BR/12/2021

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

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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?

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This will be needed in order to assure

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nia has to meet in the field of renewable

long-term sustainable development, as a

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delayed energy transition of even 2 years for

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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

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nies will also have the possibility to diminish the

emissions and is vital for all the other sectors

energy can lead to capturing opportunities

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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.