seed or Series A investors
to Romania, which totals 12 percent of GDP.
also look at a company’s speed of traction. At
According to Standard & Poor's, Romania
What is your outlook for startups next year and what are GapMinder’s plans for 2022?
this stage in a company’s development, we
stands as a key beneficiary of grants under
are not just talking about potential; we are
the RRF and 2021-2027 Multiannual Frame-
talking about speed of growth. GapMinder
work, which combined have a total value
The startup ecosystem in Romania is grow-
VC is looking for founders who have the
exceeding 20 percent of GDP over the next
ing stronger every year, and it has grown to
ambition, knowledge, energy, and courage to
six years.
be trusted and sought-after in Europe. The
go global and make Romania stand out in the
pandemic crisis, as well as the other signifi-
global tech arena!
Romania. As such, the business environment continues to be unstable and unpredictable,
pean countries, Romania does not have a great track record in absorbing EU funds.
cant global issues we are dealing with, have not only sparked innovation, but they have
By comparison with other Central Euro-
Coming back to your question, it is a bit
entrepreneurs are constantly developing
What are the strong points of Romanian entrepreneurs and where is there still room for improvement?
systems and processes to establish lucrative
Romanian entrepreneurs are innovative
and rewarding partnerships. Businesspeople
and dedicated – they put a lot of creativity
have learned resilience, which, together with
and energy into their ideas. They are eager
agility, creativity, innovation, and joint effort,
to make a meaningful contribution, which
Can local entrepreneurs develop a new startup that might reach a valuation north of USD 1 billion?
will be key in the future. In 2022, the world
sparks their ingenuity and propels them for-
Yes. And I hope that startup is already part of
will be reinventing itself for a post-pandemic
ward. They are determined, courageous, and
GapMinder’s portfolio.
strengthened collaboration. Investors and
too early to say anything before we see the details of the plan’s implementation.
www.business-review.eu Business Review | December 2021
32 ENTREPRENEURSHIP
Startup funds say rising inflation has limited impact on financing environment As Romania’s inflation rate is expected to reach 7.7 percent at the end of 2021 and begin to drop next year, the local startup financing environment will not experience significant changes, suggest representatives of funds operating in the country. By Ovidiu Posirca
Funding could become a challenge if growing inflation starts a recessionary trend
B
y October, the country’s inflation
necessary portfolio building and value cre-
rate had reached 6.5 percent, higher
ation, which take many years, but also to the
than the European Union’s average
need to account for inflationary and even cri-
a more significant impact on how startups
of 4.4 percent, according to Eurostat, the EU
sis economic cycles, so in a way, some infla-
spend the capital than on the funding itself.
statistics office. Going into 2022, the local rate
tionary peaks (normally followed by troughs)
Otherwise, inflation is only another argument
should fall to 4.7 percent, the National Prog-
are part of our investment model,” Marius
for the allocators to deploy capital faster, to
nosis Commission says in a report.
Ghenea, managing partner at technology-
put money to work sooner rather than later,”
focused VC firm Catalyst Romania, tells BR.
Munteanu tells BR.
For funds with a long-term perspective of financing startups, the spike in inflation is just
He adds that in the short term, funds
ing partner at Early Game Ventures. “I would argue that inflation will have
EGV has not been factoring inflation in
one of the risks they take into account when
should consider helping portfolio companies
when drafting term sheets for financing deals.
drawing up their investment strategies.
hedge the effects of high inflation more than
The fund’s managing partner says this will
they currently do.
remain unchanged for the foreseeable future,
“Venture capital investments usually have longer cycles than a typical loan, for instance.
We will probably see a slight increase in
mainly because EGV’s investments are all in
VC funds are usually structured for around 10
valuations due to inflation, but it will be neg-
euro, while inflation has been higher for the
years and this maturity is partly related to the
ligible, suggests Cristian Munteanu, manag-
local currency.
www.business-review.eu Business Review | December 2021
ADVERTORIAL 33
Investing in the future For BRD, 2021 was the year we are proud to have launched a series of transactions that led to the development of sustainable finance on the local market. One such feat is the execution of the largest green bilateral loan in favor of Hidroelectrica SA equivalent to approx. EUR 257M , among other new firsts. A sizeable syndicated ESG loan of EUR 120M has been arranged for NEPI ROCKASTLE PLC, assuming an ESG structuring role. It meant also contributing to the first sustainability-linked bond launched on the local capital market for AUTONOM Services SA, for an amount of EUR 48M, again assuming the structuring bank role and advising on structuring the sustainability-linked framework. These transactions and others of smaller Iuliana Tiba, Director of Environmental, Social and Positive Impact Financing, BRD - Groupe Société Générale
amounts, but of the same importance, are best practices in the local field of sustainable finance development. We are committed to
WHY DO YOU THINK SUSTAINABILITY SHOULD BE A PRIORITY IN ROMANIA?
accompany our clients in their journey to
ing sanitary crisis and climate change largely
CAN SUSTAINABLE PRACTICES BE ADOPTED WITHOUT SACRIFICING FINANCIAL PERFORMANCE, OR IS THERE A HEALTHY BALANCE COMPANIES SHOULD STRIVE TO MAINTAIN?
acknowledged as a crisis, sustainability is no
Studies have demonstrated that sustainable
objectives, through innovative financing
longer an option, but a need. As part of the
practices contribute to the better financial per-
solutions.
European Union, which set its ambitions to
formance of companies, rather than just repre-
become the first climate neutral continent
senting an upfront cost. These studies show that
by 2050 and committed to the UN Sustain-
sustainability and profitability go hand in hand.
able Development Goals agenda, Romania
Adopters of such practices have shown more
has to incorporate sustainability at all levels
resilience during the COVID-19 crisis, were better
of the decision-making process, from ad-
equipped to capture competitive advantages, by
IF YOU WERE TO PINPOINT ONE AREA IN WHICH YOU THINK OUR COUNTRY OR REGION IS IN URGENT NEED OF INVESTMENTS, WHAT WOULD IT BE? AND WHAT IS/ARE THE RUNNER-UP/S?
ministration to private sector and financing
better positioning themselves among the brands
With the current energy market situation
institutions.
In the current global context, with the ongo-
sustainable development and to help them implement strategies that are aligned with the global sustainability or climate change
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and having in view the objectives Roma-
This will be needed in order to assure
able, conscious and selective, due to changes
nia has to meet in the field of renewable
long-term sustainable development, as a
in legislation/regulations, or even behavioral
energy (30.7% by 2030, or even 38% ), that will
delayed energy transition of even 2 years for
changes. Thus, the front-runners will be the ones
require a massive investment estimated at
Romania could be translated in a 33% reduc-
to make a difference not only for the environ-
approx. 6.9 GW new renewable capacities,
tion in the favorable effects of measures in
ment or communities, but also in their financial
the energy sector should be a priority. This
the long term.
performance. By preparing in advance, compa-
sector represents 75% of the greenhouse gas
nies will also have the possibility to diminish the
emissions and is vital for all the other sectors
energy can lead to capturing opportunities
climate change impact of on their business, be
to transition to a carbon neutral economy.
estimated at EUR 60 bn until 2030, in the
more inclusive, spot new business opportunities
The contemplated regulatory framework and
field of climate change alone. Naturally, this
and avoid the so-called stranded assets.
legislation for promoting renewable energy
Meanwhile, transitioning to renewable
could also contribute to the development of innovation, as such a large-scale transition will require new business models or product/ service reconfiguration.
development will be of a nature to assure
WHAT IS A MAJOR ACHIEVEMENT BRD - GROUPE SOCIÉTÉ GÉNÉRALE IS PARTICULARLY PROUD OF THIS YEAR?
meeting the country’s objectives while also contributing to the green finance development.
www.business-review.eu Business Review | December 2021
34 ENTREPRENEURSHIP
Ciprian Man, cofounder and angel keeper at Growceanu, an angel investing platform, points out that under high inflation, as it is
verticals, where scaling is not embedded in
a recessionary trend, wrote Emmanuel
the business model.”
Deblanc, head of private markets at Allianz
Startups in early development stages are
Global Investors.
currently understood, and not hyper-infla-
deemed too risky for traditional banks, but
tion, early-stage investments are more attrac-
non-bank financial companies could serve as
if the actual year-over-year inflation num-
tive in terms of potential returns.
an alternative source, although their inter-
bers peak this year. Certain structural forces
est rates could go up in the high inflation
could keep inflation up – including significant
environment.
shifts in the monetary policy of major central
“As a result, what matters much more than inflation, in this case, is the impact that a business angel’s expertise, mentorship, and
“If we are talking about funding through
“Inflation may stay high for longer, even
banks, a changing labour force, and ongoing
network can have on the
deglobalization,” Deblanc
startup, leading to three or
said. He suggested that any
four-digit growth, which renders the impact of infla-
increase in inflation would be
tion almost meaningless,”
expected to push financing
Man tells BR.
costs upwards over time and likely lead to a fall in transac-
WHAT IS THE IMPACT ON STARTUPS SEEKING CAPITAL?
tion multiples.
Although the inflation
underwriting would become
growth trend should contin-
more challenging with the
“This could impact the price of transactions as
accompanying risk of reduced
ue until the end of this year, funding opportunities for startup founders
grants, startups should be favoured start-
will not be affected.
ing next year thanks to the large amounts
financing for deals,” Deblanc pointed out. In Romania’s case, the central bank
of EU funding available for the next period,
forecasts that inflation will remain on an
still a lot of capital looking for deployment
some of which should go towards startups
ascending trend by April 2022. This is mainly
targets on the market.
and early-stages. In fact, this would not only
due to higher costs for energy and raw materi-
EGV’s Munteanu suggested that there is
“Venture investing is
als. The inflation rate is set to
hot, and I only expect it to
reach a high of 8.6 percent in
get hotter over the coming
the second quarter of 2022,
months,” he adds. VC fund-
according to a report pub-
ing per capita in Romania
lished in November by the
stands at EUR 116, which is
National Bank of Romania
one of the largest figures in
(BNR). It will fall under 5
Central and Eastern Europe,
percent starting in 2023. “An optimist could say
according to dealroom.co. Romania is performing better
that the higher inflation
than Hungary, Bulgaria, and
prints now mean stronger
Poland. However, there are
disinflationary base effects
only 85 startups per 1,000
next year. There is some truth to that, but that’s not
people in Romania, while this number is almost double in neighbouring
apply to grant programmes, but also to equity
how inflation will stay sustainably lower. We
Hungary. Ghenea of Catalyst Romania adds:
programmes, mezzanine, guarantees or oth-
believe that the BNR will need to continue its
“I think the most important takeaway for
ers. As for VC funding, it will become even
rate hiking cycle until it reaches a terminal
founders/entrepreneurs is that they should
more available for startups in the next years
rate of 3 percent in mid-2022,” wrote Valentin
begin considering equity-based financing op-
in Romania and other EU countries in the
Tataru, chief economist at ING Romania, in a
tions, rather than growing in a bootstrapped
region,” Ghenea adds.
note. Startups that are already generating sales
mode and then getting bank financing or
could move to increase prices for their prod-
the tech/IT area or in other growth verticals
HIGHER INFLATION GENERATES ADDITIONAL CHALLENGES FOR PRIVATE EQUITY PLAYERS
(life-science, creative businesses), but not so
Private equity funds that target larger firms
funding opportunities are set to remain gen-
much for startups in other, more traditional
could take a hit if the growing inflation starts
erous despite the inflationary pressures.
another type of debt leverage. Of course, this is a valid route for growth startups, be they in
ucts and services provided that they have a loyal customer base. For early-stage firms,
www.business-review.eu Business Review | December 2021
36 TECHNOLOGY
5G deployment: from high-speed connections for superyachts to public health and safety The first wave of 5G-enabled gadgets and apps is emerging, while the deployment of 5G networks is marking the beginning of a new era that goes well beyond the smartphone. From virtual reality video games to remote heart surgery, many industries will go through dramatic changes in the coming years. By Aurel Constantin an end-to-end solution that will guarantee the consistent low latency and high reliability demanded by time-critical applications and services for consumers, enterprises, and public institutions. The company is enabling Time-Critical Communication through its new Critical IoT product – easily deployable as a software upgrade on public and private 5G networks, in wide and local areas, on any 5G frequency band. Having deployed 5G networks globally with successful rollouts of enhanced mobile broadband and Fixed Wireless Access services, the new solution will allow communications service providers to further enhance experiences in real-time media use cases like cloud gaming and AR/VR and unlock posThere are also 5G-equipped drones that can be used across a range of different industries
O
sibilities in remote control, mobility automation, and industrial control. Apart from the estimated 2.5 billion mobile
ne of the first uses of 5G on the con-
can get a 5G internet connection on a yacht
gamers across the world who will enjoy lag-
sumer market is home broadband
almost 100 km offshore. Meridian 5G, a Mo-
free gaming experience, the new solution will
internet service for those who want
naco-based provider of internet services for
thrill all 5G users looking for immersive XR
to eliminate cables from their house or who
superyachts, advertises a 5G Dome Router, a
experiences. It will also benefit enterprises,
live in an area where they can’t get cable TV
combination of antennas and modems that
industries, and public agencies where produc-
and internet. An example of such a service
provides 5G connectivity for yachts sailing at
tion processes or mission-critical services
is the collaboration between Samsung and
100 km offshore. The cost of all that gear goes
depend heavily on high-performance, reliable
Verizon in the US, offering wireless 5G routers
as high as USD 17,000 for the average supery-
connectivity.
that deliver home broadband access through
acht. There are also 5G-equipped drones that
“Ericsson continues to introduce innova-
5G networks just like a smartphone would.
can be used across a range of different indus-
tive 5G solutions that fuel the global uptake
tries, from mapping to firefighting. As 5G chip
of 5G. Now we are taking 5G to the next level
able on the market. After tablets with 5G,
producer Qualcomm notes, drones can used
with Time-Critical Communication, a solu-
Lenovo teamed up with AT&T to release a 5G
to map large areas of land and rapidly transfer
tion that will give our customers the tools
laptop, the ThinkPad X13 5G, a device that
the data.
to expand their offerings for the consumer,
5G-connected devices are already avail-
enterprise, and public sectors and further
has started shipping for around USD 1,500. Meanwhile, Samsung released the Galaxy
END-TO-END SOLUTIONS
monetise 5G effectively,” says Per Narvinger,
Book Go 5G, a 14-inch screen laptop that
Ericsson, a producer of 5G technology, is
Head of Product Area Networks. Time-Critical
sells for USD 800. Interestingly enough, you
enhancing its capabilities with the launch of
Communication is a software toolbox for
www.business-review.eu December Business Review | May 2016 2021
COVER TECHNOLOGY STORY 37 14
resolving lags and interruptions in mobile
efficiency, as well as make transportation
10,000 projects exploring B2B applications
networks. It combines the 3GPP-specified
more sustainable,” says Tomohiro Sekiwa,
of 5G (5GtoB). 5G applications in industries
ultra-reliable, low latency communication
Managing Executive Officer and Chief Net-
like manufacturing, mining, and ports have
(URLLC) standard with Ericsson innovations
work Officer at SoftBank.
already passed trial and are being replicated
to mitigate major causes of latency. Built on
“Time-Critical Communication with 5G
at scale.
Ericsson’s expertise in Radio Access Network,
can change the industrial automation sector
Huawei’s executive director of the board
Transport, 5G Core, Service Management &
by reducing cables, increasing flexibility and
and chairman of ICT Infrastructure Managing
Orchestration, BSS, and support services,
agility, enhancing visibility, and enabling new
Board, David Wang, explained that, by 2030,
this software product delivers consistent low
digital applications with mobility. The ability
the digital and physical worlds will become
latency (50ms to 1ms) end to-end at speci-
to deliver consistent low latency with high
deeply integrated, creating a near-real-life
fied guarantee levels (99.9 percent to 99.999
reliability will be crucial for wirelessly con-
experience. The digital economy will also become a primary driver of the real economy, and the industry will shift focus from device efficiency to decision-making efficiency. However, he said that these advances will also need us to achieve intrinsic network security and to improve energy efficiency to protect the environment through green growth.
percent) – enabling time-critical use cases at
necting XR, sensors, controllers, and actua-
scale. Many emerging use cases are time-
tors – boosting the productivity and efficiency
by 2030, digital technology can help reduce
critical in nature, demanding the guarantee
of industrial operations,” says Dave Vasko,
global carbon emissions by at least 15 percent.
of consistent low latency and highly reliable
Director of Advanced Technology at Rockwell
performance, currently not possible in to-
Automation.
According to the World Economic Forum,
Yang Chaobin, president of Wireless Solutions at Huawei, also spoke about the need to focus on how 5G technology has evolved
day’s 4G and 5G networks. The new solution is designed to address that need and deliver
GROWING NUMBER OF USE CASES
beyond what it was envisioned to be. “So
on the full promise of 5G.
The number of use cases for 5G technology
far, we have seen 5G being used in around 20
across both the consumer and enterprise
different industries, and there are more than
5G PIONEERING STARTED IN 2017
space has been steadily growing, as the
10,000 5G B2B cases that are already put into
Ericsson has been piloting 5G for time-critical
technology evolves to touch various verticals
large-scale commercial use. These cases are
use cases with customers and industry part-
across industries, experts said at Huawei’s
scaling up quite significantly and we are see-
ners such as BT and Hyperbat, Einride and
12th annual Global Mobile Broadband Forum
ing that 5G specifications need to continue to
Telia, Boliden, ABB, Audi, Fraunhofer IPT, DT
(MBBF) in Dubai.
evolve in order to improve its capabilities.”
and Rockwell.
The company’s rotating chairman, Ken
He added that for B2C services, the
Hu, said that in just five years of commercial
important thing is for the network to be able
Deutsche Telekom and Telstra to show the
deployment, 5G has provided a “considerable
to handle a lot of traffic to terminals. “Then
benefits of L4S (Low Latency Low Loss Scal-
upgrade” in mobile experience for consum-
there is also the matter of locating capability,
able throughput) technology in reducing lag
ers, and that it has already started to em-
which means that the network should be able
in an interactive cloud game. L4S is one of the
power different industries around the globe.
to locate the device. Also, you need ultra-low
new features of its Time-Critical Communica-
“Progress was much faster than we ex-
tion toolbox. Ericsson has also reached a new
pected, especially in terms of the subscriber
which are new capabilities envisioned for 5G.
milestone with MediaTek by proving that 5G
base, network coverage, and the sheer num-
This is why, last year, we proposed that 5G
can deliver 1ms consistent low latency with
ber of 5G terminals on the market,” he said.
should evolve to 5.5G because the capabili-
According to Huawei research, there are
ties of 5G continue to be enriched to satisfy
The company also recently partnered with
99.99 percent reliability in both uplink and downlink on mmWave band. “We believe that Time-Critical Commu-
latency and high reliability sensing – all of
currently 176 commercial 5G networks in
more needs and requirements for different
operation across the globe, serving more
scenarios.” He added that in terms of the 5.5G vision,
nication is key to realising the full potential
than 500 million subscribers. In the con-
of 5G. One industry where this solution can
sumer space, average 5G download speeds
vendors and operators around the world
play a transformative role is automotive and
are roughly 10 times greater than those on
have been discussing it for quite some time
transportation. With reliable and consistent
4G, which has fuelled broader adoption of
now, and “we all have the consensus that 5G
low latency connectivity, 5G can also vastly
applications like VR and 360º broadcasting.
indeed needs to evolve to 5.5G, but that the
improve public health and safety and traffic
In the enterprise space, there are already
official name for 5.5G is 5G Advanced.”
www.business-review.eu Business Review | December 2021
38 TECHNOLOGY
Orange’s 5G Lab supports the development of telemedicine company Telios Care Access to digital resources is essential today, when the pandemic is having an impact on all individuals as well as on the business world. That's why digital inclusion campaigns are key to providing equal opportunities for everyone, regardless of background, age or physical ability. By Aurel Constantin An example of a startup supported by Orange 5G Lab is Telios Care. With the help of 5G infrastructure and 5G Lab resources, Telios Care’s telemedicine solution provides professional remote medical consultations via phone, text or video conferencing. Telios Care offers improved remote medical services, which would not have been possible without the 5G infrastructure. ”With the help of the 5G infrastructure and the resources available in the 5G Lab, Telios Care improved the remote medical services it offers, ie medical consultations by phone, online and video messages. 5G offers a higher connectivity standard than previous generations of mobile networks, which will ensure better quality video streams and high speeds through which doctors will be able to download and process real-time informa-
O
tion,” said Mihaela-Katerina Dobroiu, Chief Customer Officer, Telios Care. Through Telios Care, patients can contact
range Romania has launched a cam-
available to customers in 17 cities, includ-
paign called Making technology ac-
ing Bucharest, Cluj-Napoca, Iasi, Timisoara,
their doctors and therapists from anywhere
cessible to all, designed to contribute
Brasov, Constanta, Craiova, as well as some
in the country, benefit from telemedicine-
to the development of digital skills and access
mountain and seaside resorts. Another
based care and all they need is a mobile
to technology for Romanians. “The campaign
relevant factor is access to programs, like
phone. This year, for the first time in Roma-
complements our efforts to facilitate access
business accelerators, or technology solu-
nia, the company introduced the American
to digital tools in Romania for everyone, from
tions, like the latest developments in terms
“prescription fulfilment” model, with digital
children to the elderly. Since 2012, we have
of 5G. Orange offers a range of solutions for
medical prescriptions that follow all safety
built a series of programmes that provide Ro-
established companies or startups and one of
protocols being delivered automatically to
manians with access to opportunities brought
these programs is Orange 5G Lab.
the patient’s preferred pharmacy. Currently, 3 of the 5 largest pharmacy chains in Romania
by technology, which have changed thousands of lives for the better," said Liudmila
TELIOS AND ORANGE 5G LAB
participate in this system and use Telios Care
Climoc, the CEO of Orange Romania.
Orange 5G Lab gives economic stakeholders
digital medical prescriptions that result from
and researchers consultancy and the op-
remote consultations carried out via phone,
to digitalization is having access to a good
portunity to test and develop products and
video or written messages.
4G or 5G network. Orange has invested in the
services using 5G technology. The invest-
development of a network that now cov-
ment made by Orange helps startups grow
solutions with 5G technology, and startups
ers 98.21 percent of the country's popula-
and provide tangible solutions that make a
that manage to enter support programmes
tion with 4G technology, according to data
difference for all their customer and contrib-
like 5G Lab are growing quickly enough to
from August 31, 2021. And 5G technology is
ute to the future digital economy.
provide timely help for those in need.
A relevant factor when it comes to access
Companies like Telios Care provide better
www.business-review.eu Business Review | December May 2016 2021
COVER STORY PR 39 14
Communication around holidays & special events in 2021 Despite the global pandemic, the growth rate of holiday sales between 2019 and 2020 was more than double the average year-over-year growth of previous years, exceeding predictions from the US National Retail Federation. This enduring upward tick in holiday sales illustrates that consumers have built lasting habits around holiday spending. Smart brands will respond accordingly. By Romanita Oprea gence PR, wouldn’t say that we are seeing new trends, but rather activities being adapted to a new and unexpected context. “I’m seeing a mix between old-but-gold, classic marketing incentives, such as partnerships and giveaways, as well as some new practices that have come to light based on clients’ higher expectations. They are more sensitive, their habits are changing quickly, they expect perfect services and want to feel unique. So we are talking about trends like customised marketing, incentive-based loyalty programmes, special deals, all-in-one packages, family offers, clear and transparent digital communication, including activities that support the community,” Panait said. The best gifts this holiday season might be those that can be not unwrapped, but experienced—and this might be a long-lasting trend, especially as the pandemic has proven that Anita Panait, Brandelligence PR
A
we all miss human connection and a human approach. These days, probably more than ever, good communication has become the
ccording to ebay, people say they
that they might celebrate Christmas early
key to executing successful events and it will
spent an average of around GBP 528
with friends or family. When it comes to
continue to play an integral role.
on Christmas shopping and celebra-
priorities for this Christmas, ebay’s research
For most of us, the pandemic was like a
tions last year (2020), compared to GBP 551.34
finds that while more people want to “go
wakeup call about the importance of time
in 2019. This year, 30 percent of consumers
big or go home” with their celebrations and
and how we use it, about the importance
plan to spend more, with only 15 percent
gifts compared to last year (13 percent in 2021
of spending quality time with family and
planning to spend less. This is much more
versus 8 percent in 2020), a greater number
enjoying special experiences. People are now
optimistic compared to 2020, where only
are still looking forward to a quieter, more
searching for fast, yet customised services, as
13 percent said they’d spend more, and 31
relaxed Christmas (25 percent)—rather than a
well as safe and well-reviewed venues and ex-
percent said they’d spend less. Still accord-
blowout party.
periences. “After almost two years of adapting to a new way of living, I don't think we will
ing to ebay’s findings, despite this optimism,
come back to what once was; we will instead
means they will likely put off making plans
ARE THERE ANY NEW TRENDS IN BRAND COMMUNICATION AROUND THE HOLIDAYS AND SPECIAL EVENTS OF 2021?
for Christmas until the last minute, and 30
Considering the current situation, Anita
you have to show that you deserve them, and
percent are so worried about more disruption
Panait, creative communicator at Brandelli-
especially their time,” Anita Panait added.
many people are worried about further disruption due to covid-19: 45 percent say this
redefine normal living. People now want to be charmed, and as a hospitality entrepreneur,
www.business-review.eu Business Review | December 2021
40 PR
ONLINE. OFFLINE. HOW TO TACKLE HYBRID EVENTS
how they treat customers, as everyone can
Humans have limited attention spans, espe-
their experience. What you communicate on
cially now as we continue to work remotely,
social media should always be reflected by
managing distractions and responsibilities at
the customer experience, and ideally, cus-
home. For in-person events, attendees now
tomer service should to go that extra mile and
also have access to multiple mobile devices,
exceed expectations.
come out nowadays and tell the world about
making creative engagement tactics a must-
“Half of all shoppers we polled experi-
have. Therefore, it is very important to know
enced some difficulty knowing what to buy
how to prioritise different types of content.
for others, highlighting the need for discov-
People learn in different manners, so it’s best
ery aides—especially during the holidays.
to mix up the way content is being delivered,
Of those who discovered something online
whether it’s via a live streamed keynote, mod-
last season, 45 percent said it was a gift for
erated panels, fireside chat with a Q&A por-
someone.
tion or interactive breakouts and workshops. Another tactic in the world of online or
The concept of online discovery is not new, but the way it happens is changing.
hybrid events is creating opportunities for
Many are turning to social apps, specifically,
two-way dialogue by finding ways to have
for personalised inspiration and curated rec-
your attendees take part in the event. For
ommendations. Nearly eight in 10 consumers
example, using live polling and surveys,
we surveyed said they used at least one Face-
interactive Q&As or chat functionalities helps
book app or service for discovery last holiday
One thing has stayed the same over the years
people connect and learn from one another.
season. More people are purchasing on social
in terms of the way our clients communicate
Incorporate gamification elements to help
apps as well. Grand View Research estimated
motivate attendees to participate in a variety
that social commerce represented 11 percent
of ways. This could include awarding points
of global retail ecommerce revenue in 2020,
for attending various sessions, asking ques-
generating USD 474 billion,” said Alicia LeB-
tions or engaging with a sponsor.
eouf, Head of Industry, Retail, Superstores &
And probably the most important aspect is making sure everything—or as much as pos-
Grocery at Meta, for AdWeek. Can we still talk about seasonality in
sible—is personalised. Communication plays
communication like we did in previous years
an important role in bridging the gap between
or has that slowly disappeared? “In its basic
virtual and in-person events. Starting with
sense, seasonality in hospitality is a fact. Sea-
the event website and registration, it’s im-
sonality actually characterises the hospitality
portant to think through how to personalise
industry and it is essential to determining
messages for those attending on-site rather
customer behaviour. The highest season used
than virtually.
to be the festive period, when many regions
The influence and rise of demand in social
attracted the most visitors. However, the ef-
By Alina Galeriu, Galeriu & Partners PR
during the holidays: it’s all about the joy of giving. Even though all industries have been going through very difficult times, our clients are still willing to send out press kits and show their generosity with sample products and creative gifts that are waiting to be unboxed. Getting influencers more involved for such activities is of course a new development that wouldn’t have happened a few years back. So, yes, social media still is the rising star in the communication mix. You can’t beat its drive and exponential growth. You asked about creativity, and I will highlight two main directions: first, cost efficiency is the most in-demand skill during this pandemic, and of course it takes a lot of creative effort to make an impact with small
media has also greatly impacted the way
fects of seasonality are felt by most hoteliers
events are created and communicated about
or restaurants and it is essential to maintain
today. Therefore, content and the manner
communication and marketing strategies
in which it is presented are of rising impor-
even during periods of low occupancy rates,”
tance. According to Melissa Kendal of little
Anita Panait said. She added that nowadays,
word studio, having a content calendar is
seasonality is influenced not only by seasons,
key. One must determine the cadence of all
time availability or income disposal, but also
types of communications, including short-
by political tensions, economic instability,
form videos, Instagram posts, tweets, emails,
natural calamities or a prolonged global pan-
and so on. Set up a tracker so that you not
demic. “People will start to travel more often
only know when these get published, but
and do more exploring, and the gaps between
can also see how they perform. Each week,
seasons will probably be more balanced in the
meet with your team to analyse the perfor-
future. Of course, there will always be highs
wise and skilful enough to control that story by
mance of past posts and iterate future posts.
and lows, but what you do between these
putting time and effort into planning your every
The rapid development of social media has
periods in terms of marketing and communi-
pushed businesses to pay more attention to
cation is essential,” Panait explained.
budgets; the second has to do with attention to detail, because since the number of social interactions has declined, brands need to make each encounter with the consumer really count. The same goes for encounters with influencers or journalists as a public relations consultant. Every detail matters. From the wrapping paper and ribbon of the press kit to the greetings in your email or the moment you decide to do a press pitch. This is a permanent PR concern: remembering that every word, every gesture, and every detail tells a story, so you need to be
move ahead. I believe PR has never been more strategic and customised as it is today.
www.business-review.eu Business Review | December May 2016 2021
COVER LEADERSHIP STORY 41 14
Paradoxical leadership behaviour: what it is & why it’s important The contemporary business environment is more dynamic than ever, generating plenty of opportunities and challenges for leaders. In this context, leaders are required to manage paradoxes that typically denote a challenging tension. By Romanita Oprea the topic, can we say that paradoxical leader behaviour is starting to grow into a trend? According to Madalina Uceanu, managing partner at CareerAdvisor, we’re finally realising that the paradox of choices we must make in our private lives manifests itself in the same way in our professional lives. The results are different, of course, but the essence is that the choices you make can stimulate or tone down the voices of those around you, in every context. In turn, Loredana Popasav, transformative coach at The Simplified Mind, pointed to the fact that we live in a volatile, unexpected, complex, and ambiguous world. In the last couple of years we have been experiencing even more unpredictability and uncertainty. “Leaders therefore have to adapt, change, and navigate through unknown waters. The behaviour that some successful leaders manifest
P
when facing change might seem paradoxical. Yet, history is filled with leaders that behaved
aradoxical leadership is defined as
differentiation and integration requirements
in a way that could be perceived as paradoxi-
“seemingly competing, yet interre-
of innovation.
cal. From this perspective, I would dare say
lated, behaviours to meet structural
PLB in people management is character-
that paradoxical leadership behaviour is as
and follower demands simultaneously and
ised by leaders’ known ability to understand
much of a trend today as it was when King
over time” (Zhang et al., 2015, p. 539). The
and address multiple competing demands
Arthur sat down at the round table and recog-
central idea of paradoxical leadership is that
from the organisation and their followers.
nised his knights as his equals,” Popasav said.
the leader adopts “both-and” approaches that
Five behavioural dimensions are associated
behaviourally accept and integrate competing
with paradoxical leadership in people man-
didn’t have back then is visibility and much
demands simultaneously over time, to har-
agement: (1) combining self-centeredness
more access to knowledge. If we direct our
ness the intention within the paradox.
with other-centeredness; (2) maintaining
attention in a certain direction, we will find
both distance and closeness; (3) treating sub-
many examples of paradoxical behaviour. “In
respect every team member’s viewpoint and
ordinates uniformly, while also allowing for
my understanding, this is more a reflection
encourage all members to voice differentiated
individualisation; (4) enforcing work require-
of today’s world than a trend (...) the leader-
ideas and opinions. Meanwhile, they may also
ments while also allowing for flexibility; and
ship skill is not a discovery of the 21st century.
promote team information integration and
(5) maintaining decision control while also
Naturally understanding that complexity is a
offer the necessary instructions and guidance
allowing autonomy.
given and developing diverse ways to resolve
Accordingly, paradoxical leaders may
She adds that what we have today that we
challenges are key abilities. Without these
to achieve innovative goals. Combining these managerial practices, paradoxical leaders
TRENDING OR NOT?
skills, a lot of people with similar back-
could lead diverse teams to meet both the
With an increasing number of studies on
grounds will end up deploying traditional
www.business-review.eu Business Review | December 2021
42 LEADERSHIP
solutions to new problems - and that often
ers, and by creating a supportive environ-
name now, but we all have experiences of this
doesn’t work or it can suppress talent.”
ment for employees to balance tensions in
happening and not happening (along with
creativity, paradoxical leadership behaviour
the feeling of terrible waste when it doesn’t),”
mindset – believing there is only one way to
eventually strengthens the self-efficacy of
said Loredana Popasav.
do things – and that increases certainty for
employees and their psychological safety at
employees but reduces the leader’s ability to
the workplace. However, the degree to which
model in the sense that they set the tone
respond to the situation, generating mixed
self-efficacy is formed in an organisation is
of a business through vision, direction,
results.
influenced both by paradoxical leadership
strategy, and behaviour. Companies usually
behaviour and the freedom of voice.
expect their leaders to set an example of the
Moreover, one can end up with a fixed
“The main achievements are related to increasing empathy and taking a step back
Nonetheless, a leader will be better able
A good leader can very well be a role
kind of behaviours they ask of others in the
between stimulus and response, thus creat-
to recognise the members of small teams
organisation, but how this extends is limited.
ing a more observatory role that can ensure
through proper leader-member exchange
“Certainly, some leaders have a level of skill,
the most efficient and objective reaction.
communication. As such, it will be expected
knowledge, experience, and charisma that
from team members
I find admirable, inspiring or aspirational.
to engage in more
But leaders are people, and people live lives
self-driven behav-
and have stories. I find it useful to learn from
iour and thus have
people instead of simply following or imitat-
higher self-efficacy
ing them,” the transformational coach added.
levels. But is it true that
Would this tactic work for Romanian business leaders? Madalina Uceanu is sure
under the influence
that it would, as there are many leaders in the
of paradoxical lead-
country who are already using it, even though
ers, team members
they’ve probably never labelled it as paradox-
may learn to share
ical leadership. As mentioned above, we tend
and integrate various
to package simple concepts into sophisticated
perspectives, which
words. Loredana Popasav doesn’t see it as a
can facilitate the
tactic, but as a reaction to the state of change.
elaboration and
“I see it as a mindset and a philosophy. Would
integration process,
effective leadership work in Romania? Yes.
therefore enhanc-
But the better question might be how many
ing team innova-
leaders here have the courage and experience
tion? According to
to deliver on the requirements of paradoxical
Uceanu, paradoxical
leadership?
leadership rather refers to having a
Can anyone become a leader? In Popasav’s view, many people can learn some of the
The constant tension in finding the proper
more humanistic approach to business, which
skills of leadership. Just as many can learn to
balance generates constant improvement and
tends to be the only way in the knowledge
play the piano or play tennis or drive a car.
self-development, which positively impacts
worker society of today, where the Y genera-
This doesn’t mean that everyone will be able
the whole organisation, and not only due to
tion is predominant and the Z generation is
to play at Wimbledon or drive a Formula 1 car.
the leader’s authority level, but also by them
starting out its work life.
“There are leadership skills that anyone can
serving as role models for anyone with whom they interact,” said Madalina Uceanu. Paradoxical leadership behaviour is struc-
“We tend to use sophisticated words to
learn, but I don’t believe everyone has the
define simple concepts that are actually as
talent or determination for excellence, while
old as life. In my view, paradoxical leadership
some are not concerned about others enough
tured around the Yin and Yang philosophy,
refers to a leader’s capacity to fine tune the
to be truly effective,” Popasav concluded.
stating that all things exist as a balance of
environment they are influencing, which im-
“As long as one can find an optimal way
contradictory and inseparable opposites. Not
plies a higher level of human connection with
to lead themselves, these skills can definitely
all studies on paradoxical leadership support
those around them and an increase to their
be developed to a level that has an impact on
this philosophy.
own depth of perception,” Uceanu explained.
others. But I think that again, even with lead-
“It may be so, but this just sounds like
ership, we are already overusing a term due to
THE POWER OF TEAMS
good leadership. All great leaders foster a cul-
its trending status. We all need people to look
Authors have suggested that by target-
ture where people can speak up, share ideas,
up to, and if we are able to become role mod-
ing role modelling behaviours, leaders can
and challenge each other in constructive ways
els ourselves, then leadership development is
increase the self-efficacy of their follow-
to find the best solutions. Maybe it has a new
not necessary,” said Madalina Uceanu.
www.business-review.eu Business Review | December 2021
44 CULTURE
Another pandemic year for the cultural sector With major events postponed for 2022, the Romanian cultural sector is trying to find a way to navigate through these uncertain times. Let’s take a look back at what happened in 2021. By Oana Vasiliu projects for the creative industries this year. FEPIC (the Federation of Creative Industries Employers) developed the first hub that’s exTIFF got it's 20th anniversary this year
clusively dedicated to the creative industries in Iasi, in partnership with the City Hall. The
TALKING NUMBERS
led to the cancellation of Sound of Bucharest,
“Creative Hub” cultural project, conceptu-
In 2019, there were 7.9 million cultural sec-
an event that would have featured Armin van
ally named Iasi Creative Space, aims to create
tor employees in the EU (3.7 percent of total
Buuren. So far, events in public places have
a temporary, unconventional space with a
employees), according to Eurostat data. In
not been allowed to resume, while indoor
national reach and international connectiv-
Romania, the cultural sector had 1.6 percent
events are only permitted at 30 percent of
ity. The hub brings creative industries into a
of the country’s total number of employees
venue capacity.
space that can support young artists with the help of entrepreneurs in those industries and
and generated between 1.5-3 percent of GDP,
COOPERATION IN THE CULTURAL SECTOR
support art in all its forms. With the corona-
In Romania, the cultural sector was one
In March, Raw Music launched MEWEM, the
virus pandemic having impacted the cultural
of the hardest hit in the first months of the
first mentoring programme for women in the
sector much more strongly than it did others,
pandemic, according to data published one
Romanian music industry. For three months,
the FEPIC initiative comes as a helping hand
year into the health crisis by UBB econo-
10 women who were industry leaders – artists
in getting back to an active cultural life, in
mists, cited by Economedia. During the first
or record label managers, festival promoters,
a city that is internationally famous for the
pandemic wave, most sectors were affected,
communication specialists, and independent
names it has brought to the field.
with the hospitality and tourism sector falling
artists – guided 10 other women who were
by 67.4 percent, while the culture, arts, and
in the early stages of their music industry
nology festival RADAR launched FAR (Future
other services sectors saw record declines in
careers.
Artistic Requirements), a new platform for
according to industry analysts.
the second quarter of 2020 (-67.4 percent and
May brought the launch of the Work Up-
At the beginning of August, art and tech-
the education and development of the new
side Down initiative, as part of the Cluj Future
media art community, supported by UniCredit
of Work project, financed by the European
Bank. FAR connects the educational, cul-
FESTIVE VIBES
Regional Development Fund through Urban
tural, and creative sectors with new creative
Even in this difficult context, Romania found
Innovative Actions. It aims to generate public
environments and explores the applicability
a way to bring joy and happiness to festival-
conversations that will be accessible to a wide
of emerging technologies in the cultural and
goers by allowing events like Transylvania
audience and mediated through artistic expe-
artistic field, digital skills, and new trades.
International Film Festival, Sibiu Internation-
riences, all related to the future of work.
The developers of this interdisciplinary
al Theatre Festival, Electric Castle, Anonimul
Culturepreneurs’ plans had been imagined
platform aim to explore and develop a model
International Film Festival, JazzTM, Jazz in
long before the pandemic began; their visions
of creative economy that brings together
the Park, Untold, Summerwell, and the new
had been built on research and observations,
new media experts (teachers, artists, etc.),
SAGA Festival to take place, attracting both
discussions, past projects carried out along-
beneficiaries (pupils, students, young artists,
criticism and praise from the public.
side various stakeholders in the cultural and
etc.), employers and funders, but also aca-
The pandemic struck again at the end of Sep-
creative fields: artists, academic institutions,
demia (UNARTE, UNATC, UBB), to be joined
tember this year and brought on new restric-
organisations, students, entrepreneurs, etc.
by relevant public policy actors on culture,
tive measures, which had a small impact on
But Cluj-Napoca and Bucharest weren’t the
innovation, art, technology, emerging cultural
the George Enescu International Festival and
only Romanian cities to develop important
heritage, and education.
-60.4 percent, respectively).
www.business-review.eu Business Review | December 2021
CHRISTMAS 45
The ultimate Christmas shopping list In this second pandemic year, the Christmas shopping list continues to be a challenge for us all. We are sure that Santa will manage to find everyone though, so Business Review has created a list of shopping ideas for all your loved ones. By Oana Vasiliu mend that you look at offers from Ana Pan, Mama Pan, Bacania Veche, Cofetariile Delice or Cofetaria Maria. Make sure to order in advance. One of the best options for premium goodies are Le Manoir gift boxes. For those with an Italian sweet tooth, a must is Degusteria Francesca, while Delicateria Traiteur has launched another brand, Idelica. Revino sells Romanian delicacies in boxes, namely a selection of wines and premium local cheeses.
WOOD PRODUCTS AND SMALL HOME DECO ITEMS If you’re looking for something more substantial, you should consider unique furniture. Take a look at designs by Bucin Mob, Lemnivor or Urban Woods and check out our all-time favourites from Dizainar and Atelier Anda Roman. A lot of homemade candle businesses It's the season to be jolly
T
Cup&Candle, MO – Candles and more, and The Room Candles all provide beautiful
here is no Christmas without a tree,
Andreeatex, Condra, Moko Fun, Meg Wi
whether it is natural, plastic or built
Baby, Mini Rock, Fici + Mimi, Tiny Turtle or
through a creative use of sustainable
Woolver.
materials. For some time now, wreaths and
have appeared on the market this year.
Wood is one of the most fascinating
candle ideas. For interesting art pieces, you should check out Madalina Andronic, Illustrescu, Diana Dragne, Ana Banica, or Paula Rusu -
floral table arrangements have been present
materials that can be used to make toys
you can even order something tailor-made
in our homes, as well. See what’s in store for
or be integrated with educational activi-
from them.
instant delivery from Maison Dadoo, Flori
ties for kids, not to mention small pieces
de Lux, Floria.ro, Florariile Iris or Purple
of furniture. Check out Mormi, Lemnivor,
EXPERIENCES
Flowers.
Atelierul Leea, Mesterel, Atelierul Mari si
ialoc Romania has launched a series of
Mici, Bumbu Toys, Sezi, Vulps Toys, Modern
vouchers to surprise foodies and help out
GIFTS FOR KIDS
Crafts. Children should have fun while doing
small restaurant and coffee businesses
Although the Disney universe can always
their daily activities. For more creativity, try
around Romania, not just Bucharest. Try
provide a good idea for a present, there
Cosanzeana, Titia, Cutia lui Acum.
Carturesti for artsy & inspiring gifts, as well as Complice.ro, a platform dedicated to
are a series of Romanian shops that offer a variety of other types of toys and products
SWEETS & GOODIES
for children.
Chocolate is always a good idea, whether it’s
experience-based gifts. Other great gifted experiences could
for a business or personal gift. Visit online
include a subscription to Romanian film
should be focus points for every responsible
stores like Leonidas, Chocolissimo or Choco
platform TIFF Unlimited, curated by TIFF,
person who thinks about sustainability.
Fashion for ideas. Most Romanian pastry
or one of the courses provided by Fundatia
Check out Iridor, Sipet de sidef, ROM Baby,
shops offer cozonac, but we strongly recom-
Calea Victoriei.
Quality materials and organic fabrics
www.business-review.eu Business Review | December 2021
46 CITY
New places in town Wondering where you might be able to enjoy some nice food and drinks in Bucharest? BR presents a list of places you should pop into this time of year. By Oana Vasiliu
B
Check Le Bab for oriental with a twist
How about some Hungarian delights?
ucharest Christmas Market has opened up in Universitate
or some Hungarian goodies from Transylvanian Csíki Sör Craft Brew-
Square, with winter magic sparking joy for both children and
ery & Restaurant (6 Covaci Street). Also check out the new Le Bab, in
adults until December 26. As a bonus, there are many caravans
Arcul de Triumf square, for some oriental flavours.
serving delicious street food – a must try is Amis de la Fête and their raclette with Jamon, chorizo or veggies. For sunny winter days, try HARE (in Herastrau Park) or Sera Eden (37 C.A. Rosetti Street), two recently opened urban gardens with cocktails & food.
For an experience that comes close to fine dining, check out GRAI
In terms of discovering new places, we strongly recommend walks around the Cotroceni area, where you’ll discover charming small cafes (La petite bouffe, Zissou Coffee Shop, RePlace) or places with a great vibe (Infinitea). The Aviatorilor/Dorobanti area has recently attracted more places
to eat and drink, such as Steam Coffee Shop, Strada CoffeeShop,
Restaurant (40 Logofat Luca Stroici Street), Soro Lume (33 Fluierului
Beans&Dots inside MARe Museum, adding to well-established places
Street), and MOM (2-4 Franceza Street). There, well-known chefs from
like Poesia, OSHO, Zexe, and Kaiamo.
the local food scene are mastering the kitchen business with new techniques and local ingredients. If you are up for trying international dishes with a hipster twist, your first choice should be Maimuca Restaurant (Edgar Quinet Street)
Calea Victoriei is another area worth being (re)discovered, with a bunch of new entries: The Saint and Balkon Resto Garden are the latest, but there’s also the entire Amzei Square, where new/old food businesses are changing the local gourmet scene.
