WHERE ROMANIA TALKS BUSINESS August, 2020 / Volume 24, Issue 7
www.business-review.eu
M&A TRENDS IN THE FIRST HALF OF 2020: WHAT CAN WE LEARN?
15
STARTUP MINDSET GAINING CLOUT IN LOCAL CORPORATE CULTURE
16
ROMANIA CAUGHT IN THE MIDDLE OF THE US-CHINA COLD WAR
26
WHY A BRAND’S RELEVANCE MATTERS AS MUCH AS ITS REPUTATION
28
BUCHAREST EMBRACES ITS SMART CITY FUTURE
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EDITORIAL 3
• Editorial •
COVER STORY
Anda Sebesi • Editor-in-Chief • 6 Bucharest embraces its smart city future
ENTREPRENEURSHIP
L
Think big and act smart
ondon, New York, Amsterdam, Paris, Reykjavik, Tokyo, Singapore, Copenhagen, Berlin, Vienna. What do they all have in common? According to IESE Business School’s
Center for Globalization and Strategy Index, they were the top ten smart cities in the world in 2019, out of 174 cities from 80 countries
16 Startup mindset gaining clout in local corporate culture
18 Romanian market ready for new delivery startups
MACROECONOMY
around the globe. Cities were analysed across nine dimensions: human capital, social cohesion, economy, environment, governance, urban planning, international outreach, technology, and mobility
26 Romania caught
and transportation.
in the middle of the US-China cold war
Growing populations overwhelm the world’s mega-cities, urban sprawl eats up surrounding nature, congestion causes chaos, and
PR
pollution suffocates even the most futuristic cities. While there is no cure-all for these problems, the world’s rapid digitalization may offer an answer: the smart city. Bucharest has made significant progress towards becoming a smart city in recent years, yet it is far from being ready to join the league of top smart cities worldwide. The first edition of the Smart City Index Report, released by IMD and the Singapore University for Technology and Design last year, ranks Bucharest 85th out of 102 cities. But the recent progress is important, and a step-by step approach is best in a context where rapid technological change has an increasing impact on our day-to-day lives. At the moment, the
28 Why brand’s relevance matters as much as its reputation
30 Efficient communication strategies for [today’s] financial brands
CITY
Bucharest City Hall has six major focus areas to make Romania’s capital a smart city: mobile apps, modernising public transportation, reinforcing builidings, non-reimbursable funds, infrastructure projects, and healthcare. But it doesn’t really matter how good the vision for the development of a city is. If it cannot be translated
34 What’s next for contemporary art?
36 Romania’s version of
into something practical through well-articulated strategies, failure
a staycation: Resizing the tourism business
will be inevitable. So think big and act smart!
38 Cultural calendar
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
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4 NEWS
WHO’S NEWS BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at mihai.cristea@business-review.eu
Ioana Boca was appointed Director within the Financial Advisory department of Deloitte Romania. She has 12 years of experience in financial consulting, mergers and acquisitions, and audit. She was involved in more than 100 due diligence assignments, on both the seller and buyer side, independent business reviews, due diligence engagements for refinancing purposes, and carve-out projects. In 2016 and 2017, Ioana spent a year and a half in London, working for Deloitte UK. She holds a Bachelor’s degree in International Business and Economics from the Academy of Economic Studies in Bucharest.
First phase of brand new mountain resort in Romania to open in 2021 By Oana Vasiliu
Murotti Valley will be an integrated resort with a potential of up to 1,000 villas
Alessio Karkhi and Nicu Ha-
(35 units). Two restaurants and
the region. Our objective is
givreta, two well-known local
a hotel with spa, pools, and gym
to develop a new mountain
businessmen, have started the
will also be included in the first
resort, with multiple facilities
development of the Murotti
phase of the project. All the nec-
and leisure options. We started
Valley tourist resort, located in
essary infrastructure will be also
our project from the need for
the Roman Peak (1,850 m) area,
completed in the first quarter of
an integrated mountain resort
17 km from Horezu (Valcea
next year. Overall, Murotti Valley
in Romania, a country with so
county). The first phase of
will be an integrated resort with
much natural resources and at-
the project will be delivered
a potential of up to 1,000 villas
tractions but with little tourist
starting with Q1 2021 and
and a wide range of facilities and
value from a product perspec-
will comprise 74 villas and
leisure options for every season,
tive. We want to develop the
other facilities, following an
from 50 km of ski slopes to shop-
local tourism sector and bring it
investment of EUR 10 million.
ping areas, sports facilities, and
to a western standard, to high-
The villas will be completed
children’s attractions.
light the beauties of this coun-
in the first quarter of 2021 (39 units) and at the end of 2021
Razvan Predica is the new Country Manager for Affidea Group’s operations in Romania. Predica has over 20 years of business experience, from multinational companies in FMCG, technology, retail and pharma. He spent 15 years at Unilever in finance, in executive and business management roles, followed by a CFO position at Naspers investments in CEE. Most recently, he was the Group Chief Finance Officer of A&D Pharma/Dr Max Romania. page 5
”Murotti Valley will be a unique concept in Romania and
try,” said Alessio Karkhi, one of the project’s main investors.
Global top 100 listed companies see strong recovery in market value in Q2 By Mihai Cristea The market capitalisation of the
to PwC’s Global Top 100 compa-
world’s 100 largest listed compa-
nies, updated on June 30. The
nies bounced back strongly in the
capitalisation of the 100 compa-
second quarter, almost complete-
nies rose by USD 3.57 trillion in
ly recovering the 15 percent drop
the second quarter, reaching USD
recorded in the first three months
25 trillion the end of June. ”The
of 2020 when the COVID-19
pandemic caused significant
pandemic broke out, according
distortions on the market over
Technology and Consumer Services companies provide a good sign for global economy recovery
www.business-review.eu Business Review | August 2020
NEWS 5
Sameday continues expansion in Bucharest By Aurel Constantin
Florina Seres was appointed as the new General Manager at Xerox Romania, as of July 2020. She was promoted from her previous role as Head of Marketing of the Northern & Central Eastern Europe cluster, which she had held since 2019. Florina has almost 10 years of experience at Xerox Romania, having joined the team in 2011 as an Indirect Channels Business Director. Under her guidance, the Channels team was awarded internally as the best team in the region, for 5 years in a row.
Delivery company Sameday continues to expand in Romania in the context of a constantly growing market, having recently leased a space with an approximate area of 1,200 square meters in Tunari, near Bucharest, in a transaction intermediated by the industrial department of Cushman & Wakefield Echinox. The industrial and logistics market was the most resilient in the first half of the year, when companies rented space totalling almost 300,000 sqm, amid growing demand from online and traditional retailers
The industrial and logistics market was the most resilient in the first half of the year
to establish distribution centres
property with unique features,
sqm and is largely concentrated
in locations that allow faster
which we presented alongside
in the western part of the city,
deliveries to customers and
a few other options, and the
on the A1 highway to Pitesti,
stores.
client chose the Badsi property
with about 70 percent of the
“The challenge was to
in Tunari, and they are the only
existing stock. As infrastructure
deliver to our client a space
tenant in an ideal location,” said
has improved on the north-
with easy access to Bucha-
Andrei Brinzea, Land & Industrial
ern half of the ring road, both
rest, which would meet the
Partner at Cushman & Wakefield
developers and tenants have
flow requirements of delivery
Echinox. The logistics market in
started to migrate to the north
services and feature a large
Bucharest consists of projects
and northwest areas, which of-
parking area. We identified a
with an area of over 2 million
fer easier access into the city.
a short period, and the world’s
Boualem Saidi will lead Bayer’s Crop Science Division, coordinating operations for the Romania, Bulgaria and the Republic of Moldova Country Group. Saidi is an agronomist by training and has been with Bayer for 25 years, mostly in commercial and general management roles. During this time, he has worked in different parts of the world, learning and contributing to agricultural development in Europe, Africa, and Asia.
largest companies provide relative security for investors, but there are clear distinctions in the performance of different regions and sectors. Technology and Consumer Services companies are a key driver of this evolution, providing a good sign for global economy recovery. Both sectors will continue to grow thanks to digital acceleration, e-commerce growth, and migration to the cloud,” said Dinu Bumbacea, Partner and Advisory Leader at PwC Romania.
Ciprian Dan Location Head for Timisoara at Wipro Technologies, has been elected president of the Association of Business Service Leaders. Dan has been working in the business services industry for 15 years. He currently leads the Wipro Technologies office in Timisoara, with a team of 350 employees.
www.business-review.eu Business Review | August 2020
6 COVER STORY
BUCHAREST EMBRACES ITS SMART CITY FUTURE Today’s cities are often victims of their own success. Growing populations overwhelm the world’s mega-cities, urban sprawl eats up surrounding nature, congestion causes chaos, and pollution suffocates even the most futuristic cities. While there is no cureall for these problems, the world’s rapid digitalization may offer an answer: the smart city. By harnessing a range of coordinated digital solutions, city authorities and service providers can address structural challenges, from urban planning to mobility and environmental matters. BR sat down with Bucharest General Mayor Gabriela Firea to find out about the biggest challenges in making Bucharest a smarter city. The official highlighted the ways in which the City Hall has approached the goal of turning the Romanian capital into a smart city. By Anda Sebesi
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W
COVER STORY 7
ant an app to involve citizens in decision-making? Need
cities in Romania right now. “In recent years, we have witnessed an
a smart traffic management system to prevent rush-
increasing interest in the smart city concept from Romania’s utilities
hour congestion? Interested in green infrastructure to
companies, especially players from the telecom and energy sectors.
lower emissions? No problem; there’s a smart city solution for each
We constantly discuss these topics with our clients and try to design
of these objectives.
bold plans together. We expect to see an increasing number of smart
According to the 2019 Smart City Strategy Index (SCSI) published by global consultancy firm Roland Berger, successful smart cities
projects in Romanian cities in the next few years,” said Andra Ioana, senior project manager at Roland Berger Bucharest, for ZF.
tend to have one thing in common: a sound strategic approach. This
“Our second year of smart city market analysis for Romania
ensures the integration of different strands and avoids ad hoc solu-
shows a mix of starting enthusiasm among several municipalities,
tions. For example, e-mobility services are fairly easy to introduce
a relative slowdown in terms of project execution, as well as new
to a city, but a smart city would also integrate them into intelligent
initiatives – a sign that municipalities are waiting for pilot projects
traffic management systems and power them via smart electricity grids. Strategies also promote cross-sectorial solutions, such as data platforms, sensor networks, and service integration. Roland Berger’s SCSI measures the comprehensiveness and ambition of urban centres against the key ingredients of a smart city. The first version of the SCSI was published in March 2017 and analysed the plans of 87 cities. But with smart cities advancing so rapidly, Roland Berger decided to release a second version of the report. Hence, the SCSI 2019 identifies 153 cities with an official smart city strategy, then analyses and ranks each one. Overall, the SCSI 2019 finds that while the number of cities with an identifiable, official smart city strategy is growing, many remain without such a strategy. For example, among the roughly 500 cities worldwide with a population of more than one million (by UN estimates), the company found that only 49 had an official smart city strategy. Roland Berger’s main finding is striking: just 15 cities (10 percent)
Top 3 smart cities worldwide in 2019: 1. VIENNA COUNTRY: AUSTRIA POPULATION: 1.7 MILLION* TOTAL SCORE: 74** DESCRIPTION: COMPREHENSIVE SMART CITY FRAMEWORK STRATEGY COMPLEMENTED BY A DIGITAL AGENDA; THE FRAMEWORK IS UPDATED BASED ON MONITORING RESULTS.
meet or exceed the 60-point score that indicates a comprehensive smart strategy. The average score is 41 points, with 40 percent of cities scoring between 40 and 60 points, and half getting less than 40 points. As in the first SCSI report, Vienna ranks at the top with a score of 74. The Austrian capital has updated its 2015 framework strategy with a digital agenda, and scores highly due to factors such as a robust performance monitoring system. This has improved coordination and cooperation between activities and individual players and has helped to sharpen smart objectives ahead of another strategy
2. LONDON COUNTRY: UNITED KINGDOM POPULATION: 8.3 MILLION* TOTAL SCORE: 73** DESCRIPTION: DIGITAL ROADMAP WITH A DEDICATED SMART CITY FOCUS AND STRONG EMPHASIS ON TECHNOLOGY AND INNOVATION IN LIGHT OF ITS BENEFITS TO THE PEOPLE; UPDATE OF EARLIER PLANS PUBLISHED IN 2013 AND 2016.
update. London in the UK and St. Albert in Canada ranked closely behind Vienna. London updated its strategy in 2018, while newcomer St. Albert recently launched a comprehensive master plan. Both cities have a strong focus on the application of technology and innovation across action fields. The same index shows Asian cities dominating the rest of the top 15. Chinese cities fare best, with five top finishers from Shanghai in sixth place to Guangzhou in fourteenth. All have five-year smart
3. ST. ALBERT COUNTRY: CANADA POPULATION: 0.1 MILLION* TOTAL SCORE: 72** DESCRIPTION: A VERY COMPREHENSIVE SMART CITY MASTER PLAN COMPRISING 22 STRATEGY FIELDS WITH STRONG TECHNOLOGY AND INNOVATION ASPECTS.
plans as part of the country’s smart city initiative. Singapore, Seoul, and the Indian city of Davanagere are also among the top 15.
tion in September last year, from public lighting to chat support
*City population measured by number of people living in urban agglomeration or city proper **Score achieved in the 2019 Smart City Strategy Index out of a total score of 100
for citizens. Bucharest, Alba-Iulia, Oradea, Cluj-Napoca, Piatra
Source: Roland Berger’s Smart City Strategy Index 2019
As for our country, according to public data cited by ZF, Romania had over 300 smart city projects in various phases of implementa-
Neamt, Brasov, Sibiu, Arad, Constanta, and Iasi are the smartest
www.business-review.eu Business Review | August 2020
8 COVER STORY
results or are even facing budgetary restraints while adapting their
social assistance (Social Alert Bucharest) or promote tourist attrac-
flows to the innovation they are attempting to introduce. There is
tions, the city is growing increasingly smarter. “We want public
also a sometimes misguided rush to categorise every initiative as a
transport in Bucharest to become more attractive. Therefore, we aim
smart city one – from server security certificates to implementing
to offer innovative, user-friendly technologies which are adapted
a simple set of video cameras or LED lighting. The market is also
to current demands and can ease the use of public transport. Along
starting to develop a need for
with other measures that we have
smart city conceptual theory and
already taken, B-Pay is part of
for a core group of specialists with
our plan for the city to become as
strictly smart city-related duties,”
smart as possible,” says the Mayor
said Cornel Barbut, CEO at Vega-
of Bucharest. As for the InfoTB app, Firea
comp Consulting, for BR.
adds that both the subway system
BUCHAREST ON ITS WAY TO BECOMING A SMARTER CITY
as well as online ticket payments
Romania’s capital has made
December last year. Additionally,
significant progress towards
the AVL Platform and Trapeze
becoming a smart city in recent
Planning System are two non-
years, yet it is far from being ready
mobile apps designed for the
to join the league of top smart
internal use of public transport
cities worldwide. According to
operators, meant to increase the
the first edition of the Smart City
effectiveness of the entire trans-
were added to the features in
port system in Bucharest. “These
Index Report, released by IMD and the Singapore University for Technology and Design last year,
two platforms are important because they assure the data collection
Bucharest ranked 85th out of 102 cities. But the recent progress is
needed for the InfoTB app to work and represent a rapid technologi-
important, and a step-by step approach is best in a context where
cal change in the way the public sector works. Furthermore, we’re
rapid technological change has an
seeing Bucharest having devel-
increasing impact on our day-to-
oped quickly from a city with
day lives. “The city’s sustainable
an extremely low level of public
development involves finding a
transport predictability to a level
balance between the current situ-
aligned to European standards,”
ation, which in many respects is
says Firea. Along with the currently avail-
unfavourable, with projects which have been started but not yet com-
able apps, the City Hall also has
pleted, and future plans. It doesn’t
some others in development. The
matter how good of a vision the
Tourism, Cultural and Spiritual
mayor has; if it cannot be trans-
Guide is one of those apps, and
lated into something practical
it is designed to better promote
through well-articulated strate-
Bucharest’s tourist attractions.
gies, failure will be inevitable,”
“Although Bucharest has plenty
says Bucharest Mayor Gabriela
of tourist attractions that could be
Firea.
included in different guides, only some of them are being promoted
At the moment, the Bucharest
well right now. We aim to make
City Hall has six major focus areas to make Romania’s capital a smart city: mobile apps , modernising
other places in Bucharest known among both foreign and Romanian
public transportation, reinforcing builidings, non-reimbursable
tourists, and even among Bucharest’s citizens,” she says.
funds, infrastructure projects, and healthcare.
PUBLIC TRANSPORTATION APPS MAKING BUCHAREST A SMARTER CITY
With 830 new public transport vehicles (400 new Euro 6 buses
From apps that allow you to pay for public transport online by card
already in circulation, 130 hybrid buses, 100 new trolley buses, 100
(B-Pay) to those that help you reach your destination more easily
new trams, and 100 electric buses), Bucharest could have lighter
using overground public transportation (InfoTB), improve traffic
traffic and lower levels of polution on its streets. “Each month
conditions (Trafic Alert Bucharest), help you find quick parking
starting July until the end of this year, 20 hybrid buses will arrive
(Parking Bucharest), notify authorities about people in need for
to Bucharest, and nine more will be available in January 2021. As
www.business-review.eu Business Review | August 2020
COVER STORY 9
for the acquisition of the 100 trolley
NON-REIMBURSABLE FUNDS
buses, the contract has been signed
The non-reimbursable funds used by
and the vehicles will be delivered over
the Bucharest City Hall focused on
16 months starting with November
several main directions: transport,
2020. Last but not least, the new trams
heating system rehabilitation, sewage
and electric buses are in the process of
treatment, sanitation system, and safe
being acquired,” says Firea. In addition,
drinking water. During Firea’s tenure,
in order to facilitate the circulation of
the Bucharest City Hall accessed funds
public transport vehicles, the five most
worth EUR 370 million (of which EUR
used tram lines have been separated
276 million are non-reimbursable) for
from car lanes, and legislation was
14 projects to acquire new transport
changed to allow buses to run on tram
vehicles and upgrade 1.1 km of double
lines where possible.
tram lines. The rehabilitation of the capital’s heating system consisting
BUILDING REINFORCEMENT
of upgrades to 200 km of pipes and
With the support of public and private funds, 1 million sqm have
estimated at EUR 330 million (of which EUR 278 million is non-reim-
been valuated and some works which had started back in 2010 have
bursable) was submitted in June. Furthermore, the Glina 2 Project,
been resumed in the last three years. “With the aim of bringing to
worth about EUR 390 million, has been resumed and involves the
light some of Bucharest’s architec-
extension of the cleaning sta-
tural jewels, we took measures to
tion and the rehabilitation of
expropriate 25 historic buildings
the main used water collection
and launched a programme to re-
plant in Bucharest, along with
furbish building facades in central
the construction of the first mud
Bucharest. In less than a year, 10
incinerator in Romania. “Last but
buildings have been refurbished,
not least, 18,000 citizens from the
some of which were historic, and
Ghidigeni, Oltenitei, Cheile Turzii,
other four will be completed this
and Henri Coanda districts now
year,” says the Mayor. In addition,
have access to safe drinking water
the City Hall continued the valua-
and sanitation thanks to a 24-km
tion and reinforcement of build-
water-supply network built with
ings with class 1 seismic risk, with
an investment of EUR 70 million,
some EUR 25.5 million allocated
of which EUR 40 million are non-
for this purpose in 2020 alone.
reimbursable,” Firea added.
6 STEPS TOWARDS THE PERFECT SMART CITY PLATFORM 1. MAP INITIATIVES. Smart city initiatives often take place at various levels, from local to international. Mapping them creates transparency about opportunities and helps demonstrate best practices. 2. CREATE INFORMATION PLATFORMS. National smart city alliances connect city planners, public companies, and solution providers, pooling resources from all involved.
3. DEVELOP GUIDELINES. Setting out the main elements and ideas behind a smart city helps cities to prepare and implement strategies.
4. ESTABLISH DATA FRAMEWORKS. National smart city data frameworks support data collection, analysis, and exchange at a local level, and they also ensure compliance with national laws. Data infrastructures can also help to pool data.
5. RUN COMPETITIONS. Laying down challenges incentivises the development of new ideas and solutions, and can also be tied to financial and technical support. Germany, the US, and India have all run successful smart city competitions.
6. PROMOTE KNOWLEDGE SHARING. Regional, national, and international events and workshops bring decision-makers and practitioners together to facilitate learning. They also promote knowledge exchange and help build capacities. Source: Roland Berger’s 2019 Smart City Strategy Index.
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10 COVER STORY
HEALTHCARE SYSTEM According to the Mayor, besides the construction of new hospitals, investments in modernisation and new equipment for different wards, the City Hall also invested EUR 37 million in medical equipment between 2016 and 2019 alone. Investment recipients included the Foisor Hospital (about EUR 2 million), Coltea Hospital (EUR 1 million), Cantacuzino Hospital (EUR 890,000), Carol Davila Hospital (about EUR 820,000), Dr. Th. Burghele Hospital (EUR 450,000), and Panait Sarbu Hospital (EUR 225,000). In addition, some 106 new ambulances and 177 housing units for medical staff were acquired by the City Hall of Bucharest during Firea’s tenure.
Infrastructure projects
FABRICA DE GLUCOZA ROAD EXPANSION Description: It is the most important investment objective in the north part of Bucharest, and will connect the city to the A3 highway Value of the project: EUR 27 mil (including expropriations). Stage: The Petricani-Barbu Vacarescu section is completed; the remaining part is to be completed by the end of this summer. DOAMNA GHICA OVERGROUND PASS Description: A project meant to streamline traffic at the Doamna Ghica Street-Colentina Road junction by building an overground pass with two lanes each way. Estimated cost: EUR 27 mil Stage: September 2020 THE PRELUNGIREA GHENCEA-DOMNESTI CONNECTION AND THE EXPANSION OF GHENCEA BOULEVARD Description: The 6 km thoroughfare will feature a double tram line, two car lanes each way, two-way bike lanes, pedestrian lanes, green spaces to separate the road from the pedestrian lanes. It will also include an intermodal node (for trams, buses, and minibuses), and a 300-space Park&Ride. Project value: EUR 122 mil (including expropriations) Stage: Awaiting final approvals PARK&RIDE CORA PANTELIMON Description: An intermodal node which includes trams, buses, and platforms for private minibuses. Value of the project: about EUR 21 mil Stage: to be completed this fall THE NICOLAE GRIGORESCU-SPLAI DUDESCU OPENING Description: Enlarging Nicolae Grigorescu Boulevard, expanding
pedestrian lanes and building a pass over the Dambovita river. The new route will be 1.3 km long, 6 lanes, and 3 bus stations. Estimated cost: RON 63 mil Stage: Project will be ready soon; the next phase to reach the VitanBirzesti Road is awaiting approvals. GRANT BRIDGE Description: Upgrading the 41 tram line; consolidating the bridge segment between Turda and Cringasi; ongoing renovation and consolidation works under the bridge. The second phase of the project will be launched after the permit to stop street traffic is obtained. CIUREL BRIDGE - VIRTUTII ROAD JUNCTION Description: The Virtutii Road Junction is 98 percent completed, and the Bridge will be functional this fall. As for the second stage, the Virtutii-Uverturii Road Junction, its technical project is in development. Estimated cost: EUR 10 million (expropriations only). BIKE LANES Description: 8.3 km have been built by the current administration as part of a project that aims to add about 48.2 km of bike lanes in areas like Victoriei Square, Aviatorilor Boulevard, Pipera Road, Presei Libere Square, Kiseleff Road, Victoriei Avenue, Constitutiei Square, and Unirii Boulevard. Value of investment: EUR 10 mil from the state budget through the Environment Ministry. Stage: 24.2 km of bike lanes are in progress, of which 9.5 km are part of the project mentioned above and 14.7 km are part of two other major infrastructure projects. Another 27.3 km will be built on Stefan cel Mare Road, Mihai Bravu Road, Unirii Boulevard, and Decebal Boulevard.
www.business-review.eu Business Review | August 2020
COVER STORY 11
Bucharest transitions to a smarter urban future After four years at the helm of Romania’s capital city, Bucharest General Mayor Gabriela Firea sat down with Business Review and told us about some of the projects which have made Bucharest a smarter city during her tenure and how important it is for local authorities to have a clear, long-term urban strategy in order to keep up with the city’s development. By Anda Sebesi Bucharest has recently been named one of the best cities in Europe in which to work from home. However, it is not yet a fully digitalized city, and the issues caused by traffic and crowding are affecting everybody in the city. How has Bucharest evolved over the last 10-20 years, what has been done so far, and what should have been done?
related concepts. The Integrated
The city’s sustainable development
long: the General Urban Plan of the
involves finding a balance between
Municipality of Bucharest. Without
the current situation – which in
a carefully planned project, the
many respects is unfavourable –
city’s development would come
projects which have been started
to a standstill. Therefore, we have
but not yet completed, and future
taken all the necessary steps and
plans. It doesn’t matter how good
given all due diligence in order to
of a vision the mayor has; if it can-
eliminate roadblocks and to give
not be translated into something
this project the boost it needs. I
practical through well-articulated
hope to be able to share it with all
strategies, failure will be inevitable.
interested parties as soon as pos-
That is why, before I even started
sible. My conclusion after these
Air Quality Plan has also been approved, consisting of a clear set of measures to reduce pollution in the city in the coming years. We have a Heating Strategy, a Smart City Strategy, as well as interconnected documents to help us determine which steps we need to take in order to reach our objectives. Last but not least is a project which has been underway for too
four years is that a single term as
implementing the bold projects I had imagined for Bucharest, I had to adopt a very methodical way of
mayor is not enough to develop the city – only to manage it. Only a
working. We looked at all the projects that had been started by my
second term can determine the skill and vision of a mayor. Things
predecessors and had been left stranded at various stages. Where
are very clear for me now. I know exactly where I’m starting from,
possible, we cleared the obstacles, and many of these projects have
what I have to do, what resources I need, but also the conditions I
either been successfully completed or are close to being finished. At
must deal with.
the same time, we have been working on strategies meant to serve as frameworks for the next 20-30 years, which have been approved by the General Council following many public debates.
What are the more detailed plans for infrastructure, consolidation, transport? Public transport was a priority of my first term as general mayor, this
What are the urban development plans for the next 20-30 years that could transform the city into a real European metropolis?
being the key to solving two major problems in Bucharest: traffic and
We have a Sustainable Urban Mobility Plan, which sets priorities for
port fleet, which no longer met the demands of a European capital.
urban development until 2030. It is a multidisciplinary plan, which
Despite the obstacles raised by cumbersome and somewhat confus-
includes infrastructure works, modernising public transport, devel-
ing legislation, we managed to renew the STB fleet with 830 vehicles.
oping alternative means of transport, and implementing smart city-
We have also continued to expand the smart traffic lights project.
pollution. In 2016, we found an insufficient, outdated public trans-
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12 COVER STORY
The smart traffic management system included only 170 out of 450
not even have a basic communication infrastructure between munic-
intersections in 2016, added over the course of 10 years, and now the
ipal institutions; investments or plans to invest in technology were at
system is operating in 236 intersections across the city. In terms of
a minimum level. Had this strategy been developed then, consid-
building consolidations, in the last 28 years, only 20 buildings had
ering the maturity of the city, it would have probably been well
been rehabilitated in Bucharest, but we have managed to start work-
below standard. Since we couldn’t afford to wait until a strategy was
ing on as many buildings in the space of just two years, of which 10
developed, and because there was a clear need to include modern
have already been completed, and the others are in advanced stages.
technology into municipal services, essential projects were started
In total, over 220 buildings were included in the seismic risk reduc-
before the strategy was actually ready. In fact, a series of project
tion programme and they are all in various preliminary stages of the
recommendations for each sector – transportation, environmental,
process: expertise, design, safety, authorisations, etc. When it comes
health, etc. - were included in other strategies, plans or documents.
to European funds, one of the first things we did was to create a Gen-
We’ve made good progress - I will list just a few apps making life
eral Directorate whose responsibility would be attracting funding of
in Bucharest easier. B-Pay is the free mobile app launched in January
any kind, especially non-refundable. Thanks to the effort and skills
2020 which allows people to pay for public transport in Bucharest
of those working in this department, we have managed to bring in
and Ilfov using a bank card. In relation to B-Pay there are two other
significant amounts of money for city development projects.
useful apps: UAT Inspect – an app for ticket controllers to scan the
Last but not least, all infrastructure projects have been restarted.
QR codes generated by B-Pay app, and InfoSTB (renamed to InfoTB
Four years ago, Bucharest had very few in-
this year), which provides real time infor-
frastructure projects, as many of them were
mation about the public transport network,
blocked. We restarted and completed a part
with over 170 urban and regional lines and
of them, such as the Sudului Underpass,
over 1,500 vehicles operating in Bucharest
while others are still in progress, nearing
and the metropolitan area. Traffic Alert
their completion deadlines, namely: the
Bucharest is an app that aims to improve
broadening of Fabrica de Glucoza Rd. and
traffic conditions in the city. Additionally,
Ghencea Blvd., the Ghencea -Domnesti Ex-
we developed Parking Bucharest, an iOS
tension, the Grant Bridge, etc. To streamline
and Android mobile app launched in 2019
traffic in a challenging area like the Doamna
to help people find a parking spot quickly,
Ghica Street and Colentina Road junction,
pay for it easily, and therefore save precious
we decided to build an overpass with two
time. Yet another helpful app we developed
lanes in each way.
is Social Alert Bucharest, whose aim is to allow people to notify local authorities
How many smart city projects have been completed so far and what are the plans for the coming period?
(DGASMB) about people in need for social assistance. We will soon
At the beginning of my term, I found a deep need for an overhaul in
guide for over 1,000 tourist attractions, which can be accessed from
the extremely complex operational structure of municipal public
mobile phones using QR codes.
complete the Tourism, Cultural, and Spiritual Guide, an electronic
services. Public services provided to citizens needed a substantial qualitative improvement. In order to achieve this we really needed
with the employees, in order to better respond to the citizens’
A Smart City doesn’t just mean a well-developed infrastructure and digital services, but also hospitals with state-of-the-art equipment and doctors connected to technology. Where do we stand in this regard and what are the goals for the coming years?
needs. Therefore, we reorganised public services into specialised
The City Hall has built two modern hospitals: the Dr Victor Gomoiu
companies for each type of service, and completed this approach by
Children’s Clinical Hospital and the Foisor Clinical Hospital for
developing a Smart Strategy. We are currently in a new development
Orthopedics-Traumatology and Osteoarticular TB. We’ve built new
stage, transitioning to a “smarter” city, which entails using more and
wards at the Ion Stoia Rheumatology Hospital, as well as the Dr Carol
more modern technology in designing public services, in order to
Davila and Ion Cantacuzino Hospitals. The integrated outpatient
increase their quality and facilitate access for the city’s inhabitants
clinic of the Dr Gomoiu children’s hospital was modernised using
and visitors. Behind this digitalization process is an entire system,
European funds. We are in the process of building a new outpatient
an infrastructure developed by a team that works tirelessly to make
clinic at the Victor Babes Hospital. Over the last four years, the City
sure progress is made seamlessly.
Hall has invested approximately EUR 37 million in medical equip-
to change the way we worked, and STB was an important example in this regard. Moreover, most services were in need of an urgent upgrade of their facilities, technologies, and processes, starting
ment and facilities alone. In addition, the Sfanta Maria Hospital has
What is the degree of digitalization in the local administration and what are its development plans?
also seen important investments, most notably in the lung transplant
When I took office, the capital was far from being a smart city. It did
team to perform 8 successful lung transplants last year.
department, which is unique in the country – allowing the surgical
www.business-review.eu Business Review | August May 2016 2020
INVESTMENTS COVER STORY 13 14
Top Investment Promotion Agencies: what Romania can learn By Claudiu Vrinceanu
The role of investment promotion agencies is becoming more important right now, and Romania could learn a lot from other countries’ governmental bodies focused on attracting Foreign Direct Investments (FDI). officials? This good practice is a regional development-oriented initiative aimed at promoting investment across Lithuania.
CZECHINVEST Motor vehicle production in the Czech The Czech Republic has created a new platform to promote innovation in mobility and transportation
I
Republic is down by 33 percent due to the coronavirus crisis, but a new platform from CzechInvest hopes to aid its recovery. The Czech Republic has created a new
nvest Romania, the governmental body
about the coronavirus situation and the
responsible for promoting foreign direct
state’s support measures, keeping emergency
platform to promote innovation in mobility
investment in the country, only came
phone lines free for those most in need.
and transportation – The Mobility Innova-
Developing digital tools and channels
tion Hub – which is now seeking partners
Europe regarding investment promotion
could also be a solution for Invest Romania,
in both the business and academic fields
agencies (IPAs) across the emerging Europe
which can build a tool for digitized value
to help launch creative new ideas that will
region.
propositions and an electronic investment
help jump-start the Czech economy in the
in 9th in a new top 10 ranking by Emerging
advisor. Such online platforms could do the
automotive and other sectors in the years
Enterprise Estonia, the Estonian govern-
work of several people when it comes to
following the coronavirus crisis, and respond
ment’s FDI agency, came out on top in the
distributing information and making value
to some of the far-reaching impacts of the
major new report on IPAs. Invest Lithuania
propositions to potential foreign investors in
global pandemic.
was ranked second, followed by CzechInvest.
Romania.
With a score of 92.11 out of a possible 100,
As FDI to Romania at the start of 2020 was 70 percent lower than in the same period in
ENTERPRISE ESTONIA
INVEST LITHUANIA
2019, the country’s Investment Promotion
Enterprise Estonia’s foreign investment cen-
The Parliament of the Republic of Lithuania
agency (Invest Romania) and local authori-
tre rapidly reacted after the lockdown by cre-
has adopted a package of investment and
ties should proactively work with foreign
ating platforms to host virtual business visits
corporate tax laws, providing a new instru-
investors who have plans for investments
and hold webinars. As part of the Hack the
ment aimed at attracting large investments
and speed up procedures instead of waiting
Crisis hackathon that took place during the
of local and foreign capital. The set of laws,
for the pandemic to end before doing so. Now
state of emergency, a team largely consisting
also known as the “green corridor for invest-
is the right time for Romania to further step
of Enterprise Estonia’s foreign investment
ment,” provided for much faster and simpler
up its efforts and learn from other similar
centre employees created Suve, an AI-driven
establishment procedures for investors as
governmental bodies to attract investment
chatbot helping Estonia’s citizens and foreign
well as incentives for municipalities hosting
from specific areas like the US and Western
direct investors find official information
investors. Why is this relevant for Romanian
Europe.
www.business-review.eu Business Review | August 2020
14 BUSINESS
Why we need a Board of Advisors for the post-pandemic recovery phase If you are a founder, one of the greatest advantages a board of advisors can bring to your firm is an external perspective on important issues, and this could be crucial for growth in a post-COVID-19 economic cycle. By Claudiu Vrinceanu
Why have a Board? • ONCE EVERY 1-2 MONTHS, GET OUT OF THE ROUTINE AND SEE NEW PERSPECTIVES (GET OUT OF THE DITCH) • YOU BRING SKILLS IN AREAS WHICH YOU WILL NEED IN THE FUTURE AND ARE MISSING IN THE CURRENT MANAGEMENT • YOU BRING ON EXPERIENCED PEOPLE WHO VALIDATE AND OPEN UP NEW PERSPECTIVES • YOU EXPAND YOUR FIRM’S NETWORK • YOU GIVE STRUCTURE AND DISCIPLINE TO THE COMPANY’S DECISION-MAKING
A board of advisors could add layers of expertise and informal guidance
R
• IN OTHER WORDS, YOU ARE ABLE TO DO MORE THAN YOU HAD PLANNED, AND QUICKER
omanian firms may want to adopt
are being forced to pivot and rethink their
in their immediate circle of acquaintances
a practice seen at multinationals –
business models. Usually, a board of advisors
and advisers. They tend to have already had
the board of directors – and form
meets constantly as a group with the founder
conversations with them about the business
an advisory board of trusted advisors and
and they debate challenges and opportunities
and have appreciated the informal support
experts to help navigate uncharted waters in
for the firms.
they offered. “A particular situation I have
the coming year, a period that could repre-
How to build a board of advisors? There
noticed is that entrepreneurs who have had
sent a recovery phase for many industries.
are several ways. If you take investment
formal mentoring relationships often choose
In rapidly-changing markets, as is currently
in your company, the investors automati-
the mentor as the first member of the Board,”
the case due to the highly volatile COVID-19
cally become members of the Board. “In my
adds Negut. The pitching approach is when
crisis, many companies are setting up a Board
experience so far, I have observed two types
you choose members of a community of ad-
of Advisors to provide fresh and experience-
of Board formation strategies: the fishing
visers and start building a relationship with
based advice to founders and CEOs.
approach and the pitching approach,” said
them from scratch. In this case, you benefit
Sergiu Negut, angel investor and co-founder
from assisted matching and a much wider
layers of expertise and informal guidance,
of Antreprenoria. In the fishing approach,
spectrum of advisors than your personal
particularly in times when Romanian firms
entrepreneurs usually turn to people who are
network.
In short, a board of advisors could add
www.business-review.eu Business Review | August May 2016 2020
COVER STORY M&A 15 14
M&A trends in the first half of 2020: What can we learn? While the Romanian mergers and acquisitions (M&A) market saw 19 deals with a cumulative value of EUR 600 million signed in the first three months of the year, the number of transactions halved in the second quarter, when fewer than 10 deals were closed. By Claudiu Vrinceanu ond half of 2020 or for 2021. In the long run, however, the impact remains uncertain,” says Georgiana Ion, senior manager, deal advisory at Mazars Romania. When can the M&A market return to normal? Only 1 in 5 respondents (21 percent) in a study conducted by Mazars said that would happen in Q3 2020, while 14 percent believed the more realistic period would be Q4 2020, and 61 percent were more cautious, opting for 2021. However, the current issues should be seen as opportunities for all parties involved. Despite the current limitations and conditions, the Romanian M&A industry has the potential to evolve in a dynamic market, with opportunities normally encountered in times of recession – such as rapid sales based on illiquidity, merger operations giving up nonessential or non-performing assets, but also a recalibration of the investment portfolio. The 7 out of 10 executives believe that the current moment is right for mergers or acquisitions
A
market will continue to expand, as more and more companies understand the added value a strategic investor can bring in terms of new financing and know-how.
lthough the first quarter of 2020
of withdrawing from the Romanian market
was better than the same period of
and that it could freeze the sale of local assets
2019, the mergers and acquisitions
if it did not get the desired price. Second, the
believe that the current moment is right for
market collapsed as a result of the COVID-19
pandemic has reduced Banca Transilvania’s
mergers or acquisitions in specific industries,
pandemic. The start of the year was good for
appetite for acquisitions: its recent aggressive
given that some sectors will provide the op-
the local M&A market, but after the pandemic
expansion will be put on hold for at least two
portunity to invest in quality, properly valued
began, investors became more cautious in the
years, and a possible acquisition in the future
goods, says an analysis by consulting firm AT
uncertain economic context.
will not target small players.
Kearney.
The main short-term effects of the CO-
“After a relatively active start to the year,
In this regard, seven out of ten executives
We can conclude that for companies which
VID-19 pandemic on the M&A market have
Romania was among the countries hit by the
have built a healthy financial position during
been a withdrawal of offers or a postpone-
pandemic and according to the latest EBRD
the economic boom of recent years, declining
ment of transactions, and the long-term
forecasts, its economy is expected to decline
valuations during this period create oppor-
impact remains uncertain. Companies have
by 4 percent this year. The global health crisis
tunities to conduct transactions that create
been cautious about investing in M&A and
has created uncertainty, disruption of supply
long-term value. A good example is the major
are waiting for the situation to begin to
chains, and pressure on liquidity. The short-
transaction in which the TeraPlast group sold
normalise. Let’s look at just two examples.
term effect on the M&A market was limiting
its Steel division, which includes TeraSteel
First, Czech utilities group CEZ announced
or delaying the signing of transactions, many
and Wetterbest, to Irish giant Kingspan, for
that it was not pressed for time in the process
of which were postponed either for the sec-
EUR 85 million.
www.business-review.eu Business Review | August 2020
16 ENTREPRENEURSHIP
Startup mindset gaining clout in local corporate culture Being agile and innovative are two key principles for startups, but a growing number of large companies are also harnessing the entrepreneurial spirit, with Facebook founder Mark Zuckerberg’s motto “move fast and break things” becoming increasingly popular among big corporations. By Ovidiu Posirca ship so that talented employees can deliver new products and services,” says Ionut Sas, partner at professional services firm PwC Romania. Innovation is of major interest for heads of financial departments in large companies, who can allocate funding for such endeavors. This effort is becoming critical as firms of all sizes are looking to recover after the lockdown and the COVID-19 crisis. Some 63 percent of Chief Financial Officers (CFO) surveyed by PwC cite offering new or enhanced products or services as the most important factor for business recovery. CFOs are also not very likely to cut their planned R&D investments (14 percent) or digital transformation investment (11 percent), which corresponds with findings about their plans to accelerate automation, adds Sas of PwC. Companies across the local economy are starting to internalise some of the processes championed by startups
LOCAL BIG FIRMS’ APPROACH TO THE STARTUP MINDSET
risk management policies, but this
U
about agile teams and mindsets within their
championed by startups, while some firms are
doesn’t mean that their corporate
organisations, which are attributes that are
working with startups directly or promoting
culture can’t promote entrepreneurship.
fundamental to startups. They are aware of
entrepreneurship inside their own industries.
These firms can have mentorship pro-
the benefits of such a vision, but the bigger
grammes and encourage entrepreneurship
the company, the more complex it is to stir,”
with many startups, aiming to support their
among their employees. A growing number
Mihaescu told BR.
development and the creation of a technology
sually, corporations have tighter
of big companies are taking part in local pro-
Companies across the local economy are “More and more companies are talking
Some large companies have their own
starting to internalise some of the processes
Professional services firm Deloitte works
ecosystem.
grammes designed to accelerate or incubate
research & development (R&D) operations
new businesses, while corporates can also
as well as strategy departments. Taking over
objectives for startups and, during these col-
source products or services from startups.
a startup that has a fresh approach in an in-
laborations, we learned and adopted a more
dustry is also a serious option for established
entrepreneurial mindset, contributing to re-
players.
inforcing Deloitte’s mission, which is to make
Innovation is not something that only startups can generate, and just as a startup can learn from a big company, the reverse
“For companies that need a new technol-
“Scalability and disruption are core
an impact that matters,” Andrei Ionescu,
is also true, says Dan Mihaescu, founding
ogy or product, the fastest way to achieve
partner-in-charge, management consulting
partner of GapMinder VC, which has ongoing
that is to acquire a startup, but large compa-
and risk advisory at Deloitte Romania and
investments in dozens of local startups.
nies need to develop internal entrepreneur-
TMT industry leader, told BR.
www.business-review.eu Business Review | August May 2016 2020
In the retail business, Kaufland has an
ENTREPRENEURSHIP COVER STORY 14 17
– take for instance the very recent example
“Samsung is not only looking at startups’
open culture of mistakes, which means that
of Dealwise in Romania. This has a direct
experiences, but also helps them grow by giv-
if you are in a management position, it is
impact in our day to day, as we need to shape
ing them access to technology and informa-
important not to feel that you are the best at
our way of working so that such innovation
tion,” Simona Panait, Samsung’s marketing
everything. The same vision applies for the
is quickly adopted. Therefore, in recent years
director for Romania and Bulgaria, told BR.
relationship with partners, according to Valer
we have created our own Agile way
Hancas, communication and corporate affairs
of working, which is now the
director at Kaufland Romania.
status quo and an innovation
“Due to the open culture of mistakes we
methodology that enables
In the e-commerce field, eMAG has recently launched a new delivery service called Tazz, which was initially meant
have at Kaufland, I can say that our de-
us to capture, prototype,
partments function as startups, with each
and then productize
expanded to other cat-
colleague being encouraged to act as a small
new ideas. Technol-
egories, ranging from
entrepreneur, who receives the space and
ogy is now lowering
books to gadgets.
resources to put their ideas into practice, no
the market entrance
matter how brave those ideas are, if they take
thresholds and rapidly
Tazz are technology
responsibility,” Hancas told BR.
blurring out the tradi-
companies with strong
Kaufland, which is the biggest retailer in
tional industry boundar-
Romania with 132 hypermarkets and over
ies,” Razvan Sighinas, chief
15,000 employees, has also teamed up with
information officer at ING Bank
local entrepreneurial initiatives in the agricul-
Romania, told BR.
ture sector. The company has created the Tara
Meanwhile, financial services firm
for food but quickly
“Both eMAG and
entrepreneurial mindsets. We are data-driven and our new projects and ideas have a strong research component. Furthermore, both eMAG and Tazz have an organisa-
Mea agricultural cooperative, which initially
Allianz-Tiriac sees continuous learning and
tional culture that encourages employees to
had about 30 small farmers. In 5 years, the
the growth mindset as some of the most
test their ideas, as we encourage a trial and
cooperative grew to more than 1,000 farm-
important characteristics of startups that
error approach. Usually, good ideas occur
ers, who can sell their products in Kaufland
large companies should also try to implement
when the team’s creativity is not inhibited.
stores.
to remain competitive. The firm is part of the
Moreover, we both have the advantage that
German Allianz Group, which has a digital
we can test our ideas and turn them to reality
helped us to have a better in-depth under-
arm for investments in innovative startups in
very quickly,” Alin Serban, the CEO of Tazz
standing on the real needs of small and
the insurance business.
by eMAG, told BR. In the consulting field,
“We can say that this collaboration has
medium farmers, to increase the number of
Samsung, which is the biggest maker of
for the last 6 years, PwC has been holding
local products on the shelf and even to diversify our product ranges, supporting farmers to produce in other categories,” says Hancas. This has also helped the retailer shorten the supply chain and guarantee freshness to its customers. In the banking field, ING Bank Romania is working with startups at multiple levels, from supporting the startup ecosystem in Roma-
smartphones and memory chips in the world,
an internal global innovation challenge that
nia through programmes like Startarium to
stays close to the tech startup community in
covers a wide array of industries ranging from
partnering up with multiple local fintechs and
Romania through its Changeneers pro-
cyber-security to machine learning and geo-
more than 160 globally to incubate innova-
gramme. The company also supports a place
spatial technology. In last year’s edition, the
tion. “In some cases, we even spin-off such
where startups can use Samsung devices to
competition recorded 4,300 participants from
businesses that then tackle the wider market
test their ideas in real situations.
36 countries and 273 inventions.
www.business-review.eu Business Review | August 2020
18 ENTREPRENEURSHIP
Romanian market ready for new delivery startups As the market for delivery services hit the EUR 1 billion mark in 2019, the industry is going through a series of challenges triggered by the ongoing coronavirus epidemic. Delivery platforms, some operated by startups, have relieved some of the pressure on firms that were worst hit by the lockdown orders, especially in the food business. Players are gradually adapting to the new market demands generated by the medical crisis, and new delivery startups might enter Romania going forward. By Ovidiu Posirca
Established players doing solely delivery services need to adopt a competitive strategy
J
ust in the past few months, the Uber
over US-based Grubhub in a USD 7.8 billion
the key delivery startup players in Romania.
Eats delivery platform left Romania,
merger, while Uber bought online food order-
“There is room on the local market for new
e-commerce player eMAG launched its
ing company Postmates for USD 2.65 billion.
delivery startups to ride the wave of the ondemand economy boosted by the pandemic.
quick delivery service Tazz, and ride-haling startup Bolt launched its food delivery
FROM FAST FOOD TO FAST EVERYTHING
In Romania, the pandemic accelerated the
service in Bucharest as well as a separate de-
Last year, investments in European food lo-
adoption of card payments, the increase of
livery service for companies. Some of these
gistics and delivery businesses reached EUR
on-demand goods and services, the digi-
deals have been shaped by the coronavirus
1.6 billion, according to the The Sift Report
talization of state-owned companies, the
crisis, which is already starting to change the
2020. Deliveroo is the best-funded delivery
penetration of remote education, and many
way in which Romanians choose to work,
startup in Europe, having attracted more
others,� Cristian Munteanu, managing part-
shop or spend their free time.
than half a billion euros in fresh funding last
ner of Early Game Ventures (EGV), told BR.
year. The company is not present in Romania.
In urban areas, competition is getting fiercer
and delivery market recorded two major
The second spot belongs to Glovo, the startup
on the delivery market, with large estab-
deals that had an impact on both the Euro-
founded in Barcelona. The firm got over EUR
lished players and startups looking to attract
pean and the US markets. Just Eat Takeaway,
300 million in new funding last year to boost
consumers who expect to get their favourite
which is also present in Romania, took
its expansion plans and it is already one of
products on time. Lines are starting to blur
Globally, the on-demand food ordering
www.business-review.eu Business Review | August May 2016 2020
ENTREPRENEURSHIP COVER STORY 14 19
between partner drivers of ride-sharing apps,
outdoors. We had been thinking about diver-
ment, GapMinder VC founding partner Dan
people delivering your order by bike, and em-
sifying our offer since last year, but our plans
Mihaescu told BR. The fund has invested in
ployees of traditional delivery firms.
turned into reality faster than we had initially
Frisbo, a startup that provides e-fulfillment
All the changes in the delivery industry are
planned,” Alin Serban, the CEO of Tazz by
services assisted by high-tech, becoming
taking place because incumbents have failed
eMAG, told BR.
an interface between retailers and fulfillers.
to properly service the market, suggests Munteanu of EGV fund.
GapMinder
The company
has also
will soon
provided
arms of players in other industries such as
start to de-
seed
restaurants or ride-sharing companies all
liver books,
funding
come with a new and innovative approach.
gifts, and
to another
New features, more convenience, more
DYI prod-
startup,
affordable prices, greater delivery speed:
ucts, after
which uses
everything is to the benefit of customers and
expanding
machine
all is welcome,” says the managing partner.
its offer-
learning to
Even before the onset of the coronavirus
ing with
optimise
crisis, some 38 percent of people surveyed by
electro-IT
last mile
PwC for a global consumer report said that
products
they would pay for a delivery of groceries
from eMAG but also with pharma, sport, and
retailers. “Not every shop will decide to have
that took less than two hours.
beauty products.
its own delivery service, as it is not feasible.
“New delivery startups or the delivery
delivery for
The company was able to move faster
Not all ride-sharing players that will try de-
forts to improve this situation, and the past
because it leveraged the experience of its in-
livery will be successful or become efficient
several months have seen a variety of inno-
house technology team and aims to be pres-
within a reasonable timeframe,” Mihaescu
vative, unlikely partnerships in the grocery
ent in at least 30 cities by the end of the year.
comments on the latest developments on the
segment,” Ruxandra Tarlescu, partner at PwC
“Currently, most of our revenue is gener-
local delivery market.
“We are seeing retailers making huge ef-
Romania, told BR. For instance, Kaufland inked a delivery deal with startup
ated by the food delivery segment, so we plan to continue
Glovo, while Carrefour has
investing in
relied on its own delivery
devel-
Starting to do deliveries as a side business while enhancing your core business might not guarantee success. Ciprian Gavriliu, tax
arm, Bringo. Tarlescu
partner at profes-
suggested that the home delivery seg-
sional services firm
ment will continue
Deloitte Romania
to gain a foothold
and leader of the au-
and we might see
tomotive industry,
more retailers and
says that ride-sharing companies enjoy
restaurants provid-
the advantages of an
ing these options to consumers. Three years after acquiring delivery firm Same Day, eMAG expanded its presence in this
oping our other delivery segments as well,” Serban says. He quotes a
extensive fleet of cars, electric scooters, and even bikes. But this is only one part of the story. “Nevertheless, such a network,
segment by transforming a food delivery
recent study which states that in the next 5
ensuring geographical coverage and fast
platform called EuCeMananc into a new
years, 90 percent of the urban population
mobility, does not guarantee success on the
service called Tazz by eMAG, which aims to
will no longer cook at home. Revenues for
delivery market, as was the case for Uber,
make deliveries in less than 1 hour.
online food delivery in Europe could climb to
when the company decided to withdraw its
“The growth of our business was acceler-
USD 25 billion by 2023, with annual double-
delivery services from the Romanian mar-
ated because we realised that our consumers
digit growth rates, according to professional
ket,” Gavriliu told BR.
needed our support more quickly than we
services firm Deloitte.
had predicted. Nowadays, under harsh con-
As the general trend of migration towards
He concludes that established players doing solely delivery services need to adopt
ditions like the pandemic, consumers need
the online world is here to stay, there are
a competitive strategy, without neglecting
an extended offer of delivery services which
many opportunities in the underlying layer of
customer satisfaction and the quality and
will help them spend as little time as possible
delivery that supports online retail develop-
speed of their services.
www.business-review.eu Business Review | August 2020
20 ENVIRONMENT
The state of waste management in Romania: Plenty of work remains to be done Waste recycling and the circular economy are among the most important issues in the European Union. All member states must comply with the European Commission’s policies, and Romania has yet to meet many of the requirements. As a result, the European Commission has opened several infringement proceedings against Romania for pollution, wood management, and waste management. In mid-May, the Commission sent a letter urging Romania to take several actions, including “to close, seal, and ecologically restore 48 illegal landfills and to comply with the judgement of the Court of Justice of the EU of October 18, 2018.” By Aurel Constantin
The recycling rate of municipal waste reached 13.89 percent in 2018
www.business-review.eu Business Review | August May 2016 2020
ENVIRONMENT COVER STORY 21 14
T
in most of Romania’s counties, investments
20 have been permanently closed so
were made in sanitation infrastructure,
collaboration agreement. OIREPs must pay
far. But for the others, the required closure,
namely in waste collection equipment –
the UAT/ADI the full amount of the net costs
sealing, and regeneration works had not
mostly bins or vans for recyclable waste
related to the separate collection, transport,
even been planned at the beginning of this
collection –, individual composting units,
and sorting of municipal packaging waste
year. Through its formal notification letter,
transfer stations, treatment plants, compost-
as well as to the financing of awareness
the Commission gave Romania four months
ing plants, sorting plants,
to address the situation (two months longer
TMB installations, and
than usual due to the COVID-19 pandemic).
compliant warehouses.
he court decision referred to 68
Through the SMID projects carried out
transported, and sorted by the Administra-
landfills in Romania, of which only
tive Territorial Unit (UAT) based on an official
As one month has already gone by since
The duties of ADIs
the EC issued the letter and no solutions
regarding SMID projects are
have yet been made public, Business Review
to implement proposals by
asked Romanian authorities to provide all the
establishing or extending,
available information about waste manage-
organising, managing, and
ment in Romania, and what has been done so
operating services for the
far in terms of collection and recycling and
common interest, includ-
where our country stands in the European
ing delegating management
context.
based on the conditions of
The Environment, Waters and Forests
delegation contracts or pub-
Ministry provided answers to our questions
lic procurement procedures,
as we tried to get a full picture of how the
in accordance with appli-
system works. There are 13 organisations in
cable law.
the country tasked with implementing the
ADIs are also tasked with
extended manufacturer liability policy for
jointly promoting, financ-
packaging placed on the Romanian market,
ing, and implementing
known as OIREPs. Among them are names
programmes to establish,
like Clean Recycle, Eco Synergy, Fepra
upgrade, rehabilitate, and
International, Greenpoint Management, and
manage public sanitation
Enviro Pack Consult.
services and related public
OIREPs work with Intercommunity Development Associations (ADIs); there are currently 39 ADI organisations established in
utility systems in their associated territorial units. SMIDs are also meant to develop the
campaigns to promote waste recycling/re-
Romania for integrated waste management
institutional and decisional capacity of local
covery. In the case of UATs, for certain types
at county level. In most counties, ADIs are set
public authorities, members of the Associa-
of sorted packaging waste which represent
up by the county councils and town halls,
tion and to coordinate planning at the local
materials with a negative market value, the
the institutions dealing with waste management in their respective areas. County councils
and county level, by preparing and approving waste management strategies. Last but not least, through
responsibility lies entirely with the OIREPs, which must provide recycling/recovery of materials, including transport logistics, at their own expense.
are the beneficiaries
their members, SMIDs
For packaging waste generated from
of Integrated Waste
must sign contracts
industrial and commercial activities which
Management Sys-
to delegate the
has a positive market value, OIREPs must
tem (SMID) projects,
operation of new
pay collectors the amount related to the cost
while ADI manage
infrastructure.
of reporting packaging waste volumes and
project implementation. At the country level, 32 integrated waste management projects have been approved to finance prevention, separate col-
ensuring their traceability, until the waste
ADI AND OIREP ORGANISATIONS While defining the roles and responsibilities of ADIs and OIREPs within the extended
enters the final recycling/recovery process. For packaging waste with a negative market value, OIREPs must give waste generators the opportunity to hand over their waste free of charge to waste carriers which are selected
lection, recovery, recycling, waste treatment
manufacturer liability schemes, OIREPs must
by OIREPs. In such cases, OIREPs must cover
and disposal, in parallel with the closure of
ensure the recycling/recovery of munici-
transport operators’ costs as well as the
non-compliant landfills.
pal packaging waste, which gets collected,
recycling/recovery costs for operators who
www.business-review.eu Business Review | August 2020
22 ENVIRONMENT
carry out such operations. The collabora-
agement Plan (PNGD) during the analysis
waste collection, and account for contribu-
tion between ADIs and OIREPs is deficient,
period, the degree of separate collection of
tions to the circular economy.
mainly as a result of the non-application or
municipal waste varied between 3.2 percent
misinterpretation of legislative requirements
and 5.3 percent. Both the ANRSC (National
and a misunderstanding of each party’s
Regulatory Authority for Community Public
HIGH-PERFORMING COUNTIES IN WASTE MANAGEMENT
responsibilities. The main issues identified
Utility Services) and the GNM (National Envi-
Integrated waste management projects carried out so far have provided financing for all waste management activities, including closure of non-compliant landfills. SMIDs are currently operational in the following counties: Arad, Arges, Bacau, Botosani, Bihor, Bistrita, Calarasi, Covasna, Giurgiu, Neamt, Olt, Prahova, Salaj, Sibiu, Teleorman, Timis, and Vaslui. Of the 32 projects, 17 required phasing out investments and continuing them within the Large Infrastructure Operational Programme, so as to provide both the amounts needed to cover the funding gap as well as to achieve project objectives
in the collaboration between UAT/ADIs and
ronmental Guard) performed checks among
OIREPs are: the separate tariffs for recyclable
UATs regarding the application of waste man-
waste management, used to calculate the
agement legislation.
net costs paid by OIREPs, are not correctly
In 2019, the GNM carried out 2,512 un-
and implement policy in this sector. The SMID master plan has been developed and approved in the following counties: Alba, Arad, Arges, Bacau, Bihor, Bistrita Nasaud,
substantiated; OIREPs only pay for the
scheduled inspections (2,380 at local public
Botosani, Braila, Calarasi, Caras-Severin,
amount of packaging waste that actually
administrations, 52 at road/railway adminis-
Cluj, Constanta, Covasna, Dambovita, Dolj,
gets recovered and not for the amount that
trators, 4 at Intercommunity Development
Giurgiu, Gorj, Harghita, Hunedoara, Iasi,
gets collected and sorted, which leads to low
Associations and 76 at sanitation operators).
Maramures, Mehedinti, Mures, Neamt,
revenues for UAT/ADIs, given the very low recycling/recovery rates;
Following these inspections, au-
UAT/ADIs do not calculate
3,837 sites
users’ separate revenues,
with
ultimately paying more
Olt, Prahova, Satu Mare, Salaj, Sibiu, Suceava, Teleorman, Timis,
thorities identified
Tulcea, Vaslui, Valcea, and Vrancea. Delays in the imple-
un-
for the management of
mentation of integrated
recyclable waste than
waste management
for the management of
systems occurred either
other types of waste.
due to the complexity
In this context, only 7
con-
of projects or to delayed
ADIs – Arges, Calarasi,
trolled
or even gridlocked tenders
Iasi, Mures, Olt, Salaj, and Sibiu – have contracts in place with OIREPs.
for such investments. Fac-
landfills,
tors that can cause problems in
with a total area of 1,384,980 square meters, and
SMID implementation are insufficient
495 cases of failure to submit mandatory
technical endowment and a lack of financial
RECYCLING IN 2019
declarations to the Environmental Fund. Fol-
means due to high tariffs or fees applied to
The recycling rate of municipal waste
lowing the inspections, the GNM handed out
users of the service. Other identified causes
reached 13.89 percent, totalling 739,384
195 warnings and 485 minor offense fines,
are the lack of correlation of duties across
tonnes, according to the Annual Report on
amounting to a total of RON 3,477,801. At the
the chain and the lack of involvement from
the State of the Environment for 2018 issued
national level, UATs have started to update
operators.
by the National Environmental Protection
sanitation contracts by introducing per-
Agency (ANPM). According to the informa-
formance indicators in order to streamline
SMID projects, there are issues related to
tion available in the National Waste Man-
operations, implement separate municipal
delays in the execution of works and compli-
As for the infrastructure created through
www.business-review.eu Business Review | August May 2016 2020
ENVIRONMENT COVER STORY 23 14
ance with contract conditions. Some of the
(formerly Arcelor Mittal Galati) (currently
permit, while Energo Tech SRL in Brasov
equipment that has been purchased is either
LIBERTY GALATI), where slag recovery
County has completed half of its shutdown
insufficient or already outdated due to the
works have been completed and reprocess-
process. There are 24 hazardous industrial
new targets, which means there is a need to
ing works are being carried out to increase
waste landfills in the country. One deposit in
purchase additional equipment to efficiently
scrap sorting rates, at a completion rate of 16
the process of closing – SC Azomures SA in
operate the system. The quality of services
percent.
Mures County (85 percent completed), while
reflects the availability of financial resources, and these are limited.
LANDFILLS TO BE CLOSED According to the Environment Ministry, there are 12 municipal landfills that still need to be closed. Ten administrativeterritorial units (UATs) have requested funding to shut down their landfills through the designated programme, which is managed by the Environmental Fund Administration (AFM), and all these applications have already been approved. There are also 36 industrial waste landfills that still need to be closed (12 landfills with non-hazardous industrial waste and 24 with hazardous industrial
At Forever SRL in Hunedoara county, slag
two others will soon be closed as well. Two landfills are in the process of capital-
waste). Of the 12 landfills non-hazardous in-
recovery works are at 62 percent completion,
dustrial waste landfills, UATAA Motru in Gorj
while at Feral SA in Tulcea County recovery
ising their waste ahead of closing: Turnu SA
County was closed without a final inspec-
works have been 66 percent completed.
in Teleorman County, where recovery works
tion; the final validation by the construction
Somes SA in Cluj County used its own funds
are 60 percent completed, and Sometra SA in
inspection authority has not yet been issued.
to begin site organisational works to enable
Sibiu County, where works are 15.5 percent
There are also two deposits in the process of
closure works. The Carbid Fox SA deposit in
completed. Rafinaria Vega Ploiesti in Prahova
being closed: SMR SA, currently SC VESPA
Mures County is in the process of clarifying
County has started its shutdown process. However, 17 landfills have not yet started works to close down; they are at various stages such as completing technical projects, obtaining environmental agreements, setting environmental requirements, bankruptcy or insolvency proceedings, change of ownership involving additional regulatory documents, absence of a closure project, uncertain legal status of land or simplified closure applications. In 2019, the GNM carried out 39,429 inspections related to pollution control and biodiversity, biosecurity, and protected natural areas,
INVESTMENTS & CONSULTING SRL (78 per-
its legal status in order to finance the shut-
reaching a 110 percent completion rate for its
cent completed) and Celhart Donaris, Braila
down using EU funds.
initial inspection plan for the year. As a result
county, 65 percent completed.
CAROM SA in Bacau County is in the
of the checks, 1,575 warnings and 3,288 fines
For four other landfills, waste is being
process of obtaining a building permit to shut
were handed out, to the total of RON 55.6
recovered by authorised facilities to pre-
down the landfill and perform field greening.
million. Furthermore, 219 shutdown orders
pare for final closure: Saturn SA (72 percent
Elnav SA in Galati County is looking to obtain
and 44 criminal complaints resulted from the
completed); ISPAT Sidex SA in Galati County
an environmental agreement and building
inspection operations.
www.business-review.eu Business Review | August 2020
24 IT
Call for Leaders | Sergiu Zaharia (Huawei): 5G security standards are already in place Cyber security has become very important to everybody in recent years thanks to IT departments and telecommunication specialists, who had been asking for better security measures for a long time. “I could say that we are the victims of our own success,” said Sergiu Zaharia, Chief Security Officer at Huawei, during a new Call for Leaders video conference hosted by Business Review. By Aurel Constantin
“
10 or 15 years ago, the message from IT security departments was that security should be on the management’s
agenda. Now it is on their agenda. And, of course, there is also a boomerang effect, since now there is a lot of pressure on IT security teams,” Zaharia noted. But this change is normal, as all business processes need to be secured. “Security has migrated from the IT and network area to the business resilience area. We have all managed to get to the same message about the importance of security, and not just in the private sector, but also in public institutions. There is obviously a lot of work to do, with tasks coming directly from management,” he added.
already thought about implementation and
connected car there are standards for each
enough measures have already been devel-
part of the car. It’s all based on the concept of
researchers and specialists who tried to dis-
oped to protect communications, which are
zero trust, meaning I don’t need to trust the
cover its vulnerabilities, including people in
the standard for the entire industry. The prob-
security of a light bulb or another car part that
the defence sector, who looked for solutions
lem occurs in vertical industries; there we
connects to the cloud. Products must have
to every security issue. But 4G came with
each must come up with specific solutions.
their own security and communication to any
good security features compared to previ-
There will be a lot of work to adapt solutions
other device must be encrypted. Standards
ous versions. Now, 5G comes with even more
to industries such as healthcare,” he noted.
and solutions exist, now all we need is imple-
4G technology benefitted from the work of
security, with a standard level of security.
“From very small systems like the ones we
mentation,” said Zaharia.
“When we talk about 5G, we don’t think about
have at home (phones, TVs, etc.) to complex
today’s attacks, but about future attacks. The
systems like connected car infrastructures,
“technologies of the future”, like AI, cloud,
encryption algorithms implemented in 4G
which Germany is looking to implement,
virtual reality, augmented reality. “Even in
were on 128 bits. Today, the quantum com-
they all have vulnerabilities that need to be
the machine learning area, there has been
puters that will soon appear will reduce the
addressed. Maybe I’m less interested in the
research that showed that you can build a
scope of a 128-bit cryptographic system to a
home, but if I’m managing a military system,
system using a malicious “teacher” or tamper
64-bit one. A 64-bit crypto can be broken very
I have to ensure maximum security. If we talk
with the programme database so that it works
quickly now. That is why one of the measures
about connected cars, we first have the car’s
incorrectly. There are protection solutions for
was to increase to a standard of 256 bits, so
own system, then the system that allows the
these systems as well. There will certainly be
that when quantum systems appear, it will
car to connect to streets and cities, then the
new things to implement, but mixed teams of
still be secure,” Sergiu Zaharia explained.
cloud system through which it works,” the
specialists from each field will be needed to
Huawei official added.
find effective solutions,” he argued.
Huawei’s Chief Security Officer highlights
There are also security solutions for the
All these systems must follow technical
“Unfortunately, there will always be
asymmetric security systems, identification
standards at the product level to meet safety
attacks; a new type of attack appears every
through third-party devices, but those issues
requirements, and then an industry stan-
week, and specialists must keep up with new
are not specific to 5G technology. “5G has
dard will be required. “For example, in the
threats,” Zaharia concluded.
the fact that there are some issues with
www.business-review.eu Business Review | August May 2016 2020
COVER STORY HR 25 14
Employee benefits could provide glimmer of hope to local tourism industry With many countries still keeping their doors closed to tourists due to the pandemic, Romanians only seem to be left with the staycation option – both to stay safe as well as to help the tourism sector, which has been hugely affected by the crisis. BR talked to Sven Marinus, the CEO of Sodexo Pass Romania, to find out how corporate employee benefits could make a real impact in the industry. By Oana Vasiliu The Sodexo Turist Pass was launched in 2018. How have you adapted it for 2020? We worked to further develop the Turist Pass vouchers which had been available since 2009, and in 2018 we launched the Tourist Pass card to support digitalization efforts. Holiday vouchers are a great support tool for tourism in Romania and we have done our best to make them as easy to use as possible for consumers, at our partner accommodation units and travel agencies. At the end of 2019, we upgraded the card offer with a mobile option, which can be used with Apple Pay and Android Pay, greatly improving the consumer experience. We have also upgraded the SodexoCard
munication as a tool to recognise employees’
thousands of holiday locations to choose
mobile app, making it easier for users to find
efforts, while still offering compensations and
from. As for destinations, most people have
a place to stay, and also including options to
benefits in optimal cost conditions. Many of
chosen to book a holiday inside the coun-
buy online from travel agencies and guest-
our clients think that good employees need to
try and I believe that over the coming year,
houses which have a web presence. The
be rewarded at all cost, but even more so for
most tourists will continue to stay local. The
Turist Pass is a great chance to get to know
those working in difficult conditions.
most popular destination for the summer is
our country better and discover those special
Through the mobile application, which has
places and hidden spots that can become
been downloaded by almost 1 million users in
favourite destinations.
Romania, we can promote new partnerships to enable Turist Pass voucher and card users
Eforie Nord, while Tasnad is the most wanted destination.
How many cards/paper vouchers did you issue this year? Has the pandemic crisis impacted employer benefits programmes?
to book holidays in Romania and Gusto Pass rants using their mobile phones. More than
Has the number of companies offering Turist Pass benefits increased this year? How about the number of accommodation units taking this form of payment?
We had record card issuance rates in this
100 partnerships are available today and the
Both numbers have increased and we are
period, as tourism vouchers have been
more recent ones includes digital travel plat-
getting more and more requests from guest-
exclusively card-based since April, and meal
form booking.com and the mobilPay Delivery
houses and hotels who want to introduce the
cards issuance rates have also increased, with
programme (for Gusto Pass holders).
Turist Pass payment option, because consum-
card users to place and pay orders at restau-
85 percent of such vouchers being issued on cards.
ers are asking for this facility. We work with all the main travel agencies in Romania so
to encourage companies in both the public
How many accommodation units receive your Turist Pass? What is the most wanted type of holiday?
and private sectors to grant vouchers to their
We have a very large network and partner-
book or pay directly through the accommoda-
employees, and we tried to respond to this
ships with almost all travel agencies in
tion unit, we recommend that they contact us
request. We are also investing in B2B com-
Romania, which offer our holiday card users
so we can set up the payment terminals.
The Tourism minister started a campaign
they can very easily provide assistance and recommendations, but when people want to
www.business-review.eu Business Review | August 2020
26 MACROECONOMY
Romania caught in the middle of the US-China cold war In June, a new effect of the US-China trade war was felt in Romania when the agreement to build two additional units at the Cernavoda nuclear plant with a Chinese partner was cancelled by state-owned company Nuclearelectrica, due to pressures made by its main shareholder – the Economy Ministry. But this is just one chapter of a larger story. By Sorin Melenciuc still considered plausible by some analysts in the case of the Washington-Beijing cold war, but the risk is somehow mitigated by the existence of a large group of regional powers that dislike the idea of being forced to choose one side over the other. However, many analysts underline the risk that many aspects of globalisation could be stopped and that the global system may be broken into two parts. In such a scenario, global growth could slow down and small powers and developing countries would have to side with one of the two camps. Contrary to the old cold war, the new rivalry is also associated with a high level of economic inter-dependency between the US and China. This makes things complicated both for the two rivals as well as for their strategic allies. In the last two decades, Romania emerged as a strategic ally of the US in Europe. The new rivalry is also associated with a high level of economic inter-dependency between the US and China
T
STRATEGIC ALIGNMENT The US-Romania strategic partnership, which was mainly based on military aspects during
wo other sectors are also involved in
between China and the US is at its lowest
the last decades, seemed to be boosted last
this war and influenced by the US-
point since diplomatic ties were first estab-
year when Romanian president Klaus Iohan-
Romanian strategic partnership and
lished in 1979,” says Wang Huiyao, president
nis had a meeting at the White House with US
the US-China long-term geopolitical rivalry:
of the Center for China and Globalization, a
president Donald Trump. The discussion was
5G networks, with Huawei almost excluded
non-government think tank in Beijing, cited
focused around ways to advance and expand
from the planned tender in Romania, and
by Financial Times. In fact, this new era of
the strategic partnership. At the end of the
infrastructure, with Chinese firms losing one
geopolitical rivalry differ in important ways
meeting, Klaus Iohannis and Donald Trump
contract after another.
from the US-Soviet Union tensions between
made a joint statement.
1947 and 1991.
A NEW TYPE OF COLD WAR
The US-USSR conflict was not economic,
More importantly, during the visit, a Memorandum of Agreement was signed by the two
Most analysts think that the US and China are
but ideological in nature, and direct military
governments regarding 5G technology, “tak-
heading into a new type of cold war that could
conflict between the two main nuclear pow-
ing into account the importance of securing
be more challenging for the world compared
ers was avoided through proxy wars. The
the fifth generation wireless communication
to the geopolitical contest that started be-
war was divided into two major camps which
networks in order to ensure prosperity, as
tween the United States and the Soviet Union
included the allies of the two major geopoliti-
well as national security,” according to a press
at the end of World War II. “The level of trust
cal players. This kind of two-sided game is
release by the Romanian presidency.
www.business-review.eu August 2020 Business Review | May 2016
MACROECONOMY COVER STORY 27 14
Klaus Iohannis said at the end of his visit in
port infrastructure for military deployment.
themselves from talking about specific com-
Washington. Even without mentioning it,
Romania hosts two key military bases with
panies or countries targeted by this memo-
the statement openly targeted the agreement
American personnel – Deveselu and Mihail
randum, American officials spoke openly
between Romanian state-owned company
Kogalniceanu – and US military personnel
about an anti-Chinese agenda. “Romania is
Nuclearelectrica and Chinese firm China
is also present in some other areas of the
committed to working with the United States
General Nuclear Power Group (CGN) to build
country. Airports and the Constanta port are
to combat the cybersecurity threats posed by
two new units at Cernavoda. The Economy
of major interest for the military partnership,
Chinese vendors in 5G networks,” the White
Ministry, which owns around
House said in a press release on August 20,
82.5 percent of Nuclearelectrica,
2019.
issued a clear mandate to the
Even though Romanian officials refrained
company on June 15 to termi-
FIRST EFFECT: 5G
nate the agreement with China’s
The first effect of the memorandum was
CGN – and the company took the
quickly seen in Romania: the postponement
necessary steps to do so.
of the 5G network tender. The head of the
It is not yet clear what
telecom regulator in Romania (ANCOM), Sorin
the next steps could be. The
Grindeanu, explained the decision citing the
Romanian president suggested
need to transpose the memorandum into
in August 2019 some form of co-
national regulation. Romanian authorities
operation in developing nuclear
avoided naming a specific company in the
energy in Romania, but without
context of the memorandum, but experts say
getting into too much detail.
that China’s Huawei is the prime target. How-
“President Trump is very inter-
ever, the memorandum also creates some dif-
ested in new sources of energy
ficulties for Romania and for other American
being developed, such as those in
allies in Europe.
the Black Sea, which is particu-
“It is about time but also about money –
larly important for us too. We are
the delayed installation of new 5G networks
both also paying close attention
involves much higher costs. In Europe alone,
to civil nuclear technology and
we are talking about EUR 55 billion. Europe
we hope good, important solu-
seems to have problems adopting the new
tions will be found for Romania,
technology, and it is behind the US and even
which is for sure capable of
some Asian countries, such as South Korea.
becoming an energy provider in
Banning Huawei equipment will only increase
the region,” Iohannis said. At this
these gaps,” explains Nicolae Oaca, a local
moment, the only certainty is
telecom expert. The problem, for Romania
that Chinese firms are excluded
and other European countries, is that there
from Romania’s nuclear sector
is not much competition among 5G network
but it is not clear who (if anyone)
suppliers and Huawei has managed to be-
will replace them.
come a key player on the market. As a consequence, the 5G tender in Romania has already
ROAD INFRASTRUCTURE
been postponed three times and the current
Chinese firms are also interested in road
but rails and roads are also critical for NATO
planned term is in the last quarter of 2020.
infrastructure projects in Romania, but they
at this frontier of the alliance.
haven’t had much success so far. As Romania
However, Chinese expertise in building
SECOND TARGET: NUCLEAR ENERGY
accelerates its motorway, expressway, and rail
roads may prove useful enough to Bucharest
The joint statement signed by the US and
infrastructure using EU funds, many foreign
as it tries to boost major infrastructure proj-
Romanian presidents also stressed the impor-
companies are competing to gain access to
ects this year. Many of these projects are not
tance of cooperation in nuclear energy. “Both
this promising local market. Some Chinese
seen as strategic from a military perspective
of us, President Trump and myself, believe
companies have submitted bids to infra-
but are critical for the country’s development.
that civil nuclear technology, that is, nuclear
structure tenders in Romania in recent years
Such a Chinese company, China Railway, has
stations, have an interesting potential for the
but none of them have won a single contract
submitted a bid to build section 4 of Sibiu-
region and we have expertise with Cernavoda,
so far. Even if infrastructure is not a major
Pitesti motorway – a difficult mountain road
where Units 1 and 2 are operational, and
subject of the US-Romanian partnership,
project. If it wins the contract, it could be the
we surely have a chance to develop here,”
there is clear interest regarding critical trans-
first major Chinese project in Romania.
www.business-review.eu Business Review | August 2020
28 PR
Why a brand’s relevance matters as much as its reputation With almost three billion people registered on social media channels, news spreads quickly and companies have to adapt to this reality, making sure that any damaging content for their brand is managed as swiftly as possible. Many companies monitor their reputation daily, checking social channels constantly to ensure that they’re on top of any developing stories. By Romanita Oprea
A
Bogdan Tomoiaga, Graffiti PR
Catrinel Burghelea, independent communications strategist
Sorana Savu, Premium PR
ccording to the Institute for PR,
them. So how hard is it to really build a brand
sense says it doesn’t work this way. Going
from an organisation’s perspective,
reputation and how long does it take? Firstly,
back to reputation, it is a result of the way an
reputation is an intangible asset that
Catrinel Burghelea, independent communi-
organisation does business, from its products
allows the company to better manage the
cations strategist, would challenge the term
and services to the way it treats custom-
needs and expectations of various stakehold-
“reputation”, which she believes to have
ers, partners, employees, and so on. It relies
ers, creating differentiation and barriers vis-
been excessively used in PR and communi-
strongly on good leadership and transpar-
à-vis its competitors. From the stakeholders’
cations in recent years. More than placing
ency,” Burghelea argues.
perspective, reputation is the intellectual,
perception at the core of our work, we should
emotional, and behavioural response as to
refer to relationships and trust when thinking
The Public Advisors, points out that reputa-
whether or not the communications and ac-
about our mission as communicators. This
tion goes hand in hand with the business
tions of an organisation resonate with their
sets a different framework for practicing and
itself. Building reputation starts from the
needs and interests.
assessing this profession, granting a more
company’s first day and represents the value
strategic role to communicators.
of the company, which is constantly chang-
Corporate reputation accounts for 35.3
Raluca Mihalachioiu, managing partner of
“Reputation is a consequence of the
ing. Therefore, the reputation strategy is as
leading equity market indices, a figure that is
relationships one builds with stakeholders.
important as the business strategy and it’s
even higher for healthcare companies, at 39
Secondly, you cannot simply build a reputa-
embedded into all business stages. Moreover,
percent of market cap. According to PR Week,
tion through communication. We too often
reputation has tangible results. “There is a
due to today’s social and digital reality, com-
expect communication professionals to de-
very strong correlation between reputation
panies must demonstrate relevance that’s
liver on reputation just as you would expect
and the intent of purchase, recommendation,
based on their purpose and ability to connect
somebody to trust you simply because you
operational profit or the attribute of pre-
to audiences on the things that matter to
told them you were trustworthy. Common
ferred employer. In other words, if reputation
percent of the market cap of the world’s 15
www.business-review.eu Business Review | August May 2016 2020
COVER STORY PR 29 14
rises, the sales and profit of a company also
ing long-term relationships with customers.
Reputation is what others say about you
increase. Which CEO wouldn’t be happy to
According to a Nielsen survey, 59 percent of
when you are not in the room. This is why,
mathematically know how to increase share-
consumers prefer to buy new products from
when building its reputation, a company has
holder value?”
brands that are familiar to them and 21 per-
to consider all the types of people who could
cent say they had purchased a new product
be talking about it.
In turn, Sorana Savu, managing partner at Premium PR, says that a brand’s reputa-
because it was from a brand they liked.
“Step into the void, get out there, and join
tion is just like a person’s reputation. If you
“Despite the fact that reputation is a
the conversation. Why? Because at a time
have strong values and principles and you
lengthy process, there is no secret formula
of uncertainty, during a crisis when popu-
are prepared to uphold, observe, and defend
to point out the exact moment in time when
list political leaders are trying to distract us
them with every chance you get, it’s not that
you can stop working on it. A company
with fake news, businesses must act without
difficult. If you are just trying to stick around
should never stop building its reputation. ‘A
waiting for approval. It is time to take on
certain values and hope something brushes
brand is a story always being told,’ said Scott
leadership, even if it seems counterintuitive sometimes. Talk about sustainability, social problems like wages and child support, working with the authorities, and ways to get out of the crisis,” said Tomoiaga. “There is no single recipe and there are no specific ingredients that you can methodically add to a bowl and hope that at some point you’ll be able to pull a reputation cake out of the oven. Organisations, brands, and communities are so different that building a reputation will be like the man with 1,000 faces,” said Mihalachioiu. But there is an instrument that can mathematically evaluate the reputation of companies and brands: RepMeterTM is a reputation measurement tool that evaluates admiration and trust in a brand or company and is calculated based on scores for 7 attributes: familiarity, quality of services, management ethics, employer brand, financial strength, corporate social responsibility, and positive
off on you or if you abuse and misuse them
Bedbury (former Nike and Starbucks execu-
sentiment. The tool was developed by public
and you’re ready to trade them off for some
tive) and it’s as true today as it was when he
relations company The Public Advisors and
easy gains every time you see an opportunity,
said it. Trust and reputation take such a long
research institute iSense Solutions and it is
it’s not that easy. “Reputation is not a snap-
time for a corporation to build, yet they can
defined by the stability of the research model
shot. Fame is a snapshot.
be lost or damaged seriously by a momentary
and actionable results.
According to Bogdan Tomoiaga, execu-
event,” added Simona Dan, managing partner
According to Sorana Savu, relevance first
tive director at Graffiti PR, brand trust and
of The Public Advisors. Therefore, “reputa-
and foremost requires knowing and prov-
reputation are things you build over years of
tion management refers not just to the rheto-
ing that you know what planet you live on,
great and assiduous work. And we have some
ric of an organisation, but also deals with
as a brand. Which sometimes also means as
examples: from the Gods of Ancient Greece
products and services, business performance
a marketer. “With a focus on sales and the
to the new Gods of the Corporate World, trust
and practices, leadership and sustainability.
bottom line and on fluffy creative, constant
and reputation have been things you build
From this perspective, a good reputation
innovation, and with chronic FOMO, brands
over long periods of time, by staying true to
needs an organisation-wide approach and
tend to slip into narcissism and treat people
your beliefs, producing change, and being a
a coordinated effort from many areas of the
as ‘consumers’, chasing them based on
good citizen.
business,” said Burghelea.
demographics and their account balance,
Therefore, like a business, reputation is
forgetting about their hopes, dreams, moods,
not built overnight. It’s a long process which,
THE FIRST STEPS
beliefs, and emotions. Or just ignoring them.
in The Public Advisors representatives’ point
In this context, knowing what the main steps
Or replacing the real ones with some edulco-
of view, could take from 2 to 10 years. Howev-
should be and how to take those steps is very
rated versions that make a TVC more colour-
er, the ongoing effort will result in establish-
important for any company representative.
ful or an ad happier,” commented Savu.
www.business-review.eu Business Review | August 2020
30 PR
Efficient communication strategies for [today’s] financial brands Clear. Simple. Authentic. Transparent. Relevant. Contextual. Digital. A partner to the customer. Able to face reality even if it’s tough and to align the expectations of its clients with those of its shareholders. These are the main qualities a financial brand should be able to demonstrate, according to specialists consulted by Business Review. By Romanita Oprea
Attila Kelemen, OTP Bank
T
Nida Halit, GMP PR
he whole world is experiencing very
all businesses had focused on their employ-
ly; every decision was contextualised, every
strange and intense moments, in an
ees’ security and on business continuity, and
message, action, and project was relevant and
unprecedented situation that will test
many of them engaged in charity initiatives
adapted to the current situation. “Business-
our boundaries and ability to adapt more than
to help communities affected by COVID-19.
wise, they implemented strong, customer-
ever. Companies are learning how important
We slowly found new ways to interact with a
oriented offers and services. Going beyond
as well as how difficult it is to remain closer
captive consumer on a different frequency,”
customer care, this is, after all, a support
than ever to your brand values and clients.
said Butunoi.
measure for Romania’s economic recovery
Brands employed a more humane and
and business continuity. Moreover, as we are
have brands adapted to the pandemic?
familiar tone, with content focused on what
facing a health crisis above all else, our cus-
Cristina Butunoi, head of corporate at Golin,
they could do for others, whether it was
tomers quickly understood the need to help
saw many brands freeze, as we all did, since
employees, the community or society at large,
the local health system. Significant donations
nobody knew what to expect. Then, we saw
and less on maximising business profitability.
made a difference and supported the medical
media consumption rising as people tuned in
And this implied shelving some communica-
system to better cope with this terrible situa-
for COVID-19 updates all the time, no longer
tion projects that would now look completely
tion,” she notes.
being able to tell the difference between the
tone deaf and would immediately be rejected
days of the week. “Then we started to navi-
by the audience.
In this context, one might wonder, how
gate this new normal. We threw out most of
In turn, Nida Halit, GMP PR’s head of com-
Meanwhile, OTP Bank Romania moved quickly and launched its own programme before the lockdown imposed by the govern-
our initial objectives for 2020 and redesigned
munications, believes that brands adapted
ment. This fundamental measure allowed
communication strategies. But before that,
very well. Everything was done very careful-
the bank to have an emotional, empathetic,
www.business-review.eu Business Review | August May 2016 2020
COVER STORY PR 31 14
positive communication strategy, in line with
tion of all kinds, including on social media,”
companies – a real challenge protecting the
the mood of the moment. “Imagine you have
said Ardelean.
people, both financially and in terms of
three puzzle boxes and you have to build
Even though communication may during
health. Until the cure is found, brands and
a fourth puzzle out of the pieces that once
a crisis may have its challenges, there are
the way they communicate can become a part
made sense. Then the mood of the new image
ways for companies to overcome and even
of the global answer and solution to coping
has to mirror the truth of a cautious, calculat-
show that they can find good, long lasting
with this pandemic. They can communicate
ed, but optimistic brand. After that, suddenly,
solutions. The world is changing. Consumer
by entertaining and distracting people from
you understand that this time you cannot
behaviour and business models are changing
the difficult situation; inform using digital or
talk about yourself; you’ll miss the essence
and competition is more intense than it was
online channels and spokespersons to echo
of the moment if you put yourself first. You
before. “All these conditions are adding pres-
and display relevant information and cite
need to talk about those who are receiving
sure to the way financial services companies
trustworthy sources (thus contributing to
the message. I don’t think we had a strategy;
are expected to communicate, and even
limiting the spread of fake news); motivate people to follow government guidelines and measures; engage in relevant social causes; keep calm and help the economy and society,” added the GMP PR representative. According to Cristina Butunoi, challenges may appear at any time: for instance, particularly in this era of “fake news”, communication must be credible. In the era of COVID-19, communication should be careful and authentic, and not appear to be taking advantage of the situation for self-promotion, and so on. “In any situation, I think we should carefully identify the business pain and see how communication can help. For instance, we are all now facing the biggest challenge of our time: how to maintain our internal culture while continuing to work from home. In order to be successful, in Alexandru Ardelean’s view, brands in the financial sector should communicate in a friendly manner, because the very serious and distant tone of
the strategy was that this time we won’t have
more so in crisis situations. Over the last few
voice makes consumers lose the trust they
one,” said Attila Kelemen, marketing director
months, as the pandemic generated an eco-
may have had in the company. “I know it’s
at OTP Bank.
nomic crisis as well, the main challenges for
hard to speak with humour and familiar-
From a journalist’s point of view, Alexan-
financial companies included addressing, im-
ity about credits, interest, deposits, escrow
dru Ardelean, senior editor at Biz magazine,
plementing, and communicating in real time
accounts, and other financial products or
thinks that most financial brands quickly
all the changes resulting from the measures
services, but I believe that an out-of-the-box
changed and adapted their communication
and guidelines announced by authorities, as
approach in communication is the best way
strategies. Messages such as #stamacasa (stay
well as developing and implementing their
to win consumers’ hearts. It’s also a way for
home) or #staysafe, which were used to ad-
own solutions for employees and customers,”
them to feel closer to you and not see you
vise clients to use alternative online or mobile
said Nida Halit. She adds that the real-time
as something abstract that talks to them
channels and only visit the physical loca-
revamping of communication strategies, re-
distantly and seriously about products which
tions in case of situations that could not be
prioritising projects, wisely choosing the next
many don’t really understand,” argued the
resolved otherwise, were a good fit. “Adver-
steps in communication based on the new
senior editor of Biz.
tisements were also adapted to the situation
context, in order to stay relevant and credible,
in which we are living, so they weren’t too
as well as tackling unforeseen situations, also
touch of friendliness even to corporate com-
joyful, nor too sad, but made to reflect the
became great challenges.
munication. Even a business CEO or expert
“We generally advise our clients to add a
new normality and how we’re adapting to it.
“Internally, companies were forced to
At the same time, brand communication was
provide assistance and constantly commu-
another, and too much stiffness in their lan-
forwarded to digital solutions as well. I saw
nicate with their teams, their colleagues,
guage can be a barrier,” the Golin representa-
more efforts in terms of digital communica-
their employees. It was – and still is for some
tive concluded.
has to be viewed as relatable in one way or
www.business-review.eu Business Review | August 2020
32 TECHNOLOGY
5G phones quickly moving into lower-tier prices 5G technology is becoming affordable to the masses as mobile phone makers are launching cheaper terminals with integrated 5G connections. While 2019’s 5G smartphones were mostly flagships that had price tags of over EUR 1,000, today we’re seeing mid-range phones being able to tap into 5G networks. By Aurel Constantin that has allowed Huawei to take the first place globally in phone shipments, overtaking Samsung and Apple. Huawei has a market share of almost 50 percent in China and even as its sales in other countries slumped, the producer still managed to hold first place. 70 percent of Huawei’s sales are now coming from China, and only 30 percent from other countries; in 2019, Huawei sold about 50-60 percent of its devices in its home country. In the second quarter, Huawei shipped 55.8 million devices, according to Canalys data, down 5 percent compared to the same quarter of 2019. Samsung shipped only 53.7 million devices, dropping by 30 percent. After launching 5G with flagships like P40 Pro, in July 2020 Huawei announced the P40 Lite featuring all possible connections, including 5G. The device is priced at RON 1,700, qualifying in the mid-range phones Moto G 5G plus EU COMBO
5
segment, with good camera and processing power. The P40 Lite launch comes at good moment for Huawei in Romania, after the company managed to get a market share of
G technology is coming to age, at
internet speed, a performance that has helped
almost 30 percent in May, according to GfK.
least as far as devices are concerned.
employees to work from home just like they
The smartphone has a quadruple camera and
5G tenders are yet to be held in
would in the office. To maintain high perfor-
a SoC (system on chip) Kirin 820 5G by 7 nm
many countries, including Romania, so mo-
mance, Romania will need to have a good 5G
and comes with a 6.5-inch Full View screen.
bile operators have not started major invest-
network as soon as possible. Hopefully, the
ments in new networks, but the consumer
5G tender will be held soon and result in no
Google’s system and services. It is not an is-
market is getting ready to tap into 5G speeds
restrictions regarding equipment manufactur-
sue for Chinese customers, but for the US and
whenever they are ready. The COVID-19
ers so that operators won’t need to pay more
Europe, Huawei’s two other main markets, it
pandemic has already forced people and
for the new technology. Worldwide, smart-
may be. According to analysts, Huawei may
companies to use their smartphones more, for
phone sales slowed in the second quarter of
lose its top spot among manufacturers in the
both voice and data. The average increase in
the year, by 27 percent, while the forecast for
coming quarters if western economies recover
data traffic during lockdown was 30 percent
the whole of 2020 is a decrease of almost 12
and people start buying phones again, as it is
on fixed and mobile connections.
percent. However, China’s market has shown
forecasted that Samsung and Apple will get a
great resilience, keeping its sales up, a result
boost in sales.
Romania ranked seventh in the world for
Huawei’s problem is its lack of access to
www.business-review.eu Business Review | August May 2016 2020
COVER TECHNOLOGY STORY 33 14
Huawei P40 lite 5G Space Silver
NEW DEVICES FROM TOP MANUFACTURERS
quarter grew by 36
In early August, Samsung launched the
percent year-on-
new Galaxy Note line, keeping its high-end
year (YoY), so the
business phones updated. Both the Note 20
company went to
and the Note 20 Ultra come with default 5G
second place with a
connections. As Apple has yet to launch a
market share of 25
5G phone (expected sometime in the fall of
percent. Samsung
2020), Samsung managed to be the best seller
stayed in first place
of 5G phones with last year’s line-up, but
(27 percent market
didn’t keep up in the second quarter due to
share) and Huawei
the COVID-19 pandemic.
came in third (23 percent). In terms of the
CHINA IS THE BEST MARKET FOR 5G
entire European continent, Samsung again
In the second quarter of 2020, smartphone
range phone A71 5G in April, followed by
comes out on top (30 percent market share),
sales in China declined by 17 percent YoY,
the A51 5G in June. The Galaxy A series is
followed by Apple (21 percent) and Xiaomi (17
according to Counterpoint Market Pulse. But
Samsung’s mid-range line and it makes up
percent, after a 65 percent YoY growth).
compared to the first quarter or the year,
for most of the firm’s sales. Introducing 5G
Xiaomi has had affordable 5G phones
The Korean producer launched the mid-
when China was worst hit by the COVID-19
was a natural move for Samsung as it tries
since 2019. The Mi MIX 3, with 128GB of stor-
pandemic, Q2 sales went up by 9 percent,
to keep sales up and take back the no. 1 spot
age, 6GB of RAM and a 5G connection can be
showing signs of recovery. The interesting
in the world. The A51 5G is the cheapest, at
bought at RON 1,700, while the Xiaomi Mi 10
fact is that 1 in 3 phones in China is a 5G de-
around RON 1,900, while the A71 5G, the top
Lite, with the same configuration but with a
vice, thanks to manufacturers and operators’
product in the Galaxy A series, has a price tag
later launch, can be bought for less than RON
efforts to promote 5G technology. China has
of around RON 2,400.
1,700.
the highest adoption of 5G technology in the
Total sales of 5G phones in 2020 as pre-
Motorola by Lenovo is also in the 5G af-
world today.
dicted by Gartner should reach 221 million
fordable phones range. Moto G 5G, launched
units, which will account for 12 percent of
in July, is priced at RON 1,800. At the launch,
sold in Q2 had 5G capabilities, compared to
overall mobile phone sales, a total of 1.57
Motorola officials announced that they
just 16 percent in the first quarter. And 5G
billion devices globally. The Gartner forecast,
wanted to keep offering affordable phones to
smartphones are still priced in the mid-to-
published at the beginning of the year, also
everybody, so the launch of the 5G phone is
high price range, starting at USD 400, but
predicts that 5G phone sales will double in
in line with that statement.
it looks like the market is quickly moving
2021.
In the last couple of years, Motorola has
According to data, 33 percent of all phones
towards lower-tier price tags. High-end
launched several low-cost phones (around
5G smartphones are predominantly from
Xiaomi is still climbing. In Central and East-
EUR 200 or less) with good performance and
Huawei, while OPPO, Xiaomi, and Vivo cover
ern Europe, Xiaomi shipments in the second
quality cameras.
most of the mid-range segment.
Among top phone sellers in Europe,
www.business-review.eu Business Review | August 2020
www.business-review.eu
34 ARTReview | May 2016 Business
COVER STORY 14
What’s next for contemporary art? With the pandemic crisis still raging, with more and more cases every day, a legitimate question is raised: how is contemporary art going to survive these times? By Oana Vasiliu were spent on arts despite the looming finanPhoto: MNAC
cial crisis, and the Artmark report highlights some aspects of these acquisitions: the market grows organically and people wait, bid, Dont’s miss: Radu Comsa’s exhibition from MNAC
G
and buy; during the lockdown, people had more time to invest in research before bidding on art pieces they were interested in, while
alleries, museums, and artists are
platform for online art talks called Exhibition
art collectors have learned some business
struggling to invite the public to
Continues. Superfinite, H’art, Gaep, Mobius,
lessons and wanted to have their money in-
consume contemporary arts, as a
Sector 1, Anca Poterasu, Plan B, Possible
vested in safe assets, and art has been proven
source of relief in this confusing period. The
Gallery, Sabot, Jecza Gallery, Sandwich were
to be a safe investment.
good news is that museums and galleries
all online, communicating with the public
are mostly empty, so they are safe places to
through their artists. Still, with international
spend some time. The bad news is that this
art fairs cancelled or moved online, Romanian
INTERNATIONAL BRAND PARTNERS WITH ROMANIAN AUCTION HOUSE
sector still needs help.
contemporary art is going through hard times.
There is growing interest in Romanian arts
The decision to open museums and gal-
and heritage, and it’s endorsed by interna-
HELPING HANDS: AUCTION HOUSES
tional partnerships, as the one announced
of hate speech on social media, mostly from
Recently, the Artmark auction house
between Artmark Historical Estate and
people who do not currently enjoy or attend
launched its Art Market Report for 2020-2021
Sotheby’s International Realty Affiliate, pro-
Romanian arts. Yet, after two months of lock-
in the pandemic crisis context. According
viding the international public with access to
down, there were people who did go out to
to the report, the last ten years saw the art
the luxury, historical, and artistic real estate
enjoy this type of entertainment. The “flood”
market grow by 22 percent on average per
of visitors didn’t last long, but it was quite
year, until the end of 2019, through auctions
relieving to go out and enjoy some moments
from Artmark, Alis, Goldart, Lavacow, and
of escaping reality through art. The same de-
Quadro. In 2019, two new auction houses
mand for arts was observed all over the world
were opened: Historic, which organized 8
when top museums reopened for the public.
book auctions, and Vikart, which states that
While nobody knows yet how affected
its activity is focused on contemporary art
the Romanian cultural sector is, the Culture
and organised its first auction in December
Ministry is trying to help, offering money
2019. Although the biggest purchases were
for contemporary art acquisitions through
dedicated to classic Romanian painters like
the National Museum of Contemporary
Nicolae Grigorescu and Stefan Luchian, the
Arts (MNAC). An extra RON 2 million was
report also shows increased interest in con-
approved for MNAC’s budget to acquire
temporary arts, from 23.2 percent in 2018 to
Romanian contemporary art, following an
29.6 percent in 2019.
acquisition procedure through an art expert
Photo: MARe
leries after May 15 generated huge amounts
With the pandemic striking in Romania
commission. When the pandemic happened,
at the beginning of March 2020, auctions
a series of Romanian galleries changed their
continued to take place online. Artmark, Alis,
focus, leading to an interesting move on
and Quadro placed their art lots online and
social media: an attempt to have a single
bidding began soon after. Impressive amounts
Controlling contemporary art
www.business-review.eu Business Review | August 2020
ART 35
Photo: Artmark
Photo: Art Safari
Art Safari complete program for 2020
Art nowadays Photo: Artmark
Photo: Artmark
inviting art lovers to several spaces: the Museum Pavilion invites the public to rediscover the work of Gheorghe Petrascu, one of the biggest masters of Romanian painting, the Central Pavilion (Bucharest School) brings contemporary art from the ’90s and onwards, the International Pavillion premieres the rebellious art of the anonymous feminist group Guerrilla Girls, while the Sabin Balasa exhibition celebrates a contemporary painter who is famous for his shades of blue and fairy tale-like characters. Meanwhile, Art Safari
Dream big: Sotheby’s presence may help out the local market
Auctions still take place
Kids and the Children’s Pavilion will host artworks made by little ones during lock-
market in Romania. Luxurious penthouses,
(maybe first of all) professionally. This exhibi-
down, the Guest Country section is dedicated
historical and contemporary villas, design
tion season combines all the trends our Mu-
to Israel and represented by contemporary
buildings, castles, palaces, and manors that
seum aims to cover: retrospectives of the ‘80s
artist Gili Avissar, and the Night Tours visiting
qualify as landmarks in the Historical Monu-
(Petru Lucaci), mid-generation installations
experience includes a guided tour of the exhi-
ments Registry are currently on sale on this
in the emblematic Marble Hall (Radu Comsa),
bitions, live performances, and music.
online platform. Perhaps Romanian contem-
retrospective recoveries of remarkable artists
porary art will follow the same path, with
from the ‘70s (Iulian Mereuta), international
creators and designers, has also announced
more artists besides Adrian Ghenie being
collaborations (Filip Markiewicz),” said Calin
its 2020 edition, to take place in October. With
present in famous international auctions.
Dan, the director of MNAC Bucharest.
a focus on fine arts, architecture, and design,
OPEN INVITATIONS FOR ARTS AND MORE: MNAC, MNAR AND MARE MUSEUM
MNAR, also opened its beautiful garden to
and industry professionals for a 10-day series
the arts, not just its galleries: the Nottara
of events and an open exhibition, which high-
MNAC reopened recently with a series of
Theatre and the Ion Dacial National Theatre
lights the best graduation projects around the
outdoor live performances and indoor exhibi-
of Operetta and Musicals are hosting live
country, showing off an eclectic selection of
tions, following the lifting of quarantine
outdoor performances there for less than 200
arts, design, and architecture projects.
restrictions, with a new exhibition season
attendees. MARe, The Museum of Recent Art,
under the theme “Art as a Social Binder”.
continues its temporary exhibitions, as well
have managed to restructure themselves for
“The new season at MNAC Bucharest is an
as the museum collection, also offering other
outdoor performances based on COVID-19
unusual one. The museum’s condition is un-
types of art, such as live dancing. The lovely
restrictions and regulations, indoor contem-
der scrutiny, as is the condition of humanity.
outdoor terrace is also a great place.
porary arts are still waiting for visitors and
The National Museum of Romanian Art,
Diploma Festival, the art festival for young
this festival brings together emerging talent
While theatre, film, and live performances
a plan to save themselves, but a handful of
A biological accident forces us – through its unpredictable and stingy character – to reas-
WELL-ESTABLISHED ART EVENTS STILL ON
initiatives won’t be able to cover the entire
sess what we are and what we do, including
Art Safari continues its series this September,
contemporary art scene.
www.business-review.eu Business Review | August 2020
www.business-review.eu
36 TOURISM Business Review | May 2016
COVER STORY 14
Romania’s version of a staycation: Resizing the tourism business Tourism has been one of the most affected industries during this recent period, with huge financial problems and the inability to return the money to those who had booked holidays in advance. While we don’t know how the virus will evolve, everyone is suggesting that we stay local and embrace our country’s beauty, a concept known as a staycation. Where to, then?
All photos: Visit Covasna Initiative
By Oana Vasiliu
Try local accommodation to real escape from the hustle and bustle of the city life
T
he term staycation was added to the
but also charge landlords high fees, there’s a
in complete lockdown, the Romanian
2009 version of the Merriam–Web-
local online platform that is getting more and
platformed managed to gather 70 accom-
ster’s Collegiate Dictionary and is
more hits: Travlocals.
modation units from all over Romania, 700
a portmanteau of “stay” and “vacation”,
“I started travelling around the country
customer accounts and over 800 bookings,
meaning a period in which an individual or
and discovered beautiful places and hidden
with 10 percent fully booked accommodation.
family stays at home and takes part in leisure
gems that many people have no idea even
Where to? “People seem to have a preference
activities which are within driving distance of
exist, so I decided that it would be nice to
for Transylvania and I believe that is because
the home, and further developed as a holiday
create a sort of aggregator with all of the nice
it’s an area that combines a varied natural
spent in one’s home country rather than
and genuine accommodations and experi-
landscapes with both tourist cities and au-
abroad. Nearcation, holistay or daycation
ences that can be found in Romania. I started
thentic villages, as well as lots of history and
may also be used with the same meaning.
out with Wildventure in 2018, which only
tradition. Most of the accommodations on
provided ideas to those looking for an escape,
our platform are there, but we also have some
and because it was a success, I took the next
very beautiful places close to the seaside and
step and developed Travlocals at the end of
the Danube Delta, in the Apuseni Mountains
2019,” says founder Radu Fusea.
or in Bucovina, each unique and charming in
TRAVLOCALS: THE ONLINE PLATFORM PROVIDING PREMIUM ACCOMMODATION ACROSS ROMANIA While Booking and Airbnb are hugely popular
In just six months, of which three were
its own way. Going beyond location, our visi-
www.business-review.eu Business Review | August 2020
tors like rural experiences but they also appreciate modern amenities, and that’s why modern chalets and glampings are some of the most sought-after places. There is a special place for tree houses as well, either for families with kids or simply for the inner children who have always dreamed of one,” Radu Fusea tells Business Review.
THE VISIT COVASNA INITIATIVE The Covasna County Association for Tourism Development has launched a campaign to relaunch and normalise tourism through the “Visit Covasna Safe Place” programme, which grants hotels and guesthouses in Covasna County a “COVID Safe Place” certification. So far, over 60 properties in Covasna County have been marked safe, and they are all listed on visitcovasna.com. Among the additional security measures which have been proposed to accommodation units in Covasna County who wish to obtain the safety certificate are: partial use of occupancy capacity, online check-in forms, placement of disinfectant mats and hand sanitizer dispensers, measuring body temperature on arrival or upon entry into the wellness areas, wearing masks and gloves, frequent disinfection of common areas, ventilation at short intervals, allowing meals to be served in room service mode and enforcing the 1.5-metre recommended social
TOURISM 37
Accommodation in Romania*
8,402 353,800 2,821 1,709
TOURISM STRUCTURES
ACCOMMODATION PLACES
AGRO-TOURISM GUESTHOUSES
GUESTHOUSES
*SOURCE: NATIONAL INSTITUTE OF STATISTICS, 2019
distance.
Cozy interior to enjoy family meals
Traditional interior design to make you feel comfortable
Meet the locals
Enjoy local handcraft activities
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38 CITY Business Review | May 2016
COVER STORY 14
Cultural calendar
By Oana Vasiliu
September 3-6, Peasant Museum, Elvira Popesco outdoor cinema, Linotip and CNDB
The sixth edition of the BuchaThe courtyard of the Peasant Museum has become open air cinema for niche film festivals
rest International Dance Film Festival (BIDFF) will include
Undercloud Theatre Festival August 11-18, Peasant Museum
One World Film Festival August 21-30, Verde Stop Arena, Peasant Museum, Cinema Elvira Popesco, Contego - The Coffee Factory
meet the festival’s special guests
three competitive sections dedi-
there every day over coffee.
cated to short dance films – the international competition and
Bucharest International Film Festival August 27 - September 3, Peasant Museum and Children’s Comic Opera
the Romanian competition – and music films, along with dance film workshops, conferences, and other surprises for filmgoers. The theme of this edition is Utopia/Dystopia. “EMA,” directed by Pablo Larrain, will run at the beginning of the festival, on September 3, at Elvire Popesco.
At the core of this new edition is the Man without a clear identity in the eyes of the majority,
CINEVARA Every Thursday, Fundatia9
neither rural nor urban – in short,
Fundatia9 announces the second
the foreigner, the minority, the
edition of CINEVARA, the out-
margin, the periphery; every-
door film screenings series that
Independent theatre festival Un-
thing that is not included in
will take place until September 3,
dercloud will take place outdoors
the majority. Depending on the
in the garden of the BRD Scena9
this year. In the #BestOf section,
context, it can be a Roma, as well
the public will get to see a selec-
as a homosexual, a poor person,
The 16th edition of the Bucha-
borhood (32 I.L. Caragiale Street).
tion of the most popular per-
a refugee or an immigrant. The
rest International Film Festival
This year’s edition is a very spe-
formances awarded at previous
films in the main competition –
will feature eight films in the
cial one, carried out in partner-
editions of the festival. The event
which will provide a panoramic
competition section and 10 other
ship with the Film Foundation,
programme will also include a
view of contemporary documen-
prize-winning films, awarded in
an organisation founded by fa-
series of reading performances,
tary cinema in its most formally
Berlin, Cannes, and Venice. Films
mous director Martin Scorsese to
an online section dedicated to
and conceptually ambitious form
for children (5-16 years old) will
recover and preserve the world’s
productions created by indepen-
and will be evaluated for the first
also be screened, and the section
film heritage. For the second
dent artists during the pandemic,
time by a jury that includes Ro-
will also include other filmmak-
year in a row, the CINEVARA film
and a section for children, with
manian and international profes-
ing education activities. South
selection is signed by Richard
workshops and shows created by
sionals – will be screened every
Korean cinema will get a special
Peña, a professor at the Columbia
actor Marian Ralea. Tickets for
night at Contego - The Coffee
section in the festival.
University School of the Arts and
the #BestOf section can be pur-
Factory. This location will also be
chased online from Eventbook or
the nucleus of the 13th edition of
MyStage.
the festival, and we’ll be able to
Residence in the Icoanei neigh-
a former programme director at
Bucharest International Dance Film Festival
the Lincoln Center Film Society in New York, US.