BR/06/2020 by Business Review

WHERE ROMANIA TALKS BUSINESS June, 2020 / Volume 24, Issue 5

www.business-review.eu

SHORTENING SUPPLY CHAINS MAY LEAVE CHINA OUT OF GLOBAL TRADE

WHAT SHAPE WILL ROMANIA’S ECONOMIC RECOVERY TAKE?

LOCAL ENTREPRENEURS LOOKING TO STRIKE BIG IN DEEP TECH MARKET

TOURISM GOES INTO “REMOTE ISLAND” MODE IN PANDEMIC TIMES

FENIX.ECO: CONQUERING THE ROMANIAN SMARTPHONE MARKET

www.business-review.eu Business Review | June 2020

EDITORIAL 3 AUTOMOTIVE

• Editorial •

Anda Sebesi

6 Auto industry in worse shape

• Editor-in-Chief •

than in 2008-2009 financial crisis. Will it recover?

COVER STORY

“

Risk and win

8 Fenix.eco: conquering the Romanian smartphone market

BUSINESS AND MACROECONOMY

If you take no risks, you will suffer no defeats. But if you take no risks, you win no victories,” says a quote of the 37th

15 What shape will Romania’s

President of the United States, Richard Nixon. This is true in

economic recovery take?

all aspects of life, whether it’s a personal or a professional project.

16 EU funds lend opportunity

Taking risks is a reality in any business. But taking a calculated one

to Romanian companies in post-COVID new normal

is crucial. If you don’t take a risk, you’ll never know how great your company could be. While you shouldn’t risk everything you’ve worked for, if you do take a calculated risk you might push your company

ENTREPRENEURSHIP

toward even more success. Taking risks allows true innovation to occur, rather than simply doing what companies have always done. Innovation is what pushes industries forward and entrepreneurs are often the ones at the head of the pack when it comes to innovative ideas. This month we have decided to dedicate our cover story to a brand new startup called Fenix.eco, founded by serial entrepreneur and business angel Gregoire Vigroux, along with Adrien

22 Local startups facing conservative funding outlook

24 Local entrepreneurs looking to strike big in deep tech market

Arnoux. Launched in April, in the middle of coronavirus storm, Fenix.eco is about much more than just opening a business. It is

CITY

an inspirational lesson with courage at its core. It is about thinking outside the box in difficult times, taking calculated risks, and seeing opportunities where others see risk, trying to turn a crisis to an advantage. Last but not least, it is about a business that intends to have as low of an impact as possible on the environment. “Anyway, isn’t true entrepreneurship about risk-taking, after all?”, Vigroux summarises his experience of launching Fenix.eco in such turbulent times. We all have to take risks in order to move forward!

34 Power to the people: saving Bucharest’s heritage buildings

38 Dream of festivalfilled summer may not come true this year

EDITOR-IN-CHIEF: Anda Sebesi JOURNALISTS: Aurel Constantin, Mihai Cristea, Romanita Oprea, Oana Vasiliu CONTRIBUTORS: Ovidiu Posirca, Sorin Melenciuc, Claudiu Vrinceanu COPY EDITOR: Anca Alexe PHOTO EDITOR: Mihai Constantineanu PHOTOS: Dreamstime ART DIRECTOR: Raluca Dumitru PUBLISHER: Bloc-Notes Media Network ADDRESS: 58 Stirbei Voda Street, 3rd Floor, District 1, Bucharest, Romania LANDLINE: 031.040.09.31 SALES MANAGERS: Radu Fireteanu, Alexandra Rosca EVENTS MANAGERS: Mara Dragoiu EVENTS & MARKETING MANAGER: Luiza Luca PRODUCTION: Dan Mitroi DISTRIBUTION: Eugen Musat EXECUTIVE DIRECTOR: George Moise GENERAL MANAGER: Catalin Alistari USA MANAGER: Oana Molodoi FOUNDING EDITOR: Bill Avery EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu SUBSCRIPTIONS on Manpres Distribution Business Review is a member of Fwei

Publicație auditată pe perioada Apr 2015 - Mar 2016

ISSN NO. 1453-729X

www.business-review.eu Business Review | June 2020

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

European consumers more concerned by health risks than financial and employment distress By Aurel Constantin was conducted on 15,000 respondents in 15 countries, including seven European states – France, Germany,

Horatiu Pirvulescu has been appointed Audit Partner and leader of the Timisoara practice at Deloitte Romania. With 20 years of experience in audit, Pirvulescu has focused over the past eight years on initiatives meant to support the entrepreneurial environment. In his new role, he will also contribute to developing the Deloitte Private programme, which focuses on serving private companies of all sizes including local entrepreneurs, SMEs, startups, and family businesses. He has an MBA in marketing and business development from McGill University in Canada and a Bachelor’s degree in mechanical engineering.

Iuliana Musat has been elected as an independent Board Member of Norofert. She has over 20 years of experience in capital markets and the financial sector. She has assisted both state-owned as well as private companies in IPOs and major transactions on the Bucharest Stock Exchange. Musat is currently the Investment Banking Senior Director at Raiffeisen Bank Romania, having previously served as the CFO and COO of Raiffeisen Capital & Investment. page 5

Ireland, Italy, the Netherlands, Spain, and United Kingdom -, in the second half of May 2020. “Impacted on so many levels by anxiety, the consumer mindset and behaviour have shifted towards a new normal during the COVID-19 pandemic, as

42 percent of European respondents delay large purchases

people have readjusted their priorities. Given that our country benefits from high quality

Health concerns are dominat-

delaying large purchases, while

internet services, Romanians

ing European consumers over

38 percent are concerned over

were more inclined towards

financial and employment

losing their job. The European

online shopping during the

distress in the era of COVID-19,

findings are in line with global

lockdown, as demonstrated by

according to Deloitte’s State of

trends, which show family health

the increases in sales reported

Consumer Tracker survey, with

(65 percent) and physical wellbe-

by major online retailers,” said

respondents being anxious

ing (54 percent) as respondents’

Oana Buhaescu, Audit Director

about the health of their fami-

main concerns, significantly

at Deloitte Romania, and leader

lies (62 percent) and their phys-

above financial problems, with

for the Retail industry. The

ical wellbeing (48 percent).

43 percent of global consumers

study also underlines that, in

The tracker also emphasises

delaying large purchases and

the current context, Europeans

financial distress, with 42 per-

41 percent worrying about the

have zero intent to save money

cent of European respondents

stability of their job. The survey

in the next four weeks.

Sonae Sierra joins Recovery Better Statement By Aurel Constantin Sonae Sierra is one of the 155

plans following the COVID-19

companies convened by the Sci-

pandemic. With this statement,

ence Based Targets initiative, the

these companies are reaffirming

United Nations Global Compact

the idea that their own decisions

and the We Mean Business coali-

and actions remain grounded in

tion, which have signed a state-

science, while calling on govern-

ment urging governments all over

ments to adopt sustainability

the world to integrate climate

policies and targets in order to

action in their economic recovery

reduce vulnerability to future

Companies worldwide call on governments to adopt sustainability policies and targets

www.business-review.eu Business Review | June 2020

NEWS 5

Central bank cuts monetary policy rate from 2 percent to 1.75 percent per year Cristian Deaconu has taken over the Sales Director role at Schneider Electric, a position which was previously held by Lucian Enaru, who also serves as the company’s General Director. Deaconu has 10 years of experience with Schneider Electric, having been in several management positions during his tenure, most recently having served as Quality, Business Intelligence & Training Manager in the Customer Support department.

By Aurel Constantin The National Bank of Romania (BNR) decided to cut the monetary policy interest rate to 1.75 percent per annum from 2 percent per annum starting June 2. It also decided to lower the deposit facility rate from 1.5 percent to 1.25 percent per year, while the lending facility rate (Lombard) was cut to 2.25 percent from 2.5 percent. The current levels of minimum reserve requirement ratios on both RON and foreign currency liabilities of credit

Recently, the BNR Board adopted a series of measures to mitigate the economic impact of the pandemic

institutions will be maintained. The central bank’s decision

central banks in advanced and

was prompt. Recently, the BNR

should lower the rate used by

emerging economies, the ECB

Board adopted a series of mea-

commercial banks for custom-

and central banks in the region

sures to mitigate the economic

ers in credit offerings. The glob-

included, have taken measures

impact of the pandemic, but

al economic outlook has been

to ease their monetary policy

also to consolidate liquidity

strongly affected by the major

stance and improve financial

in the banking system so as to

adverse impact and uncertainty

conditions, consisting of policy

ensure the smooth functioning

generated by the coronavirus

rate cuts, purchases of financial

of the money market and other

pandemic, alongside the con-

assets and liquidity provision via

financial market segments, as

tainment measures imposed

repurchase transactions, even

well as the efficient financing

by authorities. With the aim of

over the long term. Likewise, the

of the real economy and public

cushioning the fallout, many

BNR’s response in this context

sector.

shocks and disasters, create good jobs, and cut emissions. With the objective of achieving a Better Future, one that is more sustainable and more respectful of people and our environment, the statement invites companies and governments to work together to carry out the following actions: demonstrate that the best decisions and actions are based on science; invest in recovery and resilience for a systemic socioeconomic transformation; and work with governments to enlarge the movement.

Florina Mariana Homeghiu was appointed as the new Legal and Compliance Group Director of the Policolor – Orgachim group. Homeghiu has over 15 years of experience in the legal field and was the winner of the Legal Director category of the Lady Lawyer Gala held in November 2019. Florina will manage the group’s legal and compliance affairs in both Romania and Bulgaria.

Cyril Lefebvre has been promoted to Global Sales and Marketing Director for the Air & Sea division at GEFCO, a world leader in multimodal supply-chain solutions, from his previous position of Managing Director of French operations. Cyril will shape and drive the division’s commercial and marketing strategy worldwide. The move is part of a leadership reorganisation designed to boost customercentricity and accelerate business in three key sectors: industry, automotive, and life science/healthcare.

www.business-review.eu Business Review | June 2020

6 AUTOMOTIVE

Auto industry in worse shape than in 2008-2009 financial crisis. Will it recover? The crisis in the auto industry started in February, when the COVID-19 pandemic closed factories and halted sales in China. In March, factories across the world were closed and only reopened two months later. The future therefore looks gloomy for the car industry. By Aurel Constantin for almost 65 percent of overall production in 2019. In the second half of May, almost all factories in the US and Europe restarted production, but it is still unclear whether consumer demand will be enough for manufacturers to survive without state aid. Furthermore, if we are hit by another wave of coronavirus, many factories are expected to close down for good. “If we have to close again, you will see a lot of auto suppliers going out of business,” Flavio Volpe, the president of Canada’s Automotive Parts Manufacturers’ Association, told Politico. The auto industry in the US has yet to ask the Trump administration for aid, but the crisis is in lawmakers’ attention. The USD 3 trillion economic stimulus approved by House Democrats left out the auto industry, arguing that the help offered to businesses and people would build demand for cars. But The auto industry in the US has yet to ask the Trump administration for aid

the crisis may be bigger for the auto industry, perhaps even bigger than the one in 20082009. Eleven years ago, automakers got an

lobal sales of passenger cars are ex-

order to keep up sales by offering bonuses to

USD 80 billion bailout to restructure during

pected to fall in 2020 to 59.5 million

buyers. The German Economics Ministry was

the financial crisis. Auto manufacturing in the

units, from 75 million in 2019. The

the latest to announce a EUR 5 billion incen-

US, including trucks, plummeted by over 70

forecast by Statista.com took the limited sales

tive programme as part of a wider stimulus

percent in April, according to Federal Reserve

in the March-May period into account, while

package to boost car sales. The overall stimu-

data. If figures for May and June do not

assuming that the rest of the year would see

lus package form the German government is

improve, the industry will need a stimulus

similar sales volumes to last year’s, meaning

expected to total around EUR 80 billion.

package.

that the overall drop in sales may end up being higher.

The plan offers a basic premium of EUR 2,500 per car, topped up with EUR 500 for

PROBLEMS IN EUROPE

The Chinese market, the biggest in the

fuel-efficient vehicles. An existing incentive

UK car production in April hit its lowest level

world, is expected to drop by 8.1 percent this

programme would increase by EUR 1,500 for

since the Second World War. Only 197 cars

year. Similar rates are projected for all other

electric cars and EUR 750 for hybrid cars. The

were produced in British factories in April,

countries, which has led to many support pro-

German economy is highly dependent on the

down 99.7 percent from the same month

grammes being launched by governments in

auto industry, with exports that accounted

of 2019. Now, the 168,000 manufacturing

www.business-review.eu Business Review | June May 2016 2020

COVER AUTOMOTIVE STORY 14 7 In mid-March, ride-hailing company Uber

employees are returning to work, but the

150,388 units in April 2019. Therefore, the

forecast for 2020 output is less than one mil-

company announced that it would close

said that its demand had declined by 60 to

lion cars, which translates into loses of GBP

its factory in Barcelona, Spain, and move

70 percent in the cities worst hit by the virus.

12.5 billion (almost EUR 14 billion).

production capacities from Indonesia to

But while social restrictions kept people

Thailand. The Spanish government urged

in their homes, thus limiting the need for

“more than 10,000” will disappear across the

the carmaker to reconsider, showing that the

shared services, returning to a normal social

rest of Renault’s global operations. Clotilde

decision would cost 3,000 jobs. The workers’

life may bring back the demand. A survey by

Delbos, the company’s chief executive, said

unions warned that the move would affect

Capgemini in April found that younger age

“Manufacturers are starting to emerge from a prolonged shutdown into a very uncertain world and ramping up production will be a gradual process, so we need the government to work with us to accelerate this fundamentally strong sector’s recovery, stimulate investment and safeguard jobs,” said Mike Hawes, chief executive of the Society Motor Manufacturers and Traders. In France, Renault is tackling the crisis by cutting 15,000 jobs across the world over a threeyear programme. A third of jobs (4,600) will be cut in France and

that the firm would look at all departments when making the cuts,

over 20,000 jobs across Nissan’s supply chain in Spain.

groups, among which 85 percent have never owned a car, are now considering buying. But

citing “the major crisis

“For the Barcelona fac-

this applies particularly to potential buyers

facing the automotive in-

tory, we have explored

in China and India, where the percentage is

dustry and the urgency

many different kinds of

65 and 58 respectively, while in Europe the

of the ecological tran-

possibilities, but we

sition.” The company

have made the difficult

had pre-crisis difficul-

decision of proceeding

ment is keeping car sales down. In the

ties, including the

with talks and prepa-

financial crisis of 2008-2009, unemployment

loss of the chairman

rations for its closure,”

in the US peaked at 10 percent. In that period,

of the Renault-Nissan alliance, Carlos Ghosn, who was arrested in 2018 in Japan on allegations of underreporting his earnings and misusing company assets.

said Makoto Uchida, Nissan’s CEO. He said that production for the Western European would be covered by the UK Sunderland factory, which

number is below 50. In the US and Europe, rising unemploy-

passenger car and light truck sales dropped by 40 percent. Now, the data for the unemployment rate in April in the US shot up to 14.7 percent, and the country will not recover quickly. The data is expected to be similar in

manufactures core models and has higher

Europe, where new car sales dropped by 55.1

production efficiency.

percent in March.

rrently employs 180,000 people globally. The

LONG-TERM DIFFICULTIES

milder impact on production and revenues

company will also cut global production by

The monthly decline in sales in March and

since Dacia-Renault and Ford manufacture

700,000 units by 2024. Factories in Romania

April and contracting demand are raising

cost-efficient vehicles, but it will be impacted

and Morocco are not among those that will

questions on whether the industry will be

nonetheless. Both car producers and auto

have layoffs, but the company has stopped

able to recover. Before the COVID-19 cri-

part suppliers has been heavily disrupted and

planned expansions in both countries.

sis, car sales experienced a drop caused by

today they are burning through significant

demand for urban mobility concepts, such as

amounts of cash, as fixed costs and working

posted a EUR 5.6 billion loss for the fiscal

car sharing, ride-hailing, and electric scoot-

capital still need to be financed. Cutting costs

year ending in March. It was its first loss in

ers. Now, with social distancing in place due

and delaying non-essential Capex and R&D

11 years, with the last one being around the

to the coronavirus, it is possible to see these

are the first measures taken, which means

2009 financial crisis. The manufacturer’s

trends turn in favour of personal cars - prob-

that problems are here to stay for the longer

sales in April dropped by 62 percent from

ably not by much, but it may help.

term.

Renault is partly owned by the French government (with 15 percent) and cu-

The Japanese part of the company, Nissan,

The Romanian auto industry may see a

8 COVER STORY

www.business-review.eu Business Review | June 2020

COVER STORY 9

FENIX.ECO: CONQUERING THE ROMANIAN SMARTPHONE MARKET Having invested in 12 startups in Romania and launched 5 companies of his own so far, serial entrepreneur and business angel Gregoire Vigroux decided to launch a new startup on the local market right in the middle of the coronavirus storm. He partnered with Adrien Arnoux, a former Amazon executive with a lot of experience in online retail, and they set out to conquer 10 percent of the Romanian smartphone market, or 500,000 units sold annually, in the years to come. But along with national development, Vigroux and Arnoux also intend to make an entry on other Eastern European markets, with Bulgaria being the first stop next year. Business Review sat down with Vigroux, who told us the story of â&#x20AC;&#x153;probably one of the most exciting business adventuresâ&#x20AC;? he has ever been involved in, called fenix.eco. By Anda Sebesi

www.business-review.eu Business Review | June 2020

10 COVER STORY

n April, Gregoire Vigroux (39) decided to invest EUR 200,000 to co-found the fenix.eco online store together with former Amazon executive Adrien Arnoux (32). Fenix.eco is a Romanian

startup specialising in selling refurbished phones, currently boasting over 20 refurbished high-end smartphone models. They started this business with a clear market positioning in mind for their enterprise: fenix.eco is an online store for smart buyers, whether corporate or

Who is Gregoire Vigroux?

ers across Romania receive their package within 24 to 48 hours of

Grégoire started his career as an entrepreneur in 2007. Since then, he has been launching and investing in fastgrowing startups in Eastern Europe. His largest venture is TELUS International Europe. The company currently employs more than 5,000 team members in Bulgaria and Romania. The 39-year-old Frenchman is currently the Vice-President of Business Development for Europe at TELUS International. Grég is also a member of the TELUS International Romanian Board of Directors and a founding Vice-Chair of the TELUS International Romania Community Board. Apart from his role at TELUS International, he is a

placing their order on fenix.eco. Besides the refurbished phone

hyperactive serial entrepreneur and business angel:

retail consumers who are able to save up to 50 percent spent per phone compared to new smartphones, without compromising on quality. When launched, the average price of a smartphone was EUR 330, but the two founders decided to lower it based on a significant expansion of their model range. “We added cheaper phones to match the demand, so the average price in our online store is now RON 1,200 (about EUR 250). Prices vary between RON 629 (EUR 130) for Sony XZ to RON 2,649 (EUR 550) for iPhone XS,” says Vigroux. All fenix.eco phones are sold with a 12-month warranty. Buy-

itself, the box also contains accessories, including a new cable and new headsets. The company works with Romanian providers to

2010: co-founded Carmedia, a guerilla marketing startup

in Romania. The phones come from all across Europe, primarily

that he sold to an Italian group of investors 2 years later. In 2012, he launched Emova, which he sold to Up (formerly

Germany and Scandinavia, where the average phone renewal rate

named Chèque-Déjeuner) in 2014.

refurbish its smartphones which are tested, repaired, and packed

tends to be high. “Fenix.eco phones bring a new value proposition to the Romanian market, giving consumers many of the advantages of a new smartphone, including the customer experience, quality and guarantee, but at the price of a second-hand model. We believe this concept is robust enough to thrive during the COVID-19 storm,” says the business angel. The online shop sells 12- to 36-month-old Apple, Sony, Samsung and Huawei smartphones, which are professionally cleaned and fully refurbished by an ISO certified partner. Since its launch on April 6th, over fifty Romanian media publications have been talking about fenix.eco so far, totaling over 1 million readers, which is a significant achievement, given that it is a young startup. “Our website is generating thousands of visits every day and sales are growing,” adds Vigroux.

A GREEN APPROACH The two entrepreneurs position their business as a green one, because as Vigroux says, on top of being an economical choice for buyers, fenix.eco is also an appealing option to those who care about the environment. He notes that manufacturing a new smartphone has a significant negative impact on the planet: it requires 13 tons of water, produces 55 kg of CO2, and uses up to 35 kg of raw materials. “Just like an increasing number of entrepreneurs, I believe in Tech for Good – the confidence that technology is one of the main solutions to improve social, societal, and environmental outcomes. We have incorporated the principles of the circular economy in our business model, which makes our solution even more compelling in these challenging times,” he says. The serial entrepreneur says that the COVID-19 crisis clearly did not play in their favour in the short term, but he truly believes that

2017: invested in media (Le Petit Journal, Romania Insider and City Compass), cryptocurrency exchanges (Bitcoin Romania and BTR Exchange), and a co-working hub (Puzl).

2018: invested in the Romanian edition of Gault & Millau, a sustainable development company (Nasekomo), and a green real estate project (Amber Forest).

2020: invested in a co-working company named Nod Makerspace and launched fenix.eco, a smartphone refurbishment online store. He also invested in an online store (Respire.ro) and launched another startup (Teamway.eco). The French Investor also invests in office, residential, and commercial real estate, through his own investment firm Norville Barns and via another company named Boutix. Grégoire is a supporter of several NGOs in Romania, primarily HOSPICE Casa Sperantei, which takes care of patients with life-limiting conditions and rare illnesses. He earned a Master D2A from Sorbonne University, an MBA from the ESG Group and his INSEEC from Lyon Business School. He belongs to the French Tech global community, having co-founded La French Tech in Romania, and he is the President of this association. Grég thinks growth must come with progress, and profits with purpose. He believes in Tech for Good - better tech for a better world.

www.business-review.eu Business Review | June 2020

COVER STORY 11

it is another story in the long run. “I think that COVID-19 will turn

startups so far and has launched 5 companies of his own. But he ad-

consumers to eco-friendly consumer behaviours. One of the most

mits that fenix.eco is probably one of the most exciting business ad-

important lessons of the coronavirus is the need to care for our

ventures he has ever been involved in. Among other businesses, he

planet. With factories shutting down and people staying at home,

is the founder of TELUS International Europe (formerly CallPoint).

pollution has plummeted everywhere. Since the lockdown, all

The outsourcing company currently employs 5,000 team members

monitored pollutants in Bucharest have been significantly below the

in Bulgaria and Romania.

permitted levels,” he says. Going forward, Vigroux notes that deaths caused by COVID-19

“At fenix.eco, we have decided to look on the bright side. We are optimistic people. If we weren’t, we wouldn’t be entrepreneurs in

have dramatically reminded us how fragile human life is. “In a

the first place, right? So let’s be positive and stake our hopes on our

recent open letter, Bill Gates wrote: <COVID-19 is reminding us that

value proposition rather than on the economy’s gloomy general

this Earth is sick. We are sick because our home is sick. Whereas

indicators,” he says.

many see the virus as a great disaster, I prefer to see it as a ‘great

However, he admits that the timing for the launch of their busi-

corrector’. It is sent to remind us of the important lessons>. I believe

ness was not the best, as people tend to avoid unnecessary spending

environmental awareness is about to rise worldwide, like never be-

during a crisis. Furthermore, by staying home, people are less likely

fore. We are on the brink of a green revolution, in which responsible

to break or lose their phones. But they bank on the fact that Roma-

entrepreneurs are going

nians are smart buyers

to step up and help make

when it comes to techno-

the world a greener place.

logical products, as they

This is exactly the mission

pay a great attention to

my business partners and I

quality, look at online re-

have with fenix.eco.”

views, scrutinise features, and compare prices. In addition, Vigroux

LAUNCHING A STARTUP IN A MIDDLE OF THE PANDEMIC

says that the professional

Many would argue that

partner, Adrien Arnoux,

launching a new business

is very important for the

amid the difficult times

business that the two of

generated by the SARS-

them just launched. Estab-

CoV-2 pandemic would be

lished in Romania with his

quite risky, considering

family since the beginning

that consumer behaviours

of 2019, after 10 years

are about to change and

spent in Paris, Arnoux

that purchasing power

graduated from presti-

could be on a downward

gious engineering schools,

trend. The online re-

including Ecole Polytech-

furbished smartphone

nique, and spent most of

experience of his business

his career in supply chain,

store was launched in the middle of the crisis, at a time when retailers were shutting down

working for Carrefour, L’Oréal and, more recently, Amazon. “At Ama-

their shops, when most companies were instructing their employees

zon, he was responsible for logistics for online sales. This experience

to work from home and when the financial markets were down by

is priceless for fenix.eco, given that Amazon is one of the largest

almost 50 percent in a month. Moreover, the latest data available

online retailers in the world,” says Vigroux.

on the market show that smartphone sales in Romania plunged by 50 percent in April. The fall came in the context of hundreds of

HOW DID THE IDEA COME?

thousands of employees in Romania losing their jobs and nearly

Along with their entrepreneurial enthusiasm, the two entrepreneurs

one million seeing their revenues trimmed down while they were

launched their business based on the development of the used

furloughed.

smartphone market both in Romania and worldwide. “Every single

“<It’s not the right time to launch!>, our friends warned us. With

morning, I start my day spending 30 minutes sharp reading business

literally life and death topics all over the news and social media, it is

news. I sometimes discover amazing ideas from successful foreign

true that the crisis left very little room for an eco-friendly startup to

startups and I always ask myself – would such a business work in

emerge publicly. But it’s a calculated risk we’re taking. Anyway, isn’t

Romania? Nine months ago, I read an interesting article about the

true entrepreneurship about risk-taking, after all?” Vigroux argues.

refurbished smartphones market in the French press. I then did

He has been living in Romania since 2006, has invested in 12 local

some additional research and figured out that the global market for

www.business-review.eu Business Review | June 2020

12 COVER STORY

second-hand smartphones is expected to surge from USD 27 billion

have strong and influential business partners in Bulgaria who love

in 2019 to USD 67 billion in 2023, according to IDC,” Vigroux recalls.

and believe in fenix.eco and are already willing to support its launch

Although relatively new in Eastern Europe, refurbished smart-

there. However, we do not want to rush: 2020 is the year in which

phones are a popular choice in Western Europe. In France and Ger-

we focus on the Romanian market. We are a Romanian startup, and

many for example, they made up more than 10 percent of the market

therefore we first need to be very strong at home before we expand.”

in 2019. “I quickly did my maths - nearly 5 million smartphones are sold in Romania every year. Therefore, if I were to launch a refur-

An eye on the B2B segment Although Vigroux and Arnoux built fenix.eco as a business which

bished smartphone business in Romania and the market would

has retail customers at its core, they are thinking of extending their

eventually become proportionally as big as it is in Western Europe

offer to corporate clients too, based on the fact that this segment

in the long run, I might also conquer 10 percent of the local market,

has great potential. According to HMD Global, 91 percent of Euro-

which equates to selling 500,000 phones every year,” he says.

pean businesses see price as an important factor when acquiring

Later, Vigroux asked the French Chamber of Commerce in Ro-

smartphones for their employees. “I believe that the B2B (Business

mania (CCIFER) to conduct a market study to assess the potential

to Business) segment has a lot of potential. I am currently in talks

of an online store selling refurbished smartphones in Romania. And

with SMEs as well as some of the largest companies in Romania,”

the results of the survey were extremely encouraging – the market

says Vigroux. He is also banking on the fact that corporate buyers un-

potential was confirmed. “I decided to find a business partner, be-

derstand the benefits of fenix.eco phones very well, as the company

cause I never launch new businesses alone. Starting a new company

offers many of the advantages of new smartphones, including the

is like having a baby – it is better done with a partner. And like with a

quality, accessories, and 12-month guarantee, but at the competitive

pregnancy, I usually need nine months between the time I first think

price of used models. “At a post-crisis time when companies will be

of a new business and the moment I launch it, and fenix.eco was no

trying to make savings, our value proposition is strong,” he says.

exception. And like with a baby, it is never the perfect time to have one; people think it’s cute, but it keeps you up at night, and its future is a constant concern,” the businessman explains. Speaking about their long-term ambition of getting a 10 percent market share in Romania, Vigroux admits that this would take a few years, but it is their end goal. “For now, we have built a three-year plan, which will bring our startup to selling over 100,000 phones yearly by the end of 2023. As this year is the launch year, we plan to sell 4,000 smartphones in Romania and we are on track to reach this target.”

BULGARIA IS THE NEXT STEP The two entrepreneurs are currently in talks with investors to expand fenix.eco to other three Eastern European countries next year, the first being Bulgaria, most likely in the first quarter of 2021. “We

is the value of the global market for second-hand smartphones in 2023, according to IDC

www.business-review.eu Business Review | June 2020

COVER STORY 13

Seeing an opportunity where others see risk Gregoire Vigroux, serial entrepreneur, business angel, and co-founder of fenix.eco, tells Business Review about the main achievements of his online store since its launch two months ago, and how successful his business model has been in Western countries. By Anda Sebesi What are the novelty and benefits that fenix.eco brings to the Romanian market?

What are your main goals for the Romanian market?

Before fenix.eco, smartphone

nian market this year is to build

buyers in Romania only had

brand awareness. We want

two options: new but expen-

fenix.eco to become a known

sive smartphones or second-

and trusted brand to many

hand smartphones from

Romanians. Since we launched

websites like OLX, which were

on April 6, we have generated

affordable, but risky. Fenix.eco

100,000 unique visitors on our

has brought a third option to

online store www.fenix.eco

Romanian consumers, offering

and reached 1 million readers

refurbished smartphones that

through social media and PR.

combine many of the advan-

This is just the beginning of

tages of new phones, including

our journey.

Our main goal for the Roma-

To increase our market pen-

the quality, accessories, and 12-month warranty, but at the

etration in Romania this year

competitive price of second-

and expand to other countries

hand models!

in South Eastern Europe next year, we will raise money this summer from local VCs.

How do you think that the local market will respond to this type of service? Refurbished phones are something new to the Romanian consumer. They’re not new. They’re not second-hand. They’re refurbished!

What can you tell us about the experience of countries where this type of business is already successful?

We have to educate the market, explain to people what refurbished

The refurbished smartphone market is booming in Western Europe.

means and what benefits it brings them. This will take us a bit of

In France and Germany, 10 percent of all smartphones sold are re-

time. Despite the above, the market is reacting very positively and

furbished. Back Market, Re!commerce, Rebuy and Refurbed are four

sales are increasing every week on fenix.eco. We are on track to

European companies that operate in our business area. Back Mar-

reach our target of selling 4,000 smartphones by the end of the year.

ket, the number one French player, is a startup, created less than six years ago. It managed to raise EUR 151 million and has a valuation

Why did you decide to launch your new business in the middle of the current crisis? My business partners Adrien Arnoux and Hector Destailleur and I

of EUR 1 billion. The companies mentioned above are expanding to other Western and Central European countries. Fenix.eco’s strategy is not to go and fight for market shares in

are optimistic people. There are three types of businesses in times

those competitive countries. Instead, we are targeting South East-

of crisis. First, those that go under because they are too fragile or

ern Europe (SEE), because this region is an untapped market where

unprepared. Second, those that simply try to weather the storm by

we will more easily conquer market share.

trimming costs and delaying investments. Third, those that take

Last but not least, we are expecting the SEE refurbished market

risks, hire more people, and embark on bold investments, trying to

to surge, driven by three factors: European consumers’ tendency

turn the crisis to their advantage. Fenix.eco belongs to that last cat-

to switch to refurbished, lower purchasing power in SEE than the

egory. My business partners and I are adventurous entrepreneurs.

European average, and an appetite for other types of second-hand

We see opportunity where others see risk.

products.

www.business-review.eu Business Review | June 2020

14 INTERNATIONAL

Shortening supply chains may leave China out of global trade COVID-19 is reshaping trade all over the world, accelerating the trend towards shortening supply chains. For many multinational companies this means cutting production in China and moving closer to home. By Aurel Constantin Digitalization is increasing in the production process too, as companies will be making efforts to reduce their reliance on paperwork and create more data-driven supply chains. But this move will have its own challenges as different systems operate in each country and border controls are heavily reliant on paperwork. And persuading suppliers to provide their data will raise privacy and competition issues, especially during a trade war. Regardless of how they’ve been affected by COVID-19, companies that plan strategically for the new normal will be the ones to emerge after the crisis. Developing an online presence The trade war between China and the United States will continue regardless of the outcome of the US election in November 2020

opens new opportunities for many companies as they are able to reach customers who were otherwise unattainable. And companies in the

hina’s share of global trade in some

supply chains. But multinationals’ problems

manufacturing and consumer goods sectors

industries exceeds 50 percent. For

are not caused only by the limited supply

will be able to join regional supply chains.

example, its share by volume in tele-

chains. The COVID-19 crisis has pushed

This will be relevant for small and medium

communications equipment was 59 percent

down demand as well. The Economist Intel-

enterprises. Pricing models will also need to

in 2018, according to research by the Econo-

ligence Unit expects the global economy to

be developed strategically. The regionalisa-

mist Intelligence Unit. China’s role in global

see a steeper decline in output than the one

tion of supply chains and the build-up of

supply chains has grown since it was accepted

that followed the global financial crisis of

strategic inventories will push up the final

in the World Trade Organisation in 2001.

2007-2008, implying that demand for a range

price of goods and lessen competitiveness.

Many multinationals rushed to take advan-

of goods and services will be significantly

But a more regionalised supply chain will also

tage of the trading opportunities that China

curtailed in 2020. “Companies will therefore

give companies the opportunity to focus on

offered in terms of manufacturing and also as

be faced with the simultaneous challenge of

local tastes with a greater capacity for product

a market for sales.

both supply and demand disruptions,” the

differentiation. In the medium term, this may

report reads.

give companies the ability to reach higher

But the trend is changing. It started with

price points for their products, potentially

the USA-China trade war and the rising wages in China, which led some companies to

DIGITALIZATION OF BUSINESS MODELS

offsetting the increased production costs

relocating their supply chain to other parts

As the COVID-19 crisis developed, companies

from regionalising supply chains and holding

of Asia. The textile sector was among the

saw their offline stores closing around the

larger inventories.

first to look for cheaper labour force in other

world, just like restaurants did. As a result,

countries, which made the Asian supply chain

they have expanded their delivery options in

United States will continue regardless of the

more diverse. According to the research, this

order to reach more customers. This high-

outcome of the US election in November

is just the prelude to what is due to happen

lights the importance of e-commerce and the

2020. Multinationals will have to change their

in other regions as global companies look to

need of an online presence. As the consumer

business models in order to remain competi-

build resilience into their supply chains. And

habits that emerged in 2020 are likely to

tive on the global market, and regionalised

the COVID-19 crisis is just one more push

endure, companies will have to continue to

supply chains will be part of these new

for these companies to shift to regionalised

develop their online platforms.

models.

The trade war between China and the

www.business-review.eu Business Review | June May 2016 2020

MACROECONOMY COVER STORY 15 14

What shape will Romania’s economic recovery take? Economists and policy makers have been trying to predict the way the economic recovery might look. Will the recovery from the coronavirus recession be V-shaped or U-shaped? By Claudiu Vrinceanu

overnment representatives have constantly said that Romania’s economy will see a V-shaped recovery and

have brought several arguments to support their statements. According to Finance minister Florin Citu, the economy has the potential to return to the growth levels seen in the beginning of 2020 in the second half of the year. This optimistic forecast - the V-shaped recovery - is embraced by many analysts, with 7 out of 10 economists surveyed expecting a comparable resurgence after what may be a strong economic downturn. “A V-shaped rebound scenario is very possible for Romania, but up to a lower level than we had before the crisis,” said Ionut Dumitru, chief economist at Raiffeisen Bank. The idea of an economic rebound in the

A severe reduction in economic activity is expected in the second quarter

shape of the letter V is also in line with the 2020 Convergence Programme. A severe

And the speed of the economic recovery will

On the other hand, some entrepreneurs

reduction in economic activity is expected

be influenced by the performance of several

are more pessimistic. “Taking into account

in the second quarter (-14.4 percent), with

industries that have been severely affected

the way things are evolving so far, we can

the quarterly profile highlighting a predomi-

by the lockdown: the manufacturing industry

structure the crisis in three stages: the first

nantly “V” shape, but not returning to the

saw a decline of about 18 percent in March-

is the shock stage, and it can take between

situation presented in the winter scenario (in

May compared to the corresponding period

6 and 18 months. Afterwards comes the

the absence of coronavirus), with a proper

of 2019, and the textiles, clothing, leather,

recovery stage. Finally we’ll go into the ‘new

recovery in the fourth quarter of 2020,” ac-

and automotive industries have experienced

normal’ - the growth stage,” said Radu Ne-

cording to the 2020 Convergence Programme.

even sharper declines of over 35 percent.

gulescu, the founder of Trencadis.

The scenario is based on a time-limited nega-

People and companies’ perception of the

Globally, estimates are not very optimistic

tive economic impact of around 4 months

Romanian economy improved in May, after a

either. Economist Nouriel Roubini hopes that

(March-June), followed by a partial growth in

sharp decline in the previous month. Accord-

although long, the economic recovery will be

July-September, based on China’s experience,

ing to BCR, Romania has overcome the lowest

in the shape of the letter U, but he fears that

which is showing signs of recovery after 4

point of the crisis and is heading for a rapid

we will actually have to deal with an L-type

months.

V-shaped recovery. “The hard part seems to

recession.

Most Romanian economists believe that

have passed for the Romanian economy and,

Moreover, a Bank of America survey of

the scenario of a V-shaped recovery is plausi-

in the absence of a second wave of infections,

223 fund managers found that just 10 percent

ble, provided that the current declining trend

confidence will continue to improve, given

expected a V-shaped rebound from the

in the number of coronavirus infections is

that more of the restrictive measures will

COVID-19 recession, and 75 percent predict a

maintained and the disease does not return.

soon be lifted,” said BCR analyst Eugen Sinca.

slower U- or W-shaped comeback.

www.business-review.eu Business Review | June 2020

16 EU FUNDS

EU funds lend opportunity to Romanian companies in post-COVID new normal Hundreds of millions of euros will be available for startups, SMEs, and large companies in the coming period, and this could be the safest source of funding for companies in the post-COVID-19 world. By Claudiu Vrinceanu

iven that financing companies from the state budget will be almost impossible in the coming year, as

the budget deficit grows, European funds become a secure source of financing for the private sector. The biggest opportunities are in the startup creation area, especially for young people, but also for scaleup companies looking for investment funds. Companies operating in the construction, warehousing and logistics, hotel or manufacturing industries have two more months to access European funds of up to EUR 6 million through Financing Axis 2.2, part of the 2014-2020 Regional Operational Program (ROP). “The recent period has been a real challenge for the Romanian business environment, but there are solutions to overcome it, through investments carried out with EU

At the EU-27 level, a total of EUR 50 billion in new European funds will be distributed for the 2020-2023 period

support. These are the last months when projects can be submitted for the 2.2 Financing Axis, part of the 2014-2020 ROP, as financ-

At the EU-27 level, a total of EUR 50 billion

The government is finalising the Applicant’s

ing contracts will be signed by the end of

in new European funds will be distributed

Guide, and the total budget is EUR 30 million

2020 at the latest, as it is a lightning session,

for the 2020-2023 period. Romania’s alloca-

in the first stage alone. Through this pro-

using a very simplified procedure compared

tion is still unknown at this time, but it will

gramme, a series of grant administrators will

to the previous one,” said Roxana Mircea,

mainly be used to support small and medium

be selected in the first phase, and will carry

founder and partner of consulting company

enterprises (SMEs).

out larger projects that will include both un-

REI Finance Advisors. Eligible applicants are companies with at least one full fiscal year of

dergraduate and postgraduate students as tar-

GRANTS FOR NEW STUDENT-FOUNDED STARTUPS

get groups. These final beneficiaries will take

activity and profit registered in 2019, seeking to make investments in both urban and rural

The Innotech Student programme, which

in simulated business programmes, receive

areas. In the case of investments for the rural

helps students obtain European funds be-

mentoring sessions and support for business

environment, funds can be requested only by

tween EUR 40,000 - 100,000 each for small

plans, so that in the end some of them will

medium-sized companies, with an average

businesses, will be launched this summer.

receive grants with maximum values of EUR

of over 50 employees over the last two fiscal

According to the European Funds Ministry,

40,000 for companies with 2 employees, and

years.

this is a very useful programme for students.

EUR 100,000 for those hiring 5 people.

a series of entrepreneurship courses, take part

www.business-review.eu Business Review | June 2020

18 STOCK MARKET

Stock markets see speedy recovery from COVID-19 losses Companies listed on the Bucharest Stock Exchange (BVB) recorded increases in April, despite the fact that it was the first full month of a voluntary shutdown of the economic system due to the state of emergency, a measure adopted in mid-March as a strategy to defend collective health amid the COVID-19 pandemic. By Aurel Constantin

he companies included in the BET index, which includes the 17 most traded companies listed on the BVB,

recorded a 4.63 percent increase compared to March. This has been the highest monthly growth rate so far this year, and it was possible after investors positively reassessed the Romanian companies listed on the BVB in the context of the coronavirus pandemic. For the January-April period, the BET index shows a 20 percent decrease, after the crash in March. “There are opportunities in any crisis, and they become more obvious and are easier to track on the stock exchange. Companies that had high valuations just a few months ago have become even more attractive to investors. On top of that, the dividend yields paid by Romanian companies are still appealing to investors,” said Radu Hanga, the president of the Bucharest Stock Exchange. Data for May 2020 showed an additional increase for the BET, which was up 9 percent towards the end of the month. The May recovery pushes back the loss recorded in the year-to-date to about 13 percent, generating

The stock market’s capitalisation reached RON 138.29 billion at the end of May

hopes that the market could close the gap before the last quarter of 2020. The BET Total Return (BET-TR) index, which includes dividends paid by companies

NG, are showing better numbers, with losses

around the stock market. “Reopening the

below 10 percent for the first five months.

economy and resuming economic activity

to shareholders, recorded a growth of 4.63

without taking the stock market into account

percent in April and of about 10 percent in

RESUMING ECONOMIC ACTIVITY

can considerably hinder the chances of suc-

May, which means that the loss recorded in

As social restrictions are easing, the economy

cess. There is no significant project that can-

the first 5 months of 2020 stands around 11

is slowly re-opening. Factories are resuming

not be launched on the local stock exchange

percent.

production, people are going back to their

at this point. Any serious strategy to relaunch

offices. But the economic strategy of restart-

the economy has to derive from here,” said

es on the Romanian stock exchange market.

ing activity – even partially - in the sectors

Adrian Tanase, the CEO of the BVB.

Other indexes, like BETPlus, BET-FI or BET-

that have been shut down should be centred

BET and BET-TR were the worst-hit index-

The role of the stock market in such a

www.business-review.eu Business Review | June May 2016 2020

STOCK COVER MARKET STORY 19 14

context has become synonymous with ensur-

“sweetheart” in May, with a total trading

world, which drove the oil price to less than

ing access to vital capital for companies’

value of over RON 200 million, in almost

USD 20 per barrel. Now it has recovered to

survival. “The stock exchange can support

12,000 trades. TLV shares ended May at RON

over USD 30 per barrel, but the quotation will

economic recovery and can be used to meet

2.04, down from RON 2.59 at the end of

not go back to the pre-crisis values of USD

the financing demand coming from the state.

2019, meaning a drop of 21 percent. Still, the

60-70 per barrel anytime soon.

Our goal is to consolidate the stock exchange’s image as the go-to financing platform for the Romanian state, which can issue bonds to

lowest price recorded this year was in March, at RON 1.58, which points to a good recovery in the last two months. The second among

REBOUND MAY NOT LAST The state of the economy is a concern for all markets, especially in Europe and the US. The US stock exchange has recovered more

target local investors

investors’ favourites

than 35 percent since its March 23 low, as

or bring companies

in May was Fondul

the S&P 500 index shows. Now, S&P 500 is

in its portfolio to

Proprietatea (FP)

traded at just 10 percent below its all-time

market, as well as

with a total trade

high. But the recovery may not last if protests

value of RON 96 mil-

against the police continue. Combined with

for Romanian companies that need to raise capital. All these instruments are available, they just need to be used,” added Radu Hanga. “The best way to support Roma-

lion in 2,160 trades.

the COVID-19 crisis and the trade war with

FP shares were also on

China, the US stock exchange market may

a roller coaster this year, but it has recovered the loses recorded in March and April. At the end of May, the share

experience another downturn in the coming months. So far, the Federal Reserve and other central banks have been spending trillions

nian companies is to invest in them. Support-

price was at RON 1.24, up 2.5 percent from

on aid packages and this has pushed up stock

ing Romanian companies does not have to be

the end of 2019. The lowest quotation this

exchange markets. Even more, the low inter-

a slogan, but a reality that can emerge from

year was registered in March, at RON 0.998.

est rates, recently cut by many central banks

using the stock exchange. Any Romanian

OMV Petrom (SNP) was the third most

citizen who buys shares or bonds in local

traded company in the BVB main segment in

have boosted investors’ interest in high-

companies listed on the BVB contributes to

May with a total value of RON 85.5 million in

yielding stocks. But in the medium-term, the

the rejuvenation of the national economy. Do

almost 6,000 trades. But the oil and gas giant

value will depend on the V-shaped economic

stock market’s capitalisation reached RON

has been among the worst hit by the crisis,

recovery that many are hoping to see this

138.29 billion at the end of May, from RON

with a total price loss of 23 percent in the first

year. At the global level, concerns are coming

180 billion at the beginning of the year – a 23

five months of 2020. The price went from

from the potential second wave of COVID-19

percent decline.

RON 0.447 at the end of 2019 to 0.344 at the

cases, which may derail the rebound and

end of May, with the lowest at RON 0.279 in

send the economic recovery into a W shape.

March. OMV Petrom was hit not only by the

But there is some hope, as the World Health

COVID-19 crisis, but also by the divergence

Organisation states that the second wave of

between the biggest oil producers in the

COVID-19 looks decreasingly likely.

(including the National Bank of Romania),

we want to support Romanian products and services? This is the question we should start with and invest in the companies that provide the transparency required by their publicly listed status,” said Adrian Tanase. In the first five months of the year, the Bucharest Stock Exchange saw the total traded value for all financial instruments come close to EUR 1 billion or 34 percent up compared to the same period of 2019, while the average daily trading volume amounted to almost EUR 11 million, a 30 percent growth. The

FINANCIAL SECTOR AT THE TOP OF INVESTORS’ PREFERENCES Banca Transilvania (TLV) was the investors’

www.business-review.eu Business Review | June 2020

20 IT

The best business laptops on the market in 2020 IT spending during the COVID-19 pandemic is projected to fall by less than 7 percent. This year, global spending will reach USD 426 billion, down from USD 458 billion in 2019, the first drop in more than a decade. By Aurel Constantin crosoft recently announced that the Windows 10 version of the OS had reached 1 billion active devices. Customers are using Windows PCs to stay productive, connect, and learn during this time. In fact, over 4 trillion minutes are being spent on Windows 10 each month, a 75 percent increase year on year,” wrote Panos Panay, Microsoft’s chief product officer, in a blog post. Before we take a look at what the PC market has to offer today, it is important to stress the minimum requirements in terms of power. A random access memory (RAM) of 4GB is mandatory, but a good system should have at least 8GB. As we tend to have several apps open at once, 8GB are needed to have an instant response from our computer. A processor equivalent to the Intel i3 or AMD A6 provides the minimum power needed today. Sure, there are many school notebooks that use less powerful processors in order to keep prices as low as possible, but they should not be the first choice when buying a new computer. A storage capacity of 128GB SSD is also a minimum, but 256GB or more would be best. Of course, it’s important to choose an Lenovo, HP, Dell, and Apple are the most renowned for business laptops

ll the enterprise software and apps that comprise global spending need machinery in order to be used, and

SSD (solid state drive) for storage instead of an HDD (hard disk drive). Finally, the screen should be full HD for good viewing. A 4K

sales dropped by 20 percent. All the major laptop manufacturers man-

screen is best, but it is usually more expensive.

aged to keep up with new launches in 2020,

this mainly means PCs and smartphones.

even during the lockdown. The good thing is

BUSINESS LAPTOPS

During the pandemic, when remote work was

that the offer in stores, both offline and on-

Lenovo, HP, Dell, and Apple are the most

carried out by any employee that could move

line, covers all budgets with good machines

renowned for business laptops. The ThinkPad

their job outside the office, demand for lap-

which are able to handle 2020 hardware

series from Lenovo has been known to have

tops grew, while smartphone sales declined.

requirements. The most popular operating

the best business laptops for many years now.

More specifically, laptop sales went up 30

system in the world is still Windows, covering

While the ThinkPad X1 Carbon (at a price of

percent around the world, while smartphone

87 percent of the PC market in April 2020. Mi-

over EUR 2,000) is the best in terms of per-

www.business-review.eu Business Review | June May 2016 2020

COVER STORY IT 21 14

formance, Lenovo has also released models

2,000), but if money is not an issue, Dell XPS

for lower budgets, like the L14 or L15 (starting

is one of the best laptops you can buy.

price of USD 650) up to T14 and T15 (over USD

Next to Dell in terms of prices is Apple,

ASUS recently launched its ExpertBook B9450 in Romania, a 14-inch business laptop that weighs under 1 kg. It has top specs, a

1,000). Lenovo also launched a new business

with its MacBook Pro 13 or 16, the alterna-

USB-C port for charging and all the connec-

line at the end of 2019: ThinkBook. Model 13s

tive for Windows laptops. Apple decided to

tors needed for a business port. It also has a

has a starting price of around EUR 700 and,

launch machines with best available specs, in-

NumberPad 2.0, which is a numeric keyboard

after testing it thoroughly, I can say that it is

cluding models where you can have 64GB of

integrated in the illuminated TouchPad. The

the best business laptop for its price, from

RAM or storage on an 8TB SSD. The top model

technology comes at a price of over EUR

performance and screen to battery life and

goes for over EUR 2,500, but that is not a big

1,500, so it is not cheap.

connectors.

surprise since MacBooks have always been at

Acer is usually seen as a manufacturer of budget laptops, but it has high-end machines that can compete against any other producer. The Acer Swift 7 is one of the thinnest computers on the market, with great specs and display. It is not a cheap machine at EUR 1,500, but it covers all the needs of a business user.

BUDGET LAPTOPS There is a wide range of laptops under EUR 500, from Chromebooks made for web browsing to good computers for working from home. All the manufacturers above have models that can be cheap and still do the job, whether for the office or for school. The latest AMD processors have brought the prices down and have forced Intel to cut prices for its chips as well. The Romanian market has one “feature” that is found in many cheap laptops: the absence of an operating system. While there are cheap license keys for Windows 10 in online shops, those are usually not entirely legal. And for someone who is not really into tech, installing an operating system may not be so easy. The best choice in this case is to buy the PC with an operating system already installed, since it is the easiest way to use a computer. The HP Spectre x360 2-in-1 is a premium business laptop, launched this year with a

the high end of the price range. Huawei is one of the latest producers to en-

There is a lot of talk in our country about the way students are learning online. And

boost in specs. With 10th generation Intel

ter the global market, but it’s making a good

many say that a tablet is enough to communi-

Core processors and Intel Iris Plus graphics

impression. The MateBook X Pro has gained a

cate with the class and the teachers. Although

along with impeccable design, Spectre is one

place among the best business laptops, with a

it may be enough for a video call (just like a

of the best laptops you can buy. Although

sleek design, good specs, and a great screen.

phone), a tablet is not really the best choice

pricey, at around EUR 1,500 for top perfor-

And it comes with good prices for a high-end

for students. It is better than nothing, but if

mance systems, you will get an excellent

ultrabook, around EUR 1,100. It does lack

there is a choice, a laptop is far better in terms

machine. The Dell XPS 13 or 15 is another

some connectors, like an SD card slot, but

of productivity. Nevertheless, a good tablet

high-end laptop for business. It has a stun-

comes with a USB-C port for battery charg-

costs more than RON 1,500 (over EUR 300),

ning screen, top processors from Intel and

ing, which is great in terms of standardisation

which is the price of a budget laptop. It would

can include graphics like NVIDIA GeForce

and allows charging from a portable power

be better if those who are trying to help chil-

GTX 150 (for the 15.6 inch version). It also

station. Hopefully, we will see USB-C charging

dren in need, including the government, went

has a higher price tag than its rivals (over EUR

ports become a standard in the future.

for laptops instead of tablets.

22 ENTREPRENEURSHIP

www.business-review.eu Business Review | June 2020

Local startups facing conservative funding outlook While securing funding for your startup might seem like a moving target right now, mostly due to the disruptive economic effects of the coronavirus crisis, investors are still on the hunt for young firms that have the potential to grow exponentially in the future, especially in the tech field. Crowdfunding is gaining prominence on the local market, as conventional venture capital and bank funding turn more conservative. By Ovidiu Posirca

Startups that could come out on top after the crisis could be tech firms that can provide solutions to the new ways in which we work, shop, and live

www.business-review.eu Business Review | June May 2016 2020

ENTREPRENEURSHIP COVER STORY 14 23

unding volumes had already started

even startups that take advantage of the

share of future rewards,” says the managing

to go down in the first quarter of 2020,

current situation might need to shift or delay

partner of Early Game Ventures.

as key global startup hubs were start-

capital placement.

ing to enforce strict containment measures

Startups that are currently looking to

“To survive the scarcity of resources and

secure funding could attempt to borrow from

against the virus. For instance, projected seed

preserve their budgets, the best measure for

banks – if their financial figures are strong

& angel investment in Q1 was set to fall by 8

startups is returning to their own channels to

enough – or entrepreneurs could sell equity in

percent to USD 3.3 billion compared to the

monetise the existing customer base, while

the firm to private investors.

same period of last year, according to Crunch-

maintaining the communication with their

base News. And early-stage investments are

target audiences open, but at a low cost,” he

never been willing to finance the typical

not doing any better, with an annualized drop

argues.

SMB (small and midsize business – e.n.) as

of 15 percent to USD 22.3 billion in Q1 2020. Meanwhile, some of the largest startups

“Unfortunately, banks in Romania have

the typical SMB is poorly managed, has no

THE FUNDING AND COST-CUTTING CONUNDRUM

governance, and is not creditworthy. Private

in the world have announced layoffs as lockdown measures have crippled demand,

Startups can finance themselves by gen-

numbers and always choose the best invest-

especially in the transport and hospitality

erating revenues or by raising funds from

ments. Their impact at the national level is

industries. On the other hand, the role of digi-

investors. For early stage firms, the path to

limited by their capital and their bandwidth,”

tal transformation in companies has gained

growing sales and profitability could be years

Munteanu explains.

prominence in this period, and some changes

away, and these entrepreneurs could be

such as remote work and increased online

forced to make deep cuts now in

shopping are here to stay for the long

other to save the

term.

investors, on the other hand, are in small

The government could step in and provide grants to firms, but the question is whether public funds should target all companies in trouble or just those with

business.

“In a macroeconomic

good fundamentals that are

Re-

sense, the current medi-

currently facing a crisis.

cal and economic events

The Romanian state has

will have effects lasting

already stepped in to

for at least 18 or 24

cover costs for employ-

months. There are no

ees who were temporar-

clear winners, but at the

ily laid off due to the

same time these events

coronavirus. At the same

have forced an accelerated

time, banks were analys-

adoption of digital solutions

ing loan requests from small

and will continue to push for increased efficiencies and support

(SMEs) through the government-

ing cash

for social distancing,” Alexandru Bogdan,

burn could be the prior-

the CEO of startup investment fund Roca X,

ity for most startup founders in the short

told BR.

term.

Startups that could come out on top after

and medium-sized companies

duc-

backed IMM Invest programme. The state would provide guarantees for loans taken out by small business to finance

Cristian Munteanu, managing partner

new investments or secure their cash flows.

the crisis could be tech firms that can provide

at Early Game Ventures, says that a startup

The threshold for these bank loans was set

solutions to the new ways in which we work,

owner could opt for the European way of

at slightly more than EUR 2 million for each

shop, and live.

gradually cutting costs and hoping that the

firm, and dozens of requests were approved

situation will improve down the road.

in the first weeks.

“If they are favoured by these events and their adoption is accelerated, they should ride

“I prefer the hard way, the American way:

Crowdfunding for startups is another

the wave, invest in gaining market share, and

cut all that may be cut from day one, contain

concept that is currently being developed by

with consistent data, go collect additional

the damage, stop the leaks, and brace for

a team of Romanian investors. They founded

funding. As we can see from the number of

impact,” Munteanu told BR. This could mean

Seedblink, a platform for equity crowdfund-

investments over the last 2-3 months, a good

re-negotiating all contracts with suppliers,

ing that has already attracted over 1,000

story/case will get investors’ attention. If

landlords, cutting marketing spend, elimi-

investors who have provided funding worth

they feel close to the mainstream but are not

nating travel budgets (where possible), and

EUR 2.28 million in five months to nine

there in terms of real adoption, they should

cutting salaries. In some cases, layoffs could

startups.

carefully pivot and adapt to future demands

prove inevitable.

and behaviours. Cutting costs starts to be an

The team behind Seedblink wants to bring

“I advise startups founders to consider

tech startups, local venture capital funds, and

important action that needs to be taken to

offering their employees options in exchange

angel investors to the same table. In the next

preserve future opportunities after the storm

for a reduced salary; in other words, ask the

three years, the platform aims to reach a com-

passes,” says the CEO. Bogdan suggests that

team to take on a part of the risk and get a

munity of 30,000 investors and 175 startups.

www.business-review.eu Business Review | June 2020

24 ENTREPRENEURSHIP

Local entrepreneurs looking to strike big in deep tech market Companies in Romania attracted over USD 1 billion worth of deep tech investments by 2019, in a growing field that encompasses a wide array of startups using artificial intelligence (AI), blockchain or robotics solutions. By Ovidiu Posirca

Romania was ranked 11th in Europe by the amount of capital invested in deep tech companies

ntrepreneurs developing deep tech

ment fund targeting startups. “Although

to 2015, according to data from the State of

startups are facing roughly the same

the talent is here, the challenge is that 3F

European Tech report. The European market

set of challenges related to attract-

(Friends, Family & Fools) early financing op-

is dominated by AI companies, which got

ing funding and talent as other players in the

tions are not that accessible in this area due to

close to USD 5 billion worth of investments

startup ecosystem. But companies in this field

the lack of financial power and therefore it is a

last year.

need to put research & development (R&D)

challenge for founders to support themselves

operations in place from the early stages,

through the R&D process until an MVP (mini-

the amount of capital invested in deep tech

which makes them more capital intensive.

mum viable product - e.n.) is ready. There is

companies. In 2019, the investment volume

also scarcity in terms of capital on the market

reached USD 762 million, mainly due to the

chain, the technology behind Bitcoin, might

and an R&D project means bigger technical

USD 570 million funding round secured by

cost you USD 200,000, while for biotech the

risks while investors want to see something

UiPath, the robotic process automation (RPA)

cost could reach USD 1.3 million, according

functional,” Bogdan told BR.

startup founded by Daniel Dines and Marius

Developing your first prototype in block-

Romania was ranked 11th in Europe by

Tirca. Between 2014 and 2018, investments in

to joint research by Boston Consulting Group

ROMANIA’S GROWING PROFILE IN THE DEEP TECH INDUSTRY

Romanian deep tech firms stood at USD 456

Less than 20 percent of newly created startups in Romania and Central and Eastern

Across Europe, investments in deep tech

Tech report. The potential of deep tech start-

Europe are doing deep tech, says Alexandru

companies reached a record USD 8.4 billion

ups is best proven by UiPath, says Cristian

Bogdan, CEO of Roca X, a domestic invest-

in 2019, soaring almost threefold compared

Munteanu, managing partner of Early Game

and Hello Tomorrow.

million, according to the State of European

www.business-review.eu Business Review | June 2020 May 2016

ENTREPRENEURSHIP COVER STORY 14 25

Ventures. “Such companies start as R&D

Structuring a funding deal for a deep

developed by the Romanian startup could be

laboratories and move into an actual business

tech startup could require more control for

used primarily in the entertainment sector.

once their new technology shows early signs

investors, clearer milestones and KPIs, and

Dima says that for instance, this will allow

of validation. The smart investor knows this

potentially releasing the

and structures the deal in such a way as to

money in tranches as the

allow founders the time and the resources to

product comes together

prove their vision and their tech,” Munteanu

and becomes functional,

told BR.

argues the CEO of Roca X. “Mixed R&D grants

BRINGING A NEW TECHNOLOGY INTO THE COMMERCIAL MARKET

and private investment

Developing a new technology in biotech

could also represent op-

might take around 4 years, with half the time

tions to further incentiv-

dedicated to building the first prototype,

ise this segment which,

while for blockchain it might take 1.4 years

because of the novelty

to the first prototype and 1 year to reach the

of the technology, most

market, according to an analysis of startups in

often has to educate the

the Hello Tomorrow Challenge.

market in how to use and benefit from it,”

Analysts at Boston Consulting Group (BCG) suggest that public-private financing schemes are becom-

your favourite actor to read an audiobook or your favourite celebrity to teach online

says the CEO.

classes.

Both Roca X

“It could also bring a

and Early

drastic change to the

ing increasingly important

advertising industry:

in financing deep tech

the same commercial

ventures since the conventional funding route

can have different

might not work.

characters, as they can appear in the ad

“Many companies

without being physi-

are seeking funding in the early research phase,

cally present. Plus,

long before they can put

the audio-video postproduction can be per-

a product or even prototype in the hands of potential customers, meaning that investors have few if any KPIs (key performance

sonalised in any language,”

Game

says the entrepreneur.

Ventures led a EUR 330,000 investment in

Dima is confident that UiPath’s

indicators – e.n.) with which they can evalu-

Romanian deep tech startup Humans, which

achievement of unicorn status (a startup

ate traction and market potential,” wrote BCG

is working on a new technology designed to

valued at more than USD 1 billion) shows that

consultants in a report. And then there is

generate synthetic (AI-created) media.

the market potential for deep tech startups is

“The biggest

impressive.

investment up to this

“Programmers should have the courage to

first round of funding

found or work with startups, where they can

consisted of the work of

create technology instead of just being en-

the company’s founders,

ablers for existing technologies. At the same

especially given that the

time, the link between academic society and

R&D started before the

startups should be tighter, to take innovation

business idea, with the

out of the lab and bring it to the market, just

technical co-founders of

like Humans intends to do,” concludes Dima.

Humans working out of

Other emerging Romanian startups with

passion. Only later did

deep tech components include TypingDNA,

the commercial applica-

a behavioural biometrics company, and

tions of the innovation

CyberSwarm, a deep tech company develop-

take shape and Humans

ing a neuromorphic System-on-a-Chip for

the challenge of properly understanding the

was set-up. The initial financing came from

cybersecurity. CyberSwarm has ongoing part-

potential of an emerging technology on the

the founders’ own funds,” Sabin Dima, the

nerships with academia on the development

side of investment funds.

CEO of Humans, told BR. The technology

of micro-technologies.

www.business-review.eu Business Review | June 2020

26 ECONOMY

Key factors of the COVID-19 pandemic’s uneven impact on countries and businesses The first official statistics coming from Europe, the US, and China have suggested a huge toll on economic activity in the first quarter of 2020, with GDP falling in most countries due to significant lockdown measures causing disruptions and unemployment surging to very high levels. Even if many experts believe that the worst is still to come, the impact of the coronavirus crisis has been uneven across the globe and among different economic sectors. By Sorin Melenciuc q/q), Slovakia (4.1 percent y/y, 5.4 percent q/q), Spain (-4.1 percent y/y, -5.2 percent q/q), and Portugal (-2.4 percent y/y, -3.9 percent q/q). In France, the GDP fall in Q1 was the most severe since 1968, and this sharp decline was largely due to lower spending and investment. But experts expect a much larger drop in the second quarter. “However, the health crisis we are going through had only limited effects on activity in the first quarter. With six weeks of containment in the second quarter versus just two in the first quarter, GDP is expected to bottom out in the second quarter of 2020,” Crédit Agricole analysts wrote in a research note. But there is also another key factor, also seen in other southern European countries: a large share of tourism-related businesses Romania has lower reliance on foreign tourists as its poor infrastructure and low reputation attract a limited number of travellers from abroad

in the economy, which were shut down during the lockdown periods imposed by the authorities.

n the European Union, seasonally adjust-

This was the sharpest decline since the third

ed GDP decreased by 3.3 percent during

quarter of 2009.

In Slovakia, it was the country’s reliance on the car manufacturing sector that caused the large drop in overall economic activ-

the first quarter of 2020 compared to the

previous quarter, according to a flash esti-

LARGE DIFFERENCES BETWEEN COUNTRIES

ity, as many car factories were closed down

mate published by Eurostat. These were the

However, the scale of disruption in economic

temporarily due to lower demand during the

sharpest declines seen since 1995. In March

activity has been quite different from one

lockdowns.

2020, the final month of the covered period,

country to another and was based not just

COVID-19 containment measures began to

on containment measures, but also on the

member states managed to end the first quar-

be widely introduced by EU Member States.

structure of different economies. In the EU,

ter in a positive territory. Romania (with a

Compared to the same quarter of the previous

the most severely hit economies in Q1 2020

growth rate of 0.3 percent q/q and 2.7 percent

year, seasonally adjusted GDP decreased by

were France (with a GDP decline of 5.4 per-

y/y) was followed by Bulgaria (0.3 percent q/q,

2.6 percent in the EU in Q1 2020, after a 1.3

cent year-on-year and 5.8 percent quarter-on-

2.4 percent y/y) and Finland (0.1 percent q/q,

percent growth rate in the previous quarter.

quarter), Italy (-4.8 percent y/y, -4.7 percent

0.4 percent y/y), but some other eastern Euro-

At the opposite end of the scale, some EU

www.business-review.eu June 2016 2020 Business Review | May

COVER ECONOMY STORY 27 14

pean countries, like Hungary or Poland, also

point in Romania’s trade balance dynamics.

there were 5.6 million active employees in

experienced a lower impact of the coronavi-

We expect imports to contract faster than

Romania. “This is broadly in line with what

rus crisis in Q1 2020.

exports in the coming months with a recovery

the government has estimated as a maximum

that will first be visible in the export sector,

number, but what is slightly more worrying

ROMANIA’S RARE CASE OF GDP GROWTH

as we expect the eurozone economy to start

in our view is that despite more and more

In Romania, the GDP growth in Q1 2020 had

recovering before Romania’s,” ING analysts

two main drivers: public spending and con-

estimate.

struction. “Even for Q4 2019, but particularly

Experts point out that exports and imports

for Q1 2020, one difficult item to estimate has

have been contracting since March, wage

been the impact of the huge budgetary spend-

advances have slowed down and could turn

ing, which started in December last year and

negative this year, retail sales are contract-

continued into 2020. The 1.7 percent of GDP

ing as well, and industrial production has

budget deficit in the first quarter of this year

plunged. The main problem for Romania is

was the highest ever. Hence, we expect public

its government’s limited resources to tackle

consumption to have remained the main

the crisis. In fact, Romania’s crisis mitigation

growth driver in Q1 2020,” ING Bank analysts

programme amounts to 3.2 percent of GDP, of

said in a report.

which 2 percent of GDP are public guarantees

The other major driver was the construc-

– and this sum is relatively small compared to

tion sector, which rose by 32.8 percent year-

programmes announced in other countries.

on-year in Q1 2020 – by far the largest increase

Direct support is just 1.2 percent of GDP

in the EU. Activity in this sector was very

because the government has conducted

volatile across EU member states and differ-

procyclical policy in the past and brought the

ences in growth rates are very important. In

public deficit to a high level – and this means

March, “the largest decreases in production in

that it could only add a small fiscal stimulus

construction were observed in France (-41.2

now. At the same time, the National Bank of

percent), Italy (-35.4 percent) and Belgium

Romania (BNR) started its first-ever quantita-

(-23.2 percent). The highest increases were

tive easing (QE) programme in April, but its

seen in Romania (+28.1 percent), Germany

scale is limited due to worries about RON

(+5.1 percent), Poland and Finland (both +1.5

fragility, according to experts. However, there

percent),” Eurostat said.

are some positive signs from Romania’s main

Romania has another particularity in the EU: a lower reliance on foreign tourists as its

trade partner. “Encouragingly, our eurozone team’s

poor infrastructure and low reputation attract

analysis of Google COVID-19 Community

a limited number of travellers from abroad –

Mobility Reports suggests we are starting to

and tourism has only a limited contribution

move away from the worst of the lockdown.

to the country’s economic output. In fact,

The latest Google data suggests German

companies resuming activity, the overall

more than three quarters of tourists in Roma-

activity has recovered to 84 percent of levels

number hasn’t really dropped significantly,”

nia are locals, and many Romanians usually

seen in January – which will be welcome for

ING analysts note.

spend their holidays abroad - and this could

CE4 (Poland, Romania, Czech Republic and

prove to be an asset this summer, when inter-

Hungary) supply chains,” ING analysts say.

national tourism will certainly only partially

However, terminated contracts have been steadier and more gradual, reaching close to 350,000 - basically doubling the number of

recover, while domestic tourism is expected

PLAGUED BUSINESSES AND EMPLOYMENT

unemployed people in the country. But the

to be more resilient. In fact, Romania has

Romania, as many other countries, has shut

government hopes that the restart in opera-

restarted much of its tourist activities since

non-essential businesses starting from mid-

tions which has been gradually taken place

June 1, while international tourism and flights

March, but the scale of these sectors in the

since May 15 – with beaches and open-air

are not expected to fully restart until July.

Eastern European country is smaller than

restaurants opening on June 1 – will lower the

those in countries attracting many tourists

number of unemployed people in Romania.

LIMITED RESOURCES

and with more wealthy residents. According

Some experts warn that such hopes could

However, the economic decline is expected

to official data released by the Labour Minis-

be reversed if a large number of businesses

to be very severe in Romania in the second

try, close to 1 million employment contracts

fail to regain their pre-crisis customers and

quarter, as in many other countries, while

have been suspended since the beginning of

go bankrupt – and no one really knows how

the recovery could take longer. “We believe

the crisis, the equivalent of around 18 percent

many businesses will actually survive the

that the first quarter has marked a turning

of the active workforce – in February 2020,

current crisis.

www.business-review.eu Business Review | June 2020

28 TOURISM

Tourism goes into “remote island” mode in pandemic times Many of us have dreamed of spending our summer holidays on a remote island with no internet and phone connections – and with no other tourists than those we’d like to have with us. In most cases, it was just daydreaming – a way of disconnecting from the stressful reality. But this year, this innocent dream could become reality for many due to a one-off event: a virus that seems to have originated from a wet market in Wuhan, China, which has spread across the globe at tremendous speed. By Sorin Melenciuc

his virus, technically called SARSCoV-2, causes the COVID-19 disease, which had killed more than 375,000

people all over the world by June 1. The virus has already infected millions of people and continues to spread. Even though many had hoped that the summer months would limit the spread of the virus, the latest developments leave little room for optimism.

SENSE OF INSECURITY Even if the pandemic seems to be losing momentum in Europe and North America, it’s spreading quickly in many counties with warm climates – from Bangladesh to Brazil and from Indonesia to Peru. This evolution, seen at the beginning of the summer holiday season in the Western World, suggests that the tourism sector will be forced to change in order to cope with tourists’ increasing sense

A major challenge is that the summer season will begin later than usual this year

of biological insecurity. Another major challenge is that the international summer season will begin later than

– the number of foreign tourists visiting the

fell by 79.8 percent year-on-year to 34,200, as

usual this year – in July, in most cases, after

country is much lower than the number of

the coronavirus resulted in cancelled flights

reopening measures are fully implemented.

locals visiting other countries and spending

and travel plans all over the world, according

But the domestic tourism season has already

money there. In fact, Romania has become

to the National Institute of Statistics (INS).

begun in many countries, at the beginning

less interesting as a destination for tourists

The number of foreign tourists from Europe

of June or even in late May, as many govern-

from all continents since the summer of 2018,

declined by 79.1 percent compared to March

ments – especially those of countries with a

as their number has dropped constantly

2019, to 26,200, while the number of Asian

negative tourism balance - tend to support

during the last couple of years. This situation

tourists decreased by 83.2 percent, to 3,700.

domestic tourism and delay resuming exter-

exposes the weaknesses of the local tourism

The contraction is expected to be even

nal travel.

industry and the lack of well-managed tourist

larger in April and May, when lockdown mea-

attractions in the country.

sures in Romania and most European coun-

The drop became dramatic this year, as

tries closed hotels and restaurants and halted

This is the case for Romania, which has had

exacerbated by the pandemic. In March 2020,

flights and travel. The Romanian government

a negative tourism balance for many years

the number of foreign tourists in Romania

reopened much of the local tourism activ-

ROMANIA’S CASE

www.business-review.eu June 2016 2020 Business Review | May

COVER TOURISM STORY 29 14

ity on June 1 and further restriction lifting is

this kind of concept, from remote charming

mer. For many, it is a question of survival,

expected within the next weeks.

villages in Transylvania or Bucovina to the

because the number of tourists is expected to

natural beauties of the Carpathian mountains

decline compared to the last few years, when

and the Danube Delta.

higher wages and government-sponsored

Restaurants with outdoor seating and beaches are now open, with some social distancing requirements. Many people are

Many family businesses in these areas

programmes had boosted domestic tourism

already planning trips to sea or mountain

have developed during the last decades to

resorts in Romania in the coming weekends,

offer rural and natural escapes to stressed

but there are also many people who think it

middle-class inhabitants of big cities in the

moting their “corona-safe” guesthouses on

is too soon to risk such travels. In fact, even

country as well as to foreign visitors, who

social media. “An intimate place of protection

if the number of new cases is in decline, the

are eager to discover traditions that industri-

from infection and withdrawal from urban

coronavirus outbreak is far from over. There

alisation and urbanisation have erased from

agglomeration,” says one such ad, promot-

are still thousands of active cases in Romania,

Western Europe.

ing a guesthouse in Azuga, Prahova County.

and the number of daily new cases remains

Ironically, these kinds of businesses are

in Romania. Some business owners are already pro-

Another guesthouse, located in the Danube Delta, ensures its visitors that it has taken “all necessary measures to reduce the risks of the new virus spreading.” These businesses are generally small guesthouses managed by a single family offering accommodation, slow food, natural landscape, and fresh air. But they also provide something more important in these times: intimacy. Even if they don’t generate the same earnings as traditional tourism, these strategies could bring business owners some relief, allowing them to survive until the travel industry begins to recover. In fact, these strategies are

over 100. And due to this uncertain situation,

much easier to adapt to corona-tourism

occurring naturally all over the world in

many Romanian tourists have been trying to

than big hotels and resorts, which risk being

these times. Palau, a remote island in the

find alternative ways to spend their summer

avoided by many tourists due to health and

Pacific Ocean, is already promoting itself as a

holidays.

safety concerns. In fact, family businesses are

coronavirus-free zone hoping to attract tour-

generally managed by a single family, have

ists. In Romania’s case, the tourism industry

“REMOTE ISLAND” CONCEPT

few or no other employees and a small num-

is betting on domestic travellers in order to

Many people are seeking tourism facilities of-

ber of rooms for accommodation.

limit the damages. The industry hopes to find

fering “remote island” concepts. That means

That’s why this type of businesses could

some help from the government, as it is one

avoiding crowded popular resorts in the

benefit the most from the current pandemic,

of the sectors which were hardest hit by the

country and favouring locations and tourist

as they could only accommodate members of

pandemic.

facilities where there aren’t many people – at

the same group of tourists – without expos-

least not strangers.

ing them to others – and offering services

existing programme offering tourism-vouch-

with a limited staff. At the same time, these

ers to state employees in order to encourage

of people crammed into a hotel will have

small hostels and guesthouses offer a safe

them to spend their holidays inside the coun-

to suffer. Therefore, travelling will be more

escape to many as they are usually in areas

try rather than going to popular destinations

expensive, at least in the short and medium

with low population density and large natural

such as Greece, Turkey or Bulgaria. Over the

term, because of all the restrictions that will

surroundings.

last couple of years, this programme has been

“I think travel packages that involve a lot

One key measure could be expanding an

seen by many experts as a populist measure

continue to remain in place and because of all the costly measures taken to protect tour-

BUSINESS STRATEGIES

that has fueled price increases for tourist ser-

ists’ health,” says Razvan Pascu, a Romanian

Many travel business owners are already

vices and deepened the public deficit. Now,

tourism consultant. Due to its geography,

working to promote the new concepts with

many are saying that this programme could

Romania has many places that could offer

the best chances to attract tourists this sum-

save businesses and employment.

www.business-review.eu Business Review | June 2020

30 PR

The best communication tools during and after the pandemic Business leaders are leaning into their communication role as an essential resource to help them deal with COVID-19. 81 percent of respondents said the communication function is “important” or “very important” to their company’s COVID-19 response, according to a study conducted among 300 communications executives and senior leaders in March by the Institute for Public Relations (IPR) and the communications firm Peppercomm to gain a better understanding of how prepared businesses were for the pandemic and its effects. By Romanita Oprea

Alina Damaschin, Rogalski Damaschin PR

Raluca Ene, Chapter 4 Romania

hat have been agencies’ most

precedented times. Brands have been put to

petite for information and entertainment dur-

important communication tools

the test: catering to the true needs of commu-

ing the lockdown and the restrictions placed

so far during the pandemic in Ro-

nities in times of crisis. Purpose became the

on some of communication forms meant that

mania and why? In the case of Porter Novelli

common denominator in every one of Porter

the whole communication landscape shifted

Romania, the communication processes had

Novelli’s endeavors. Nevertheless, we’ve used

towards a mass-media approach – some

to be moved exclusively to the digital realm,

the pandemic to reinforce our commitment

modern (social media, streaming services,

where they were greeted by an overwhelming

to this ethos – we integrated this mindset into

and the like) but also a significant increase in

number of alternatives. “To stay in touch with

the agency a year and a half ago and we think

traditional channels like TV and radio. “We

our clients and colleagues, we have resorted

our 2019 projects are a testament to this,”

have seen an explosive growth in the need for

to audio-video communication platforms to

said Sorina Mihai, managing partner at Porter

media relations services during this time – as

connect, share, and exchange information

Novelli Romania.

brands and organisations wanted to answer

and thoughts, help each other, and even add a

In her turn, Lavinia Chican, senior partner

little humour to ease the pressure of these un-

at McCann PR, believes that the increased ap-

this new need for information from the public and foster their positive reputation. Also

www.business-review.eu Business Review | June 2020 May 2016

COVER STORY PR 31 14

significant was the rise of omnichannel com-

ing on the client specifics and audiences, we

and they felt the need to engage their internal

munications. For a long time that was little

chose the most relevant channels, from social

audience with more lighthearted news, the

more than an industry buzzword, but now

media to online news platforms, blogs or

agency created some more “relaxed” content.

companies needed closer contact with their

vlogs. The most important, challenging, and

“Some of our clients got involved from the

public, so social media and messaging have

rewarding part of our activity, however, was

very beginning either by directing funds to

become more important parts of their brand

working to reshape our clients’ communica-

those groups or by adopting new business

voice,” Chican explained.

tion strategies and messages to match the

measures to maintain people’s access to

Moreover, Alina Damaschin, creative

public’s state of mind and expectations. To

their products or services, and we supported

leader & managing partner at Rogalski Dam-

do this, we listened carefully, we practiced

all these initiatives with communication,”

aschin PR, told BR that during the last two

empathy, and took things one step at a time,

said Alina Damaschin. There were projects

months the agency’s life have been mostly

highlighting information that could be useful

adjusted to better respond to the needs of

digital, and that all platforms were already

and placing the end-user or customer at the

their target audience, such as entrepreneurs,

there, allowing them to create a completely

center of all communication,” Raluca Ene

as well as events organised online instead of

new working space overnight, with new ways

stated.

face to face. Some of these adapted solutions

of delivering “normal” services. “The whole

As for the services clients have been asking

have been requested by clients, while others

communication world has moved to digital.

for, Sorina Mihai said that as expected in the

were developed by the agency to allow them

Technically we were prepared, but in real life

current context, the agency’s efforts have

to have more diverse communication options

it was like suddenly deciding to wake up in

shifted onto internal communication projects,

to choose from.

the morning and start running a digital mara-

as well as crisis management, with a major

thon. In a very short time, it was not just the

focus on providing the most accurate infor-

consultants and teammates for our clients,

delivery of consultancy that was digital, but

mation possible about the health and safety

so in this period, even more than before, we

most campaigns have also been fully moved

regulations imposed by local authorities and

have been in very close and constant contact

or adapted to maximise their digital potential.

dictated by our clients’ industries. Last but

with them, jointly deciding on our course of

For some businesses, it was the natural way

not least, pro bono projects supporting initia-

action with each new change in our surround-

of adjusting to restrictions and continuing to

tives that provided solutions to the COVID-19

ing reality. It naturally started with adapting

sell products or services, while for others, it

crisis have also been part of our work during

the strategy and continuously adjusting our

was the right moment to push their existing

this time. In Rogalski Damaschin’s case, in

proactive outreach, based on any new mea-

available solutions,” said Damaschin.

the first part of lockdown companies have fo-

sures imposed by authorities and how they

The same situation was also reported by

cused on supporting their employees. Internal

impacted people’s lives. On a tactical level,

Raluca Ene, managing director at Chapter 4

communication was key, and it was mandato-

this translated into using the most direct

Romania, a company that also saw most of its

ry to assist people in adapting to a new way of

channels to communicate with the end-

communication being moved online, prompt-

life and work. In the second part of the lock-

user and adjusting the content on an almost

ing the team to focus more specifically on the

down, when companies were more used to

weekly basis, in some cases,” said Raluca Ene,

online tools it had in in its toolkit. “Depend-

working from home and the torrent of news

managing director at Chapter 4 Romania.

“We’ve always positioned ourselves as

www.business-review.eu Business Review | June 2020

32 ADVERTISING

Adaptability and flexibility – keywords for the advertising industry of the future As the coronavirus pandemic hits businesses and their ad spend, advertising companies worldwide are preparing for a drop in demand, and some are telling their employees to expect staff cuts and furloughs, as CNBC reported. Moreover, the advertising industry is bracing for the wider impact of any economic fallout on client spending, since marketing is often one of the first areas businesses tend to cut during a financial downturn. By Romanita Oprea

Dana Nae Popa, Pastel

Stefan Iordache, Publicis Groupe Romania

ccording to Business Insider, JPM-

for most of us – and we are not just referring

transformation process we have been going

organ Chase analysts said that the

to the business/economic side, but also to the

through in the past two years. Powered by the

largest and most heavily leveraged

human impact.

synergy between creativity, data, and technol-

companies, like WPP and Publicis, and those

“At this time, it is impossible to accurately

ogy, our aim is to offer to our customers ac-

most exposed in Asia, like Dentsu, are the

evaluate the overall impact; we are all work-

cess to the most advanced services and tools

most at risk from advertisers cutting spend-

ing on multiple scenarios, bearing in mind the

on the market, concentrated in four areas of

ing, while IPG could fare better because of its

safety of our employees and the sustainability

expertise: Communication, Media, Data, and

data and healthcare business.

of the business. A great example of the instant

Technology,” said Stefan Iordache.

But how is this impact seen and felt in

impact is digital behaviour. In less than a

In turn, Dana Nae Popa, owner & manag-

Romania and what will the advertising of the

week, almost every part of our day-to-day life

ing director at pastel, thinks that this period

future look like? According to Stefan Iordache,

(both professional & personal) was moved to

has brought about both good things and bad

COO at Publicis Romania, we are already see-

digital platforms. Fortunately, for our Group,

things. Sadly, deadlines are even tighter, and

ing big changes and not just in the commu-

this did not rock our boat, but rather acceler-

so are budgets. But this is understandable

nication industry, but in all sectors. What we

ated all the digital projects we had going on

considering the context. “I would love for

are experiencing right now is unprecedented

and confirmed the relevance of the digital

us to recover as soon as possible and for this

www.business-review.eu Business Review | June 2020 May 2016

COVER ADVERTISING STORY 33 14

dreadful context to become history. I also

prepare for an uncertain future. Our initial

inside the industry’s big one. We should seem

hope that during these atypical times we do

work included reviewing commercial and

covered and protected, right? But this time

not develop any nasty habits that stick with

corporate messages to realigning media plans

we weren’t, either. Working with clients from

us, like we saw after the last crisis. The 90- or

to be much more dynamic and deliver short-

various sectors that have been affected in dif-

120-day payment deadlines were invented

term ROI. They are more careful with budgets

ferent ways also reflected on us. It has been a

back then –and those have not become

and media campaigns, which is normal in this

period that involves even more work, even if

history, but are still part of today’s reality.

context. This is what we set out to do over the

this isn’t necessarily reflected in revenues. We

And since I mentioned that good stuff has

past two months. We have worked around

have had to adapt some campaigns overnight,

also happened, I’m happy to notice brands’

the clock to make sure that in addition to our

let go of others entirely or build things from

mobilisation and mobility. The campaigns

day-to-day tasks, we could bring to life an

scratch. I’m happy that we adapted so quickly

have much more sense, they are really mov-

innovative, data-driven approach. Which is

and efficiently to working from home,” pas-

ing things, and many of them really speak to

why we developed and presented in-house

tel’s representative added.

people – something which will become com-

products created specifically for this context

mon sense, I hope,” she noted.

to help our clients and partners,” said Teddy

A LOOK INTO THE FUTURE

Dumitrescu, CEO at Publicis Romania.

“It is complicated to assess what will happen

As for the biggest changes they have seen among their clients, pastel’s representative

When it comes to the impact of the

to the market both in the short and long term,

said that one can’t talk about a big change that

pandemic on agencies, in Publicis’s case the

as we do not know whether we have seen

applies to all clients, because the impact has

impact has been huge first in terms of how

the worst of it. Traditionally, the advertis-

been different from one company to another.

people work. Even before the state of emer-

ing/marcomm business mirrors the overall economic trends. This will likely not change. Everything else will most probably do. We ask our clients for what we ask from ourselves: resilience – this will not be a one off; transparency – the more we understand the better the solution; data-driven approach – informed and databased solutions are compulsory in these times; and trust – mutu-

Working with clients from very different in-

gency, they decided to move all teams (+400

ally beneficial, great collaborations are based

dustries, pastel’s employees have understood

professionals) in Romania to work-from-

on it & our teams know exactly what to do

and discovered various ways in which com-

home mode. At the global Group level, cu-

with it. We are facing unique times when we

panies could be affected which they couldn’t

rrently there are +80,000 people working

can develop together, experience new ways

have thought of before. “For most of our

from home and successfully managing the

and open doors,” concluded the Publicis

clients the watchword was adaptation. From

communication of some of the most impor-

representatives.

communication to working from home where

tant global brands. Moreover, all agencies

it was possible, to stopping and resuming ac-

within the group joined hands and developed

analyses about what the communication mar-

tivity, to migrating online in record time, and

two in-house products: the Strategic Daily

ket will look like, about the way brands will

so on. What pleasantly surprised me was the

Bulletin and White Paper Reports. The Daily

communicate, about how consumer behav-

agility of huge companies to adapt or approve

Bulletin is a product that was updated and

iour will change, etc. These only show trends.

actions or campaigns that would normally

sent daily to clients and included analysis,

Of course, we can relate to or rely on them,

take months, maybe years, and, especially,

reports and the most relevant news in the

but I think we need to preserve our reactivity

lots of signatures to be approved. I hope this

COVID-19 context. White Papers are essential

and adrenalin to the maximum amount in

flexibility becomes a habit, and that we will

guides that contain recommendations and

order to adapt to any change that may come.

never again speak about stiffness, rigours or

vital information for industries such as auto-

I believe that now, more than ever, we must

processes that block good ideas or actions

motive, beer, finance, FMCG food and non-

actually learn from mistakes – whether ours

that can bring real value to the company, to

food, oil & gas, retail, and telecom. They also

or others’. Let’s learn as much as we can from

people, to society,” said Nae Popa.

provide details about business and communi-

this period, so that we can be as prepared

cation during this period, recommendations,

as possible for anything the future brings.

and actionable ideas for this specific context.

And as far as communication goes, I hope

“During this time, our clients are not simply looking to buy campaigns, media plans or consultancy - they want to buy growth, to make sure they can save their businesses and

“They say that advertising lives in a bubble, but we at pastel have our own bubble

“There are hundreds of reports, studies,

that brands will get even closer to people,” concluded Dana Nae Popa.

www.business-review.eu Business Review | June 2020

34 PATRIMONY

Power to the people: saving Bucharest’s heritage buildings In the middle of the lockdown and the constant outpour of scary statistics about the death toll of the new coronavirus, the Bucharest City Hall launched public debates about the future utility of two historical landmarks which happen to be creative platforms for communities: Fabrica Club (11 Iunie Street) and Stirbei Palace (107 Calea Victoriei). The City Hall’s consultations were illegal, as both happened during the state of emergency, although the presidential decree stated that the provisions of the presidential decree should have led to the postponement of such actions. The NGO ARCEN found out about the public consultations that were due to take place and has managed to stop any commercial actions for the time being, together with the communities around these two places. By Oana Vasiliu

Stirbei Palace, still beautiful without any facelift

The interior garden of Stirbei Palace is a beautiful and known bar, Eden

DOWN MEMORY LANE

Match Factory (1878), the Erhardt Wolff Plants

neoclassical palace that also features many

Located at the foot of Filaret Hill, on 11 Iunie

(1887), and others. Fabrica has been hosting

Greek elements would be used by Barbu Stir-

Street, the Apollo Factory, currently known as

an organically created cultural hub for over 15

bei between 1849-1856 as a royal residence

Fabrica Club, was founded by Nicolae Cerchez

years, which has been validated over time by

where he hosted several balls and parties.

and built in 1898. Since then, it has undergone

the residents in the neighbourhood and from

After 1869, the palace became the property of

many transformations or even mutilations,

all over Bucharest, as well as by the local and

the ruler’s sons, who built the stables and an-

but it survived the two great wars, commu-

international creative scene. It is also an ex-

nexes on the land behind the palace. In 1881,

nism, and the atrocious assault of the real

ample of the reconversion of some industrial

the palace was restored by architect Friedrich

estate industry.

heritage buildings in line with global urban-

Hartman at the request of Prince Alexandru

ism trends. It is a local business that gives life

Stirbei. Another floor was added, including a

to a neighbourhood with potential.

facade decorated with four caryatids, as well

The Fabrica platform is an emblematic industrial heritage landmark for Bucharest and is specific to the Carol-Filaret District, part of

The Stirbei Palace was built around 1835,

as the northeast tower. Between 2001 and

a wider ecosystem of heritage buildings such

based on the plans of French architect Michel

2004, the palace was recovered by the heirs

as the Filaret Bus Station (1869), the First

Sanjouand, at the request of the future lord

of the Stirbei family and later sold in 2005

Electric Power Plant of Bucharest (1906), the

of Wallachia, Barbu Stirbei (1789-1869). The

for EUR 11 million to businessman Ovidiu

www.business-review.eu Business Review | June 2020 May 2016

COVER PATRIMONY STORY 35 14

Popescu, who died in 2011, and the building

not have had any effect without the support

was left to his son, Alexandru Popescu, writes

of the press.”

economica.net.

The need for reaction is still on: although

POLITICS DURING A PANDEMIC Edmond Niculusca, the president of ARCEN,

the Culture minister announced the begin-

discovered that the City Hall had invited

COMMUNITY INVOLVEMENT

ning of the procedure to classify the factory

citizens to a public consultation between

“The recently established Municipal Sustain-

building as a historical monument – meaning

April 1-24, 2020, on the development of the

able Development Company has created a

that there can be no intervention afterwards

Urban Zonal Plan for the Stirbei Palace Mul-

Zonal Urban Plan (PUZ) requesting deroga-

– so far, the City Hall has not withdrawn the

tifunctional Complex at 107 Calea Victoriei.

tions from the urban regulation and plans

project and is still planning to adopt the new

Neither the public nor specialists were able

to demolish the current factory building

Zonal Urban Plan on June 1, allowing the

to share their observations and proposals, as

and build an 8-floor residential and com-

construction of buildings with more than 8

the consultation period coincided with the re-

mercial complex for the benefit of Compania

floors in the area.

strictions imposed by the state of emergency,

Imobiliara Gramont SA, in an area where

“Even though the right to private prop-

which limited citizens’ ability to move around

local regulations stipulate that the maximum

erty is guaranteed by the Constitution, we

the city. At the same time, ARCEN notified

height of buildings should be 16 metres. The

must not forget that the cultural landscape

the City Hall about the fact that it hadn’t com-

PUZ has already had all the necessary approv-

is for all of us, both for today and for future

plied with the legal requirements of announc-

als, including that of the Culture and National

generations. There are many people who

ing the project on public platforms (city hall

Identity Ministry, and only needs the vote of

understand this and who report irregularities

website, urbanism platform, etc.) while the

the General Council to serve as the basis for

or illegalities that abuse property. Citizens

project was in the public consultation phase.

the demolition of the buildings on the site,”

get involved through official letters to lo-

The debate about the Stirbei Palace has been

politicians to find out whether the City Hall’s

cal authorities, by informing NGOs or by

ongoing for more than ten years now, with a

initiative was following the correct path.

supporting and circulating information to a

multifunctional complex being the current

Asked whether mass-media pressure was a

large number of people. Every week, ARCEN

proposal, including a real estate project which

good way to save heritage buildings, Alberto

receives numerous alerts from citizens about

includes the construction of a 7-floor build-

Grosescu from the ARCEN NGO says that

non-compliant interventions, construction

ing in the garden of the Stirbei Palace on 107

“in recent years, the pressure exerted by the

sites or demolitions. Online petitions are very

Calea Victoriei, as well as the consolidation

press on real estate developers and authori-

useful, because a large number of people who

and restoration of the palace.

ties has managed to block many projects or

support a cause means putting pressure on

led to projects that did not comply with legis-

the authorities or investors, who are required

Bucharest’s heritage, but seeing the civic in-

lation to be reconsidered, so it is an important

to react according to the law,” Albert Grosescu

volvement to fight against projects that might

means of saving built heritage. Many of the

comments on the importance of citizen’s ac-

affect the creative and cultural spectrum, we

actions we and other NGOs have taken would

tive involvement.

can say that there is still hope.

a petition against the demolition reads. After a wave of dissatisfaction arose and several support groups were created, on May 4, the Culture Ministry, through the Bucharest Culture Department, launched a classification procedure of the building located at 11 Iunie Street no. 50, Ovidiu entrance no. 6, where the Fabrica club operates. For Fabrica, an online support group has been established and over 3,000 active members have signed petitions and sent emails to the City Hall to stop the construction of the new buildings. The media played an important role, covering the topic and collecting opinions from several architects, decision makers, the National Patrimony Institute, and even

There’s still a long way to go to save

www.business-review.eu Business Review | June 2020

36 EDUCATION

The future of Romania’s private schools Romania is slowly returning to its life before the coronavirus, although a series of daily problems remain: school was officially over in early May as the president announced, but people are going back to the office without clear solutions for those with kids, while private schools and day-care centres will stay closed, according to the law. Moreover, due to salary cuts and an upcoming economic crisis, parents are re-thinking their educational investments, while private schools are still calculating their losses. By Oana Vasiliu found that pre-university private schools – both schools and kindergartens – reached RON 173.3 million in 2018, with a prediction of over RON 200 million in 2019. But with all schools now in lockdown, the private sector is being hit by a profound crisis, while utilities, rent, and salaries must still be paid, even though the kids are no longer coming to school. Moreover, maintaining competitive salaries for personnel in the private school sector becomes increasingly difficult as the public system constantly offers bonuses and wage increases. Just after the president’s decision to close No news about how and when will children go back to school

down schools until September, the Romanian Montessori Federation and the Romanian Private Schools’ Association issued a memo-

TALKING EDUCATIONAL BUSINESS

ary school and high school, five years for

randum to warn that keeping kindergartens

In Romania, entrepreneurship in education

vocational school), and you can apply after

and schools closed would shut down private

means having an authorised unit for a scholar

finishing a cycle for accredited school, which

education in Romania. As such, the organisa-

cycle (three years for kindergarten, five years

brings you more credit for your educational

tions are asking for financial support from the

for primary school, four years for second-

act. A study conducted by Frames in 2019

government.

www.business-review.eu Business Review | June 2020 May 2016

COVER EDUCATION STORY 37 14

HELPING HANDS?

at this point, considering that the Education

ers in the public system have the skills to use

The private school sector is asking the gov-

Ministry only recently discovered that over

the technology? Romanian students got lower

ernment to help it pay the salaries, including

250,000 students couldn’t take any online

scores in Reading, Mathematics, and Science

through a form of technical unemployment

classes in this lockdown due to the lack of

in the 2018 PISA tests compared to both

or lowering state contributions (the National

technological infrastructure, as minister

2015 and 2012, while the share of functional

Health Insurance and the Social Insurance),

Monica Anisie admitted. During this period,

illiteracy increased compared to 2015. The

introducing tax exemptions and enabling

the Education Ministry has been struggling to

same study revealed that the average rate of

in private schools and kindergartens will be

find solutions for distance learning. It has in-

functional illiteracy in Romania had increased

unemployed and not sure whether they can

troduced online courses. Video lessons have

from 39 percent in 2015 to 44 percent in

fit into the public system.

also been broadcast by the public television

2018. It is quite clear why more and more

TVR, especially for students in final years

parents are choosing private education over

of these new classes you would need at least

(eighth and twelfth grades) who have been

the public system, considering the horrifying

1.5 new teachers and one auxiliary staff mem-

preparing for national exams.

statistics.

negotiations with banks for credit lines, as most of these private units are foundations, so they cannot apply for funding. The same goes for the IMM Invest programme launched by the government, as it only targets companies. Otherwise, about 150,000 children enrolled in private schools would have to join state schools this fall, meaning an extra 7,500 classrooms of 20 students each. Meanwhile, some 20,000 teachers and support staff working

But the numbers are even worse: for each

ber, and if we looked at employment costs

Needless to say, all private schools have

using the average gross salary in education

developed their own online teaching and

IS HOMESCHOOLING AN OPTION?

– RON 5,635 – we get a total of RON 1.27 billion

support systems for the children, trying to

Although the concept is widely used world-

needed to pay these salaries to 18,750 people

provide the same quality of education as they

wide, Romania still doesn’t have any legisla-

every year. While the numbers have been

would in class.

tion regarding homeschooling. There are both

provided by the Private Schools’ Association,

Romanian authorities are also preparing

pros and cons for this type of education, and

they’re easy to figure out by anyone, so does

for a scenario in which schools in the country

it’s quite expensive, but it seems like a good

the Romanian government have this amount

would have to remain closed in September

alternative during a worldwide lockdown

of money to support these extra children in

when the new school year should start.

caused by a virus. The current criminal code

the system, not to mention the money they

Courses could thus be moved online, and the

says that “the parent or person to whom a

would need to build or rent other buildings to

local education system should be entirely dig-

minor has been entrusted, according to the

integrate everyone?

itized by then, the minister said in several TV

law, and who unjustifiably and by any means

interviews. In current conditions and without

withdraws or prevents them from attend-

ONLINE EDUCATION DURING PANDEMIC

any financial support, more than 60 percent

ing compulsory general education, shall be

In an interview for Q Magazine, Dr Camelia

of private schools cannot continue operating,

punished by imprisonment from 3 months to

Gavrila, the vice-president of the Education,

notes the Private Schools’ Association.

one year or fined.” But a few hundred parents

A question remains: while the private

have nevertheless chosen homeschooling, by

that around 40 percent of students did not

education system more or less forces you to

getting online training from a foreign school

benefit from online schooling during this

adapt to digital interactions and technology,

and then legalising their diplomas in the

period, but clear statistics are not available

especially as a teacher, do children and teach-

Romanian system, if necessary.

Science, Youth, and Sport Comission, stated

www.business-review.eu Business Review | June 2020

38 CULTURE

Dream of festival-filled summer may not come true this year As I was writing this article, I should have been in Cluj-Napoca’s Unirii Square, where the Transylvania International Film Festival would have been ready to make its grand opening, as it has done for the past 19 years. I would probably have been talking with fellow journalists about the best sellers of the Bookfest International Fair and the intimate and incredibly cozy Green Hours Jazz Festival. But no. Although Untold’s #savethesummer campaign was launched and intensively promoted on social media just after the lockdown, our festival summer isn’t going to be saved. At least not yet. By Oana Vasiliu the festival’s director, told Mediafax. Yet, on June 2, the major festivals from Romania, Summer Well, Untold, Neversea, Electric Castle, Jazz in the Park announced that they will be postponed for 2021.

THE BRIGHT SIDE OF THE STORY Digitalisation seems to be the solution, with online streaming of arts in any form. Most Romanian theatres have streamed online performances, the Romanian Opera also recently joined the online wave, while film festivals have been streaming their highlights. Unfortunately, the Sibiu International Theatre Missing live concerts

Festival was cancelled, but we can see the highlights of the greatest performances of last

n May 21, the Culture minister talked

officials met with representatives of the

to festival organisers in an attempt

entertainment industry and promised to

to come up with a series of measures

extend the support measures provided during

the National Museum of Contemporary Art

to help the industry. “We’ve worked with the

the state of emergency for those areas that

(MNAC) and the Resita and Arad City Halls,

largest event organisers to provide predict-

continue to be affected by restrictions after

announced massive acquisitions of contem-

ability, to save the festival industry and to

June 1. They also offered a glimpse of hope:

porary art, in (another) attempt to save artists,

ensure that Romania will be among the play-

outdoor events might have a chance to come

while indoor activities are being postponed

ers in this field next year. Provisions regarding

back based on the epidemiological situation

until better times. Drive-in cinemas may be

the temporary measure of reimbursing tickets

following the first 15 days of lighter restric-

winners after being banned by law, now it’s

and taxes for non-residents have already been

tions measures, meaning after July 1.

possible to organise drive-in events. The

year’s edition online. Finally, the Culture Ministry, through

There are therefore high hopes for those

National Authority for Administration and

we are in the process of drafting a law to be

whose events were due to take place between

Regulation in Communications has already

submitted to Parliament which should clarify

August and mid-September. Ideo Ideis Young

provided temporary radio frequencies, and

the situation of big events, and the project

Theatre Festival from Alexandria, Teleorman

additional regulation will probably come after

will go through all the stages of public consul-

County, just announced that they would hold

June 15. Right now, there is only one drive-in

tation,” said Culture minister Bogdan Gheo-

the festival regardless of the evolution of the

cinema in Romania, at Baneasa Shopping City,

rghiu. Such a legislative initiative to clarify

pandemic, as they have solutions for both

but more can be put together using high-tech

the status of festivals with more than 1,000

online and offline attendance. Moreover, if

screens. From plays to stand-up comedy to

participants is necessary in order to provide

outdoor events are permitted, the Anonimul

music and, of course, movies, everything can

economic predictability for organisers.

Film Festival in Sfantu Gheorghe, Tulcea

be projected for the public who will sit safely

county, will take place, as Miruna Berescu,

in their cars, following social distancing rules.

included in Emergency Degree 70/2020. Now

A few days later, the same government

BR/06/2020

Articles inside

June, 2020 / Volume 24, Issue 5 www.business-review.eu TOURISM GOES INTO “REMOTE ISLAND” MODE IN PANDEMIC TIMES

WHERE ROMANIA TALKS BUSINESS LOCAL ENTREPRENEURS LOOKING TO STRIKE BIG IN DEEP TECH MARKET

WHAT SHAPE WILL ROMANIA’S ECONOMIC RECOVERY TAKE?

SHORTENING SUPPLY CHAINS MAY LEAVE CHINA OUT OF GLOBAL TRADE