WHERE ROMANIA TALKS BUSINESS May, 2021 / Volume 25, Issue 4
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PANDEMIC BOOSTS COMPANIES’ COMMUNITY INVOLVEMENT
16
ROMANIAN STARTUP FUNDING ECOSYSTEM STRENGTHENS DURING PANDEMIC
22
BRAND LOYALTY GROWING IN CONSUMERS’ MINDS AND HEARTS
32
DATA SUSTAINABILITY – THE NEW FRONTIER
34
HOW ROMANIA CAN BECOME A REGIONAL FDI LEADER IN POST-PANDEMIC EASTERN EUROPE
www.business-review.eu Business Review | May 2020
EDITORIAL 3
• Editorial •
REAL ESTATE
Anda Sebesi • Editor-in-Chief • 6 Real estate market in better shape than expected after pandemic year
COVER STORY
Building a new society
E
8 How Romania can become a regional FDI leader in postpandemic (Eastern) Europe
very company in Romania, whether it is a local firm or a
MAIN STORY
multinational, will sooner or later have to include sustainability in its business strategies and processes. Although
there is no guarantee that sustainability will contribute to the post-pandemic economic recovery, its long-term role is becoming
16 Pandemic boosts
clear, and that’s why we’re dedicating the cover story of this issue
companies’ community involvement
to sustainability, a concept which is being embraced by more and more companies operating in Romania. Now is the time for organisations to innovate, let go of the “business as usual” concept, develop “green” products and services, and build low-carbon infrastructures. Plus, companies should pay more attention to their customers, as the pandemic has
ENTREPRENEURSHIP 22 Romanian startup funding
changed consumer behaviour and has increased awareness around
ecosystem strengthens during pandemic
responsible corporate practices.
24 Mobility startups
As corporate social responsibility is closely connected to sustainability, we decided to also write about how companies have
preparing for post-pandemic future
been involved in their communities over the past year. Mitigating the effects of the pandemic on local communities and society as
CITY
a whole has been a priority for companies across Romania. Their involvement has helped the country overcome this difficult period and given people hope that better times would come.
36 Malmaison
come the crisis generated by the pandemic, and hence unity and
Studios: A new collective art centre in town
mutual aid have become vital values that should be at the heart
37 Who will finance
Last year was all about solidarity and finding ways to over-
of decision-making for citizens, civil society organisations, and institutions both locally and globally. It is therefore time for us to accelerate the process of building a development model that can lead to a truly sustainable society.
the grand reopening of the local cultural scene?
38 New in town
EDITOR-IN-CHIEF: Anda Sebesi JOURNALISTS: Aurel Constantin, Mihai Cristea, Romanita Oprea, Oana Vasiliu CONTRIBUTORS: Ovidiu Posirca, 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
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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
Pandemic only partially delays consumers’ plans to buy new cars By Mihai Cristea to the pandemic (32 percent), followed by Spain (29 percent), the United Kingdom (20 percent), and France (17 percent). Limited driving range and the lack of charging infrastruc-
Constantin Sebesanu has been appointed CEO of Impact Developer & Contractor, for a 4-year mandate. He is specialised in Strategic and Financial Management and has over 25 of experience in project development and asset management. Sebesanu joined Impact at the beginning of February this year, in the Development Director role, and was responsible for coordinating the company’s projects, while in late March he was promoted to Executive Director (COO – Chief Operating Officer), coordinating the company’s development, sales, and marketing departments.
Mircea Draghici was appointed General Manager (GM) for Romania by AGRIVI, a leading global farm management software company in the agritech sector. Draghici is a serial entrepreneur with a passion for science and technology, he has been a founding partner of Venture Growth Partners for almost eight years, and has worked in the tech industry for over 15 years. In his new position, Mircea Draghici will use his knowledge, experience, and expertise to bring AGRIVI to a leading position on the local market. page 5
ture are the biggest concerns regarding electric cars among consumers in most of the countries included in the study. “Consumer prudence is
Europeans are more optimistic than Asians and maintain their plans to purchase a new car
natural in times of uncertainty. In this context, it is noteworthy that Europeans are more
The COVID-19 pandemic has
context, which is dominated by
optimistic than Asians and
partially changed consumer
uncertainty, according to the
maintain their plans to pur-
behaviour on the auto market.
Deloitte 2021 Global Automotive
chase a new car. The decline in
Some of them have put off
Consumer Study, conducted in
electric and hybrid cars, which
their plans to buy a new car,
23 countries around the world.
can be explained by the con-
and their interest in engines
Most of the consumers who
sumers’ need for stability, is
with alternative propulsion
have postponed their purchase
expected to be temporary and,
systems has been temporarily
come from Asian countries,
once confidence in the overall
declining. Although the trend
while most Europeans have
development of the economy
around electric cars seems to
maintained their earlier plans.
is restored, the concern for
be consolidating in the long
Among the European coun-
environmental protection and,
term, consumers tend to be
tries participating in the study,
consequently, the appetite for
looking for the comfort of a
Italy has the highest percent-
this type of engine will return,”
well-known, tested, and acces-
age of those who postponed
said Ciprian Gavriliu, Tax Part-
sible technology in the current
the purchase of a new car due
ner at Deloitte Romania.
Publicis and Digitas Romania launch the Digital Health Index By Mihai Cristea Publicis and Digitas Romania,
about the status of their brands.
with support from the Data
Monthly rankings dedicated to
Intelligence Team from Publicis
several key industries have been
Groupe Romania, have developed
generated based on DHI data.
the Digital Health Index (DHI), a
In this first phase, Q1 2021 was
tool that measures brands’ health
taken into account compared to
in the digital world. DHI has been
Q4 2020, with the aim of captur-
designed to provide clients with
ing the evolution of industries
real-time relevant information
based on their digital decisions.
The first categories analysed by DHI are automotive, banking, retail and telecom
www.business-review.eu Business Review | May 2021
NEWS 5
New plant in Urlati strengthens Romania’s position as a P&G hub By Mihai Cristea
Dinu Bumbacea will take the lead at PwC Romania on July 1, 2021. With over 28 years of experience in professional services, of which 21 have been spent as Partner, Dinu is currently Partner and Advisory Leader at PwC Romania. Over the course of his career, Dinu has coordinated a wide range of consulting projects in various industries, in Romania and across the CEE region.
Recently, Procter & Gamble opened a new manufacturing site in Urlati (Prahova County). The new plant will produce Ariel PODS, the company’s latest laundry detergent innovation. By exporting Ariel PODS in many European countries, this greenfield investment comes to strengthen Romania as a production hub for P&G. Over 200 new jobs will be
Over 200 new jobs will be created at the new plant
created and the new plant will introduce modern manufac-
production facility in Urlati,
businesses join forces, great
turing solutions in detergent
Romania, a significant invest-
things happen for all – the
production.
ment in the country. Romania’s
people who we serve and the
attractive profile, the successful
communities in which we live
step fibre science innovation,
track-record of P&G on the local
and operate,” said Antoine
Ariel PODS is the first 3-com-
market and, most importantly,
Brun, Managing Director at
partment laundry unit dose
the exceptional profile of P&G
P&G for South-Eastern Europe.
product that enables superior
people, have made this invest-
The new manufacturing
cleaning even in cold water
ment possible. We would also
facility strengthens P&G’s foot-
while being a great example of
like to acknowledge our strong
print in Romania, which today
sustainable innovation.
partnership with the local au-
consists of a Hair Care plant in
thorities, which has allowed this
Urlati, the operational office of
tant milestone of P&G’s pres-
investment to happen proving
the SEE cluster & regional ser-
ence in Romania. We celebrate
once again that when govern-
vice centre in Bucharest, and a
the inauguration of our PODS
ments, local communities, and
Logistics centre in Timisoara.
Thanks to its superior three-
“Today we mark an impor-
Ziv Gigi has been appointed Managing Director of GTC’s operations in Romania. He has more than 15 years of experience in CEE real estate markets, having developed and operated dozens of projects in the office and retail segments. In addition, his previous tenure as CFO of GTC’s operations in Bulgaria, Romania, and Serbia provided him with the financial acumen he needed to successfully execute and support the company’s strategic direction.
The first categories analysed are automotive, banking, retail, and telecom. “Brands need fresh, current data that reflect what’s happening today or at least this week. DHI integrates millions of real-time data points with great insights into our clients’ future business decisions: from prioritising media channels or producing better content to developing more efficient communication strategies,”said Teddy Dumitrescu, the CEO of Publicis Groupe Romania.
Bettina Koblick is the new Chief People Officer (CPO) at UiPath. Koblick will report directly to UiPath co-founder and CEO Daniel Dines and will lead all aspects of the people function, from employer branding to talent acquisition through the entire employment lifecycle. Koblick joined UiPath from ServiceMax, where she served as Chief People Officer.
www.business-review.eu Business Review | May 2021
6 REAL ESTATE
Real estate market in better shape than expected after pandemic year Looking back beyond the last 12 months, we can see that the pandemic has only accelerated real estate market trends that had been taking shape in this industry and in the wider economy well before the health crisis hit. By Aurel Constantin of uncertainty right to the end of 2020. This year began with a slight decline in construction activity, but estimates for the rest of the year remain optimistic, forecasting a slight increase for the full year.
OFFICE MARKET “The pandemic has definitely had a significant impact on the way we work and shop. IMMOFINANZ Romania already had a good positioning of its office portfolio with the myhive concept, which is based on offering not just basic workspaces, but living spaces, with employee wellbeing as a priority. In the future, this will be central to the office experience, while flexible working and home offices will continue to be in great demand. Recently we have been talking much more about home offices, but this option will never completely replace the office workstation,” said Fulga Dinu, Country Manager Operations at IMMOFINANZ Romania. The vacancy rate for office space has risen relatively steadily, with most customers’ postponement of expansion projects having Fulga Dinu, IMMOFINANZ Romania
C
contributed to this phenomenon. Estimates for 2021 and 2022 show that the
hanges in working habits, and im-
cupants with a more comfortable alternative,
vacancy rate will rise even further because
plicitly in employees needs, started
possibly taking into account the requirements
projects that already have pre-leased spaces
to appear before the pandemic, and
of working from home. At the same time, the
cannot be postponed, and it might take longer
this topic was already on the agenda of many
industrial and logistics development market
to fill vacant spaces without an increase in
management teams.
will have to accommodate the growth gener-
net demand. Demand will come mainly from
ated by online commerce,” said Cezar Florea,
tenants whose contracts will expire during
real estate – consultants, architects, agents,
Head of Project & Development Services at
this period and who have seized the opportu-
engineers, developers, tenants, banks, and
JLL Romania.
nity to secure advantageous contracts for the
At the same time, players involved in
coming years.
investors – have been expressing more inter-
All these developing areas will generate
est in sustainable buildings and measures to
many opportunities for companies that oper-
reduce pollution.
ate in these sectors. Despite the moderate
nies have preferred to extend their current
At the same time, many other compa-
pessimism at the beginning of the pandemic,
contracts by one or several years, whether
the need to adjust existing office spaces. The
construction activity did not experience a
they’ll end up keeping the same space or not.
residential market will grow to provide oc-
decline, demonstrating resilience in the face
As they wait for the end of the pandemic,
“The new way of working will bring up
www.business-review.eu Business Review | May 2021 2016
COVER REALSTORY ESTATE14 7
they are taking the time to analyse new forms
will be directly affected by postponed exten-
foundations,” said Andreea Hamza, Senior
of work and adjust their own policies. It is
sion of the 5 percent VAT rate for housing,
Living Department Director at JLL Romania.
not a simple thing, especially for those with
so some buyers in this category could freeze
a large number of employees who have vari-
their purchasing decision at least until 2022.
ous needs and possibilities of working from
Rents have fallen by 10-15 percent as
THE INDUSTRIAL MARKET Industrial demand has had an interesting evo-
home, all of which need to be mapped out
a result of the increased supply of apart-
lution to say the least, given that in April-May
in order to maintain an optimal productivity
ments that would previously be rented as
2020 almost all ongoing leasing projects were
level.
aparthotels and are now being rented on a
suspended indefinitely only to be followed
long-term basis, as well as due to the declin-
by an explosive return in July-August. The
ing itself on the office market is that of com-
ing demand from students. The return of
market was strongly driven by confidence
panies subleasing spaces. At the moment, the
the rental market will happen rapidly as the
in logistics and distribution spaces, which
total area available for subletting is the largest
population's immunisation level increases
supported consumption throughout the
that has ever existed on the Romanian market
and travel restrictions are lifted. The hybrid
crisis period. One of the pleasant surprises
– approximately 70,000 sqm. “There is still a
working model – a mix
significant share of employees who say that
of working from home
they find it more difficult to stay focused
or elsewhere and from
or motivated at home or that they feel less
the office – will have an
connected with their colleagues. Demand for
impact on the design
high quality office space with added value
of residential products,
will therefore continue to exist, and it will be
while more and more of-
very important to focus on our tenants’ spe-
fice developers will turn
cific needs. Flexibility and community will
their projects into mixed
play key roles here,” Fulga Dinu added.
or exclusively residen-
Another phenomenon which is manifest-
IMMOFINANZ started 2021 by announcing
tial schemes. A new
two actions through which they expanded
product will appear on
the range of benefits offered to tenants.
the residential market
“First, we closed the transaction to acquire
– Built to Rent projects,
Bucharest Financial Plaza, an emblematic
i.e. homes which are
building in the Old Town. The agreement
purposely designed to
is an important step in strengthening our
be rented out.
high-quality office portfolio and innovative
The market will focus
myhive office brand. As part of the planned
on established develop-
refurbishment, we will provide more space
ers with strong finan-
for the public area and the green city terrace
cial support and with
will bring a highly appealing central attrac-
large volumes of units
tion to city residents. This year, we also
delivered, especially in
concluded a long-term leasing contract with
the context generated by the adjournment of
that we have been observing over the past
Provita Group, a leading medical services
Urban Zonal Plans (PUZs) for five out of six
year has been the strong confidence shown
provider that will occupy an entire building
sectors in Bucharest (2 to 6).
by large investors regarding the resilience of
in one of the largest office hubs in Bucharest.
Institutional investors will make an
This partnership expands our current offering
entrance on the local market, and this will
with a high-quality medical hub that will
reshape the rental market altogether by im-
increase the location’s attractiveness in the
plementing clear rules and international best
fact that, with the increase in the number of
long run. Seeing all this interest, we believe
practices, thus defining new rental standards.
investors and the volume of spaces avail-
that we offer the right kind of product in this
“The pandemic has also acted as a cata-
able for rent, the market is heading towards
lyst. It has helped in making decisions and ac-
a new turning point. Landlords are offering
celerating the desire to optimise the spaces in
increasingly attractive and consistent benefits
RESIDENTIAL MARKET
which we live, with a much more pronounced
to potential tenants, while also facing more
According to the JLL Romania forecast,
focus on comfort. Up to this point, we have
intense competition from new investors who
demand for housing will remain strong, espe-
seen a dynamic that is specific to a mature
need to be a little more flexible in order to
cially for the segments positioned at the ends
and stable market, without the slippages we
increase their client portfolios,” said Costin
of the market spectrum (low-end and high-
had seen in previous years, thanks to the pro-
Banica, Head of the Industrial Department at
end). Meanwhile, the middle-high category
fessionalism of market players and their solid
JLL Romania.
environment,” Dinu explained.
the industrial segment at the beginning of the pandemic. “However, we must draw attention to the
8 COVER STORY
www.business-review.eu Business Review | May 2021
HOW ROMANIA CAN BECOME A REGIONAL FDI LEADER IN POST-PANDEMIC EASTERN EUROPE Bogdan Ion, EY Romania & Moldova Country Managing Partner and EY CESA Chief Operating Officer, talks to Business Review about the key role of foreign direct investment (FDI) in Romania’s post-pandemic economic recovery and explains what the country should do to attract more foreign investors. By Anda Sebesi
www.business-review.eu Business Review | May 2021
COVER STORY 9
www.business-review.eu Business Review | May 2021
10 COVER STORY
FDIs will play a crucial part in the local economy’s post-pandemic recovery. What adjustments should Romania make in order to become more attractive for investors?
a driving force for Romania. The development of the industrial sec-
FDI will be at the foundation of economic recovery over the coming
in infrastructure.
years. The 2020 edition of the EY Attractiveness Survey shows that
tor should be carried out considering the European efforts towards a sustainable and green economy and the need for large investments Finally, the Romanian IT sector has experienced significant
foreign investors think Romania should focus on developing educa-
growth over the last decade, considering its competitive advantage
tion and skills, supporting high-tech and innovative sectors and
in terms of qualified workforce. With the pandemic having acceler-
encouraging investments in major infrastructure and urban projects.
ated the adoption of technology, the digital sector has a chance to
35 percent of surveyed investors were looking to invest in supply
become the most important industry in Romania. According to the
chain and logistics projects, while 34 percent were interested in
same EY Attractiveness Survey, last year 29 percent of investors
projects in the manufacturing sector.
saw the IT sector as the engine of the Romanian economy. We have
In this context, infrastructure investments, particularly transport
just witnessed the largest IPO of a Romania-born company on the
infrastructure, can attract investors from areas like production and
NYSE – UiPath – a tech company valued at EUR 20 billion. However,
logistics. Romania has the potential to become a European supply
digital infrastructure inside the public administration remains poor,
hub, since many players are planning to re-enter the European mar-
so major investments are still needed for the public sector to be
ket. Over the next few years, the National Resilience and Recovery
efficient. The National Resilience and Recovery Plan supports Roma-
Plan (PNRR) will play a major role, as infrastructure, skill develop-
nia’s objectives in this sector too, as the digitalization of the public
ment, and innovation are some of its key components.
administration is another key element of this plan.
Significant additional support is also expected in
Last year brought us the opportunity to advance
the energy sector through several instruments:
digitalization in medical and educational ser-
The Modernisation Fund, the 2021-2027 Just Transition Operational Programme, the 2020-
vices. In the future, this will lead to significant annual cost savings, improve the popula-
2030 Innovation Fund. The absorption of
tion’s access to these services, and acceler-
these funds at the national level could turn
ate the growth of the private components
Romania into a very attractive destination
of these two sectors. The new EY Attrac-
for foreign investments, thanks to both its
tiveness Survey for Romania, which will
human capital and local resources. In this
be launched on June 16, may change the
sense, significant public investment in education is also needed in order to keep up with innovation and remain competitive in terms of local workforce. Lastly, stability within the political and fiscal environment
ranking of industries perceived as having high potential for the country, considering the accelerated digitalization and the impact of the pandemic on foreign investors’ perceptions and priorities, which will be reflected in this year's survey results.
will play an important role in attracting investors, who are aware of geopolitical dynamics. Romania has made significant improvements in the past decade, taking important steps in the fight against
To what extent do you think Romania was prepared to face a crisis before the pandemic started?
corruption and adapting its fiscal policies. Still, the Corruption
The COVID-19 pandemic had a significant impact across the world.
Perceptions Index from Transparency International places Romania
However, it also triggered unprecedented responses through eco-
on the 69th spot out of 180 countries, illustrating the fact that much
nomic recovery packages which have managed to limit the damage
remains to be done in order to obtain the long-term trust of inves-
caused by lockdown measures and by the slowdown in global trade.
tors at a larger scale.
A very important factor that contributed to Romania's economic resilience after the coronavirus outbreak was its highly competitive
Which of Romania’s economic sectors have the highest growth potential in the post-pandemic period?
mobile and fixed telecommunications infrastructure and especially
Based on the answers of over 100 global investors included in our EY
of a strong historical competition between operators in this sector,
Attractiveness Survey, agriculture, IT, transportation, and automo-
which led to significant investments in their networks, making them
tive are the main drivers of Romania’s economy. The agri-food sector
capable to support the move to teleworking.
the high degree of broadband penetration. These were the result
ranked first among the industries that will foster local economic
In Romania, the COVID-19 pandemic overlapped with a pre-
growth. And since agriculture has a strategic importance for Ro-
existing health crisis, so issues such as poor organisation, material
mania, it needs coherent policy and financial support to propel its
shortages, and the lack of a well-developed infrastructure were all
modernisation and contribute to economic growth in a sustainable
exacerbated by the pandemic. Contrary to all predictions, the Roma-
manner. This financial support is integrated into the National Resil-
nian economy proved to be resilient, thanks to both direct infusions
ience and Recovery Plan.
of cash – through economic recovery programmes and non-reim-
Manufacturing is another sector with a high potential to become
bursable fund schemes –and an increase in public investments.
www.business-review.eu Business Review | May 2021
The IMF predicts a 2.6 percent net increase for Romania’s GDP be-
COVER STORY 11 als generate direct added value by working for multinationals or lo-
tween 2020-2022, more than double the EU average of 1 percent. By
cal/entrepreneurial companies, I unfortunately don’t think that the
comparison, in 2008-2010, Romania’s GDP dropped by 0.8 percent.
pandemic has dramatically changed the situation. I think we need a
Furthermore, the unemployment level shows that the additional
country strategy to both retain high-skilled workers in Romania as
financial support and the job retention policies have kept Romania’s
well as to involve workforce from other countries in local projects.
unemployment rate stable, with only a minor increase of 0.6 percent (according to Eurostat) between February and December 2020 (compared to 1 percent for the same period of 2008). This is well below
What are your recommendations for Romanian authorities in terms of planning for future foreign investments?
the EU average of 1.9 percent, proving that the pandemic’s impact
Supporting education, adopting new technologies, and investing
on the labour market was better managed in Romania than in other
in infrastructure (especially transport and energy infrastructure)
European countries
should be top priorities for Romania. According to last year’s EY
In any case, regardless of how prepared Romania was when the
Attractiveness Survey, foreign companies believe that investments
pandemic started, what is most important now is maintaining mar-
in these sectors could increase Romania’s competitiveness. Yet, ac-
ket optimism regarding the country’s recovery, as the sentiment can
cording to preliminary results of the upcoming annual survey, these
attract investments in this uncertain context.
priorities seem to have changed in 2021. We’re noticing a greater
Foreign investments have mostly targeted the largest cities of Romania, which are drivers of the country’s economic growth. How do you think the gap between these growth poles and the rest of the country could be reduced, in order for economic development to no longer only be concentrated in certain areas? Our studies frequently show that poor infrastructure, which limits the development of certain regions, is a factor that investors take into account when deciding where to invest. Investments in infrastructure represent a way to direct investors’ interest
focus on sustainability, environmental policy, and technology adop-
towards other areas besides large metropolitan areas, therefore the
tion among investors, while the financial stimulus programs offered
acceleration of certain infrastructure projects will put geographi-
by governments might not play such a significant role to attract
cal areas which are now economically isolated on the investment
foreign investment.
map. Additionally, introducing fiscal facilities designed to stimulate
Equally, authorities should focus on encouraging the creation
investments and economic activity outside the big cities could also
of intellectual property in Romania by offering various facilities,
generate economic growth in other parts of our country.
including fiscal incentives. Such policies will enable the retention of the tech entrepreneurial companies' IP in Romania and can support
Keeping highly qualified workforce from leaving Romania has always been a challenge for our country. What is the current situation and how could the pandemic context help the country retain its talent?
the attraction of more investments in the long term, because well-
A significant share of the qualified workforce that was living abroad
for many investors who are already present in the country, because
returned to Romania for various reasons during the pandemic,
it can influence their companies’ performance and resilience to
which significantly reduced their mobility. In addition, the number
shock. The National Resilience and Recovery Plan is therefore an
of students who decided to study abroad (many of whom will turn
opportunity for the Romanian economy to recover and develop its
into future Romanian expats) dropped as well during this period.
vulnerable sectors as well as to attract long-term investors. Romania
The exact impact of the pandemic on the number of Romanian uni-
will benefit from significant funds for green energy, public sector
versity graduates who will leave the country could be determined in
digitalization, reskilling, and upskilling. So, a strong dialogue be-
the next three to four years. This will generate an increase of domes-
tween decision-makers and the private sector to ensure the efficient
tic consumption and bring indirect added value. As for achieving a
absorption of these funds is crucial for the development of foreign
long-term retention of talent in Romania and having these individu-
investments in the future.
consolidated and protected intellectual property rights generate direct foreign investments. Governmental support for future investments could be decisive
www.business-review.eu Business Review | May 2021
12 COVER STORY
Making the most of sustainability
By Anda Sebesi
Every company in Romania, whether it is a local firm or a multinational, will have to include sustainability in its business strategies and processes. Although there is no guarantee that sustainability will contribute to the post-pandemic economic recovery, its long-term role is becoming clear. Now is the right time for organisations to innovate, let go of the “business as usual” concept, develop “green” products and services, and lowcarbon infrastructures. Last but not least, companies should pay more attention to their customers, as the pandemic has changed consumer behaviour and increased awareness around responsible corporate practices.
www.business-review.eu Business Review | May 2021
I
COVER STORY 13
n recent years, sustainability has become a top priority for many companies, which have started to work on developing and refining the concept. The pandemic has had an impact on
this concept too, and it has accelerated some trends, including getting consumers to pay more attention to corporate behaviour and
A CRUCIAL SHIFT IN ROMANIAN CONSUMERS’ BEHAVIOUR
acknowledge the impact companies have on the environment. In addition, the European Commission has set the main targets Europe should pursue in order to make a successful transition towards a low-carbon economy by 2050, in line with the objectives of the Paris Agreement, of which Romania is a part as well. The orientation of economic activities towards sustainable development is crucial. This could be done only by integrating sustainability issues – environmental, social, governance – into
ACCORDING TO THE EY FUTURE CONSUMER INDEX SURVEY, THE PANDEMIC HAS CHANGED ROMANIANS’ CONSUMPTION PATTERNS AROUND PRODUCTS, SERVICES, MEDIA CHANNELS, AND SOCIAL EXPERIENCES. QUALITY AND PRICE HAVE BECOME THEIR MAIN CRITERIA. IN ADDITION, THE BEHAVIOUR OF COMPANIES HAS CHANGED AS THEY FACED THIS UNUSUAL CRISIS.
their business strategy. “We can define sustainability as a balanced and long-term alignment of the interests of all stakeholders in a
•
ROMANIAN CONSUMERS BECAME MORE AWARE OF RESPONSIBLE COMPANIES. According to the EY Future Consumer Index, about 85 percent of Romanian consumers say that the way in which companies act is as important for them as the products or services those companies put on the market. Under the influence of the pandemic at a macroeconomic level, the new consumer, including the Romanian one, is more pragmatic and aware of companies’ behaviour during this crisis, as well as of their general business strategy.
•
THE PANDEMIC HAS LED TO COMPANIES GETTING MORE INVOLVED IN COMMUNITIES. The COVID-19 outbreak dramatically changed the dynamics of the private sector’s involvement in local communities. This translates into a large volume of corporate donations aiming to support the public healthcare system. In the last five months of 2020, the pandemic generated several changes in corporate behaviour among companies operating in Romania. They either stopped or increased their commercial communication, stepped up their involvement in the community, and focused more on their employees. Many Romanian companies developed new strategies and capacities to manage the crisis and to continue their activity during the pandemic.
•
COMPANIES SHOULD MAKE GREATER EFFORTS TO MAKE THE NEW CONSUMER FEEL SAFE. In this atypical context, an increased concern for the safety and protection of consumers could be crucial in strengthening the relationship with them. According to the same survey, both non-commercial communication – which focuses on health and safety measures and on community involvement – as well as commercial messaging are crucial for Romanian consumers who say that they prefer to be as well-informed as possible. Flexibility and a constant optimisation of product portfolios, along with a shift towards digital business and an increased focus on the current needs of consumers are some of the solutions companies could use to adapt to new market conditions.
•
STABILITY AS STANDARD. Globally, stability seems to be the one of consumers’ top demands, with 40 percent of them wishing for things to return to normal as quickly as possible. Consumers expect to make significant and long-lasting changes both in their consumer behaviours and their daily activities. 62 percent of them indicate that they will be more aware and cautious when it comes to their physical health, while 58 percent will focus more on the value created by the products and services they buy. Last but not least, the most recent Future Consumer Index shows that the environment, the common good of society, and physical health are seen as priorities by the majority of consumers.
company’s ecosystem. The sustainability of a company is not just about its impact on the environment, but also about its impact on its entire ecosystem. Therefore, the mindset of ecosystem members should be based on long-term investment. A company cannot be totally ‘green’ just because its carbon emissions drop by, say, 50 tonnes/year, if its suppliers record an increase of 100 tonnes/year during the same period,” they argue. EY points out that the pandemic created an unexpected opportunity for organisations to rethink their medium and long-term operations and strategies. In addition, it highlighted a number of risks and structural changes. “Some changes have already been accelerated by the pandemic – for example, many activities moved online, business trips have been cut out, and some operations had to be completely redesigned. This is a good moment for companies to adopt an agenda of stakeholder capitalism, in order to create long-term added value and encourage a culture of sustainability, based on responsible business practices,” EY specialists say. In the “Sustainability and responsible investments in the context of COVID-19” study conducted by EY last year, 74 percent of respondents said that integrating sustainability principles into the business strategy was a priority for their companies. This change in business philosophy can also be seen among Romanian companies, in light of the change in consumers’ purchasing behaviour and the increasingly stringent requirements from investors and regulatory bodies – trends which are expected to continue and follow global tendencies.
A CHANCE TO RESET OUR MINDSET According to EY representatives, when organisations talk about economic risks and macroeconomic trends, analysing specific risks like climate change and pandemics, they tend to take crucial decisions only if they think these risks might affect them in the short term. “Now that one of these risks turned into reality, we can use it as a chance for our generation to push the reset button and understand that factors like the environment or social and corporate governance are of a strategic importance.” The pandemic brought to light the fact that companies in Romania should reprioritise the factors they take into account when making operational or investment decisions. In addition, there is a need
www.business-review.eu Business Review | May 2021
14 COVER STORY
to integrate sustainability principles into key business processes,
als believed that taking sustainability into account in the decision-
from supply chain to operations, research, development, and com-
making process has a long-term impact on operational performance.
munication. At the same time, COVID-19 highlighted the importance
“In order to post healthy and steady long-term economic growth,
of long-term thinking and added-value creation. This shift changed
sustainability must be adopted on a large scale.” Business leaders were
investment and evaluation criteria, shifting the focus
sceptical for a long time
from financial situations
about including sustain-
to qualitative indicators.
ability in their organisational strategy. But for
“Embracing sustainability in business strategy
many of them, measuring
implies efforts to change
non-financial indicators
the status quo when it
became a usual practice,
comes to decisional pro-
albeit such indicators
cesses, technologies, and
don’t reflect tangible
organisational cultures.
actions and initiatives
But such efforts may open
in most cases. “It is not
up new opportunities,
enough for organisations
increase performance, and
to measure their non-
have a positive impact on
financial performance
the reputation of an organ-
solely as a component
isation in the long term,”
of their annual report.
EY representatives add.
They need to set further concrete targets and
The same EY sustainability study found that
take specific measures to
in the context of the
achieve these goals,” EY
pandemic, the majority
representatives advise. There are companies
of organisations said that the health and wellbeing
which have placed sus-
of their employees and
tainability at the core of
partners were their main
their corporate strategy,
priorities. In addition, the
first because it generates
same source says that pri-
opportunities with a high
vate companies in Roma-
financial potential, and
nia were willing to make
second, because employ-
investments in energy ef-
ees have started to search
ficiency, technologies that
for jobs at companies
diminish environmental
whose organisational cul-
impact, and responsible
tures match their personal
purchasing.
values. In turn, these compa-
AT THE CORE OF BUSINESS STRATEGY
nies are pressuring other
Although there is no guar-
their example. As a result,
antee that sustainability
concepts like sustainabili-
organisations to follow
ty audits and certifications
will contribute to the postpandemic economic recovery, its long-term role is becoming clear.
have become business priorities. Such certifications assure partners
“Now is the right time for organisations to innovate, let go of the
inside the ecosystem (including investors) that a company does its
‘business as usual’ concept, develop ‘green’ products and services,
part in terms of sustainability and also supports other partners in
high-end technologies, and low-carbon infrastructures. This way,
following this trend.
they become models for an equitable future and they maintain the
“Companies that do not recognise the role of sustainability in
competitiveness of their industry and of the wider business envi-
the long term will notice that neither the business environment nor
ronment,” EY specialists note.
society will continue to support them. For example, not complying
According to the same study, 80 percent of surveyed profession-
with investors’ expectations about the environmental, social and
www.business-review.eu Business Review | May 2021
COVER STORY 15
governance factors (ESG) will likely lead to higher costs and eventu-
to publish a sustainability report or a non-financial declaration.
ally to losing access to capital markets,” warn EY reps.
“These companies are more inclined to implement sustainability initiatives and most of them already have dedicated departments or
COMPANIES IN ROMANIA EMBRACING SUSTAINABILITY
positions.”
Companies operating on the Romanian market have started to pay more attention to sustainability. Legal changes around protecting
SUSTAINABLE FINANCE IS A MUST
the environment as well as the health and safety of workers and
Global trends show that as the financial losses generated by envi-
communities along with the obligation to report on non-financial
ronmental and climate change risks are on the rise, the adoption
indicators have made the concept more popular. “At the same time,
of sustainable finance is becoming a priority for all the signatories
clients have been more interested in studies about their company’s
of the Paris Agreement, including Romania. The EU has positioned
impact on the GDP and
itself as a leader in the fight
state budget, as well as
against climate change
their long-term social
and has set some very
and economic impact. In
ambitious targets for 2030.
addition, mechanisms
“To achieve these targets,
have been developed to
financial support needs to
transpose sustainabil-
come from both the public
ity actions into financial
and private sector, by
terms.”
mobilising investments in
As for management
sustainable business mod-
teams, most large com-
els and technologies and
panies worldwide have
by encouraging the circular
appointed a Chief Sus-
economy,” EY specialists
tainability Officer (CSO)
explain.
who plays a significant
The EU has proposed
role in the relationship
a set of legal measures
with shareholders and
which will be adopted by
other interested parties.
all member states start-
Part of their job is to
ing 2021-2022 to support
explain to the Board how
investors in their search for
strategic and operational
sustainable investments.
changes comply with the
“If applied, these measures
principles of responsible
could improve Romania’s
capitalism, how profit and
ability to adequately man-
sustainability can coexist,
age sustainable finance
and how the improve-
mechanisms in order to
ment of non-financial
meet its environmental
performance can increase and support the financial side. “A CSO should guide the company so as to make it fully engaged
impact requirements.” Along the same lines, sustainable finance has become a priority for the financial services sector in the context of the zero CO2 net
with all the aspects of the organisation’s long-term sustainability
emissions target by 2050, which could not be met unless financial
agenda, whether it is decarbonisation, circular economy, health
services are taken into account, as organisations will need finan-
and safety or CSR initiatives. We hope to see such roles created in
cial resources to manage the risks of this transition. “EY considers
Romania, too. So far, there has been some progress, with companies
sustainable finance to be any type of financial service that encour-
having appointed sustainability managers or created sustainability
ages the integration of ESGs in business decisions with the aim of
departments,” say EY reps.
offering more equitable, sustainable, and favourable benefits for companies, communities, and society.” EY representatives add that
ROMANIAN COMPANIES TO FOLLOW THE TREND
although such a transition requires large investments, organisations
A large share of firms with less than 500 employees don’t publish
that will fail to make this transition will face difficulties in getting
an annual non-financial report. By contrast, companies that are
financing and attracting investments. “For example, at the EU
part of international groups are more aware of this concept and
level, the cost of transitioning towards decarbonisation or generat-
have already taken concrete steps towards sustainability. On the
ing capacities with a net neutral impact on the environment could
other hand, companies with more than 500 employees are required
exceed EUR 2,000 billion in the next 30 to 40 years.”
16 MAIN STORY
www.business-review.eu Business Review | May 2021
www.business-review.eu Business Review | May 2021
MAIN STORY 17
Pandemic boosts companies’ community involvement Fighting against the effects of the pandemic on local communities and society as a whole was a priority for all companies operating in Romania last year. Their involvement has helped the country overcome this difficult period and given people hope that better times would come.
A
By Anda Sebesi
ll over the world, large companies are talking about their
nies. According to a new International Labour Organization (ILO)
values and boasting about how much they care for their
report, collective efforts and solidarity between employers’ and
employees, the environment, and other stakeholders. The
workers’ organisations is critical to responding effectively to the
coronavirus crisis was and still is the right time for them to deliver on
impact of the COVID-19 pandemic in the world of work. In crisis set-
that commitment. As a recent Harvard Business Review article says,
tings, collaboration and dialogue between employers and business
the way companies respond to this crisis will be remembered for
membership organisations and workers’ organisations can boost
decades to come.
economic and social progress and enable an accelerated recovery.
The same article points out that research has found that people
According to RIPESS, a global network of continental networks
only truly believe their company has a real purpose and clear values
committed to the promotion of Social Solidarity Economy, the
when they see management making a decision that sacrifices short-
challenge we face is building an alternative model of development
term profitability for the sake of adhering to those values.
driven by the needs of all people and communities around the world
Last year was all about solidarity and finding ways to overcome
and by the protection of our planet. The window of opportunity is
the crisis generated by the COVID-19 pandemic. With this in mind,
now open to accelerate the process, capitalise on the thousands of
many companies in Romania directed their efforts towards support-
ingenious solutions being created within communities, and make
ing local communi-
positive change per-
ties or the economic
manent and global in
sectors that were hit
all its diversity. At the territorial,
hardest by this pandemic. From propping
regional and country
up the hospitality and
level, governments
healthcare sectors to
need to partner up
building mobile hospi-
with different players,
tals to treat coronavi-
who in turn need
rus patients, donating
to be organised in structured networks
hygiene and protective products or medical equipment, and supporting online education,
and organisations themselves, in order to build a national or regional
companies joined forces in an attempt to mitigate the impact of the
ecosystem that is sustainable and durable.
pandemic and make a real difference in this unprecedented context.
According to the 8th edition of the study titled “The dynamics
Unity, solidarity, and mutual aid have become vital values that
and perspectives of the CSR sector in Romania”, conducted by Valo-
should be at the heart of decision-making for citizens, civil soci-
ria in partnership with CSRmedia in 2020, 79 percent of surveyed
ety organisations, and institutions at the national, European, and
companies included defined social responsibility as a sustainability
international levels. While citizens have had to act responsibly and
strategy, 73 percent of the companies focused on health and educa-
comply with the measures and preventive actions recommended by
tion in their community interventions, and 40 percent of respon-
the EU, to reduce their mobility and contain the spread of the virus,
dents had implemented between one and five CSR projects.
national governments have had to show solidarity and act together to fight against this pandemic. Last but not least, the pandemic has changed the relationship
As for the budgets allocated to CSR projects, 15 percent of the companies included in the study said that their CSR budget was between EUR 100,000 and EUR 200,000 last year. In addition, the
between employers and employees, taking it to the next level. The
same source says that last year’s CSR budget was similar to the 2019
health and safety of employees became paramount for all compa-
one for 41 percent of surveyed companies.
www.business-review.eu Business Review | May 2021
18 MAIN STORY
Fighting against hunger Manuel Fernandez Amezaga, the CEO of Sodexo BRS Romania, talked to Business Review about his company’s initiatives on the local market over the last year and the Sodexo Foundation’s positive impact at the global level. By Anda Sebesi How did Sodexo Romania support disadvantaged communities last year and what was the impact of this involvement?
erative, and creating jobs. The
2020 was a year that put our
or through online platforms, some
creativity and imagination to the
even reaching Mega Image stores.
Predesti Agricultural Cooperative produces a variety of fresh vegetables that are sold in local markets
test, as we had to find new solutions to new problems. The same
generated a tremendous need for
What can you tell us about the Sodexo Foundation’s community involvement at the international level?
support among certain social cat-
Stop Hunger is a global association
egories. Last year, our projects and
that fights against hunger. It was
principle applied to our CSR initiatives, because these difficult times
actions continued to have a posi-
established in 1996 by Sodexo US
tive impact on individuals, communities, and the environment, and
teams, who wanted to offer free meals to disadvantaged children
we acted as a trusted partner. At the company level, we started by
during the summer holidays. Since then, Stop Hunger has evolved
offering optimal employment conditions including a safe workplace,
from a limited project developed by a handful of employees to a
attractive benefits, and a culture of well-being. Moreover, we ensure
global non-profit organisation. Its initiatives go beyond food aid, as
gender and generational balance in our team, which leads to better
it also aims to empower women so that hunger may be eradicated
inclusion and engagement.
effectively and durably in the most vulnerable communities.
At the community level, Sodexo employees were involved in
Stop Hunger is built upon partnerships with hundreds of local
volunteering events through Servathon – a global programme that
and international NGOs as well as the unique ecosystem of Sodexo,
provides families in need with access to food. Last December, it was
its founding partner. Over 7.3 million free meals were provided last
implemented in partnership with the Magic Association and resulted
year, up 63 percent from 2019, and over 26,000 volunteers from 47
in the donation of 60 packages with products covering basic necessi-
countries have contributed to the Stop Hunger emergency food aid.
ties to families with children undergoing oncological treatment. We also launched the Together for Tomorrow project, in partner-
In Romania, the Stop Hunger Association was established in 2008 – with support from the Sodexo team – and it has managed to mobil-
ship with the Touched Romania Association, to help low-income
ise significant resources to help disadvantaged groups and develop
families overcome this difficult period. The project has a double tar-
programmes that could improve their quality of life.
get, supporting both families in need with daily hot meals, as well as businesses in the hospitality sector with constant food orders. Over
What are the strategic objectives of Sodexo’s CSR projects?
8,600 meals were donated between September 2020 and April 2021.
Since its inception, back in 1966, Sodexo has kept corporate re-
Some of our clients joined our initiative and contributed with in-kind
sponsibility at the core of its activities. The concept was innovative
or financial donations.
back then, but we improved it further as our company expanded.
As the pandemic situation generated the urgent need for quality
We strongly believe in this concept – now more than ever – because
online education, we joined the ‘Dam un Byte de Ajutor’ campaign,
our employees, clients, suppliers, consumers, and shareholders
coordinated by Ateliere fara Frontiere, and donated over 80 comput-
expect our growth to have a positive global impact. To sum up,
ers and other electronic equipment to schools. We also continued to
Sodexo follows three directions in its community interventions: at
support women’s development through the ‘Empowering Women’
the individual level – improving quality of life for all the individuals
project, alongside WorldVision Romania. Since 2019, it has been
we serve; at the community level - supporting the development of
supporting vulnerable women from a poor community in Predesti by
vulnerable communities; and at the environmental level – having a
providing financial education, building a self-sustainable coop-
positive overall impact.
www.business-review.eu Business Review | May 2021
MAIN STORY 19
Driven by responsibility and solidarity Dragos Mindreci, Country Manager at Betano Romania, Panos Konstantopoulos, Chief Marketing Officer at Kaizen Gaming, and Roxana Ciocanau Dinescu, Marketing Manager – Brand and Communication at Betano Romania, talked to Business Review about the company’s involvement in CSR projects, in Romania and abroad. What is the Kaizen gaming company’s contribution in the region in terms of CSR projects? DM: Kaizen Gaming is present in six
day. We believe in heroes who express
countries – in Greece and Cyprus,
ple working in hospitals, fighting non-
where we are market leaders under the
stop to save lives. On December 17th,
Stoiximan brand, as well as in Romania,
Betano Romania officially launched a
Germany, Portugal, and Brazil, where
human-centric CSR campaign, under
we operate as Betano. Romania was the
the Table for Two concept. It was an
birthplace of the Betano brand, the first
opportunity to show gratitude by also
market we chose for expansion outside
lending a helping hand to a seriously-
of Greece, and thus it has a special
affected sector – hospitality. Through
place in our business.
this initiative, Betano Romania sup-
themselves through their actions, and there is no doubt that the real heroes of the last 14 months have been the peo-
ported 15 restaurants owned by small
We have always been connected to the markets in which we operate, to
Romanian entrepreneurs or family
the needs of our customers, but also
businesses from 4 cities to prepare and
to the needs of the local communities.
deliver 15,000 hot meals to front-line
Our company fuses tech and entertainment, but also holds a clear
medical staff at 5 hospitals.
and unwavering commitment to community and responsibility. Our
RD: At Betano, we are proud to be part of a chain of goodness. As
philosophy is based on seven pillars: People, Technology, Entertain-
such, we have continued our commitment to invest in the commu-
ment, Responsibility, Extroversion, Commitment, and Contribution.
nity as part of our mission to act as a responsible and stable brand on
Responsibility has been the focus of the Kaizen group from the very
the Romanian market, and based on the initiative’s initial success,
beginning of our operations, back in 2013, and that is why we have
the Table for Two project has been implemented at the group level as
pioneered a social responsibility programme that focuses on Tech-
well, through Betano Portugal.
nology, Safe Entertainment, and Sports. We also have an extensive sports sponsorship programme across our markets, encapsulating gramme, as we strive to support performance in sports. Corporate
How does Betano enforce the concept of responsible gaming in Romania and how can technology help in this regard? DM: The Kaizen group has been focusing on safe entertainment and
responsibility has been a key part of our business model; we are
responsible gaming since 2013. At Betano, we are proud to have been
connected to the communities we belong to and we understand their
the first operator to launch a campaign built exclusively around Re-
needs, so we try to maximise our positive footprint. And this moti-
sponsible Gaming, encouraging users to play responsibly and remain
vated us to take on an active role in 2020 by supporting medical staff
in control.
both traditional and digital sports. CSR is at the heart of this pro-
and units in overcoming the challenges of the COVID-19 pandemic.
Since we are fuelled by innovation and constant improvement
PK: In this unprecedented situation, we need to be guided by solidar-
to provide a ‘’best in class’’ customer experience, we have recently
ity more than ever before. Commitment, Contribution, and Respon-
developed an Artificial Intelligence-based system which is designed
sibility are elements that have made Kaizen Gaming the company it
to identify specific gaming patterns of users who might be at risk of
is today – one of the fastest-growing GameTech companies in Europe
developing vulnerable behaviours early on. This way, our dedicated
– and these are the very values that will set and guide our future
responsible gaming teams can provide them with the best pos-
steps as well. We will continue to invest in helping people and com-
sible support. This innovation recently won an award at the 2020
munities lead better lives.
EGR Marketing & Innovation Awards and was hailed by the jury as a ground-breaking example of how technology and human intel-
What can you tell us about Betano’s CSR projects in Romania? DM: Betano is all about people who challenge themselves every
ligence can work together to offer a gaming experience that is both entertaining and ethical.
www.business-review.eu Business Review | May 2021
20 MAIN STORY
Connected to the local community Business Review sat down with Oswald Kolb, Manager at Continental Sibiu, to talk about the company’s involvement in the local community and how important its social projects are in the context of the pandemic. By Anda Sebesi How do you think the concept of solidarity is reflected by the actions taken by companies in Romania to help society cope with the pandemic?
and it is our duty to get involved
Based on my observations, I think
ment. Our latest donation was
there have been very good reac-
to the Sibiu Ambulance service
tions from all the big companies
– an automatic cardiopulmonary
in Romania. Companies and their
resuscitation system that provides
employees are highly engaged
high-quality, automatic CPR to
and are closed to several courses.
victims of sudden cardiac arrest.
This is also Continental’s case at
Being there for each another is
national and locations level. Con-
the key to beating the crisis in our
tinental Sibiu is involved as well in
community.
when the community needs it. Since the pandemic began, we have made several donations in the form of money and equip-
We are responsible for about
large number of employees. I am thinking here of the free internet
4,000 employees and their
provided on buses or the scholar-
families. Protecting the health and
ships for vocational or dual school
safety of our employees is crucial
students with more than 100
for us, with considerable impact in
pupils, university sponsorships,
the local community. In Continen-
and also recent projects in these
tal Sibiu we implemented plenty of
pandemic times.
preventive measures and actions for the employees: providing two
What can you tell us about Continental Sibiu’s initiatives in this regard?
masks per day to each employee
Two public vaccination centres
doubled the company’s bus fleet
and carrying out daily disinfection in buses, restrooms, and offices,
were opened on April 23rd by the initiative & with the support of
in order to reduce the number of employees traveling on a single
Continental in Sibiu and Timisoara. The public vaccination centre
bus. The feeling of belonging to a community, trust, and determina-
in Sibiu, located directly into the company’s yard, was established
tion have led to some noteworthy results, such as the establishment
and arranged by Continental in collaboration with the Regina Maria
of a COVID-19 Testing Centre for Continental employees and their
Private Health Network and the local authorities. The total area of
families at the beginning of the pandemic, where around 1,200 rapid
the vaccination centre is 134 sqm, consisting of 9 containers (7 offices
tests and over 800 PCRs have been performed to date. We’ve had no
and 2 medical areas), the staff and administration belong to Regina
major outbreak, and public health authorities have not forced us to
Maria, while our employees as well as the other citizens can get the
halt our operations, which would have had a huge financial impact.
vaccine in this centre after following the registration process of the
This March, Continental also managed to implement a project
national vaccination platform.
that had been on our wishlist for some time: inaugurating a Regina Maria Polyclinic on-site. Regina Maria covered most of the invest-
What about other projects through which Continental Sibiu supports its employees and the local community?
ment cost, which comprises medical offices for more than ten
As the most desirable employer in the region, it is natural for us to
area, a large waiting room, and a friendly medical team. This way,
get involved in the local community, and we will continue to do so.
our employees and their families have access to a wider range of
Continental Sibiu has been part of the community for almost 16 years
medical services.
specialties, with state-of-the-art equipment, a welcoming reception
www.business-review.eu Business Review | May 2021
ADVERTORIAL 21
Raluca Fiterman, CEO Arcadia – Hospitals and Medical Centers: Last year the community and our patients were in focus more than ever
O
ver 1 million
real septoplasty and a
patients in
rhinoplasty to correct
the North-
a severe nasal pyra-
east region and across
mid dysmorphia with
the country are part of
breathing functional
the Arcadia story. This
issues.
pushes our efforts
Sebastian is a shy,
and future projects
gentle and intelligent
in a commensurate
17 years old teenager
dimension, lead by
who faces the chal-
empathy, passion, and
lenges of this age.
innovation. We are
That alone is a strug-
constantly learning
gle nowadays, want-
and focus on bringing
ing to be accepted
forward initiatives
by those around him,
that respond to the
moreso when a physi-
ever-changing needs
cal disfunction adds
of patients in the
up to everything. That
Northeast Region of
is why we are happy
Romania and aim to
he will now have the
continuously adapt to the socio-medical and economic realities. Since last year was a peculiar one, we
chance to learn to through the Arcadia ProBono program, even dur-
breathe again and will be able to express
ing the hard premises of last year. The program
himself more easily and live freely.
found ourselves in the position to mobilize
is dedicated to special cases that require surgery
unprecedented resources and come up with
at the Arcadia Hospital and top tier medical
several important adjustments, in order to
services, provided alongside our outstanding
INVESTMENTS FOR A HEALTHIER FUTURE
remain close to our patients. We adapted our
team of doctors. It includes a complete series
Last year, in the midst of the pandemic, hav-
portfolio of services in real time and made
of investigations, interventions and recovery
ing our patients` interest in mind we also
decisions while closely monitoring the evolu-
services which are pro bono and realized by the
expanded the Operating Room of Arcadia
tion of the new coronavirus. Thus, we have
entire Arcadia team from over 40 medical special-
Hospital, which now contains 8 surgery
taken a number of important measures to
ties, and over 20 surgical specialties.
rooms for children and adults. It is a project
maintain a safe space in Arcadia and the con-
Sebastian is our most recent patient, who
that will provide patients with quality medi-
tinuity of the medical activity: from safety
benefited from a pro bono surgical procedure
measures for our employees and patients, to
by the team lead by Dr. Daniel Rusu, primary
ensuring stocks of specialised materials for
ENT doctor, and Dr. Gabriel Mazilu, specialist in
Imaging Centers with 3Tesla MRI machines
investigations and surgeries.
Plastic Surgery, Reconstructive Microsurgery and
and launched a new health center dedicated
Aesthetics.
to women, where we created a space where
In addition to extending the functioning hours in our medical centres and hospitals,
Since birth, Sebastian had to face challenges
cal services for a long time. Additionally, we equipped the Medical
patients feel safe and respected, combin-
we also launched the telemedicine service,
that brought to light his courage and strength to
ing functional aspects with aesthetics and
ArcadiaLine, to responde to the now acute
stand up every time. His story is written within
nutrition.
need for services and medical supervision.
years of medical recovery treatments and proce-
For the immediate future, we plan to
dures, surgery, patience and an ability to under-
open the Arcadia Medical Recovery Hospital,
ARCADIA PROBONO PROGRAM
stand beyond his age. It was a successful case, in
equipped with 140 beds, which will allow
We are grateful and happy that we have
which the ENT and cosmetic surgery techniques
patients access to high standard technology
been able to change lifes for the better
were combined, performing both an extracorpo-
and medical equipment.
www.business-review.eu Business Review | May 2021
22 ENTREPRENEURSHIP
Romanian startup funding ecosystem strengthens during pandemic Funding of local startups has accelerated since the start of the health crisis, and sectors that have attracted investors’ interest will continue to develop in the coming period. Digital Health and EdTech were the most sought-after verticals in early stage, while enterprise SaaS and eCommerce have remained on the radar. By Ovidiu Posirca
More funding opportunities for digital startups emerged during the pandemic
D
ata provided by the Roca X invest-
is going to play a key role in post-COVID-19
MORE ROMANIAN INVESTORS
ment fund shows that the total sum
growth, the main idea still holds: rather
Deals led by Romanian investors went up 70
of early-stage investments led by
than decreasing investment activity in the
percent in the 12 months to March 2021, with
Romanian investors increased from EUR 14.7
face of uncertainty and instability, Roma-
growth split between seed and Series A fund-
million from March 2019-March 2020 to EUR
nian investors have increased their capital
ing for startups.
25.3 million between March 2020 and March
commitments to early-stage startups,” Roca
2021. This refers to companies that have
X analysts wrote. The fund made fresh in-
for startups growing in emerging COVID-19
raised at least one investment round in this
vestments in e-learning and fintech startups
sectors, because the previous financial crisis
interval. “Even though 2019’s momentum
during the pandemic.
proved that innovative startups with disrup-
“We expect follow-on investment rounds
www.business-review.eu Business Review | May 2021 2016
ENTREPRENEURSHIP COVER STORY 14 23
tive business models could speculate new op-
ties that did not exist a year and a half ago,”
consecutive years of year-on-year growth in
portunities that arise from the crisis,” Marius
Black Sea Fund founding partner Matei Paun
capital invested in European tech could well
Nicolae, head of technology, strategy, and
tells BR.
continue.”
transactions at professional services firm EY
The local startup sector has significant
Europe is trailing behind North America
room to grow, and the digitalization of the
and Asia, where funding for startups amount-
economy will support the creation of innova-
ed to USD 141 billion and USD 64 billion,
and Games are sectors that have grown their
tive firms. While Romania has 58 startups per
respectively.
investment base since the onset of the health
1 million inhabit-
crisis. Romania aligns with global investment
ants, the European
trends targeting fintech, artificial intel-
Union average is 190
ligence, SaaS, mobility, and cybersecurity
for every million
companies.
people, according to
Romania, tells BR. Health, Education, Security, eCommerce
“These verticals have been attracting investors for several years now, and the pandemic has only further stressed their impor-
a report by Atomico and dealroom.co. Moreover, Ro-
tance in our lives,” says GapMinder founding
mania had USD 79
partner Dan Mihaescu.
per capita of capital
For instance, in late April, local startup
invested in startups
FintechOS landed a USD 60 million fund-
from 2016 to 2020,
ing deal, on top of the USD 16 million it had
while the European
raised since its founding in 2017. GapMinder
average was USD
contributed to the new round, which will
172 per capita. Still,
help the startup open offices in the US and
Romania has been
Asia.
doing better than other countries in the re-
The improved results in Europe were
gion such as Hungary, Bulgaria or the Czech
driven by megarounds, with deals ranging
Republic.
from USD 100 million to USD 250 million.
In early spring, health-tech startup Medic Chat got more than EUR 250,000 from crowdfunding platform SeedBlink for its telemedicine platform, which is also backed by an American angel investor. “It is clear that investors are increasingly interested in startups and that it is becoming
Romania is among the elite club of countries
MORE FUNDING IN EUROPE DESPITE PANDEMIC
that got a megaround for one of its startups.
European startups raised more funds in
public in 2021. Elsewhere, Sweden’s Klarna
2020, and last year’s result could represent a
got USD 650 million, while Northvolt secured
new record for the industry. Despite the
UiPath got USD 225 million before going
USD 600 million. UK-based Revolut got USD 580 million,
challenges posed by
followed by Karma Kitchen and Cazoo
the pandemic, inves-
with USD 317 million and USD 310 million,
tors flocked to back
respectively. Several startups in Germany
startups that were
and France also secured late-stage funding
ready for the new
rounds with a joint value of more than USD 1
economy.
billion.
Capital invested
The creation of unicorns was not ham-
in Europe is set
pered by the pandemic. The valuations of
to exceed USD 41
18 startups hit the USD 1 billion milestone,
billion in 2020 –
while Klarna and UiPath both topped USD
adjusted for the
10 billion. Europe’s performance in creat-
reporting lag – about
ing unicorn startups is similar to the US’s.
easier for these companies to attract financ-
USD 1 billion compared to 2019, according to
Seed-funded startups in both regions have
ing. That doesn’t mean it has become an
preliminary data from Atomico and deal-
a 1 percent chance of seeing their valuations
easy thing to do, but it is significantly more
room.co report.
skyrocket to USD 1 billion and above.
accessible than it was five or ten years ago,
The authors of the report note that “in
Some deals have been delayed due to
because an entire ecosystem is being built to
the face of a global pandemic and a highly
lockdowns and the expansion of remote
address these needs. Moreover, the pandemic
volatile, uncertain macroeconomic climate,
work, so funds have a lot of “dry powder”
brought new types of funds that startups and
the European tech ecosystem has been
that could help the European startup sector
SMEs could access. We’re seeing opportuni-
resilient. A decade-plus unbroken run of
maintain its growth momentum in 2021.
www.business-review.eu Business Review | May 2021
24 ENTREPRENEURSHIP
Mobility startups preparing for post-pandemic future Reducing infection risk has been the key factor in choosing a mode of transportation since the onset of the pandemic, having dethroned the traditional time-to-destination factor. Lockdown measures have placed added emphasis on health and safety, while micro-mobility solutions are picking up and have the potential to reach a value of USD 500 billion globally by the end of this decade. By Ovidiu Posirca
EU’s green agenda to shape future of mobility startups
T
he amount of venture capital funding
from Pitchbook. “There was some buzz on
of funding, if you look at how congested
going to European mobility startups
the market around this mobility vertical, and
Bucharest is, we will definitely see that in the
had reached USD 4.4 billion by the
we have big plans of our own here because
future,” Matei Dumitrescu, senior investment
end of September 2020, compared to USD 5
we are seeing a lot of new ideas for alterna-
partner at startup investment fund Roca X,
billion throughout 2019, according to data
tive means of transport. As for bigger rounds
tells BR.
www.business-review.eu Business Review | May 2021 2016
ENTREPRENEURSHIP COVER STORY 14 25
STARTUPS BET ON EXPANDING ON-DEMAND MOBILITY
Indiegogo in June-July, after which it aims
of e-scooters to 1,000 in Bucharest and has
to raise another Series A round of USD 10
30,000 active users. Local player Flow and
As working from home became mainstream
million.
international ride-sharing startups Bolt and
for employees in large urban areas, demand
“It is already clear at this point that the
Lime are also battling for market share with their own scooter-rental apps.
for ride-sharing and other app-based trans-
future of mobility is electric. In our case,
portation services declined, but will recover
we envision personal mobility devices like
once the pandemic is under control. How-
electric bikes, electric scooters, and similar
Link, which has a fleet of bikes and cars for
ever, it is not clear whether these changes
form-factors to become mainstream as more
lease in Bucharest, plans to expand in other
Elsewhere, ride-sharing platform City-
regional cities. Igor Grosu, founder
will have a long-term effect on the
and CEO of CityLink, said in
development of the mobility
an interview for ZF.ro that
field.
the startup will have
“Lately, due to the
900 cars in six cities
COVID-19 pandemic, many customers have
within the next three
preferred to own
years. His vision is to
their vehicle, shift-
develop a platform
ing market trends
that offers access to bike-sharing, car-
from scooter-sharing
sharing, ride-sharing, and
to vehicle ownership and
probably scooter-sharing.
accelerating market growth,”
Matei Paun, founding partner
Mihnea de Vries, co-founder and CEO of startup Scooterson, tells BR. Before
and more people living in densely populated
of Black Sea Fund, suggests that the devel-
the pandemic, electric scooters had become
city areas don't want to get stuck in traffic
opment of innovative mobility solutions in
extremely popular, fueled by the many shar-
with their cars. Bicycle paths will probably
Romania is increasing due to similar macro
ing options.
become the roads for all these new form fac-
trends in Europe and worldwide.
Meanwhile, the micro-mobility market could reach USD 300 billion to USD 500 bil-
tors,” says the CEO. Only three ride-sharing/ride-hailing start-
“At the European Union level, green energy and its ensuing impact on mobility will
lion by 2030, according to data from McKin-
ups in Europe have reached a valuation of
be a significant driver, eventually even here,
sey and Company and Grand View Research.
more than USD 1 billion, joining the unicorn
locally,” Paun tells BR.
Considering the current traction on the
club. If we add delivery and car platforms,
micro-mobility market, the total e-scooter
this figure climbs to nine. By com-
segment will be worth USD 41 billion by 2030,
parison, there are 43 mobility
while the electric kick-scooter segment, cur-
unicorns in the Americas
rently at USD 567 million in 2020, is expected
and 37 in Asia.
to grow to USD 3.9 billion by 2030.
PANDEMIC ENHANCES SHIFT TO SMART PERSONAL TRANSPORT In their attempt to
“We have been see-
reduce the risk of
ing interest in various
infection, city dwell-
on the population’s mobility style, generat-
forms of mobility for
ers have tried to
ing a tremendous drop in sharing behaviour.
three or five years
limit their exposure
Given the current context, with the potential
now. It is an interest
to public transport
of prolonged downturn and restrictions, the
that comes mainly
future of mobility is expected to be reshaped,
from consumers and
in a transformative process which is now
authorities, amid a con-
being led by electric propulsion, autonomous
tinuous search for a better
driving, and the potential rise of autonomous
and more flexible transport
sidewalk delivery bots,” Marius Nicolae, head
experience. This has implicitly at-
of technology, strategy and transactions at
tracted investors, especially Angel Investors,
professional services firm EY Romania, tells
to the mobility segment and I am sure we will
BR. Scooterson is now looking to raise a pre-
see higher amounts of funding,” GapMinder
of innovative micro-mobility models to get
series A round of USD 1 million, from various
founding partner Dan Mihaescu tells BR.
around the city if they want to avoid traffic
“The pandemic has had a massive impact
sources, including fundraising platforms like
Meanwhile, some Romanian startups have
and ride-sharing platforms. This was a window of growth for startups and more mature firms supplying rental services for bikes, scooters or even electric cars. Romanians have access to a wide array
jams. Looking less risky than mass transpor-
Romanian SeedBlink and US-based Repub-
announced expansion plans, as they expect
tation, electric unicycles, stand-up scooters,
lic.co, as well as other private sources. The
demand for their mobility solutions to grow.
and e-bikes can become smart vehicles of
startup is preparing for a product launch on
For instance, Splash has doubled its fleet
choice when going shopping or to work.
www.business-review.eu Business Review | May 2021
26 TRENDS
Pandemic networking: alternatives to in-person meetings In-person meetings and events are still being replaced with original content sources, allowing for business strategies that are almost as effective as physical interaction. Let's explore some creative alternatives to in-person networking, because they might be here to stay even as the pandemic comes to an end. By Claudiu Vrinceanu
BIG ONLINE EVENTS While large in-person business conferences are not a safe choice at this time, hosting or
Big online events are an accessible launching platform for international speakers
speaking at an online event has proven to be a handy way to communicate with your target audience. But big online events are not just a
ture and hybrid events to continue to provide
access is invite-based. According to experts,
powerful way to reach your public, but also
valuable insights to business audiences.
Clubhouse creates a new type of content,
an accessible launching platform for international speakers and experts.
which the guest speaker can use to bring to-
AUDIO CONTENT
gether content creators who bring value to the
The Audio Economy, based on voice content,
discussion, creating a new type of influencers.
recent Tax, Law & Lobby | Whistleblower Fo-
is now on the rise through Clubhouse, Twitter
Companies and managers should join Club-
cus online event, which attracted a great deal
Spaces, and the future social audio app to be
house to create content there, as it is a space
of international attention, with international
launched by Facebook. Managers and entre-
that can generate strong links between users,
speakers such as Stephen M. Kohn (Chairman,
preneurs can make use of these new social
and the application is expected to become
National Whistleblower Centre), US Sena-
platforms to communicate more efficiently
mainstream in the next 12 months, i.e. two
tor Chuck Grassley, Bradley Birkenfeld (UBS
with the local business community.
years after launch.
One good example was Business Review’s
Whistleblower), Mark Worth (Executive Direc-
We are on the verge of a creative explo-
tor, Whistleblowing International), or Jane
sion, fuelled by a greater power to generate
THOUGHT LEADERSHIP
Turner (FBI Whistleblower) talking about
wealth strictly in the hands of individuals,
Thought leadership is defined as the content
Romania’s great chance to become a model
content creators, as well as entrepreneurs and
marketing strategy that positions individuals
country when it comes to adopting the EU
investors who develop businesses based on
or companies as experts and reliable voices,
Whistleblowing Directive. Just imagine how
content creation. For example, Clubhouse is
and it is a powerful way to engage with your
much time and money it would have taken to
an audio-based social networking platform
business community and future business
bring all these experts into the same room for
where you can easily organise events with 20-
partners. For example, by publishing an Op-
a physical event in Bucharest.
30 attendees who can listen to conversations
Ed or expert article, a manager can promote
and interviews on a wide range of topics.
groundbreaking ideas that could change the
The new audio platforms are growing
way people think about their industry. They
Webinars and online events give you the opportunity to build your brand, position yourself as an industry leader, and create a
due to the element of exclusivity, the feeling
can also organise their own online thought
good context for lead generation. I expect
of FOMO induced the fact that they’re only
leadership events by selecting a good topic
such online tools to remain popular in the fu-
available on specific operating systems or that
and building a niche audience.
www.business-review.eu Business Review | May 2021 2016
COVER HIGH-TECH STORY 27 14
Romania must do more to attract high-tech FDI Romania attracts only 5 percent of the total annual FDI going towards high-tech industries and knowledge-intensive services in the region, according to a study carried out by the Foreign Investors Council (FIC) and the Bucharest Academy of Economic Studies (ASE). By Claudiu Vrinceanu since we know that any good communication strategy requires a decent budget, the country should take good practices from other countries. Enterprise Estonia has 15 employees and a marketing budget of EUR 1 million. With 25 employees (11 of whom are local and 14 are abroad), Invest in Latvia has an annual marketing budget of between EUR 500,000 and 700,000. Invest in Poland, a very good model for Romania, gets EUR 400,000 just for marketing and has 40 specialists in this department (in total, the agency has over 100 employees and a total budget of over EUR 3 million). Meanwhile, Invest Romania’s marketing budget is close to zero. What should government investment promotion agencies (IPAs) do with these marketing budgets, which are obviously Defining a good way forward for Romania should start with marketing strategies
O
not that big compared those of large private companies? They should go towards media
ff the region’s total high-tech FDI, 52
gramme, companies can find the necessary
campaigns, local and international events,
percent of investments were directed
funding to develop their projects and expand
partnerships with other IPAs, presentations
to Hungary, 18 percent to Poland,
into an attractive and dynamic market.
to foreign investors, generating investment
and 14 percent to the Czech Republic. The
However, Romania is competing with
leads, and content creation. This mix is very
study highlights the need to stimulate the at-
other states in Central and Eastern Europe
similar to what we normally see in private or-
traction of FDI in high-tech sectors.
while its own regions remain less competi-
ganisations, but in this case it is built around
tive than those of neighbouring states and
the needs of a country brand, not a corporate
the high-tech sector as an industry that relies
it lacks coherent public policy measures to
brand. Whether we are talking about the
on a highly skilled and educated work-
attract FDI with high added value. These risks
public or the private sector, Romania today
force, acts as an innovative producer in the
consolidating the existing trend of attracting
lacks interactive online platforms providing
economy, and creates and utilises advanced
mostly low value-added activities with a low
real-time data about target destinations for
technologies. Perhaps unsurprisingly, the
technological intensity.
foreign investors. The creation of an English-
But what is high-tech? SelectUSA defines
high-tech sector’s share of workers in science,
It would be useful for Romania to out-
language marketplace where all local authori-
technology, engineering, and mathematics
line its path forward and build an action
ties could publish investment opportunities
(STEM) occupations is more than twice that of
plan. Public policy measures could focus on
on a monthly basis would increase the odds
the national average.
encouraging FDI with the highest possible
of international specialists generating a
added value and facilitating the reorientation
“pipeline” of new investments for Romania
project promoting foreign direct investment
of FDI towards high-tech and knowledge-
in the coming years. Spending a few tens of
in the United States, and it offers network-
intensive activities in the services sector.
thousands of euros to develop such an online
SelectUSA is the best-known diplomatic
ing opportunities for companies around the world, including Romania. Through this pro-
Defining a good way forward for Romania should start with marketing strategies. And
platform could bring in new investments worth hundreds of millions.
www.business-review.eu Business Review | May 2021
28 VENTURE CAPITAL
Two tech verticals targeted by VC and angel funding in 2021 The growth in venture capital and angel funding for SaaS and health-tech companies, which reached record levels in 2020, is expected to continue in 2021. By Claudiu Vrinceanu so it’s more important than ever to increase the number of initiatives in the field of health-tech. Over the last year, in Romania, entrepreneurs and investors have developed a series of health-tech startups which are being integrated into the traditional medical services ecosystem. The degree of adoption and acceptance of technology by doctors has the potential to generate added value in the process of diagnosing, tracking, and treating disease. It’s more important than ever to increase the number of initiatives in the field of health-tech
The development of these startups was also supported by the recent legislative updates, which had been demanded for a
SAAS
joined by existing shareholders Earlybird,
long time and became urgent in the context of
Software-as-a-Service (SaaS) is one of the
Gapminder Ventures, Launchub, and OTB
the pandemic. One such startup is SanoPass,
largest and fastest-growing market segments
Ventures.
which aggregates independent medical ser-
in 2021: Romanian-born company FintechOS,
The company will use the fresh funding to
vice providers and sells preventive medical
a SaaS developer of financial solutions, raised
hire 120 people and establish new offices in
packages to companies as benefits for their
USD 60 million this year, while Bulgarian
the US, Dubai, and Singapore. FintechOS was
employees. The company recently raised EUR
scaleup Payhawk, a SaaS platform for pay-
founded by Teodor Blidarus and Sergiu Negut
800,000 in a new funding round, which it will
ments and expense management, raised USD
and developed a low-code platform that helps
use for new marketing project, the integration
20 million.
banks and insurance companies build new
of artificial intelligence, and the launch of
services and analytics on top of and around
new services in the application.
A SaaS company usually focuses on delivering centrally located software on a subscrip-
their existing infrastructure. It has a portfolio
Medic Chat also announced that it had
tion basis. At the global level, European VC
of 40 major clients, including Erste Group, Vi-
secured an anchor investment of EUR 75,000
investors financed the SaaS sector with 12
enna Insurance Group, and Société Générale,
from Cleverage Venture Capital as well as
billions euros in 2020, with Romanian success
supported by a team based in Bucharest,
EUR 250,000 through crowdfunding on the
story UiPath becoming one of Europe’s most
London, and Amsterdam.
Seedblink platform. Another example from 2021 is Recomedica, specialised in providing
valuable tech startups, according to Sifted. Interestingly, Earlybird (the first VC investor
HEALTH-TECH
telemedicine services, which has managed
in UiPath) is also behind both the FintechOS
The COVID-19 pandemic makes it more
to attract a total investment of almost EUR
(Romania) and Payhawk (Bulgaria) deals.
difficult to solve problems in hospitals and
300,000, of which EUR 135,000 came from
other medical facilities. Technology can
private investors, while the rest was obtained
provide very useful solutions in this context,
through crowdfunding.
FintechOS’s USD 60 million Series B round was led by London-based Draper Esprit,
www.business-review.eu Business Review | May 2021 2016
DIGITALIZATION COVER STORY 29 14
Surge in digital public services escalating citizens' privacy concerns Over the past year, the pandemic has increased the need for governments to provide more services remotely, with some having been moved entirely online. This practice has generated much larger volumes of citizen data to be collected and managed by public institutions. By Aurel Constantin data to a private
technology will make people feel less con-
sector company,
nected to their communities. However, de-
even when the
mand still exists to further develop people’s
objective is to
digital skills. 61 percent of respondents say
fund better
they would be likely to use government train-
public services
ing schemes that improve their digital skills if
or tax cuts.
they were available.
“The survey
G
“The digitalization of public services is an
findings should
indisputable necessity, as it solves citizens'
be a wake-up
problems quickly and efficiently, especially
call for govern-
in the current context of the pandemic.
ments across
Today's citizens no longer live in small com-
the world. The
munities; they are increasingly connected
benefits of a
to online platforms, crossing the borders of
more digital
countries and continents. Digital governance,
state, includ-
cybersecurity, and education must therefore
ing increased
be intrinsic components of digitalization
overnments pushing an increased
efficiency, better value for taxpayers, and
initiatives, facilitating and protecting the
number of online services run the
better quality of service for citizens, will be
human-machine connection,” says Carmen
risk of alienating large numbers of
significantly reduced if large segments of
Adamescu, Consulting Partner and Technol-
their citizens due to concerns around data
the population aren’t convinced of them and
ogy Leader at EY Romania & Moldova.
privacy, according to a survey titled “How can
are at risk of disengaging from increasingly
digital government connect citizens without
digitalized public services,” says Arnauld
into seven personas: Aspirational Techno-
leaving the disconnected behind?,” commis-
Bertrand, EY Global Government and Public
philes, Capable Achievers, Diligent Strivers,
sioned by EY and carried out by Ipsos MORI
Sector Consulting Leader.
Tech Skeptics, Privacy Defenders, Passive
The EY survey segments respondents
Outsiders, and Struggling Providers. These
among 12,100 working age respondents across 12 countries. The survey further reveals a
OPTIMISM TEMPERED BY MISTRUST
categories provide insights into how govern-
roadmap for governments attempting to deal
While the survey reflects optimism that
ments should consider working with different
with the increased digitalization of services
technology improves quality of life (accord-
societal groups. For example, the survey
brought on by the COVID-19 pandemic.
ing to 72 percent of respondents), there are
indicates that Aspirational Technophiles,
significant concerns about its broader impact.
Capable Achievers, and Diligent Strivers are
veyed think that the privacy and security risks
Many believe that an increased use of tech-
more comfortable with sharing their data to
around how their data is shared outweigh the
nology could widen social inequalities, with
access a service or perform an online transac-
benefits. 46 percent think data should not be
32 percent stating that technology will lead
tion. But there is a lack of support among
shared between the public and private sector,
to greater social inequality and 34 percent
Tech Skeptics, Privacy Defenders, and Passive
with only 29 percent saying that it should.
believing that technology gives more power
Outsiders when it comes to governments and
And 41 percent think data should not be
to those who are already rich and powerful.
businesses gaining access to their data.
More than half (53 percent) of people sur-
There are further concerns around the im-
These personas also provide key insights
percent believe that it should. Almost three
pact of increased reliance on technology as a
into the views held by certain demographics
quarters of respondents (72 percent) are op-
means for communication on social cohesion.
around fundamental issues such as immigra-
posed to governments selling their personal
Globally, 32 percent of citizens believe that
tion, climate change, and globalisation.
shared within the public sector, while only 33
www.business-review.eu Business Review | May 2021
30 DIGITAL
How to communicate after an economic crisis Looking back at all the past crises in our history, specialists were able to conclude that brands that made every effort to remain true to their values were the most resilient. They used their brand power to point the company towards a shared goal, making the decision to invest in people and focus on the fundamentals of what made them different in order to provide real and authentic value to customers. By Romanita Oprea
Ruxandra Voda, Telekom Romania
W
Alina Laslau, marketing business adviser
Simona Dan, The Public Advisors
hat should a brand do after an
ment for brands to invest in promotion and
evaluation to be a key factor, at every level.
economic crisis? The short-term
make a difference in communication through
For her, every downturn is an opportunity for
impact of an economic decline
a strategy that covers multiple touchpoints,
brands and companies to assess where they
can represent a very difficult period for most
concentrating on social media channels and
stand and readjust accordingly. Both dur-
brands. It all comes down to how resilient a
customers benefits.
ing and after a crisis, especially a recession,
business really is. “On the one hand, we’re
At the same time, one must realise that
customers and other stakeholders are looking
seeing strong companies willing to invest in
companies are impacted differently by an
for reassurance, for something that will help
advertising and promotion during the pan-
economic crisis: some are hit on the business
them navigate through dark times and look
demic, thus nurturing their growth strategies.
front, in terms of operations, others lose the
forward to sunnier days.
On the other hand, smaller companies who
relevance of their products as market require-
have managed to overcome the critical period
ments change, while some are just presented
porate communication director at Telekom
will put a lot of effort into innovating and sur-
with new opportunities. “It is important to
Romania, looks at communication from an
prising the end consumer, as they tried to do
see brands as the result of this entire chain,
organisational perspective and takes com-
when the crisis broke out. Nonetheless, both
from concept to production, market, and cus-
munication with employers and customers
categories will face some economic damage
tomers. If I had to choose one thing that fit all,
into account. In a crisis, she believes that it
and have their financial and energy resources
I would say it was the need to understand and
is strategically wise to heighten the level of
depleted. As history has proven, communica-
assess this whole chain and how it is affected
communication with both employees and
tion after a crisis tends to be very pragmatic,
by the crisis, before making any decision to
customers. Therefore, Voda points out that
focusing on functional and rational benefits,”
move forward. Sometimes you’ll see that just
organisations must communicate frequently
says Simona Dan, managing partner at The
trying to sell quickly based on the same old
at an internal level, provide safe feedback
Public Advisors. On the consumer side, as
routine just deepens your problems,” says
channels, help employees work from home
things tend to relax, customers become
Crenguta Rosu, managing partner at DC Com-
efficiently, address job-related concerns, and
tempted to buy different products or services
munication.
provide a roadmap for the future. Externally,
that they’ve lately deprived themselves of. According to Simona Dan, this is a key mo-
Sorina Mihai, managing partner at Porter Novelli Romania, considers continuous
On the client side, Ruxandra Voda, cor-
companies must understand consumers’ changing psychology and habits and identify
www.business-review.eu Business Review | May 2021 2016
COVERDIGITAL STORY 31 14
new customer segments that emerge during
their statements might have because of the
Mihai explains. Corina Vintan, founder
a crisis. This way, they will be able to offer
multitude of disruptive messages that tend to
and managing director at Links Associates,
products and deliver messages which are
pop up in a difficult context. It’s just a matter
believes that brands should continue to build
aligned with the needs of such new consumer
of adjusting your messaging so that it doesn’t
trust and reputation and provide content that
segments. “In deciding which marketing
become irrelevant, using the most appropri-
is truthful, unbiased, and reliable. “Never for-
tactics to employ, it is critical to track how
ate media to spread it, and creating emotion
get that brands that alleviate fears are trusted
customers are reassessing priorities, reallo-
and familiarity in order to connect with the
four times as much and that action builds
cating budgets, switching among brands and
receiver,” argues marketing business adviser
brand trust. Without a trusted leadership
product categories, and redefining value. It
Alina Laslau. At the same time, brands must
source to look to, people don’t know where
is therefore essential to continue investing
quickly adapt to the context so as to avoid
to get reliable information – it is important
in market research. As the recession winds
losing the spotlight to someone who might
to communicate and maintain control of the
down, consumers will regain buying power,
be better at delivering the message. Some-
message. Business gains the most trust by be-
but they may not return to their old purchas-
times it is not enough to just do good things;
ing a guardian of information quality,” Vintan
ing patterns. Market research could thus
you have to communicate them, so that they
argues. One important aspect is also high-
explore whether consumers will end up going
reach your audience.
lighted by Ruxandra Voda, who points to the
back to familiar brands and products, stick to substitute products or welcome innovation. Reassuring messages that reinforce an
What advice would communication specialists give to brand representatives? According to Sorina Mihai, honesty is
fact that during crises, it is more important than ever to remember that loyal customers are the primary, enduring source of revenue
emotional connection with the brand and
the best policy, and she is certain that every
and organic growth. Communication is es-
demonstrate empathy are vital as well. Such
communication professional can get behind
sential to maintain trust in the brand.
messages must be backed up by actions
this statement. Consumers are becoming
demonstrating that the company is on the
more aware of their power and looking for
of dos and don’ts, and especially of how
customers’ side,” the Telekom representative
shared values with the brands they choose to
easy it is for a company to lose its credibility
added.
interact with. Therefore, authentic, reassur-
in a second, just because it’s afraid to react
Even recent history has so many examples
ing, and empowering messages that reinforce
in certain moments. “Putting you company
style alongside products and services that
an emotional connection with the brand
on a pedestal and thinking it is intangible is
prove a brand’s customer orientation is the
and demonstrate empathy and purpose are
certainly not a good idea, especially since we
best way to convince people that remaining
key. “If I were to choose one piece of advice,
are currently facing an avalanche in terms
loyal to that brand is a sound decision.
though, I would undoubtedly tell them to al-
of brand communication. Social media is
What brands should never do is stop
ways be prepared and open to the possibility
indeed the best ally in this context, proving
communicating. “Many times, companies
of shifts in their consumers’ attitudes, values,
its usefulness even in the case of low budgets,
consider it inappropriate to communicate
and needs. Brands who maintain authen-
as it provides strong targeting and availability
during an economic crisis, due to the budget
tic and empathetic communication have a
without huge costs to reach a large number
reduction that always occurs when there’s a
better chance of creating a more meaningful
of people. Alternatives are always available,”
crisis, as well as due to the “lower impact”
connection with their customers post-crisis,”
Alina Laslau concludes.
A caring and empathetic communication
www.business-review.eu Business Review | May 2021
32 MARKETING
Brand loyalty growing in consumers' minds and hearts Yotpo’s latest survey, carried out among 3,800 respondents across four different demographics (Gen Z, Millennials, Gen X, and Baby Boomers) and three different geographies (US, UK, and Australia), reveals that one of the many changes generated by COVID-19 in shopper behaviour is related to consumer loyalty, which has actually gone up year-over-year from 2019 to 2020. By Romanita Oprea strategies, personalised content, a focus on sustainability, and authentic cause marketing,” Gavrila adds.
A SHIFT THAT’S HERE TO STAY Every year, specialists wonder how trends will evolve and how they’ll affect consumer behaviour, but this year, (almost) post-pandemic, this question has been asked more often. It is normal for this to happen, because reality has changed in a shocking manner, and people's feelings have changed to adapt to this new reality. “I believe that brand loyalty in 2021 must also be adapted to the reality of 2021 and the first thing to keep in mind is understanding the changes in consumers’ lives: Alina Galeriu, Galeriu & Partners PR
D
Andreea Gavrila, New Moon
brands need to understand how they live, not what they buy. How have consumers changed? Moving out of
uring the COVID-19 pandemic, con-
the moment they’re exposed to the brand to
cities, online shopping, appreciating afford-
sumers have been more emotionally
when they actually experience it, but also
ability and sustainability (EY index 2021).
invested in their favourite brands
figuring out how to add emotional triggers
Homes are centres of gravity now; health is a
than in the past, viewing the shopper-brand
to which they can relate on a more personal
constant concern and the top discussion on
relationship as more than just a transactional
level. And that hopefully can turn consumers
the public agenda is respect for basic free-
exchange. This also helps explain why, in
into loyalists,” Gavrila argues.
doms. Brands are among the first entities to
2020, survey respondents were more likely to
According to Deloitte’s latest findings, 60
adapt their discourse and actions and we are
spend more on a brand they were loyal to; it’s
percent of consumers plan on buying more
already seeing changes in their approach to
no longer just about the money.
products and services from large companies
loyalty,” says independent brand and market-
that positively impacted society during the
ing consultant Alina Tudose.
According to Andreea Gavrila, creative
At the same time, brand loyalty nowadays
partner at New Moon, after 2020, brand loy-
pandemic. “My belief is that they are the ones
alty became a matter of survival, a powerful
who should invest efforts and resources in
is not just about repeatedly buying products
key brand indicator that can steer a company
protecting the world. Purpose-driven compa-
from a certain brand, but also about constant-
towards the right side of the new consumer
nies are already setting the rules of the game,
ly praising it and boosting its image through
economy. “Audiences are moving outside the
so I constantly encourage our clients to follow
word-of-mouth and online conversations
marketing funnel, changing the way they re-
emerging mega-trends that reflect the values,
that include brand mentions. Therefore, the
search and buy products. So, the big challenge
habits, and expectations of Millennials and
upgraded version of brand loyalty includes
for us is not only getting their attention from
Generation Z: comprehensive omnichannel
this publicly-owned image affiliation between
www.business-review.eu Business Review | May 2021 2016
COVER MARKETING STORY 33 14
consumers and the brands they root for.
are just a few examples of such hot topics
maintaining a balance though them is the art
How can we measure such intricate rela-
that can make or break a relationship with
that brands must learn to master.
tionships between consumers and brands?
consumers nowadays,” Galeriu says.
“Well, the highest level would be when an
At the same time, as Alina Tudose points
Looking at this from a branding perspective, Alina Tudose believes it’s now easier for
auto-proclaimed brand ambassador proudly
out, branded apps that engage consumers
local brands to make their voice heard and
shares their affiliation to the values of a brand
can change the conversation. It’s no longer
have a greater impact. The brand name is
on social media through tags, hashtags, and
about national research or focus groups, but
not important anymore (only 8 percent say it
photos with obvious product placement.
about real behaviour that we can analyse and
is important in their loyalty), but the values
Meanwhile, the slightly lower level of such
understand. Other recommendations include
reflected by the actions of that company, such
brand advocacy would be praising certain
finding new ways to be a part of an impor-
as sustainability and ethics, are crucial (Busi-
product features that are representative
ness Cloud, March 2021). “Brands need
for that brand, but while maintaining a
to take context into account: despite
more rational approach, focusing on the
concerns, a majority of consumers (56
functional aspects,” notes Alina Galeriu,
percent) would be more likely to shop
owner of Galeriu & Partners PR.
from retailers that require their employees to take the vaccine (EY, March 2021).
ENGAGEMENT AND PERSONALISATION
We live in interesting times, and people
So, what should brands do today to
have high expectations from brands
get their consumers' loyalty? Societal
beyond the transactional side and, more
changes attract new habits, therefore re-
recently, beyond status. They want
warding customers based on their value,
empathy, concern for the environment,
personalising content and offers, as well
sustainability, a discourse that’s adapted
as increasing the focus on audience value
to the context, and even vulnerability,”
segmentation are now the norm in mar-
Alina Tudose notes. In different lockdown stages, brands
keting. According to New Moon’s creative partner, 2021 will definitely uncover
have had the opportunity to commit to
new strategies that will be shaped by the
a certain narrative and deliver empathy,
“new reality”. In all industries, business-
hope, and better customer experience.
es are already reassessing their priorities
And in Andreea Gavrila’s opinion, those
and igniting their power by claiming
who conveyed a humane and authentic
leadership in terms of human-centric
message will surely see the benefits in
brand values, as well as proven records of
the long run. In Romania, for instance,
corporate social responsibility. “
an EY study showcased how people were increasingly interested in companies’
According to Alina Galeriu, the real
behaviour during the COVID-19 crisis.
challenge for brands is to reach a point where their consumers are letting the brand
tant and ongoing dialogue, asking commu-
“A new type of brand storytelling is
become part of their lives and acknowledging
nity members to share stories, advice, tips,
emerging, which reflects authentic brand
that fact. The need for open and authentic
resources, and more. Also, offering useful
values and global belief systems. I trust that
dialogue has never been more real. “Con-
resources to help consumers get involved.
we are witnessing a worldwide shift from an
sumers need to feel that brands are engaging
“I would like to see, and I always encourage
ego-centric & ethnic-centric system of beliefs
them into a conversation, and not just to
more activism from Romanian brands. Early
towards a world-centric approach, where we
lure them into buying their products, but to
access to sales, early access to new products,
steadily become more concerned about the
genuinely learn what they like, what they
and tailored offers and recommendations will
health of people and of the planet altogether.
find interesting, what values make them tick.
be likely answers to this question. For many,
In this sense, I recommend that brands start
Sharing ethical values with brands is becom-
getting a VIP experience – early access and
segmenting their audiences not only by
ing increasingly significant for Millennials and
personalised recommendations – has become
demographics, but also by value systems.
Generation Z. Therefore, corporate policies
significantly more important,” she explains.
Marketing and social psychology should come
Has the pandemic changed the rules on
together now more than ever in order to un-
welfare, sustainability policies, and environ-
this matter? In Alina Galeriu’s opinion, it has
derstand the depths of consumers’ cognitive
mental measures to limit pollution and find
made people more cautious about spending
biases and mental dimensions and to create
smarter ways to tackle waste management,
money, but at the same time more eager to
appealing offers that trigger people at an
as well as cruelty-free policies for brands that
live life to the fullest and splurge on them-
unconscious level and ultimately make them
operate in the beauty and fashion industries
selves. People are having mixed feelings and
live happier lives," Andreea Gavrila explains.
regarding equal human rights, employee
www.business-review.eu Business Review | May 2021
34 DIGITAL
Data Sustainability – the new frontier The volume of digital information stored in data centres is growing, accounting for 2 percent of global electricity consumption, and that figure could quadruple to 8 percent by 2030, according to figures cited by Bloomberg and presented in Wunderman Thomson’s “Future 100 2021” report. By Romanita Oprea However, with the emergence of standards, reports, and more importantly, tools that could bring transparency to sustainability efforts, Big Data sheds light on the future. “More and more funds and investors are bringing attention to financial rating by taking it through the filter of sustainability and fulfilled objectives. And luckily, technology and the data revolution are here to make it easy to confirm whether it is happening. So, positive pressure will come from sources of funding or access to capital as well, and that is something that keeps the world spinning,” Adrian Enache adds. In turn, public sustainability policy expert Titus Lipovan confirms that the radical innovative breakthroughs we have experienced in the past decade and the openness to change that our societies have shown in recent years Anca Muraru, founder of Gaiance.com
E
lead us to believe that Big Data can definitely become Sustainable Data. “But only as long as the process of collecting, analysing, and
very email sent and every Google
addressing this issue, both claiming that their
disclosing data is carried out under the prin-
search performed, whether on a com-
data centres are carbon-neutral. Microsoft is
ciples of good democratic governance, espe-
puter or on a mobile phone, has an
working towards renewable energy solu-
cially in terms of sustainability and long-term
environmental cost. In an increasingly online
tions in its Azure data centres, citing a 2018
orientation, the rule of law, ethical conduct,
world, that burden mounts up like waste in a
in-house study that showed cloud computing
openness and transparency, and last but not
landfill. According to a March 2019 report by
could be “up to 98 percent more carbon-effi-
least, accountability,” Lipovan argues.
the Shift Project think tank, digital technolo-
cient than on-premise solutions.”
gies are responsible for 3.7 percent of global
Big Data is also expected to play a key role
As environmental issues become real for many countries, both the private and public
greenhouse gas emissions—a similar amount
in sustainable development in the public and
sectors need to find solutions for sustainable
to those generated by the airline industry.
institutional sphere, in what can be described
development. At the moment, companies
Moreover, according to the study, console
as the transformation of Big Data into Sustain-
are at the forefront when it comes to utilising
waste is a related issue, due to the minerals
able Data. “The ‘data revolution’ has been
huge amounts of data and turning them into
used in the manufacturing of gaming systems
around for almost a decade and will keep
value. “And if we look at existing solutions for
and the difficulties around safe and eco-
accelerating. The amount of data that can be
social and environmental issues that cause
friendly disposal.
collected will impact every single activity on
concern in the public sector, we can eas-
this planet, in both public institutions and
ily understand how using Big Data can also
University in the United Kingdom forecast
corporations. We have to be aware that until
have a beneficial impact with visible results
that a large-scale switch to streaming games
the pandemic hit and before the 2030 Sustain-
for governments. However, implementing
rather than using consoles could prompt a 30
ability Agenda was introduced, most sustain-
a data-driven system requires specialised
percent increase in gaming-related carbon
ability actions were PR/image-driven,” says
professionals, a change of mindset, new data
emissions by 2030. Microsoft and Google are
Adrian Enache, CEO at Omniperform.
protection regulations, and time, all of which
A 2020 study by researchers at Lancaster
www.business-review.eu Business Review | May 2021 2016
COVERDIGITAL STORY 35 14
make the process more difficult and complex.
SDG-related big data identifying accurate
will be engaged in the first major update of
Hence, even if the benefits are undeniable,
patterns and can produce data for complex
their sustainability strategies. This represents
implementation may be arduous and we
non-financial KPIs; blockchain can generate
a key opportunity for any businesses to make
cannot expect immediate changes,” explains
traceable SDG information for sustainability
their first mature step into sustainability: that
Anca Muraru, founder of Gaiance.com.
reporting through permanent audit trails and
of identifying and integrating sustainability
can ensure compliance with health and safety
strategies, a standard framework for sustain-
LOOKING IN
standards and import regulations through
ability reporting like SDGs, GRI (GLOBAL
Big data can assist a business owner in un-
a documented chain of custody,” says Titus
REPORTING INITIATIVE) or Global Compact,
derstanding the end-to-end impact of their
Lipovan.
for example. “This way, the data that will
operations. They can now look at their raw
From the regulatory point of view, the
be created will help them in the process of
material sourcing, product disposal, and
monitoring their strategies, building their
even employee travel, then determine
Sustainability Reporting, and position-
the most effective way to reduce waste
ing themselves as active and responsible
throughout the value chain.
players in the worldwide sustainability ecosystem,” he adds.
Companies and conservationists
Solutions come as a response to a
alike can employ big data to improve their practices. If we consider the fact
need – of reducing waste, increasing prof-
that 2015 alone had more data recorded
its, improving the wellbeing of employ-
than the entire history of mankind until
ees or minimising costs. Therefore, even
2014, there is no doubt that Big Data will
companies that may not be interested in
become a powerful tool for monitoring
sustainability can become more aware
sustainable development as interest in
of the environmental costs they produce
social, environmental, and economic
while aiming to improve their image and
global advances grows. So, what mea-
respond to customers’ desires. Within
sures should be taken in that regard? Ac-
the company, by analysing the waste
cording to Adrian Enache, almost half of
they produce and the energy they con-
the countries being tracked by the Global
sume, among other factors, data analyt-
Sustainable Development Goals Indica-
ics can help them reduce costs, improve
tors are yet to have Big Data systems
productivity or reduce carbon emissions. “As for the products companies sell,
which are able to deliver reliable data. So, the need for private-public partnerships
acknowledging and taking responsibility
to implement better strategies to acquire,
for the lifecycle of a product is becom-
interpret, and standardise data are criti-
ing really important. It starts with the soil used to grow the raw material, the
cal to these countries. And the pandemic has further affected data collection activities,
European Single Electronic Format (ESEF)
water that’s being used, and the employees’
especially in less-digitalized countries.
already states that starting from 1 Janu-
working conditions, followed by end-to-end
ary 2020 all listed European companies are
supply chain management, measuring CO2
that the most important measure that must
required to label their financial reports with
generated by transportation, all the way to
be taken is shifting the current focus on the
XBRL (EXTENSIBLE BUSINESS REPORT-
how the product is used and how it gets dis-
quantity of recorded data to the quality of the
ING LANGUAGE) tags. XBRL is a reporting
posed of. Even though the product’s lifecycle
data – what we really need to record and how
tool developed to improve the exchange of
wasn’t taken into consideration in the past,
to standardise the means of disclosing this
information among systems that can use
nowadays it cannot be ignored, nor should
data, in the most ethical and transparent way,
predefined tags and can offer real-time trans-
be the potential for optimisation. I’ve already
to all stakeholders. Plus, another important
parency around the implementation status
seen discussions about blockchain-based
measure is sustaining the technological
of SDG targets, as well as a holistic approach
product lifecycle management systems that
transfer into practical strategic management
to integrated reporting by interweaving SDGs
could be implemented,” says Anca Muraru.
tools, in both the public and private sector.
and financial data.
At the same time, Titus Lipovan believes
Consumers are becoming more aware of the environmental issues companies generate
“Technological developments are already allowing sound and reliable data collection,
AWARENESS AND SOLUTIONS
and they are opting for more transparent and
which allows us to improve the analysis of
So, how can companies be more aware of sus-
environmental-friendly alternatives. In the
unregulated information. For example, AI
tainability when it comes to the data they cre-
future, this will become the norm and com-
applications include machine-automated
ate and work with daily? According to Lipo-
panies that choose to proactively implement
analysis and forecasting which can process
van, in the next two years, many companies
changes will surely gain attention.
www.business-review.eu Business Review | May 2021
www.business-review.eu
36 CONTEMPORARY ART Business Review | May 2016
COVER STORY 14
Malmaison Studios: A new collective art centre in town Atelierele Malmaison (Malmaison Studios) are a new Bucharest venue, a shared space that houses various art initiatives: artist studios, galleries, project spaces, and more. The Malmaison Studios project organically and independently took shape through the efforts of a mixed group of artists and organisations operating in different areas of the Bucharest contemporary art scene. By Oana Vasiliu
Photo: Ivan Gallery
ARTISTS’ STUDIOS:
“
Must see: book your visit here
2020 was a tough year for everybody
“Through our future exhibitions and
and it strongly affected art commu-
programmes, we will not seek to involuntarily
nities worldwide. Inside the deeply
contribute to artwashing this history, which
divided Romanian cultural landscape, 2020
we will fully acknowledge and integrate dur-
also marked new attempts at collaboration
ing the process of reintroducing the building
and cohabitation inside the same large space
in the live urban circuit,” Ivan Gallery adds.
in Bucharest. Malmaison started from young
Members of the public can now see Ivan
Alex Baciu, Dan Basu, Anca Benera & Arnold Estefan, Otilia Boeru, Radu Boeru, Anca Bucur, Constantin Cojocaru, Otto Constantin, Mihai Cosuletu, Anca Dima, Livia Falcaru, Ioana Gheorghiu, Veta Jones, Loreta Isac, Adelina Ivan, Nicoleta Moise, Codrut Negut, Gyarfas Olah, Daniela Palimariu, Mircea Popescu, Adriana Preda, Octavian Rachita, Lea Rasovszky, Ramon Sadîc, Virginia Toma, Liliana Basarab, Lucian Bran, Alex Buta, Floriama Cindea, Eduard Constantin, Larisa Crunteanu, Elena Diaconu, Giles Eldridge, Catalina Gubandru, Lucian Hrisav, Olivia Mihaltianu, Giuliano Nardin, Cristian Raduța, Sabina Suru, Silvia Traistaru, Andrei Tudose, Dan Vezentan, Zoltán Béla friendship and collaboration over time. The main topic of the exhibition is the
artists’ need for studio spaces and it has
Gallery’s first exhibition in this new space,
body – the physical, real, flesh and blood,
the potential of turning into a genuine art
where they’ve curated a selection of works by
breathing, sweating, living human body; this
community, and we are happy to be part of
the more mature and established artists from
body that has kept us so concerned about its
it as a private gallery,” say representatives of
the gallery’s portfolio – Geta Bratescu, Florina
well-being and health during the past year,
Ivan Gallery, one of the tenants of this new
Coulin, Paul Neagu, and Lia Perjovschi –
this body that we distance and isolate our-
creative space.
alongside their most recent programme entry,
selves from. The human body that we tend to
Romanian artist Ion Grigorescu, with whom
neglect and forget about while captive in the
the gallery has developed a relationship of
digital realm of blue screens, this transient
Malmaison was built as a garrison in the 19th century by the first ruler of the United
body that longs for real touch and connec-
Romanian Principalities. It was later turned
tion.
into a military prison, and after WW2 it became an infamous communist detention and interrogation centre for bourgeoise elites and intellectuals. Malmaison Studios aim to reintroduce the building into the present life of the city, adding a new chapter to the building’s extensive history.
PROJECT SPACES & GALLERIES: Cazul 101, Ivan Gallery, Matka, Anca Poterasu Studio, H'Art, Invitro, /SAC (Spatiul de Arta Contemporana), Sandwich Off-space, Cabinet 44
The exhibition can be found at Ivan Gallery’s space on Calea Plevnei 137C, B side, 1st floor, until May 8 2021, by prior appointment only. Due to the context of the COVID-19 pandemic, visitors must follow the rules set by authorities at the time of their visit.
www.business-review.eu Business Review | May 2021
MUSIC 37
Who will finance the grand reopening of the local cultural scene? With only two nationwide cultural priorities – Timisoara as the European Capital of Culture and the George Enescu International Music Festival – and a still-ongoing pandemic, everyone’s wondering what this summer will look like in terms of live events and gatherings. But there is still no official plan in place for the re-opening of the entertainment and culture sector. By Oana Vasiliu and beverages may be served, etc., based on recommendations from local and national authorities. Outdoor events could be easier to organise and not have limits on the number of participants as long as all attendees can pass the COVID-19 filter through tests, vaccine certificates or documents showing they have antibodies. However, they may still need to Photo: Electric Castle
maintain social distancing, wear a mask or only eat and drink in designated areas. Various scenarios apply for cinema venues, as follows: indoor cinemas can operate without requiring customers to provide any medical documents, but audience members Everyone's question is when we can attend the next music festival
will have to wear masks during screenings. However, 4DX cinemas will remain closed,
MONEY TALKS
tion in 2020. But the City Hall’s budget has
while 3D cinemas will have to either provide
With a budget almost 12 percent higher than
not yet been officially approved, so these
single-use 3D glasses or disinfect reusable
last year’s, the Culture Ministry has around
numbers could still change.
ones after each screening. Some seats will be left empty to ensure enough distance
EUR 181 million at its disposal to boost the
between moviegoers.
local cultural scene, of which EUR 12 million
A GLIMMER OF HOPE
will go to the Timisoara European Capital of
Recently, the Culture Ministry proposed a set
Culture project and EUR 10 million will be
of measures that would allow events to take
FOR FESTIVAL-GOERS
allocated to the George Enescu International
place from June 1 onwards, in both indoor
Although Europe and the US have started
Music Festival. Furthermore, the Ministry has
and outdoor venues. The plan was developed
to open venues for live concerts, festivals,
allocated 8.5 percent of the total budget to
based on current legislation and official rec-
and parties, we still don’t know what sort of
the Memorial of the Victims of Communism
ommendations and its implementation will
rules are going to be applied at events such
and of the Resistance in Sighetu Marmatiei
be supported by the Health Ministry and the
as Untold, Neversea or Electric Castle, which
and Timisoara.
National Committee for Emergency Situations
normally attract tens of thousands of people.
(CNSU).
Under the Culture Ministry’s current sce-
In Bucharest, the City Hall’s festival budget has been cut drastically, and so has
Organisers of indoor events will be able
narios, as described above, it seems that the
the budget for churches, which will only go
to implement various crowd safety mea-
cultural sector will be able to organise seated
towards financing historical monuments that
sures – from requiring attendees to provide
events in order to follow social distancing
need conservation, roof repairs or restora-
proof of vaccination, a negative COVID-19
regulations. We’ll probably get more infor-
tion. The three cultural institutions that
test or medical documents proving that they
mation on this issue after June 1, when the
usually organise cultural events – ARCUB,
still have antibodies after going through the
government aims to begin implementing the
PROEDUS, and CREART – will only receive
illness to limiting the number of participants
national recovery plan, and by then we will
EUR 9.5 million, much less than the EUR 27.8
to ensure social distancing, asking them to
also have a better overview of the success of
million offered by the previous administra-
wear masks, restricting the areas where food
the vaccination campaign.
www.business-review.eu Business Review | May 2021
38 CITY
New in town
By Oana Vasiliu
With the pandemic slowly coming under control, cultural operators have started to plan out events based on the new scenarios drawn up by the Culture Ministry, which will come into play starting on June 1. As we wait for the summer, let’s take a look at what’s happening in Bucharest this month. door public space in a post-pandemic context through a series of outdoor interventions. For the second consecutive year, a series of international design exhibitions will be presented in the Design Flags programme, to encourage the dialogue between the Romanian and the international markets.
CONCERTS So far, Gradina Urbana has confirmed a series of live concerts with Romanian bands such as Taraf de Caliu (May 7), Luna Amara & Tapinarii (May 7), Ducu Bertzi (May 14), Vita de Vie (May 15), Emeric Imre (May 16), Byron (May Check out new Samsara restaurant
FOOD & DRINK
Under the theme #together, the online
Samsara (9-9A Dimitrie Pompeiu Blvd., Iride
and offline agenda of the Romanian Design
Business Park) recently opened another
Week (June 4-13) will gather organisations,
restaurant in Bucharest, adding a highly
designers, initiatives, and events that focus
anticipated vegetarian menu to the city’s
on the importance, success, and contribution
gourmet map.
of creative industries in society, especially
For a Mediterranean touch, you might
in a post-pandemic reality. The main venue
want to try Oliveto by Caelia (122 Erou
of the festival will be Combinatul Fondului
Nicolae Iancu). Their menu is Italian-based,
Plastic, which is home to an extremely valu-
with pizza, pasta or risotto among the main
able and effervescent artistic community,
courses, but also with a lot of delicious sur-
which will host some of the exhibitions from
prises.
#RDW2021. A RDW creative board selection
For lovers of fast food with a twist, Circus
19), Jurjak (May 23), and Coma (May 28).
of the best design and architecture projects
Doner (65 Lacul Tei Blvd.) is the place to be,
of the last two years will be presented in the
especially if you enjoy Turkish cuisine. As a
SENAT Gallery, in an exhibition designed by
bonus, you can have Turkish Coffee there,
Attila Kim Architects. “Stradal”, an exhibition
among other traditional recipes.
highlighting the importance of graphic design
Enjoy Oliveto by Caelia menu
in the public space, will be presented by Local
ART The MNAC Bucharest Spring 2021 Exhibition
Design Circle at UNA Galeria. “Rethinking Plastic” will showcase a col-
season has just opened with six new displays:
lection of innovative and sustainable objects
The Specter (artist Ciprian Muresan), Of love
made from recycled plastic by designers and
and other demons (artist Vioara Bara), Seeing
companies from around the world. A project
History 1947-2007 (collective exhibition),
by Serious Business, developed together with
YOU FEEL ∼ AND DRIFT ∼ AND SING. FROM
the Dutch Design Foundation and Yksi Expo,
ONE SCENE TO ANOTHER (collective), Life
Rethinking Plastic is presented at RDW 2021
Vest Under Your Seat (artist Ana Adam), and
by ASAP at Phenomenon Gallery. Zeppelin
Declined History (collective).
Design will offer a reinterpretation of the out-
Save the date for Romanian Design Week