October, 2018 / Volume 22, Issue 9
www.business-review.eu
INDUSTRIAL AND LOGISTICS: LOOKING TO THE 4 MILLION SQM THRESHOLD
10
PLAYERS QUESTION WASTE INDUSTRY’S READINESS FOR NEW TARGETS
32
HOW A START-UP CAN ATTRACT AND RETAIN ITS TALENTS
34
LOCAL START-UPS BEGIN TO RIDE THE CRYPTO TREND
36
Photo: Dreamstime
Two decades of the new Romania
www.business-review.eu Business Review | October 2018
EDITORIAL 3 REAL ESTATE
• Editorial •
Anda Sebesi
6 Bucharest office market: four top executives share their take
• Deputy Editor-in-Chief •
10 Looking to the 4 million sqm threshold
COVER STORY
W
Eyes wide open to the future
12 Twenty-twenty vision: two decades of the new Romania
hen multinational companies made their entrance on the local market they generated a major change in their sectors. They came with a well-established corporate
culture and a clear set of values and missions which, in time, had a
SUSTAINABILITY
significant positive impact on the entire economy.
30 Biodeck: nothing is lost and
In the last 20 years Romania has witnessed not only economic development as a result of the emergence and growth of sectors
everything is reused
32 Rubbish laws: players ques-
such as automotive, real estate, retail, energy and banking, but a significant change in the mindset of the local workforce. Dur-
tion waste industry’s readiness for new targets
ing the past two decades, Romanian jobseekers of all ages have reshaped the local workforce and made companies rethink their HR policies according to their expectations. Once the younger
MARKETING AND COMMUNICATION
generations of employees emerged, they forced bosses to take a different approach to them, as they built their careers according to their specific sets of values.
38 Crisis communication man-
This period has marked a profound change in the behaviour
agement still in its infancy
of Romanian consumers too. The entrance of international retail
40 Experiential marketing jumps
chains along with increased access to a large number of retail for-
on technological bandwagon
mats has refashioned the Romanian shopper’s behaviour. Last but not least, technology has had an increasing impact
CITY
in Romania during this time – from the wide range of gadgets to which Romanians have access, to lenders which have constantly invested in technology to improve banking infrastructure and
42 Brewing business: the
the security of customers’ finances, and the still embryonic IoT
specialty coffee trade in Bucharest
concept.
44 Getting cross: wrong-
Yet Romania still lags behind its European peers in many sectors, which means we should keep our eyes wide open to the
headed referendum tries to drag Romania backwards
future as we embark on the next 20 years.
46 Cultural calendar
FOUNDING EDITOR: Bill Avery EDITOR-IN-CHIEF: Ioana Erdei DEPUTY EDITORS-IN-CHIEF: Sorin Melenciuc, Anda Sebesi JOURNALISTS: Anca Alexe, Aurel Dragan, Georgeta Gheorghe, Romanita Oprea, Oana Vasiliu CONTRIBUTOR: Ovidiu Posirca COPY EDITOR: Debbie Stowe PHOTO EDITOR: Mihai Constantineanu ART DIRECTOR: Raluca Piscu PUBLISHER: Bloc-Notes Media Network ADDRESS: 58 Stirbei Voda Street, 3rd Floor, District 1, Bucharest, Romania LANDLINE: 031.040.09.31 EXECUTIVE DIRECTOR: George Moise BUSINESS DEVELOPMENT DIRECTOR: Oana Molodoi SALES DIRECTOR: Ana-Maria Nedelcu SALES MANAGER: Alexandra Rosca EVENTS DIRECTOR: Alina Moldovan EVENTS MANAGER: Mara Dragoiu MARKETING: Eugenia Pupeza PRODUCTION: Dan Mitroi DISTRIBUTION: Eugen Musat EMAILS: editorial@business-review.ro, sales@business-review.ro, events@business-review.ro
Publicație auditată pe perioada Apr 2015 - Mar 2016
ISSN NO. 1453-729X
www.business-review.eu Business Review | October 2018
4 NEWS
WHO’S NEWS
the US is considering infrastructure projects, defense,
BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at anca.alexe@business-review.ro
technology and digitization; in other words, we support this initiative. American investments in this region amount to USD 26 billion and are steadily increasing, so we are following with interest the developments in your region,” Richard Morningstar, founding director
Vanya Panayotova will become L’Oreal Romania’s country general manager in January 2019. She was nominated for the position after Gilles Antoine took on a new role within the group. Panayotova has 20 years of successful FMCG experience and an impressive career in leading international companies and large entrepreneurial businesses. In Romania, she has held two different positions in the past: general manager of Orbico Romania and market strategy & planning sector manager at Procter & Gamble.
of Global Energy Center, told participants at the summit. US Energy secretary Rick Perry argues that energy security is vital to the national security of each state
US, EU urge eastern bloc to focus on energy, trade
The Austrian president even claimed in Bucharest that Nord Stream 2, aiming to supply avoiding Poland and the three
US and EU representatives
national security of each state,
Baltic states, is strengthening
have used a Bucharest summit
and that energy should never be
gas security.
to urge leaders of the 12 mem-
used as a means of intimidation
ber states of the Three Seas
or as a threat to national security.
Initiative (3SI) to focus more on
He mentioned Russia’s aggres-
In energy, several countries, including Romania, are trying to become regional hubs and
energy security, trade coopera-
sive attitude as the leading sup-
jeopardize the chances of their
tion and investment to sustain
plier in Europe and announced
rivals.
development, amid concerns
the launch of the Partnership for
over rule of law in the region.
Transatlantic Energy Coopera-
to be a regional energy plat-
tion.
form that contributes to both
in the 3SI Bucharest Summit
page 5
approach to energy security.
Germany with Russian gas by
By Sorin Melenciuc
One of the main participants
Calin Clej is the new marketing director of Huawei Consumer Business Group Romania, the local subsidiary of the second largest smartphone maker in the world. Clej has over 17 years of experience in strategic marketing, branding and brand consolidation. He previously held a regional leadership role at PepsiCo. In his new position, Clej will be responsible for developing the brand’s global leadership vision and marketing strategies, as well as adapting the marketing team’s capabilities to develop and manage a marketing mix centered on the end-user’s local profile.
But some European participants take a different
In order to make them more
“Romania has the potential
regional and European energy
was the US Energy secretary
cooperative, the US promised its
security,” Romania’s Klaus
Rick Perry, who argued that
allies in the region investment
Iohannis said in a speech at the
energy security is vital to the
and security. “I assure you that
Bucharest summit.
Wages up by 46 pct over 10 years, outstripping productivity growth By Sorin Melenciuc Real wages in Romania rose
economist Valentin Lazea said
by 45.7 percent between 2008
recently.
The economist pointed out that another key-indicator, the
and 2017, while productivity
“For the 2008-2017 period,
unit labor cost (ULC) – wages
increased by only 27 percent.
real net wages increased by 45.7
seen from the employer’s per-
However, the wage cost burden
percent, and productivity by 27
spective – increased by only 14.7
on employers is acceptable
percent, so real net wages grew
percent during the same period,
due to lower taxes, National
much faster than productivity,”
due to lower taxes on wages.
Bank of Romania (BNR) chief
Lazea said, quoted by Mediafax.
Lazea forecasts that pay
www.business-review.eu Business Review | October 2018
NEWS 5
The new funding round comes six months after the company raised USD 153 mln from Accel, Capital G and KP
UiPath hits USD 3 bln valuation after receiving USD 225 mln from Sequoia Capital and CapitalG By Georgeta Gheorghe UiPath, Romania’s first IT
raised USD 153 million from Ac-
leader in The Forrester Wave™:
unicorn, has tripled its value in
cel, Capital G and KP, and saw its
Robotic Process Automation, Q2
six months after receiving USD
valuation shoot to USD 1 billion,
2018 report, its website reports.
225 million in a new funding
achieving unicorn status. So far,
The company, which has offices
round from Sequoia Capital
it has received USD 400 million
in over 15 countries, received
and Google’s CapitalG, the WSJ
in funding. “After years toil-
the highest score among all
reports. The Robotic Process
ing in obscurity, three start-ups
vendors in the current offering
Automation (RPA) software
have suddenly hit the jackpot
category. Forrester gave UiPath
provider, currently a market
in a corner of the enterprise-
the highest possible score in
leader, began as a Bucharest-
software market sprinkled with
the “Market Presence” category
based start-up founded by
artificial intelligence,” the WSJ
and one of the highest scores
a team of ten led by Daniel
wrote about UiPath Inc., Blue
in the “Strategy” category.
Dines, the company’s CEO, and
Prism Group PLC and Automa-
The RPA provider also scored
Marius Tirca (CTO). The new
tion Anywhere Inc. “Now they
highest in the criteria of Bot
funding round, led by Sequoia
are racing to one-up each other to
development/core UI/desktop
Capital and Capital G, comes
appear the market leader.” UiPath
functions, architecture, system
six months after the company
has recently been recognized as a
management and reporting.
in Romania will continue to increase as a consequence of high migration rates, a skilled workforce shortage and rising wages in the public sector. Romania’s average net monthly earnings growth rate eased to 13.3 percent year-on-year in July, the slowest pace since February, according to National Institute of Statistics (INS) data. Average net monthly earnings declined by 0.5 percent monthto-month, from RON 2,721 (EUR Valentin Lazea, BNR chief economist says that real net wages grew much faster than productivity
584) in June – a record high – to RON 2,708 (EUR 582) in July.
Mihaela Popa is the new interim general manager of CEC Bank, appointed by the Finance Ministry until the position is taken over by a permanent CEO – a newly-established role within the bank. Popa has over 30 years of experience in banking, and joined CEC’s management team as VP of the corporate division in September 2007, after having served as sales director of the Bucharest branch. She started her career in 1978 at the Romanian Foreign Trade Bank.
Alina Cazacu is the new head of marketing at Elefant.ro, one of the biggest e-commerce players on the local market. She previously held positions at Telekom and broadcaster ProTV. In these roles, she developed and launched several online projects, including a video platform. Before joining Elefant. ro, she set up her own digital marketing company.
Liviu Tudor was elected president of the European Property Federation, which advises all EU institutions on the development of real estate-related public policy. He is also the CEO of Genesis Property and the president of the Romanian Association of Building Owners. Tudor, who created an organized structure to represent owners and investors in the Romanian real estate sector and later brought it into the EPF, will take over at a time of consolidation and expansion of the EU in South-Eastern Europe.
www.business-review.eu Business Review | October 2018
6 REAL ESTATE
Bucharest office market: four top executives share their take There is around 2.7 million sqm of modern office space in Bucharest these days and the figure might reach the 3 million sqm milestone by the end of the year. The market recorded one important transaction in the first half of the year, and another in August, together worth close to EUR 400 million, and new leasing contracts are announced every week. That is what we see. Four of the most high-ranking executives in the industry share the view from the inside. By Razvan Zamfir
Fulga Dinu, Immofinanz
L
Ema Iftimie, Globalworth Real Estate
iviu Tudor, president of Genesis
will be making high-volume deliveries, as we
and Unirii View office buildings, both located
Development; Ema Iftimie, head of
generally speak of multi-phase projects lo-
in the Unirii area, will seek the attention of
leasing at Globalworth Real Estate;
cated on the Ring 1 subway ring,” says Mirela
large companies due to their easy access
Fulga Dinu, country manager at Immofinanz;
Raicu, corporate officer division of ESOP
and large number of urban amenities. In the
and Emma Toma, leasing manager of AFI
Consulting l CORFAC International.
center-north area, a single building is due this
Europe told BR how the office market is mov-
And the market is preparing itself for new
year, Globalworth Campus - Building B.
ing and what we can expect from the sector
arrivals. First is Campus 6.1, the first building
and from their companies through to the end
in Skanska’s Campus 6 project, right next to
Boulevard area, will have the first offices
of the year.
the Polytechnic University of Bucharest and
available from 2019, when the first two class
The newest office area, in the Expozitiei
which has future tenants such as NXP, the
A office buildings are expected to be delivered
THE STATE OF THE OFFICE MARKET
London Stock Exchange Group, Superhippo
to the Expo Business Park project developed
“This year, the office space supply will grow
and Regus. Another project in the center-west
by Portland Trust, the company that sold Or-
by 55 percent over last year, and 2019 will see
area that will deliver new space soon is AFI
egon Park complex to Lion’s Head Investment
a further 69 percent increase in the stock of
Tech Park, with a total of 22,000 sqm ready
in S1 for around EUR 180 million.
space delivered. Most office buildings will be
in 2018. Among the tenants are World Class,
delivered in the center-west area, where this
Knauf, Hilti and Game World Group.
year’s largest volume of pre-rentals came. We
Also by the end of this year, the Day Tower
A competitor in the Expozitiei area is GTC’s City Rose Park, which will deliver the first office space since 2010. In total, 94,000 sqm of
www.business-review.eu Business Review | October May 20162018
COVER REALSTORY ESTATE14 7
FULGA DINU, IMMOFINANZ Immofinanz is one of the largest players in the office space market in Bucharest and owns nine income-generating office properties with a total lettable area of 190,000 sqm. The main assets in the office field include Iride Business Park, myhive Metroffice, myhive S-Park, Victoria Park, Baneasa Airport Tower, Global Business Center. We continue to invest in our international myhive concept in Romania, which is well received by our tenants. The three myhive buildings in Bucharest are S-Park myhive, Metroffice myhive and myride Iride Tower with a total surface of 65,000 sqm. At present, we are not developing any new office building, but depending on the market’s evolution, we have the land to do so. Liviu Tudor, Genesis Development
Both in Romania and abroad, offices have become more than simple workplaces. They are now platforms where companies can
office space will be built in the area. Together with the sale of Oregon Park, in August,
class business park in the center of Bucharest. In the next 18-24 months, AFI Europe Ro-
express their values, promote organizational culture and tell their story. Owners who
Forte Partners and Dedeman signed the most
mania is planning to start the second phase of
understand this change of mindset among
expensive transaction of the last ten years (in
AFI Tech Park, meaning an additional 22,000
tenants and have the flexibility to translate it
2008 Deutsche Bank fund RREEF acquired
sqm of GLA, spread on eight floors with office
into personalized office space will be one step
Upground office and residential project from
space and encompassing around 2,000 sqm
ahead in the market. For Immofinanz, this
Ioannis Papalekas for EUR 340 million, but
of retail space on the ground floor.
perspective is defining and through the inter-
the crisis blocked the transaction). An invest-
Planned to be completed in Q1 2020, in an
ment fund of the DIY retailer took over The
ultra-central location in Brasov, our company
Bridge offices for EUR 200 million.
has started to develop AFI Park Brasov, an of-
national myhive office brand we are looking to answer the needs of our tenants.
fice project including 25,000 sqm GLA Class A
EMA IFTIMIE, GLOBALWORTH
EXECUTIVE VIEWS ON THE OFFICE MARKET
Business Park, on top and integrated into AFI
The Globalworth portfolio includes, in the
BR asked the four executives the same
Brasov shopping mall that will offer 45,000
Romania and Poland office, industrial and
questions, regarding the office stock their
sqm leasable area and a mix of tenants. Two
mixed-purpose properties with a total letta-
company owns, the evolution of the stock in
Class A office buildings are planned to be de-
ble area of approximately 950,000 sqm, with
the next 18 to 24 months, the situation and
veloped in two phases: Phase A: 15,000 sqm
a value of about EUR 2 billion. In Romania,
evolution of the Romanian and Bucharest
GLA and Phase B: 10,000 sqm GLA, designed
our buildings offer over 570,000 sqm, and in
office market and, finally, the main visible dif-
to answer the expanding needs of IT&C and
Poland we have reached a portfolio of over
ferences between the Romanian market and
multinational companies in Romania by
375,000 sqm in less than a year, becoming the
neighboring countries.
offering a suitable space in terms of techni-
largest investor in the Polish office market.
cal specifications accompanied by required
EMMA TOMA, AFI EUROPE AFI Europe Romania has a track record of
expansion options. Romania has a constantly developing of-
In the coming period, we will continue to focus on identifying new opportunities that will enable us to consolidate our position and
developing office projects of approximately
fice market with healthy indicators (supply,
expand our portfolio both on the Romanian
250,000 sqm GLA.
demand, vacancy) and high quality office
market and on the Polish market.
After the success of AFI Park – 100 percent leased, a 70,000 sqm GLA hub for IT&C mul-
stock. Regionally we have now for a number of
Currently, the third office building in Globalworth Campus, Tower 3 (35,000 sqm)
tinational companies, located near AFI Co-
years managed to attract large and important
in Bucharest is under construction and we
troceni, a project voted several times among
international players who have set up their
will start work on a new phase of expansion
the overall best designed office buildings in
offices and have since continued to expand in
of the TAP platform in Timisoara, which will
Romania – AFI Europe Romania is currently
Romania, due to our high quality workforce
offer approximately 20,000 sqm, which we
developing AFI Tech Park, a 56,000 sqm A
as well as office stock tailored to their needs.
will deliver in Q1 2019. Moreover, this year
www.business-review.eu Business Review | October 2018
8 REAL ESTATE
we want to start developing two new office buildings in the Barbu Vacarescu area, Globalworth Square and the fourth building of the Globalworth Green Court. Romania is an increasingly attractive destination for real estate investments, and this is evidenced by the evolution of the total volume of investments in the second half of 2017, when it was 24 percent higher than in 2016 and the second largest volume in 2008. Data for the first half of 2018 show that demand for office space remains high in Bucharest. In addition, the vacancy rate of only 8.4 percent demonstrates the need on the market for several office projects in the capital. These data give us every reason to believe that the ascendant trend of the local real estate market will be maintained at least Emma Toma, AFI Europe
until the end of this year. According to market estimates, over 900,000 sqm of new office space will be de-
In the next 18-24 months, we plan to
terrace and treadmill, free Wi-Fi and relaxation in Novo Park.
livered in Bucharest over the next three years,
invest in the new facilities area: finishing
including around 185,000 sqm to be delivered
the outdoor pool in West Gate, parking on
this year and 350,000 sqm next year. So,
the Park & Go in the Precizia area, introduc-
with a series of contract extensions for peri-
given the high demand for workspaces, we
ing a bike-sharing system in both parks and
ods of five to eight years (eg PPD Romania,
expect the number of transactions and rents
improving exterior relaxation areas.
Alpha Bank, HP, Luxoft), some together with
to grow at the same pace.
Our efforts are designed from the perspec-
And for us, the last two years have come
office or office extension – Siemens or Societe General European Business Services.
Compared to the other markets in the
tive of the continuous improvement of em-
region, including Poland, in Romania the
ployee experience. The presence of modern
availability of high quality projects is still
and varied facilities is increasing in impor-
rest will enter an area of easy stabilization.
relatively low, but the forecasts for the next
tance in choosing an office space or a job.
New poles (eg the Orchid or Exhibition area)
We believe that the office market in Bucha-
period are optimistic. First of all, if we look
The Romanian office market remains
will probably attract important investments.
at funding issues, we will see that terms and
highly attractive for multinationals and will
But here, unfortunately, we are talking about
conditions have improved considerably over
influence the development of office space
relocations and not new tenants.
the past few years, approaching what inves-
and new buildings. They will also start look-
tors could now find only in the main markets
ing at other major cities in the country (such
12 years ago, with the development of the
of Central and Eastern Europe. In addition,
as Cluj, Timisoara and Iasi), but there is an
West Gate project, the city needs to develop
the demand for easily accessible, energy-
even greater problem of finding a skilled labor
in the south or east. Only then will we be able
efficient Class A office buildings that provide
force than in the capital.
to reduce the pressure exerted on the capital’s
easy access to public and private facilities
This trend is already seen if we look at
As we created the western pole, more than
existing infrastructure. An upward trend will be the development
and provide high-quality work spaces to their
these cities, where real estate activity in the
tenants together with other facilities, is in-
office segment has started to accelerate in the
of co-working spaces. They are successful
creasing and thus contributes to maintaining
past six months to a year.
internationally, because they manage to meet
stable rents and a high occupancy rate.
But in order to maintain a healthy market,
the demands of the new generation, which
it is important that office development ad-
wants non-traditional offices connected
LIVIU TUDOR, GENESIS DEVELOPMENT
vances organically, with new tenants, not just
through technology and community needs.
Genesis Property has developed the West
from the relocations of multinationals.
Lately we have seen the rise of various Euro-
Gate and Novo Park office parks, totaling
People want to be given an experience,
pean brands. Noteworthy, however, is that
approximately 150,000 sqm of Class A office
to have access to community activities, be
the absolute global leader of the co-working
space. Genesis Property is also the devel-
connected both in the digital world and in the
spaces – WeWork – is waiting.
oper of West Gate Studios, the first privately
real world. That’s why we thought of adding
And we are preparing ourselves for the
owned campus, comprising 800 studios and
new facilities: an accommodation unit in the
future – we will invest in a large project in
apartments for rent.
West Gate office park, an outdoor pool with
western Bucharest.
www.business-review.eu Business Review | October 2018
10 REAL ESTATE
Looking to the 4 million sqm threshold Romanian industrial and logistics stock has exceeded the 3 million sqm threshold, reaching 3.12 million sqm at the end of H1 2018. Almost 90 percent of the current stock is concentrated in Bucharest and in four other cities – Timisoara, Cluj-Napoca, Ploiesti and Brasov. By Razvan Zamfir
The logistics and industrial market is waiting for the 4 mln sqm milestone
A
national, the industrial and logistics
ment had an unusual start. Just when the
market in Romania had a fairly
economy was heading fast for a brick wall ten
cautious start to the year, as only a little over
years ago, the industrial market was riding
wards 16 percent in Bucharest, while the stock
100,000 sqm was delivered. For the second
high. Take Bucharest, for example, which
remained more or less unchanged for many
half of the year, approximately 450,000 sqm
saw the delivery of more than 600,000 sqm
years, until it started growing more convinc-
is due to be completed, with more than half
of modern warehouse space in 2007-2008,
ingly in 2016.
of the projects planned or under construction
increasing more than threefold (from 300,000
being located in Bucharest (54 percent).
sqm), to just under 900,000 sqm.
ccording to analysis by Colliers Inter-
Outside the capital, Timisoara, Cluj-Nap-
In fact, the industrial and logistics seg-
As with the office segment, the ultra-low
oca and Ploiesti will attract the largest volume
vacancy rates in those years probably led to
of deliveries.
an overshoot in terms of both deliveries and
demand from tenants, which proved unrealistic in the post-crisis world. Consequently, the vacancy rate shot to-
Battered and bruised after the recession, rents have started creeping up in recent years, but they can currently be a quarter lower than a decade ago. In terms of market structure, there have
www.business-review.eu Business Review | October May 20162018
COVER REAL ESTATE STORY 11 14
been some significant changes that highlight
and production companies, amid increased
the rapid expansion of third-party logistics,
demand for electronic products, cars, etc.
with logistics players and distributors now
Approximately 2.8 million sqm of the total
holding more than half of the market in terms
market stock of 3.2 million sqm is concen-
CLUJ-NAPOCA
of demand (versus 38 percent in 2007); many
trated in the five cities mentioned (Bucharest,
With a logistics and industrial surface be-
market participants now see much more
Cluj, Timisoara, Ploiesti, Brasov). We are
tween 230,000 and 330,000 sqm, the Transyl-
value in outsourcing this activity.
rapidly approaching 4 million sqm of modern
vanian capital is the third largest Romanian
industrial space in a much more mature
submarket.
A notable exception is retailers, whose
The vacancy rate is 3 percent and rents vary between EUR 3.6 and EUR 4/sqm/month.
share of take-up has decreased steadily from
market at investor level, making this segment
a decade ago, with many of the large big box
even more interesting for large developers
50,000 sqm, while supply was around 20,000
players in Romania now having developed
who are still not doing business in Romania.
sqm.
their own logistics network.
We observe a resumption of demand for new
Demand in the first half of 2018 reached
Cluj-Napoca warehouses are full, the va-
production areas after a cautious period for
cancy rate is zero, and rents oscillate between
online retailer, eMag, which is developing
both new companies and those already pres-
EUR 3.8 and EUR 4/sqm/month.
its own 600,000 sqm warehouse outside
ent on the market,” said Costin Banica, head
Bucharest. The first phase of the project cov-
of industrial at JLL Romania.
Another example is that of the largest
ers 120,000 sqm and the total investment will reach EUR 65 million. Currently, this is probably the single real estate submarket acting as dynamically as before the crisis if we look at deliveries.
PLOIESTI Even though Ploiesti is not necessarily a
ROMANIA’S MOST IMPORTANT PLAYERS AND LOGISTIC SUBMARKETS Romania has five
BUCHAREST RULES THE ROOST
important industrial
The first half of 2018 brought an interesting
and logistic submar-
shift, as Bucharest accounted for a little over
kets, which account
a third of the total compared to around half
for close to 90 per-
for the whole of 2017; in the capital, inter-
cent of 3 million sqm
est continues to be heavily geared towards
countrywide.
western and northern areas, while the various
BR collected key
cities in Transylvania nearly match the over-
data from the five
all deliveries in Bucharest. Ploiesti is also high
leader-cities with
up on the list.
Colliers International
“This dynamic is in tune with the general trend of regional cities outpacing the
and JLL real estate consultants’ support.
capital in terms of economic growth over the
strong real estate city in the other segments
medium term as migration patterns and busi-
BUCHAREST
of the market, its position close to the center
ness interest shift towards other parts of the
The capital city makes up more than half of
of the country has made it interesting for
country. In terms of developers, CTP was the
the available surface, more than 1.6 million
developers and it holds close to 300,000 sqm
biggest supplier of new storage spaces in H1 –
sqm.
of logistics and industrial space.
almost half of the total, but WDP, VGP, Alinso
In the first half of the year demand reached
Rents in the city range between EUR 3.6
Group and Transilvania Constructii also
250,000 sqm and supply close to 135,000
and EUR 3.9/sqm/month and the vacancy rate
expanded their portfolio quite significantly,”
sqm, with potential development about
is close to zero.
Laurentiu Duica, director of the industrial
300,000 sqm in existing logistic parks.
division at Colliers International, stated. And the market continues to grow, keeping
The vacancy rate is around 5 percent, and rents are above EUR 4/sqm/month.
pace in the last two or three years, driven by
BRASOV Finally, Brasov, right in the center of the country, has become interesting for logistics
the growth of consumption, even if the fig-
TIMISOARA
and industrial players in recent years and has
ures seem to be losing their power somewhat.
The second submarket by surface is Timisoara
managed to reach 180,000 sqm.
“The industrial space market has proved to be very dynamic in the past two to three
with more than 400,000 sqm. Demand in the city has reached 20,000
Demand and supply were balanced at 10,000 sqm.
years, strongly influenced by the increase
sqm and supply is around 50,000 sqm. New
in consumption. The demand came from
projects are planned, like the 175,000 sqm
and rents oscillated between EUR 3.75 and
both the logistics / distribution segment
one being prepared by Globalworth.
EUR 4/sqm/month.
The vacancy rate was, again, close to zero,
www.business-review.eu Business Review | October 2018
12 COVER STORY
Twenty-twenty vision: two decades of the new Romania By BR Team
Photo: Dreamstime
The last two decades have marked a profound change for Romania, both in terms of economic development and the business environment. The local market has taken significant steps in key sectors. Meanwhile, young generations of workers have reshaped the face of the local labour market, forcing companies to adapt their HR strategies to their expectations. For the past 20 years BR has mapped these developments. This cover story highlights some of the sectors that have undergone significant transformations and positively influenced the entire local economy.
www.business-review.eu Business Review | October 2018
COVER STORY 13
Banking system maintains focus on development Romania’s banking sector went through a wave of privatizations in the late ‘90s. This opened the market to large international financial players that in the past two decades have remained committed to the country despite the crisis that ravaged a large share of the global economy starting 2008.
T
By Ovidiu Posirca
he size of the banking
By June 2018, the rate further
sector compared to
fell to 5.71 percent. In this period, lenders
Romania’s GDP was the
lowest among all EU member
restructured their operations,
states in 2017. The share of
shedding branches and staff,
bank assets in GDP fell under
and selling billions worth of
50 percent in Romania, while
bad loans.
Bulgaria’s financial intermedia-
Talking about banks’
tion is almost double, according
crisis management during
to Florin Neagu, director at the
the financial crisis, Sergiu
National Bank of Romania. By
Oprescu, head of the Romanian
comparison, in 1999, Romania’s
Association of Banks, says the
lending amount against GDP
measures undertaken by lend-
was similar to that of Bulgaria.
ers were adequate and helped the system successfully face
In 1999, Romania had 41
post-crisis challenges. “In the
credit institutions, out of which 37 had private capital and seven were subsidiaries of foreign banks.
past 10 years, the contribution of shareholders to the capital of bank-
Almost two decades later, in 2017, there were 35 credit institutions on
ing subsidiaries operating in Romania stood at around EUR 4 billion
the market, out of which 22 had mostly foreign capital. There were
in the banking system,” Oprescu told HotNews.ro, adding that the
seven subsidiaries of foreign lenders. Statistics from the central bank
outlook of the local banking sector is good. The solvency rate of the
show that financial intermediation represented 24.6 percent of GDP
system reached 20 percent in June 2018, one of the highest rates for
in 1996.
at least 10 years, said the ARB head.
By 2000 it had fallen to 9.3 percent. In early 2018, BNR governor Mugur Isarescu announced that the country’s financial intermedia-
FROM THE FIRST ATM TO BANKING BY FACIAL RECOGNITION
tion continued to fall to 27 percent of GDP, the lowest share across
Lenders have constantly invested in technology to improve banking
the European Union. Nonetheless, around 90 percent of all funding
infrastructure and the security of customers’ finances, and develop-
granted in Romania comes from banks.
ment has been significant over the past 20 years. In 1995, the first
The biggest privatization in the banking sector to date remains
ATM was installed on the local market, the same year when the first
the sale of BCR to Austrian Erste Group for EUR 3.7 billion. Since the
bank card was issued locally. The first mortgage was granted in 2002.
transaction was completed in 2005, BCR had remained the biggest
Now, the largest banks have ongoing digitization strategies and have
lender in Romania by assets. However, in late 2018, Banca Transil-
started to automate most of the mundane and repetitive operations.
vania became the biggest bank by assets after taking over Bancpost. The organization, based in Cluj-Napoca, managed to become number
Lenders are looking to sell consumer loans online and have upgraded their platforms to provide a seamless experience on mobile.
two in the system in 2016 when it overtook French BRD in asset value. Several years later, the banking sector faced one of its biggest challenges stemming from the global financial crisis. Although lenders didn’t need any financial support from the state, they incurred serious losses that totaled RON 3.6 billion between 2010 and 2012. In 2014, losses reached a record of RON 4.7 billion. The banking system returned to the black in 2015. During the crisis, the rate of non-performing loans rose steadily and hit a record of 21.9 percent in 2014, according to BNR standards. It fell to 11.3 percent in June 2016, according to European Banking Authority criteria.
Milestones in Romania’s banking sector 1995 – launch of first credit card and first ATM 1998 – Groupe Societe Generale enters Romania through acquisition of BRD 2001 – Raiffeisen enters Romania through Banca Agricola takeover 2005 – Erste Bank takes over BCR in biggest privatization in local banking sector 2002 – EFG purchases Bancpost in privatization process 2011 – launch of first contactless card 2017 – Banca Transilvania becomes biggest lender in Romania by assets
www.business-review.eu Business Review | October 2018
14 COVER STORY
Finding the right mix in the energy sector Romania’s energy sector has gone through several inflexion points in the past 20 years, marked by a wave of privatizations and attempts by the state to start new investment projects that have yet to materialize.
I
By Ovidiu Posirca
n the gas sector, the eyes of
the electricity distribution
investors are fixed on the
networks between 2008 and
Black Sea, where discov-
2017 and over EUR 1 billion to
ered deposits could help the
upgrade and expand the gas
country maintain its energy suf-
network.
ficiency for decades to come.
One year before the massive
Meanwhile, the sector requires
privatizations in the electric-
an estimated EUR 10 billion in
ity sector, the government
fresh investments on the long
had agreed to sell a controlling
term to replace aging infra-
stake in oil company Petrom to
structure.
Austrian oil major OMV. This
In the past decade, the
has been one of the key deals
country has fully liberalized the
in Romania’s energy sector to
prices on the electricity market
date. In 2007, KazMunayGas,
and on the gas market for con-
the state-owned major from
sumers. Through to 2021, gas
Kazakhstan, launched its
prices for households should
operations in Europe following
also be fully liberalized, accord-
the acquisition of Romania-
ing to the latest government targets. In the electricity production sector, in close to two decades Romania has seen the gradual transition of the economy to cleaner
based Rompetrol Group. The company said that it would continue to invest in the local refining capacities at Petromidia. In the same year, Romania launched its second nuclear reactor at
production capacities. In 2003, coal had a share of 41 percent in Ro-
Cernavoda, with nuclear energy covering around 20 percent of the
mania’s electricity output, followed by hydrocarbons with 26 percent
country’s electricity consumption since then.
and hydro power with 24 percent. Nuclear energy had a share of 9
Moving to 2011, the country started to see a massive influx of
percent in the production mix, according to energy regulator ANRE.
investments in the renewable sector. More than EUR 7 billion went
Overall electricity production stood at 56.91 TWh.
into green power production facilities. Capacities in the wind sector
Fast forward to 2017 and close to 40 percent of Romania’s electric-
soared in six years from 826 MW to 3.1 GW at the end of 2017.
ity production came from renewable sources, mainly hydro power
Between 1998 and 2016, Romania’s oil production dropped al-
and wind capacities with shares of 23.42 percent and 11.64 percent,
most 42 percent to 3,801 thousand tonnes, while the gas output lost
respectively. The share of coal in the production mix fell to 26.56 per-
almost 30 percent to 7,862 thousand tonnes of oil equivalent.
cent, while nuclear and natural gas capacities generated 18.11 percent and 15.22 percent of Romania’s electricity respectively. The country’s electricity output had climbed to 61.3 TWh.
PRIVATIZATIONS AND STRATEGIC INVESTMENTS The local energy sector has gone through several key moments in the past 20 years. In 2005, the government completed the privatization of state-owned electricity and gas supply and distribution companies, which gave a unique chance to Western utility groups to launch operations in Romania. German E.ON, Italian Enel and Czech CEZ have built strong operations in Romania for more than a decade and poured billions of euros into developing the infrastructure in a bid to improve the services provided to end-consumers. The main utility firms operating locally have invested EUR 3 billion to upgrade
Milestones in Romania’s energy sector 2004 – OMV gains controlling stake in Petrom through privatization 2005 – Romania approves privatization of major electricity distribution players 2007 – KazMunayGas buys controlling stake in Rompetrol Group 2012 – Romania starts to record massive investments in renewable sector; - Petrom starts commercial operation of gas-power plant at Brazi for electricity generation - CEZ completes in Romania the biggest onshore wind farm in Europe after investing EUR 1.1 billion 2014 – Price liberalization of gas and electricity markets completed for companies 2017 – Price liberalization of electricity prices completed for households
www.business-review.eu Business Review | October 2018
COVER STORY 15
The Industrial Revolution 4.0, the internet and the IT industry 1990s Romania was in a pit when it came to technology. Decades of closing the doors on new technologies and innovation had rendered Romanian industry and the economy old and inefficient. And for a full decade, until 2000, there were only small steps in turning industry around, towards technology and digitalization.
T
By Aurel Dragan
he wave of privatiza-
get off the group due to lack
tions in the 1990s didn’t
of interest from other institu-
solve the problem for
tions. That meant investments
many of the industrial giants
before 2000 were delayed and
set up in the communist era.
the real kick for the industry
The economy went through a
came a decade later.
cleaning process, not started
Today, the software and
by the authorities, but driven
IT services industry employs
by the changes forced by the
around 100,000 people and
opening of the country, by glo-
is worth EUR 4.5 billion. It
balization. Digitalization came
could have been double that
in small steps, introduced first
if it had started in 2000; still, it is one of the fastest-growing
by the public; people wanted to be in touch with the latest innovations and forced companies to
industries in Romania. Also, it is one of the most future proof; the
eventually adopt them.
Industrial Revolution 4.0 means automatization for the entire mass-
The internet started to develop in the 1960s in the USA and in
production of goods and other things with robot operators capable
1982 the protocols (TCP/IP) were invented. The name was set in the
of self-configuration and diagnosis. Germany was the first country to
same year, a short version of ‘internetworking’. It took off a decade
use the term Industry 4.0 in 2011 and now the European Union has
later and soon appeared in Romania, through landlines. This could
a program for the Digital Single Market, inside the program Europe
be seen as the first step in transforming Romania into a modern
2020.
country. The first interconnection hub was set up in 1992 and the .ro
After 2007, not only did the IT industry develop rapidly in Roma-
domain was established in the same year. Meanwhile, the first dial-
nia, but production companies became more and more automatized.
up connections were launched by Romtelecom in 1993, starting the
All the factories opened in the last decade are operated mainly by
‘internet café’ era.
machines, with high production efficiency, many of them in the auto
In 1995 the internet became public globally and the service started to develop in Romania too. In the same year Microsoft launched Win-
industry (like the Daimler factory in Sebes). Its internet speed put Romania up among the global forerunners,
dows 95, the operating system that introduced personal computing
alongside developed countries like South Korea and Japan. There
to those who were not IT specialists. Microsoft had its first office in
are over 8 million Romanians using the internet on a daily basis and
Romania in 1992, but it became an important one almost a decade
around 20 million connections (both fixed and mobile). And the
later, when spending on IT software and services become significant.
workforce in IT, although small in comparison with the population,
The internet and hardware to use it went hand in hand so while small neighborhood networks were installed, users started to buy more and more PCs. At the beginning of 2000, the internet was expanding rapidly and the big operators started to buy up the small companies. 2007, when Romania joined the European Union, found the country with a well-established internet infrastructure and a mobile network, things that would go on to help develop the IT industry. In 1999, under the government lead by Radu Vasile, a project for the IT industry was put on the table for the first time. But even though it was accepted by the prime minister, the project failed to
is very well educated and growing by the year.
Milestones In 1992 the first landline connection for the internet is made between Romania and Vienna, Austria. In 1995 the internet becomes public globally and the ‘internet café’ era begins in Romania. In 2000 the first broadband internet through coaxial connection is introduced. In 2007 Romania becomes part of the European Union and the software and IT services industry takes off. In 2018 Romania has around 100,000 professionals in IT and the value of the industry reaches EUR 4.5 billion.
www.business-review.eu Business Review | October 2018
16 COVER STORY
Perking up: HR market moves beyond basic benefits as workplace evolves With employees and jobseekers now expecting their packages to go beyond salary and traditional bonuses, the local HR market has changed significantly in the past two decades. Meanwhile, international trends in this field will sooner or later reach the local workforce.
W
By Anda Sebesi
hile back in the
NEW TIMES, NEW JOBS…
‘90s salary and
With the entrance of multi-
financial incentives
nationals on the Romanian
were the main tools used by
market, which pushed the
companies to attract and retain
pedal on their development
their employees, things have
here, new jobs have emerged.
changed dramatically with the
The pharmaceutical sector is
emergence of the younger gen-
such an example. When multi-
erations of employees. Bosses
national pharma firms decided
are more and more focused
to extend their businesses in
on offering a wide range of
Romania in the early 90s, the
non-financial benefits to their
concept of a medical repre-
employees. Pundits say that
sentative was nonexistent. A
schedule flexibility has become
decade later, in 2007, this job
more important, especially for
was among those listed in the
financial, legal and HR profes-
Romanian Jobs Code (COR).
sionals. The option to work
Then, an increase in their size
flexibly anytime between 7am
persuaded pharma companies
and 8pm has become a regular
to create new types of jobs in
demand for both existing and
fields like business develop-
potential employees, along
ment, field force effectiveness,
with working from home and
regulatory affairs and govern-
medical and gym subscriptions.
mental affairs.
During the past two decades,
But the pharmaceutical
Romanian jobseekers of all ages have reshaped the local workforce
industry is not the sole example when it comes to creating such new
and made companies rethink their HR policies according to their
positions. With the development of the sustainability and social re-
expectations. The emergence of the concept of wellbeing is an ex-
sponsibility concepts in Romania, many companies – both Romanian
ample in this regard. The concept has developed gradually over the
and international ones – created specific positions for this area of
last few years and now the psychological wellbeing of its employees
activity, like CSR specialist or CSR manager. The aim was to create
is an important aspect for any organization. This has become a focus
a distinct department responsible for the development and imple-
for both HR departments and employees of multinational companies
mentation of CSR projects nationwide.
operating on the local market. From corporate medical subscriptions, to an attractive package
… AND CREATIVE WORKSPACES
of both financial and non-financial perks, gym subscriptions and a
In the past ten years companies have become more aware that pro-
friendly working environment, the majority of companies active in
viding a “happy” working environment, where individuals can ex-
Romania have understood the importance of the wellbeing of their
press their creativity and feel like they are part of the organization,
talent. At present, there are over 50 types of wellbeing programs on
might be the key for bosses to score highly on the attractiveness
the Romanian market, focusing on different aspects such as physical
scale for current and future generations of workers. As people’s work
and psycho-emotional health, personal development and various
changes, their needs change. And as needs change, work environ-
hobbies.
ments must also change to remain supportive. The evolution of of-
www.business-review.eu Business Review | October 2018
COVER STORY 17
fices as places primarily for process work to places for creative work
reality for the Romanian workforce too. For example, in addition
has profound implications for the effectiveness and productivity of
to the work-life balance benefits that it gives its employees, Adobe
employees. To meet the needs of companies, real estate developers
Romania offers its employees the opportunity to buy Adobe shares at
now offer a wide range of complementary services like gyms and
a preferential rate within an internal savings program. “In addition
kindergartens, aiming to create communities that will make reloca-
to the salary increases, high performers get Adobe equity stakes
tion more difficult.
which they can trade, allowing them to benefit directly from the company’s success. While last year the price of a share was USD 130,
TRAINING GIVES DOUBLE BOOST
today it is USD 250. So, employees who buy or receive equity stakes
It has been a long time since training stopped being merely a tool
have significant extra-salary benefits,” Cris Radu, senior director of
to motivate the employees of a company – regardless of its field
engineering and site leader at Adobe Romania, told Business Review
of activity, origin or size – and started to also support its develop-
earlier this year. He adds that this is one of the most popular benefits
ment. Coming back to the pharma industry, while in 1998 it was all
with the company’s employees and a very effective tool to retain and
about “on the job” training, ten years later companies in this sector
motivate the team.
started to offer training packages adapted to each stage of the career path of a medical
INTERNATIONAL WAVE ENGULFS ROMANIA TOO
representative, from selling
Digitalization has already
skills to programs based on
refashioned some industries
negotiation techniques or area
and jobs, and on the medium to
management.
long term it will reset the entire business environment. More
EMPLOYER BRANDING BECOMES CRUCIAL
than a third of UK jobs could
In the past two decades com-
by the early 2030s and robots
panies active in Romania have
could take over 38 percent of
learned that their reputation
current US jobs in the next 15
as desirable employers is a key
years, says a report released
factor to attract employees in
by PwC, cited by Emerg-
general and talents in particu-
ing Technologies’ Impact on
lar. Many of them now focus
Society & Work in 2030, a study
their efforts on the concept of
conducted by the Institute for
employer branding, in an at-
the Future and Dell Technolo-
tempt to retain their employ-
gies. In addition, the tasks and
ees more easily. Employees
duties workers will perform
are the company’s first brand
will be markedly different from
ambassadors. Positive emo-
what they have studied. The
tions like being proud of their
same study says that around 85
be at high risk of automation
job, their team and their projects are enhanced by truly understand-
percent of the jobs that today’s learners will be doing in 2030 haven’t
ing their role within the company, its mission and vision and what
been invented yet.
differentiates it from others. If this is not happening, employees
As processing power increases tenfold every five years, humans
will find another job where they feel good. As Richard Branson
will be eclipsed by computers in many areas, says the study. Ma-
once said, “If you run a business, put on top your employees, then
chines will bring lightning speed and accuracy to all manner of tasks.
your consumers, and then your shareholders.” Authentic employer
However, it would be a fallacy to assume that technology is making
branding that is not limited to a cleverly-packaged recruitment
human effort redundant. It’s doubtful that computers will have fully
process is an important factor in increasing employee loyalty and
mastered the fundamental, instinctive skills of intuition, judgment,
retention. It is also an effective tool in attracting candidates who fit
and emotional intelligence that humans value by 2030.
the values and demands of an organization. According to Boston
As Romania is part of the global business environment, it is
Consulting Group, employer branding is ranked fourth within HR
impossible for it to avoid the implications of the digitalization on its
programs for its impact on profit.
workforce. All of its sectors are already or will be highly affected by the digitalization phenomenon. Technology industries and IT, the
EMPOWERING EMPLOYEES
creative industries (mainly marketing and advertising), agriculture
The employee of today is no longer just a member of a working team.
and tourism are some of the sectors which digitalization has already
He or she has the chance to prove they can do more. And this is a
impacted or will have a significant positive or negative impact.
www.business-review.eu Business Review | October 2018
18 COVER STORY
Telecom, a mobile phone in every pocket Telecommunications in Romania in the last 20 years are an example of what an industry is able to accomplish when it is not constrained by regulations. Mobile communications came at a time when fixed lines were dominating the country and while one company, Romtelecom, kept the monopoly for landlines, investors in mobile were free to develop.
T
By Aurel Dragan
he first mobile phone came
by the number of customers and
in 1993 with the company
things stayed the same in the com-
Telefonica and the Telemo-
ing years. In 1999, Romtelecom launched
bil service. It was the first attempt to introduce a new technology in
the first GSM services with its
the country, but the handsets were
company Cosmorom. The service
very big, with a car-like battery,
was called Cosmo and offered only
and it was more suitable for a car
prepaid at first, launching monthly
phone with an NMT 450 system for
subscriptions some time later.
communications. It had no success
It was the third GSM operator to
whatsoever due to the high price.
enter the market. Telefonica sold Telemobil to
In 1996 the Ministry of Com-
Inquam in 2001 and Zapp was
munication set up the first public auction for two mobile telecommunication operating licenses in
launched. Around the same time, in 2000, France Telecom bought
the Global System for Mobile Communications (GSM). By the end of
Orange from the United Kingdom and in two years decided to unify
the year, on November 15, the winners were announced: Mobil Rom
the brand across the whole group. So Orange appeared in Romania,
and MobiFon. On April 15, 1997, MobiFon launched the first mobile
replacing Dialog. Three years later, Connex was bought by Voda-
service under the brand Connex. It scored a world record, having
fone and later replaced the Connex brand. And in 2005, Cosmorom
managed to build a telecommunication network from scratch in just
became Cosmote after being taken over by the Greek operator OTE,
135 days. Soon, nine big cities came under the operator’s coverage,
then recently became Telekom, after entering the Deutsche Telekom
Bucharest, Bacau, Brasov, Cluj-Napoca, Constanta, Craiova, Galati,
family. Zapp disappeared in 2009 when it was bought by Cosmot.
Timisoara and Sibiu. For a few days, there were long queues in front
The latest big operator on the market is Digi, from RCS & RDS,
of Sala Palatului, the place in Bucharest where customers could buy
in 2008. Even though the company had been operating cable TV
a mobile phone. No one imagined that the service would have such a
and internet all over the country since the beginning of the 1990s,
huge success. On sale were cheap mobile handsets, made by Sagem
it entered the mobile communications industry when the market
and Alcatel, usually black bricks able only to make phone calls and
was already mature. But with free handsets and very cheap monthly
write short SMSs. Connex ended the year with 112,000 monthly sub-
subscription it managed to gather over 3.3 million customers.
scribers. Two months after MobiFon, Mobil Rom, owned by France
Today, telecom operators have more than 20 million customers
Telecom, launched the Dialog service. It became operational in all
and the technology is 4G all over the country, heading for 5G in the
the cities that Connex was covering, minus Sibiu. But Dialog was the
coming years.
first to launch a roaming service in seven countries in Europe and, in November 1997, the first prepaid card, a service called Alo GSM. Dialog had just over 100,000 customers at the end of 1997. One year later, Connex registered 325,000 subscribers and Dialog 308,000. Predictions for the next years were still low, 1 million subscribers by 2005, a target that was hit five years earlier, in 2000. Monthly subscriptions were still expensive and the phones were not cheap. But slowly, phone brands like Nokia, Siemens, Ericsson, Motorola, Philips and others found their way into the market. The Nokia 5110 was one of the most successful, along with the Ericsson T20. Dialog decided to enter all the cities with more than 20,000 inhabitants and in 1998 had a network that covered 90 percent of the population. This was how it overtook Connex as industry leader
Milestones In 1993, Telefonica launches Telemobil, the first mobile operator in Romania, working in the NMT 450 system. In 1996, the Ministry of Communications sells the first GSM licenses, MobiFon and Mobil Rom being the buyers. In 1997, both Connex and Dialog become operational. The battle between the two begins. In 2000, the number of mobile phone customers surpasses 1 million. In the same year Cosmorom launches a mobile service. In 2002, Orange replaces Dialog and the number of users exceeds 4.5 million. In 2005, Connex launches 3G services and one year later becomes Vodafone. In 2013, 4G technology is launched.
www.business-review.eu Business Review | October 2018
20 INTERVIEW
Making a bright future Elsa Monteiro, head of sustainability and corporate communication at Sonae Sierra, tells Business Review about the Bright Programme and its importance in reducing energy consumption and carbon footprint at the shopping centers the company owns and manages. By Anda Sebesi
What can you tell us about the way that Sonae Sierra embeds the sustainability concept in its business strategy?
environment. Our approach to sustainability
office impacts and attract and retain talented
focuses on creating shared value across three
people in our company.
Our sustainability strategy is embedded in our
across our investment portfolio; through the
business model and governance structure.
active marketing of sustainability services to
Sonae Sierra’s achievements since we set our
our clients and through our corporate sustain-
sustainability journey more than 20 years ago
ability practices and with our employees. By
Sonae Sierra won the Silver Stevie Award at the 2018 International Business Awards with the Bright Programme. How important is this recognition for your company?
have earned us international recognition and
doing so, we protect the long-term value of
As the International Business Awards are the
several awards. Through our sustainability
our assets by managing operational risks and
world’s premier business awards program,
history, we have strengthened our brand and
increasing resource efficiencies; we deliver an
it comes as a high recognition of our long-
reputation amongst key opinion makers,
exemplary service and experience to inves-
standing commitment to energy efficiency
and we are consistently recognized for our
tors, partners, service clients, tenants and
in both our own and in our clients’ portfolio.
best-in-class approach to safety, health and
building visitors; and we reduce our corporate
This is especially true in a year where they
levels: through engagement with partners
www.business-review.eu Business Review | October 2018
INTERVIEW 21
The first task was to find building energy
raised the minimum average score required to
billion, 63 percent of all potential savings of
qualify as a Stevie winner, so as a 2018 winner
the program. There still are 64 actions being
simulation software that could be adapted to
we are especially proud of our achievements
implemented, requiring EUR 2 million. These
deal with the necessary level of complexity. A
(winning amongst 74 nations and territories,
would generate yearly potential savings of
dedicated internal team adapted a commer-
totaling more than 3,900 nominations for the
EUR 1.3 million (9,400 MWh) or equivalent to
cially available solution to create the ‘virtual
awards).
5 percent of our 2017 electricity consumption.
standard shopping centre’ (VSSC) tool. The
Achieving substantial energy savings
tool allows Sonae Sierra to accurately predict
What can you tell us about the Bright Programme and its importance for the market?
and permanently improving the indoor air
the optimal energy consumption of every
quality are the main objectives of the Bright
shopping center in its portfolio.
The Bright Programme is an innovative one
Programme. In addition, efforts needed to be
The team developed two benchmarks:
designed in 2013 by Sonae Sierra with the
made to ensure that the technical resources
a reference benchmark and an operational
objective of reducing energy consumption
are used as much as possible at any time as
benchmark. The reference benchmark calcu-
and carbon footprint at the shopping centers
energy-efficiently as possible, given the sig-
lates the optimal energy consumption of the
it owns and manages. Bright encompasses
nificant fluctuation in the number of people
shopping center if it contained state-of-the-
four areas of action: modeling optimum
present in the shopping center throughout
art equipment. The operational benchmark
consumption for each building and analyzing
the day.
calculates the optimal consumption, based on the equipment the shopping center actu-
the consumption profile, identifying and implementing optimization measures, continuous monitoring of consumption and implementing management solutions to enable maintain-
How did the Bright Programme enable you to identify energy optimization measures across shopping centers?
ally contains. The model therefore indicates
A major problem in
and the shopping centers that were under-
shopping centers that are underperforming due to their equipment, and those that are underperforming due to management practices. The results of a pilot audit were analyzed
ing the building’s energy performance at an
achieving continuous improvements in
performing by the greatest margin were
optimum level. The immediate result was that
energy efficiency has been the difficulties
earmarked for on-site visits. The use of the
Bright Programme has allowed Sonae Sierra
associated with predicting how people use
reference and the operational benchmark
to target specific improvement measures for
technology. How people interact with equip-
allowed site visits to be targeted towards
its portfolio, lowering energy consumption
ment such as HVAC systems, for example, can
either technical performance or management
across the board and considerably reducing its
have a profound effect on energy consump-
practices.
environmental footprint, while maintaining or
tion. It is therefore important to be able to
even improving the level of service to tenants
differentiate between inefficiencies that are
sharing exercise whereby employees were
and visitors.
due to technical reasons and those that are
provided with training in best practice, and
On-site visits represented a knowledge-
behavioral in nature.
effective management
What is the added value that Bright Programme brings for the market?
Finding a model that
processes that had
could account for both
developed organically
So far, the program has enabled Sonae Sierra
these factors proved ex-
were fed back to Sonae
to identify 249 energy optimization measures
tremely difficult. Quite
Sierra’s sustainability
across 28 shopping centers.
simply, such a product
team. Any initial skepti-
was not yet available on
cism soon dissipated
With a total investment cost of EUR 1.8 million, 185 of these measures already implemented allowed Sonae Sierra to reduce energy
as local teams saw the
the market. Therefore, Sonae Sierra developed the
results of the program and the recommenda-
consumption by 18,400 MWh, equivalent
Bright Programme to create its own model.
tions it inspired. Sonae Sierra ensured that
to EUR 2.3 million, representing 10 percent
Traditional benchmarking tools struggle to
recommendations were presented as ideas
of our 2017 annual electricity consumption.
account for local or regional-specific factors,
rather than orders, with which shopping
This also delivered a reduction in greenhouse
and shopping centers that are located in unfa-
center teams were invited to engage.
gas emissions equivalent to 44 percent of
vorable climates are therefore often misinter-
our shopping centers’ 2017 carbon footprint
preted as inefficient. The Bright Programme
took a step into the unknown. It looked
(based on grid average emissions factors).
improves on these by allowing us to monitor
beyond theoretical benchmarks to engage
the energy consumption of our shopping
with the actual energy consumption of its
mented were quick-wins with little or no
centers against a virtual simulation, identify-
assets and set in motion a process to achieve
investment requirements from the sites:
ing technical improvements and enhancing
tangible, appreciable economic and environ-
EUR 300,000 invested generated EUR 1.4
management practices.
mental gains.
Some 70 percent of the actions imple-
With the Bright Programme, Sonae Sierra
www.business-review.eu Business Review | October 2018
22 EMPLOYMENT
Romanian paradox: staff shortages despite high number of unemployed Only around half of working-age Romanians has a proper job, but many bosses claim that the second-poorest EU member state is experiencing a workforce crisis. This is a paradox for a country where millions of people are missing from the job market despite being unemployed or largely underemployed. By Sorin Melenciuc percent of the income distribution do not work, and another 28 percent remain engaged in subsistence agriculture,” World Bank experts said in a recent report, called From Uneven Growth to Inclusive Development: Romania’s Path to Shared Prosperity. Unemployment in Romania is highly concentrated in poor rural areas – mainly in Moldova and southern Wallachia – where the labor force is largely unskilled and where there are few opportunities. But this lack of opportunities is not compensated for by labor force mobility. “Low internal mobility further reinforces Romania’s dual development challenge – less than 2 percent of the population reports having moved in the past five years, implying that The IT sector is among the industries in Romania that are already paying well
T
toward economic opportunities,” World Bank experts say.
he local labor force shrank from 11.6
population – considered “self-employed in
million people in 2000 to 8.8 million
agriculture”.
in 2017, a dynamic exacerbated by
structural constraints inhibit internal mobility
For most of them, this label is just another
However, a visitor to these poor rural areas in Romania would be surprised to discover that few people are interested in taking jobs,
word for “jobless”, as they usually live in
as the few existing opportunities mean eight-
With a fertility rate among the lowest in
poor rural areas, with very few employment
hour-per-day jobs on national minimum wage
the EU, such demographic trends are likely to
options, and have small plots of arable land
(around EUR 250).
continue, experts say.
usually used just to cultivate their own food.
emigration.
“The main source of this problem is
Experts say this is partly due to the still powerful model of “working abroad to get rich”.
HIDDEN WORKFORCE
education, but low mobility also plays a role.
However, Romania has only around 5 mil-
Only the young people are ready to move to
lion employees – and its employment rate is
another region for a job,” Oana Datki, an HR
should I work here every month for RON
among the lowest in Europe.
expert, told Business Review.
2,000 when I could work two or three months
Hidden in the official statistics, millions of
These individuals are part of a large
“There are many people who say: why
each year abroad for more than EUR 1,000
Romanians are living on the edge with limited
Romanian population cut off from economic
and live the rest of the year on it? It is a strong
income and options.
growth, according to experts.
model of getting a better life by working
The latest National Institute of Statistics
“Romania’s prosperity is not equally
abroad, but many don’t realize the costs:
(INS) data, seen by Business Review, show
shared, as the bottom 40 percent is largely
working hard in humiliating conditions, in
that Romania has 1.6 million working-age
disconnected from the drivers of growth.
many cases,” Datki said.
adults – or 19 percent of the total employed
Close to half of the people in the bottom 40
In fact, many Romanians described as
www.business-review.eu Business Review | October 2018
EMPLOYMENT 23
EU foreign employees in Romania was 17,089 in July 2018, an all-time high, but a negligible figure compared with the numbers seen in Western European countries. Turkey and China are by far the two leading countries of origin of migrant workers in Romania, with 3,627 and 2,120 employees respectively, followed by Moldova (1,787), and Vietnam (1,554).
SKILLED WORKFORCE CRISIS Despite this new trend of importing foreign workers, Romania shows few outward signs of a workforce crisis. In fact, official data indicate the opposite Many people in poor rural areas regularly receive remittances from relatives working in Western countries
trend. Romania’s job vacancy rate declined by 0.08 percentage points in the second quarter of this year compared with the second quar-
“self-employed in agriculture” live in house-
accommodation and food service activities,
ter of 2017, to 1.25 percent, National Institute
holds where there are mixed income sources:
which employ hundreds of thousands of
of Statistics (INS) data show.
pensions, social assistance, black market / day
people in Romania, the average wage is EUR
laborer salaries, and benefits in kind.
340, according to official data.
Their total real income is sometimes close
Foreign workers welcomed
The number of vacancies declined by 2,700 year-on-year, to 61,400 in the second quarter of 2018.
to or even higher than the minimum wage
Despite this large domestic workforce
This trend is in sharp contrast with the
– and this leads to little incentive to take on
source, employers and the government are
impressive economic growth Romania experi-
full-time jobs.
looking abroad to find staff .
enced last year, posting a 6.9 percent GDP
Some people in this category are also
Recently, coastal business owners in
increase, the highest in the EU. According to official data, the workforce
temporarily working abroad, where they earn
Romania have said that they are having an
enough to spend a few months in their home
increasingly tough time finding seasonal
shortage is concentrated in areas like services
country without working and to make some
workers to provide essential services for the
(with a 2.9 percent job vacancy rate in Q2
investments in their own homes.
tourism industry. They urged the government
2018), a consequence of the fact that much of
to make it easier for them to hire workers
the economic growth in Romania is the prod-
from other countries.
uct of a consumer bonanza, stimulated by
With around 3.5 million Romanians working abroad, many people in poor rural areas regularly receive remittances from relatives
In July, Romania’s government increased
working in rich Western countries, and this
2018 quotas for non-EU foreign workers by
lessens the need to work locally.
over 5,000 work permits, in response to high
But this model could change when wages in Romania exceed a certain threshold, becoming an incentive to work. “The best incentive to push these people
demand from local companies claiming they are affected by the workforce crisis. The government decided to increase by 5,200 the contingent of newly admitted work-
years of wage-led growth government policy. Other workforce shortages are in the industries requiring highly skilled workers. “All sectors are affected by labor force shortages but the worst affected industries are IT, services in general, manufacturing and logistics,” Datki outlines. However, even more serious labor short-
into the job market is the money they could
ers on the Romanian labor market this year
earn. When wages in Romania approach lev-
for the two major categories of employment
ages are currently being experienced in
els in Western Europe, people will naturally
– up to 8,000 permanent workers and 2,400
the EU by more advanced economies, with
prefer to work in their own country,” Datki
posted workers.
sophisticated structures and high wages.
says.
But few foreigners are currently working
In fact, Romania posted the seventh low-
in Romania, official data show. During the
est rate among the 28 EU member states in
rose by 13.3 percent year-on-year in July, to
first seven months of this year, Romania is-
the second quarter of this year, Eurostat data
RON 2,708 (EUR 582), but remain the second-
sued work permits for 4,395 non-EU foreign
show.
lowest in the EU after Bulgaria.
employees who came mainly from Vietnam,
Average net monthly earnings in Romania
Among EU member states, the highest job
Turkey, Nepal, Serbia and Sri Lanka, accord-
vacancy rates in the second quarter of 2018
are already paying well. In the IT sector, the
ing to Labor Ministry data sent to Business
were recorded in the Czech Republic (5.4 per-
monthly average wage was EUR 1,412 in July.
Review.
cent), Belgium (3.5 percent), the Netherlands
However, some industries in Romania
But most employees earn much less. In
Official data show the total number of non-
(3.1 percent), and Germany (2.9 percent).
www.business-review.eu Business Review | October 2018
26 COMPANIES
Altex, three decades tracking the ups and downs of the economy The biggest local offline retailer, Altex – Media Galaxy, started life in the early 1990s. Its story is interwoven with Romania’s recent history with all its ups and downs over the last 28 years. Today, there are over 100 Altex or Media Galaxy stores around the country. By Aurel Dragan
A
t the beginning of 1990, Dan Ostahie realized that the market of electronic appliances in the town of
Piatra Neamt was empty. So he started to import second-hand television sets from Switzerland. In 1993 he opened the first Altex store in Piatra Neamt and the sales it posted convinced the owner to open shops in other towns as well. The market across the entire country was lacking electronics and electric appliances, with most of what was available being made in Romania. And the waiting period for buying an old-technology color TV was a few months. When the market opened to imports, at first it was flooded with second-hand electronic devices. Then, step by step, stores started to bring new products, usually cheap
Dan Ostahie, Altex
and low-tech, then better and better devices. It was also a time when customer purchasing power was very low. Today one can buy a
economy, which was lurching from one crisis
created the Altex Group, which included the
decent quality TV set with the equivalent of
to another, and ended only in 2000 when
Altex store network, the 8TIM logistics and
half of the minimum wage; in the 1990s one
things managed to get back on track. Inflation
transport company, and Italromtex, a whole-
would have to take out a credit line for the
reached 150 percent and interest rates were
sale distribution and sales firm. One year
same thing.
up to 140 percent. “I was on a trip outside
later, in 2001, Altex opened 22 new stores and
the country when employees from the Piatra
reached a turnover of USD 20 million. Focus-
ics. Between 1994 and 1997, Altex opened a
Neamt store called because everybody was
ing on medium-sized stores, the company
chain of 50 stores in all the major cities of the
closing their stores,” said Ostahie, who
was expanding rapidly and in 2002 reached a
country. And so did the competition, like the
decided back then that his stores would
total of 62 branches, while revenues rose to
Mondo retail chain, later taken over by Cosmo
continue to trade. But the crisis eventually
USD 25 million.
and then by Flanco, and Domo, firstly named
forced Altex to close more than half of its 60
Interexpo. Altex managed to become the dis-
stores and lay people off. Between 1997 and
economy was booming and consumer confi-
tributor for brands like Whirlpool and Indesit
1999 the company restructured; at the time it
dence was sky-high. In 2003, Altex became
and expanded the portfolio of products sold.
was active in retail sales, wholesale, transport
the biggest national chain-store of electronics
and service.
and house appliances, with sales of USD 136
But people were eager for new electron-
The first step back for the business was in 1996, when inflation hit the Romanian currency hard. It was a big blow for the entire
In 2000, just as the economy was starting to grow, Altex outsourced its services and
Sales exploded in the next five years as the
million. It was the era of “ID credit”, the financing
www.business-review.eu Business Review | October 2018
COMPANIES 27
9.9 million in 2007 and RON 50.1 million in 2008. When the next crisis hit the economy, in 2008, turnover was a record for the time, at RON 1.26 billion, only to fall to RON 760.4 million in 2009. The retail business is not an easy one, especially considering the low profit margins. One of the firm’s main competitors, Flanco, had a network of 64 Flanco stores and 21 Flanco World stores in 2008. But its debts to the banks sent it into insolvency in 2009, and it was revived only after it was bought by Asesoft (and later by Iulian Stanciu). Today, the company has 124 stores, mainly small and medium size and in small and medium towns. Another competitor, Domo, which opened in 1994, managed to stay afloat until 2007 when it was taken over by the private equity fund Equest Investment Balkans. But it didn’t
Media Galaxy
find success afterwards, and today exists only in the form of a website with the name Domo. Five Domo stores, with their entire stock, was taken over by Altex.
line that was available in stores and required
earnings of RON 3.04 million in 2002 the in-
no supporting documentation up to a certain
dicator went up to RON 32.9 million in 2003.
limit. Everybody was buying again, eager
One year later net profit was RON 27.6 million
to sell part of the business, and was not in
to sample the luxury of a washing machine,
and in 2005 RON 22.1 million. Subsequent
danger of entering insolvency, even after
a bigger TV set or the first air-conditioning
expansion sent the company into the red,
the setback of 2009. One year later, after
unit. It is funny that, in 2018, people are talk-
with losses of RON 14.1 million in 2006, RON
another restructuring of the business and the
Altex was the only one that didn’t have
ing about the return of “ID credit”, but today a buyer’s financial situation can be checked in minutes through the Fiscal Authority (ANAF) database. The “ID credit” era will never return, Ostahie said back in 2009.
THE NEXT CRISIS Altex wanted to try the model of the big brands from developed countries and launched Media Galaxy, a brand that was supposed to be a big store specialized in electronics and household appliances. The first branch was opened inside Unirii Store in Bucharest, but it was not as successful as expected. The unit in Unirii remained the biggest in the Altex network until 2009, when it was closed. The company’s revenues were rising fast, from RON 114.3 million in 2002 to RON 433.8 million in 2003, RON 594.1 million in 2004 and RON 993.7 million in 2005. The first year when Altex reached RON 1 billion was 2007, posting RON 1.05 billion. The net profit had pretty much the same trajectory. After net
Altex in Iulius Mall in Cluj
www.business-review.eu Business Review | October 2018
28 COMPANIES
re-evaluation of stores (some were closed and
Milestones:
others were opened), the company, renamed Altex Romania, had a turnover of RON 811.01 million and net profit of RON 16.5 million. “We were lucky to be a part of the European Union. If we hadn’t been, it would have been much worse,” said Ostahie of the crisis. 2010 was the year when recovery started for Altex, a couple of years before the economy as a whole. After a turnover of RON 882.7 million in 2011, revenues jumped to RON 1.13 billion in 2012. After closing 2015 with RON 1.96 billion and net profit of RON 16.4 million,
1992: The first Altex store is opened in Piatra Neamt. 1997: The company has a 50-store retail chain. 1999: Due to the economic crisis that started in 1996, Altex restructures its activities and closes inefficient stores. 2000: The company is outsourcing services and creates the Altex Group, including logistics, transport, distribution and wholesale. 2002: The retail chain reaches 62 stores. 2003: Altex becomes the leader in the electro-retail sector with the biggest network of stores. 2004: The Media Galaxy brand is launched and the first store is opened in Unirii Shopping Center. 2007: With revenues of EUR 317 million, the company consolidates its leader position and changes its name to Altex Romania. 2009: The company is hit by the crisis and closes 49 Altex and 15 Media Galaxy stores. 2010: The first HP store opens, the first in Europe for the American company. 2017: The company’s turnover reaches RON 3.28 billion as it continues growing.
the company’s business jumped to RON 2.75 billion in revenues and RON 39.7 million in net profit. It had to reduce its social capital by
Sales in the electro-retail sector have
bank for another three years. To be eligible,
RON 3.01 million to cover losses during the
grown in recent years due to the increased
customers must be aged between 18 and
crisis, but the numbers remained positive.
wages and pensions. The trend to buy
75, with minimum income of RON 800 for
products of better quality translates into
employees and RON 510 for retirees. While it
BLACK FRIDAY
bigger prices. According to GfK Consumer
looks like “ID credit”, the 20 minute response
In 2011, online retailer eMag, a competitor of
data, in the first half of 2018, the market for
time means that officers check the financial
Altex, launched Black Friday, an American
household appliances went up by 8.4 percent
situation of the customer via ANAF.
promotion that takes place in November. It
compared to the first half of 2017, while the
is not done the same as it is in the USA, but
value of the typical shopping cart rose by
with 4,000 employees and still goes by the
it has managed to create a customer craze
4.6 percent. The frequency of buying also
pledge “twice the difference” if a customer
for discounts. All shops have adopted this
climbed by 3.7 percent and the volume of
finds the same product cheaper in another
way of selling and have different campaigns
products by 4.3 percent.
store. Considering that the Ministry of Envi-
throughout the year. Altex took “Black
Altex has a fully digital platform for
Today, the company has around 100 stores
ronment will soon start a “Rabla” program for
Friday” a step further, and instead of keeping
financing consumers, developed with TBI
household appliances, a voucher system for
up the campaign for a day or a weekend, it
Credit, and also has a Credex, through which
those who replace an old device with a new
runs it for the entire month. “Black Friday
it offers credit in stores, in partnership with
one, electronics sales will continue to climb.
is the most important event for discounts
UniCredit Consumer Financing. In 2018, the
Which is good news for Altex and its competi-
over the year so we wanted to let custom-
company extended its partnership with the
tors.
ers choose according to their needs, not to buy on impulse,” said Ostahie, adding that a prolonged “Black Friday” is to the advantage of the customers. Altex and Media Galaxy organize four discount events over the year, for each season. While the last quarter records the highest sales, the discount events account for over 50 percent of the year’s sales. eMag managed to become marker leader in electro-retail sales in 2017, when the online seller’s revenues reached RON 3.309 billion, while Altex sales were at RON 3.283 billion. eMag, controlled by the Naspers group from South Africa, grew after it took over the online shop Fashion.ro and it is worth noting that the revenues that the company has in other countries. This means that Altex, while being the biggest offline retail chain, still has the highest turnover.
Altex, a store that looks like a wholesale
www.business-review.eu Business Review | October 2018
30 SUSTAINABILITY
Biodeck: nothing is lost and everything is reused Bio. Plates and bowls, cutlery, cups and lids, straws, bags. Is it possible to transform plastic into a sustainable and environmentally friendly object? Tudor Georgescu, Biodeck’s managing partner, says yes, in an attempt to change the packaging industry and culture. By Oana Vasiliu by-products and renewable resources. The production process is more environmentally friendly than the plastic one, having 30 to 85 percent lower carbon emissions, depending on the product. In composting facilities the products break down in three to six months and what results is the compost, which is very nutritious for the soil. The products respect the principles of the circular economy, where nothing is lost and everything is reused, and where things are done with great respect for the environment.
O
In your presentation, you wrote, “We plan to provide packaging that comes from responsible and renewable sources.” What are those sources? The majority of our products are made n a hot June day in the capital, melt-
to break down and how environmentally
from rapidly renewable resources such as
ing under the sun, I took a coffee-
friendly it is. It can take plastic, depending
sugarcane pulp or cornstarch. After the
to-go in packaging on which was
on the product, from years to thousands of
extraction of juices from sugarcane, the fiber
years to break down.
that remains is called bagasse and is used in
written 100% bio. I said to myself, “That’s impossible,” and investigated the situation.
A compostable product, however, is
order to make our products. Normally this is
What I found was that a Romanian company
automatically biodegradable. Compostable
a residual ingredient and would get thrown
has challenged itself to offer a sustainable
goods are organic matter that breaks down
away, but it can also be used in a more effi-
alternative to single-use plastic and foam,
to become a pile of nutrient-rich soil. By
cient and environmentally friendly way. For
using a system where nothing is lost and ev-
respecting conditions such as storage and
example, one of the big problems at a global
erything is reused. And now it is conquering
temperature, the decomposition process
level is coffee cups that can’t be recycled.
the Romanian markets, step by step.
does not usually last more than 12 weeks.
The common misconception is that they are
To be certified-compostable, a product goes
made of cardboard and they can be, but the
Let’s start at the beginning. What is a biodegradable product?
through various tests, the most common
problem is that they are lined with plastic.
being EN13432. All Biodeck products are
Our coffee cup lining is made of bioplastic,
A material is considered biodegradable if it
independently certified and respect the
made from plants, not oil, and can be easily
breaks down under the activity of microor-
worldwide standards for compostability.
composted, even with coffee stains on it.
Can you name a few of your clients and your best selling products?
this includes a wide range of products for
You aim to find a sustainable alternative to single-use plastic and foam. Can you explain the new technology on which you based these Biodeck products?
which the decomposition stages are harmful
This category of products is part of the so-
are checkout bags (starting from 1 July the
and not time-defined. Plastic is biodegrad-
called bioplastics category. This means they
plastic ones are forbidden), bin liners and
able too. The question is how long it takes
are made of biomass resources, agricultural
coffee cups.
ganisms. Usually, the timeframe needed for biodegrading must be specified but this is often left aside. Advertising a product as being just biodegradable is misleading because
Carrefour, Dedeman, and Mercato Comunale are some of our clients. Our bestsellers
www.business-review.eu Business Review | October 2018
ADVERTORIAL 31
How to grow Tomorrow’s Forest in five easy steps WHO? The Association of Forest Administrators, the Stefan cel Mare University in Suceava and Holzindustrie Schweighofer Romania. WHAT? A multiannual project that aims at planting one million seedlings over a five years period. WHERE? In Romania, on private forest land whose owners applied to take part in the project. WHEN? The project started in 2017 and will continue through 2024, with five years of planting and three years of maintenance works
WHY? Wood is a renewable resource and, often enough, forest regeneration takes place naturally, without the need of any external intervention. However, when this is not possible, the owner is legally compelled to carry out reforestation activities. There are, nevertheless, cases when they cannot cover the costs, either because they have not harvested any wood, or because they were given back areas with regeneration difficulties. The Tomorrow’s Forest project comes to meet the needs of private owners to regenerate their forests.
Romania’s Association of Forest Administra-
plots of forest land who had serious reforesta-
controls, and Tomorrow’s Forest’s plus is
tors joined forces with the Stefan cel Mare
tion problems and, because the Forest Districts
that it does not only plant seedlings, but also
University in Suceava and Austrian-based
could not finance them through the special
performs follow-up and maintenance works,
Holzindustrie Schweighofer last year, under
regeneration fund, have found the only viable
argues Palaghianu. “The first control is done
the brand name Tomorrow’s Forest (Pădurea
chance in Tomorrow’s Forest.”
1-2 months after a planting, followed by an
de mâine). The project, which is financed to the tune
Adds Tomorrow’s Forest project manager Ionut Apostol: “Once we finished the planting
annual control in the following 2 years, to apply course corrections, if needed.”
of one million Euro, aims to help private
session in spring we started checking the new
forest owners who have a hard time covering
reforestation applications, and we’re talking
of applications, as it has gained visibility lo-
reforestation expenses. Since it first started,
about over 15 areas in 7 counties. One thing is
cally. The initial plan was to plant an average
in September 2017, Tomorrow’s Forest has
clear, there are plenty of forest land plots with
of 200 – 250,000 seedlings per year, but the
helped eight such owners regenerate their
serious regeneration difficulties. Cases range
number can grow, depending on the needs of
forest land, with 163,880 seedlings being
from small properties that have been hit by
the applicants and the eligibility criteria.
planted on almost 40 hectares of land.
various calamities ten years ago, to hundreds of
The project sees an increasing number
“The Tomorrow’s Forest project proves
hectares damaged by wind in a single storm last
our commitment to a responsible manage-
from the University of Suceava and eligibility
year. The majority of the areas in our project are
ment of forests in Romania,” says Apostol.
criteria include being a small owner, without
hard to reach, with extreme work conditions and
“Through our actions we want to improve
any ownership problems and under an ad-
it’s impossible to get the job done with volun-
the life of local communities and generate
ministration contract with a Forest District,
teers’ mobilisation. A major problem at Forest
quality educational content to help shape
either private or state-owned. “We have
Districts everywhere, as a matter of fact, is find-
the next generation, teaching respect and
evaluated a large volume of applications,
ing seasonal workers for reforestation and other
love for nature and its richness.”
from small owners which had not met other
types of forest work.”
Applications are evaluated by specialists
forms of financing,” says Ciprian Palaghianu,
There are few other initiatives in Romania
You can always contact us at contact@
Ph.D., project director from the Stefan cel
that cover such a large volume of planting, they
padureademaine.ro and you can follow our
Mare University of Suceava. “These were
mainly cover small surfaces, without additional
activity on Facebook or YouTube.
www.business-review.eu Business Review | October 2018
32 SUSTAINABILTY
Rubbish laws: players question waste industry’s readiness for new targets New legislation on recycling and waste management is bringing a lot of changes for companies involved in the process. FEPRA International, a responsibility transfer organization, organized a seminar for partners in order to explain the changes and what the main actors in the industry must do. By Aurel Dragan
T
he new requirements for packaging waste management bring changes that will have a major impact on all retail-
ers, suppliers, distributors and manufacturers. Among the main requirements of the law is that 65 percent of waste must be exploited and 60 percent recycled. The numbers are 70 percent for paper and cardboard, 45 percent of plastics, 65 percent of glass, 70 percent of steel, 30 percent of aluminum and 50 percent of wood. “By stressing the economic instrument of ‘extended producer responsibility’, the new Emergency Ordinance (OUG) 74/2018, amending Law 211/2011 on waste management and Law 249/2015 on packaging and
Ionut Georgescu, president of the board at Fepra International, explaining that it will not be easy to change all the contracts by the end of November this year
packaging waste (PPW) management creates several challenges for companies introducing
collection of returnable packaging waste and
‘service-guilty’ in this area, so if the legisla-
PPW on to the Romanian market,” Gheorghita
for the reimbursement of guarantees for the
tion is clearer and the responsibilities are
Diaconu, director of environmental services at
related packaging waste. The amount set for
shared correctly, we will have results as well.
KPMG, told Business Review.
the guarantee related to primary packaging is
At present we do not have coherent legisla-
RON 0.5 /package,” says Diaconu.
tion, we only have obligations and others only
“The most important of the proposed legal changes that will come into force starting 2019
From January 2020, all companies that put
rights,” Gabriel Moiceanu, president of the
will lead to additional costs for producers,
packaged products onto the Romanian market
Federation of Intercommunity Development
while companies using returnable packaging
must also use at least 5 percent reusable
Associations (FADI), told Business Review.
will be required to organize their collection
packaging, but not less than the average of
from the final users so that they take back a
reusable packages used in 2018-2019. And this
unaware, and the integrated waste manage-
minimum of 90 percent of related packag-
percentage will increase annually by 5 points
ment system does not seem to find a balance.
ing waste. Also, entities which manage the
until 2025. “This requirement will create real
Environmental legislation is not in line with
process of reaching the recovery and recycling
challenges for entities which cannot use reus-
tax provisions, public service law (L 51, L
targets for PPW by themselves will only be
able packages for their products. Apart from
201) and funding memoranda for this area,
permitted to manage their own packaging
the possibility to use this type of packaging
so we have a lot to do. Regarding the changes
waste. This will create difficulties in organiz-
for secondary and transport packages (e.g.
imposed in the legislation by Government
ing a collection network. If, during 2019, these
wood pallets), it will be difficult to reach this
Emergency Ordinance 74/2018, I can antici-
companies fail to achieve the legal, they will
rising target,” adds Diaconu.
pate that many measures cannot be applied
be required to transfer this obligation to an-
“We find that there are partitions left are
by the established dates, firstly as we do not
other entity which is authorized to take over
UNCLEAR LEGISLATION
have many implementing rules and a transi-
these responsibilities. Also, any point of sale
Not only are the requirements challenging
tion period after the entry into force of these
with a surface area of more than 400 sqm will
for the entities, but the legislation is rather
rules is definitely necessary,” says Moiceanu.
be required to organize special places for the
unclear. “Administrative units are usually
January 1, 2019, seems unrealistic also
www.business-review.eu Business Review | October 2018
SUSTAINABILITY 33
will rise significantly, bearing in mind the efforts which will be needed to increase the quantity of recovered/recycled packaging waste,” says Diaconu. It is clear that the role FADI plays between municipalities, producers, collectors etc. will grow in the future. “FADI acts as a professional association on behalf of the members to harmonize and complement the legislation in this area, and in this respect makes proposals to amend the legislation, participate actively in the working groups as well as in the specialized committees of the two chambers,” says Moiceanu, noting that it also provides Gheorghita Diaconu, director of environmental services at KPMG, talking about the changes in the new law
a communication platform to disseminate examples of good practice. Just as important is the OTR (Responsibil-
from the financial and contractual point of
contractual responsibilities,” says Moiceanu.
ity Transfer Organization), where FEPRA is
view, since many things need to be imple-
“The situation is currently unclear, as it
active. It has a market share of 32 percent of
mented in a short time. “Previous experience
was before this legislative change. Paradoxi-
the OTR industry and 20 employees. In the
has taught us that we do not do well at apply-
cally, in September, the carton, plastic and
first half of this year it managed to report
ing major changes in a very short timeframe,”
glass targets were reached for 2018, and in this
over 133 million kg of which 73 million kg was
says Diaconu. Or as Ionut Georgescu, presi-
context I consider that the recycling percent-
recycled and nearly 7 million kg harnessed.
dent of the board at Fepra International, puts
age for the packaging in the municipal frac-
it, it is not easy to change all the contracts by
tion exceeds 40 percent,” says the president of
one for each of Romania’s development
the end of November this year, paperwork
FADI of the municipal waste situation.
regions, allows the application of the “pay for
that would have to be done by all the actors
The same cannot be said about the private
The Regional Waste Management Plans,
what you waste/consume” principle by local
in the industry, including the 9,000 collectors
sector and future targets. “Taking into ac-
public authorities and introduces phased
around the country.
count the current status of the waste manage-
obligations on the level of readiness for
ment process and the shortfall in Romania’s
re-use, recycling and other material capital-
MENTALITY CHANGE REQUIRED
performance when measured against the
ization. Waste producers and waste holders
The change in how we use waste and packag-
targets set by European Directives, it will be
are required to separately collect at least the
ing must start with our way of looking at it.
difficult to achieve the new goals. Pressure on
following categories of waste: paper, metal,
“Firstly, there is a need for a change of men-
producers, and on the organizations taking
plastic and glass, in order to ensure a high
tality among all actors involved, including
over the extended responsibility for them,
degree of recovery.
consumers. All of us need to understand that the responsibility for efficient waste management is collective, and everyone should have a clear role in achieving real progress. This will help Romania to move up from last place in the EU for recycling rates. Improved awareness and investment in separate collection infrastructure for waste are crucial,” comments Diaconu. And the problems at the municipal level are also found in the field of reporting what and how much we recycle. “Reporting is poor and inconclusive for a correct analysis of the situation in Romania. There are many recyclable quantities that do not appear in local government reports, although they were collected from that administrative area by different collectors, other than those with
Gabriel Moiceanu, president of the Federation of Intercommunity Development Associations (FADI) talking about recycling
www.business-review.eu Business Review | October 2018
34 HUMAN RESOURCES
How a start-up can attract and retain its talents Like any other firm, regardless of sector or size, a start-up needs a clear business strategy, with specific goals and targets. Along with that, a human resources strategy is mandatory, although many would argue that it is premature to implement it in a company’s early stages. By Anda Sebesi Plus, they will never promote their business before launching on a specific market because many of the businesses have a long tradition on other countries or regional markets. “Yet large companies attract potential employees through what they do differently on the market and use social media intensively by implementing creative recruitment campaigns. For example, LinkedIn has become extremely popular among such companies,” adds Bradea. Today, a jobseeker will no longer be interested in a common recruitment posting, be it an entrepreneurial company or a multinational one. He or she is well prepared and informed and will decide to go or not for a job interview, based on the quality of the recruitment advert – the so-called ghosting phenomenon. According to Bradea, along with the Sorina Bradea, Thomas International Romania
P
financial incentive challenge, start-ups also face the problem of the diversity of respon-
undits say that at present, many
of each individual and of the working teams.
sibilities of a position. In general, in a small
Romanian start-ups ignore the im-
“To speak of an HR strategy an entrepreneur
company an employee is responsible for
portance of a clear approach to their
should know from the start what is the orga-
suppliers, customer care and a mix of other
human resources. “There are few start-ups
nizational culture he or she intends to imple-
executive tasks, all at the same time. “Small
now which embed a HR strategy in their
ment within his company, set the structure
companies need an employee to be a mix of
business plan. More and more entrepreneurs
of his or her workforce based on skills and
flexibility and specialization, which is very
set medium-term targets, objectives and
behaviours, define a plan for compensations
difficult to find on the labour market,” adds
activities, but there are few who think of
and benefits and set a performance manage-
the representative of Thomas International.
the people they need, where they will find
ment system,” adds the representative of
Sketching an employee of a small company,
them and what they will do with them once
Thomas International Romania.
Bradea would say that he or she should be
they are part of the firm,” says Sorina Bradea,
While some HR tactics to attract candi-
hands-on, dedicated, loyal, creative, disci-
partner at Thomas International Romania and
dates are similar to those implemented by
plined, tenacious, specialist, flexible, honest,
entrepreneur.
larger companies, others are significantly dif-
talented, determined, active and proactive under the supervision of the entrepreneur.
In her opinion, the HR strategy of a
ferent in the case of a start-up. For example,
start-up should anticipate the long-term
large companies will never make use of the
behaviour within the company, considering
image of their founder to attract employees
its culture and different contextual develop-
and will not promote their vacancies through
HOW CAN START-UPS INCENTIVE THEIR EMPLOYEES?
ments: attitudes, values system, ambitions
their network of personal acquaintances.
According to Bradea, at a start-up, incentives
www.business-review.eu Business Review | October 2018
are often offered on a discretionary basis so the entrepreneur decides to whom and what is the incentive. “It is an ongoing surprise. But the most important thing when it comes to incentives is not what you give but to give what you promised to give! An employee is sensitive to unsettled promises,” says Bradea. Gym subscriptions, health insurance, online library and library subscriptions, access to retraining programs, bonuses for innovation and creativity, different incentives depending on their results and performances, access to different specialized magazines, in-kind benefits like fruit or vegetables delivered to the office and shopping cards are some of the
HUMAN RESOURCES 35
How can start-ups attract and retain employees The main crucial challenge that start-ups face is that no one knows anything about them. This can be both a positive aspect – at least there is no negative information about their corporate culture – and a negative one – they are not attractive to their potential employees. But what should they do? With a well-known entrepreneur – he or she could use their image instead of promoting the position. If the entrepreneur is not a public person – there are many other ways, with the following being the most relevant: To promote the business before setting it up or looking for personnel, making use of what differentiates it from the crowd and the sector in which it operates; To use social media intensively; To use his or her network of friends and acquaintances who can recommend him/ her honestly to potential candidates; To consult with specialists in order to post job offers/creative and attractive job offer videos. It is worth investing in this area as such adverts will attract attention; To be part of chat lists where potential candidates could be present.
incentives that start-ups could use to retain their talents.
the cumulative work of three people and had
similar both for larger companies and smaller
cumulative responsibilities,” explains Bradea.
ones. Keeping promises, a high quality of
PERSONNEL TURNOVER HITS EVERYONE
She adds that while in a large company the
management – at each hierarchical level,
“The math is simple: if a company with 1,000
tasks are redistributed until another person
including at entrepreneurial level – a clear
employees loses 10 employees each month,
fills the vacancy, in a small one the tasks are
vision and mission along with long-term ob-
its turnover is 1 percent. But if a start-up
often taken over by the entrepreneur. “And
jectives which needed to be communicated
has 10 employees and loses 1 of them, its
this is because in general, the members of the
to the employees, respecting the employee,
turnover is 10 percent. Which of the two
team are already overloaded,” she says.
encouraging initiatives and compensating
companies has a problem? For sure it is the
Because every company, regardless of its
the valuable ones, are some of the tools used
smaller one that is in trouble because the em-
size, is significantly impacted by personnel
by any organization to fight against staff
ployee who left it for another company did
turnover, the measures taken to combat it are
attrition.
www.business-review.eu Business Review | October 2018
36 CRYPTOCURRENCY
Local start-ups begin to ride the crypto trend With the combined value of the top 100 cryptocurrencies exceeding USD 210 billion on a global market with high price fluctuations, more start-ups in Romania are looking to issue their own tokens to raise financing more easily and reach a critical mass of consumers. But anyone seeking to invest in cryptocurrencies or to back a start-up issuing a token should be wary of the associated risks, say financiers and legal experts, as regulation in this field is in a nascent stage. By Ovidiu Posirca
Some trading practices that are banned in the traditional financial system are alive on crypto exchanges
A
lready, there are more than 1,600
nesses working with cryptocurrencies and
authorities looking to take a soft approach in
listed tokens, coins, virtual and
other blockchain technologies can,” Vlad
terms of regulation.
cryptocurrencies, according to Coin-
Nistor, CEO of Coinflux, the digital currency
marketcap. Any fluctuation in the price of Bitcoin, the most expensive cryptocurrency,
exchange, told BR. According a report commissioned for the
“Of course, as with any business, current regulation applies fully whether you are developing your product using an SQL database,
continues to remain a topic in the main-
European Parliament, cryptocurrencies are
or a blockchain. If you are selling securities,
stream media, while conventional financial
a special case among digital currencies as
for example, there are securities laws and
players are also looking for business in this
their characteristics include the absence of
regulations you need to follow before you can
area.
a central counterparty, non-discriminatory
execute a public sale of shares or other finan-
public access, and security against fraudulent
cial instruments. I’ve seen little interest from
SOME COUNTRIES TAKE FIRST STEPS TO REGULATE
spending.
Romanian authorities in blockchain technol-
Nistor says that the European Union
ogy, and even less in regulating it,” he added.
“Cryptocurrencies can’t be regulated due to
has been open to blockchain, the underlin-
When talking about distributed ledger
their decentralized model. However, busi-
ing technology of Bitcoin, with European
technologies, there are still a lot of challenges
www.business-review.eu Business Review | October 2018
CRYPTOCURRENCY 37
regarding regulation from a fiscal and legal
ent’s platform will use Ethereum’s smart con-
funding raised stood at USD 6.2 billion. In the
perspective. However, we are still far from
tract mechanism to incentivize its users on
same year, the volume of IPOs reached USD
considering regulation being introduced at
a merit-based system by allocating a specific
190 billion, according to a report from EY, the
EU level, says Cosmina Simion, partner at
number of tokens for this purpose.
professional services firm. 902 ICOs tracked by TokenData, 142 failed
already issued licenses after launching its
ARE ICOS THE NEW HOLY GRAIL FOR FINANCING?
legislation in early 2018 and Malta adopted
Initial Coin Offerings (ICO) have been com-
failed after fundraising. Another 113 project
a legislative package as recently as this sum-
pared to the Initial Public Offerings (IPO) on
were dubbed “semi-failed” because their
mer.
the stock exchange by some commentators.
teams have gone off the radar or their com-
In the case of ICOs, costs are lower for the
munity disappeared. This brings the failure
carried out in closed circles, we have not seen
start-ups and the whole procedure is carried
rate to 59 percent, according to Fortune
any official attempts at regulating virtual cur-
out faster. But this doesn’t mean that the
Magazine.
rencies so far. In any event, if and when such
risks are reduced. An ICO is a sort of crowd-
materialize, we would expect them to come
funding where the company sells crypto-
chain projects are no different. The risk
from the Romanian Financial Supervisory
coins, or tokens, typically to raise money in
of investing in any start-up is significant,
Authority,” Simon told BR.
the form of other cryptocurrencies, which it
irrespective of whether you are buying actual
can then exchange for traditional currencies
shares, or tokens. Some companies prefer
to fund its operations.
ICOs because they are able to raise more
Data from Bitcoin.com show that out of
law firm NNDKP. Some states have taken the first steps to regulate this field. Gibraltar has
“In Romania, while discussions might be
Meanwhile, the report commissioned by the EP notes that some trading practices that are banned in the traditional financial system are alive on crypto exchanges. “The lack of a clear and forcefully implemented
ICOs should be seen as highly-speculative
before raising funding, and another 276
“Nine out of 10 start-ups fail, and block-
money than using traditional funding methods, like angel investors or ven-
investments, says Inti Paolucci,
ture capital. There is also less
partner at Gapminder,
oversight over how they
the venture capital fund that has
spend their money. The
increasing uncertainty
invested in
time and effort spent
and probably prevents
a series of
raising the money is
regulatory framework is
institutional actors
Romanian
usually similar,” said
from entering the
start-ups.
Nistor.
market and providing the crypto ecosystem with additional liquidity which would eventually reduce
The lack of regula-
“For a
tion or oversight leaves
start-up, an ICO
considerable space for fraud
is a faster and easier
and schemes meant only to
way to raise funds. However,
drain money from “bona fide investors,”
volatility. However, regulatory action
in most cases it denies the entrepreneur a
against fraud and manipulation is compli-
proper view of the investors’ background and
adds Simion of NNDKP. At present, an ICO
cated by the progressive development of
investment strategy, potentially jeopardiz-
doesn’t offer the same revenue participation
decentralized exchanges,” said the report.
ing future rounds and successful exit paths.
rights as traditional equity investors and
For both investors and entrepreneurs, ICOs’
this could enhance the risk for traditional
preneurs that have issued coins for their
main advantage is the speed of the overall
investors.
start-ups in order to finance operations. For
transaction, being exponentially faster than
instance, Scienceroot, which aims to create a
traditional funding vehicles,” Paolucci told
could, from this perspective, help both
global scientific ecosystem, finished its first
BR. The venture capitalist says the uncertain-
investors and entrepreneurs in that it could
token sale this summer.
ty can be managed by investors in an ICO, but
lend more stability and trust to these invest-
opacity is rarely an acceptable parameter.
ment vehicles, which could ultimately help
Nonetheless, there are Romanian entre-
“We took this approach because we believe that everyone should be able to invest
“The anonymous structure of the transac-
“The substantive regulation of ICOs
entrepreneurs in developing business,” said
in the project and in science,” Vlad Gunther,
tions affects transparency and it could be an
the partner, underlining that regulation
co-founder of the start-up, told BR in an
attractive platform for money laundering,”
should not stifle innovation.
interview in July.
says Paolucci.
Code of Talent is another start-up plan-
The failure rate of ICOs remains high at
The EP report noted that the regulatory responses of 25 countries that saw the
ning to fund its operations by issuing its own
international level. Out of 800 ICOs com-
highest amounts of funds raised through
token. The blockchain-powered micro-learn-
pleted in 2017, only half raised more than
ICOs differed. China has banned ICOs, while
ing platform is in the pre-registration stage
USD 100,000 and only a third were able to get
Russia has a looser approach. Most of the
for its token sale that will launch in October.
listed on exchange markets, according to a
countries use existing financial law and ap-
report by IcoRating.com. The total amount of
ply it to ICOs as well.
According to its White Paper, Code of Tal-
www.business-review.eu Business Review | October 2018
38 COMMUNICATION
Crisis communication management still in its infancy Handling a communication crisis appears to remain a problem in Romania, whether it’s a political, economic, social or even media situation gone wrong. Companies need to understand that they must have a 112 call in their agenda at least to have a different, outside view of the situation from a communication/crisis expert, players say. By Romanita Oprea CITR Group, revealed that the number of entrepreneurs that had faced an image crisis in the last year grew from 60 percent in 2016 to 68 percent in 2017. Still, most of them remain positive as 74 percent don’t believe they will face this type of problem again. The majority (60 percent) consider that at the core of their crisis were internal problems and business decisions, less social media (26 percent) or the product itself (14 percent). The study had a sample of 85 entrepreneurs in Romania, most of them having between 20 and 100 employees and businesses older than five years. “Their level of preparation depends on their previous history and crisis episodes, how exposed they are or how much they are Ana Maria Diceanu, Brain 4 Strategy
D
willing to invest in their own communication specialists. And also, this depends on whether the company is part of a multinational group
espite all the efforts that some agen-
weak spot somewhere in the business. I think
or not. My personal experience has taught me
cies are making, trying to educate the
this is one of the main barriers in crisis man-
that companies are not ready for crisis – no
market (clients and other colleagues)
agement in Romania; it is difficult for people
more than they were in 2008, for example,
through workshops and conferences, when a
to accept that not everything is 100 percent
although they now shout ‘crisis, crisis’ or ‘we
crisis blows up it is often met by a lack of prior
okay,” said Diceanu.
have a crisis’ much more often than in the
preparation, but also a lack of knowledge of
Moreover, as Raluca Ene, managing direc-
past,” said Raluca Negrea, managing partner at MakeSense.
how the situation should be handled properly.
tor of Chapter 4 Romania, points out, the
So what steps should be taken and where does
ever changing channels spectrum has made
Romania really stand?
communication more complex than ever.
survive and successfully deal with a tough
She knows some companies that could
Companies’ audiences are now present all
crisis. These firms rely on people that she ad-
& CEO of Brain 4 Strategy, the nature of a
across these channels, and they need quick,
mires and envies in the best possible way on
crisis is that nobody can predict what, when
correct and clear information. “They have a
a professional level. Such people rarely shout
and how something bad will happen. But,
reaction back and companies have to be there
“crisis”. “Otherwise, if I check my WhatsApp I
to remain with their reputation intact, or
to answer in the next second. The transition
am afraid I’ll find ‘we have a small crisis’ or ‘I
at least minimize the damage, companies
from the unidirectional way of transmitting
will be late, I have a crisis at the office’ written
should invest resources in understanding and
information to the conversation is the biggest
in messages quite often. I sometimes have the
acknowledging the possible risks and issues
switch in the history of communication. It
impression that some people expect a crisis
they might face. “One thing is certain, a crisis
needs self-awareness, resources, and trust.
at any time, although the companies they are
will happen. Sometimes it is difficult to accept
But we are getting there at a rapid pace,” said
representing have never planned for one. I
that such things can happen, or that there is a
Ene. A GMP PR study, conducted alongside
believe that this shout of ‘crisis’ comes from a
According to Ana Maria Diceanu, founder
www.business-review.eu Business Review | October 2018
COMMUNICATION 39
Raluca Ene, Chapter 4 Romania
Raluca Negrea, MakeSense
general anxiety we all feel and because of the
if the communication partners are changed
crisis management teams. Social media guys
inexperienced people in crisis management –
like socks or chosen in a pitch where deliver-
should understand and know the difference
especially those who have been recruited in
ables related to crisis are mentioned and put
between an issue and a crisis. They need
recent years,” added Negrea.
together just as a way to check them off from
to monitor and report, and they need to
a chart,” said Negrea.
understand that when we are talking about a
How has the situation changed or evolved
crisis the communication must be one – one
in time? According to Diceanu, because we have seen an increase in the number of
CHANGE IS WITHIN US
message, one approach. “It is not nice to see
difficult situations brands find themselves
So where should the change come from then,
a hasty response on Facebook now and ten
in, crisis communication preparedness has
and what further should and could be done
minutes later a different response, a differ-
improved. The Brain 4 Strategy representative
in order to educate the market? In Raluca
ent message and even a contradiction. One
believes that even though there is still a lot to
Ene’s opionion, preparation is the key word.
other thing that needs to change is the way
be done, we see more and more companies
Companies of any size should consider
management looks at mistakes, errors. If they
investing in crisis plans, crisis management strategies and crisis communication training. Still, the MakeSense representative believes
preparing for a crisis the same way they approach fire prevention, or natural disaster prevention: by continuous information and practice, together
tend to ignore them or rather cover them up, then employees will do the same and possible risk will not be identified/recognized on time. Companies should encourage employees to speak up,” urged the Brain 4 Strategy representative.
that fear of a crisis is
with the right team of
more and more present.
specialists. “What we
You can identify it easily
can do more is to be the
Negrea’s opinion? There are lots of events
Where should agencies do more, in Raluca
consultants our clients
and conferences which approach the issue of
on the front line, respon-
deserve and raise the red
crisis, which create opportunities for debate
sible for communication.
flag every time a potential
and case studies. “But concrete and local
crisis situation arises, and not
examples are missing. Sometimes, we are
in almost all the people
And she thinks that the capacity to deal with and manage a crisis, the know-how and the ability
only to them, but to other similar companies, or the industry, or even at
meeting just to say we have met and we talk in order to hear ourselves more than we bring added value.
to act have decreased alongside the frequent
the level of the economy. By explaining to
personnel changes companies have seen in
them the implications of the respective situ-
Local case studies are missing, from which
the past few years, with the emergence of
ations and learning from those experiences,
the interested parties can learn how the crisis
start-ups which have less to lose and with the
we can raise more awareness of the high need
was anticipated and how the agency and the
general superficial trends we are all con-
for preparedness,” added Ene.
company prepared for it, what exactly hap-
fronted with. “Let’s be realistic here – crises
In her turn, Diceanu believes that along-
do not emerge every day. It’s difficult to face
side what has been done already, today
them if the company does not have a plan or
social media teams should be included on
pened when the crisis started and what were its effects a few years later,” added Negrea.
www.business-review.eu Business Review | October 2018
40 MARKETING
Experiential marketing jumps on technological bandwagon Technology and innovation are changing the game in advertising more and more. Consumers want more interaction and interest from their favorite brands and engagement is going to be the name of the game for a while. Experiential marketing takes it closer to them, say players. BR found out more. By Romanita Oprea
Maia Novolan, Syscom Digital
E
Irina Mateescu, Digitalee
xperiential marketing is all about
– into the environment they still frequent the
experiences into B2B shows and changing
engagement and interaction, being
most, offline. 360° interaction is perceived as
the game”, said Mateescu. “There is also a
truly memorable in your consumers’
more personal and emotional and therefore
certain disruptiveness across all domains that
minds and hearts and building relationships.
it plays a decisive role in making someone
is putting, for example, architects or product
It’s a strategy that provides customers and
loyal to a brand and, of course, leads to an
creators in the position to talk about creativ-
prospects with an in-person experience that
increased likelihood of purchase. Also brands
ity rather than a creative director. Even the
must be unique and engaging.
can use virtual and augmented reality such
socializing part is now more experiential at
as storytelling, helping customers to connect
these types of events: we are no longer talk-
director at Syscom Digital, one of the main
with the brand while learning more about
ing about only exchanging business cards
trends is the 360° interaction between brands
specific details and view dynamic anima-
during breaks, but about using technology to
and customers which starts online and contin-
tions,” explained Novolan.
create meaningful connections with apps like
According to Maia Novolan, managing
ues offline (or vice versa). It basically means
In her turn, Irina Mateescu, partner at
Networking Tables,Whova, Bizzabo,” added Mateescu.
offering them a unique, memorable and com-
Digitalee, considers that a great trend is B2B
plete experience, to obtain a “wow” effect by
events, trade shows and different confer-
engaging them in both channels, beginning
ences. “In 2018, but also last year, I distin-
comes to experiential marketing include VR
online and continuing offline or activating
guished several new concept events with
(Virtual Reality) and AR (Augmented Reality)
them offline and having the climax online or
a huge potential to challenge the famous
experiences. Augmented Reality set-ups con-
through other digital channels.
TEDx talks (such as Unfinished, Brandminds,
sistently rank as one of the hottest attention-
Digitalium,etc). By using experiential market-
grabbers at trade shows and live events in
ing, event organizers are bringing lifestyle
2018. Marketing Dive’s introduction to AR
“The experience is not limited to online, but it is transposed – through digital devices
The latest trends to be watched when it
www.business-review.eu Business Review | October 2018
MARKETING 41
“At an interna-
ing different types of interactive shelves,
tional level a pos-
engagement booths, and interactive totems,
sible trend to watch
perfect for shopping interactivity. For events,
closely, which has
the most used activations use Kinect ap-
newly entered every-
plications, digital totems, photo-booths with
body’s vocabulary, is
specific experiential components like 360°
immersive tech-
photo-carousel with social media integra-
nology. We know
tion, VR glasses or augmented reality apps
already that online
installed on our tablet fleet – these are some
video, although
examples of customized applications that
no longer a tech
we can implement to create a truly unique
innovation in itself,
branding or shopping experience,” said Novo-
is much more well-
lan. Looking at budgets and how much clients
received by users, so
are investing in the field nowadays, Novolan
it is more and more
affirms that clients in general love experien-
used. Therefore any
tial marketing, but the problem arises when
interconnection of
measuring awareness or results. “We focus
video content with
mainly on developing activation with quan-
other tools (video
tifiable results, so clients can measure their
with voice calls, or
KPIs, but the overall awareness is often hard
interactive videos,
to measure. So clients, as they have to tick
or video personal-
the box of KPIs and numbers among their job
ized content etc),
description’s annual obligations, may choose
has become more
the easy way by putting the money into ads.”
attractive to users.
Dumitrascu appreciates that, compared
trends found that the most successful imple-
Live video streaming and immersive content
to previous years, there is clearly increasing
mentations of AR were those where the brand
amplify the brand message and spread the
interest in tackling this field and saving some
provides goggles with apps that have been
reach, and are considered ‘the cherry on the
of the budget for ‘WOW’ ideas. “However, not
customized for the event, over brands that
cake’. ‘Immersive’ is the new word most fre-
all campaigns have to include experiential
created apps for event attendees to down-
quently heard this year while I was attending
and I think here is where we have an essential
load onto their own phones. It blends digital
conferences and exhibitions in the USA,” says
role as consultants. If there’s no real need for
components into the real world, allowing
Maia Novolan.
it, we don’t have to do it. If it doesn’t translate into a really meaningful approach or doesn’t
users to interact with virtual content in the real world, while thanks to tools such as the
LOCAL VERSUS INTERNATIONAL
help make a real connection with the audi-
ARkit, many brands can extend the in-store
Still, one has to wonder how Romania is doing
ences, again, no need for it,”.
experience by building their own AR apps.
compared to Western countries. The Mc-
This interactive experience allows consumers
Cann PR representative believes that we are
experiential marketing event or campaign?
to feel more engaged with a brand, leading to
not yet at their level, but definitely moving
According to Mateescu, they are people
an increased likelihood of purchase. “End-
quickly towards understanding the essential
with a very active lifestyle, always on the
users will lead the way for advertisers and
role that experiential plays – from uplifting
go, but whose attention is very hard to keep
give an unexpected boost by showing interest
the communication towards brand love to
alive towards a brand message, and a little
and engagement with new forms of content.”
shaping authentic business models. The good
posh. ”Butterfly” people for whom being
added the Digitalee partner.
news is that, in the past few years, we’ve seen
in a certain place at a certain time means
this shift in many industries. In Novolan’s
something, but also those who consume any
& account director at McCann PR, coordina-
opinion, the intersection between digital,
kind of experience very fast. Subjects that
tor of the experiential division, thinks that
social and geo-localized marketing is unfortu-
are micro-influencers among their peers who
above all, it’s about how you use the tools to
nately not sufficiently exploited by brands in
can generate dozens of native comments on
really bring to life an idea, a brand or a vision.
Romania.
their posts without making any money out of
At the same time, Mihaela Dumitrascu, PR
Translating big data into meaningful insights,
“Nowadays, building an omni-channel
Which takes us to who is the target of an
it are also part of any experiential marketing
merging realities and technology to create
presence, especially in retail, is crucial on
audience. Tech-savvy people with a medium
memorable experiences are just a few of the
a very competitive market. The Romanian
to high income working in disruptive domain
most valuable means to build a two-way
market needs to work much more on that.
and new-generation entrepreneurs are easier
bridge between the brand and its audiences.
We have the know-how and we are produc-
to attract to such initiatives.
www.business-review.eu Business Review | October 2018
42 GOING OUT
Brewing business: the specialty coffee trade in Bucharest There is a time for the corporate path and there is a time for your own business. And both can work together. This ethos might sum up Anca Ungureanu, who is currently first VP, identity and communication director of UniCredit Bank, but also co-founder of Beans & Dots, one of Bucharest’s best spots to enjoy Berlin’s greatest coffee, The Barn. Ungureanu’s first cup of coffee came at university, when her host served her a Turkish brew. And she says it was the best thing she’d drunk until then. Her love story with The Barn Coffee bloomed years later, in Berlin. And now she has brought it to Bucharest. By Oana Vasiliu time as the public education. A critical mass of coffee aficionados was reached and that made it possible for the second wave of expansion to happen. If you take a walk in Bucharest you will see countless new specialty coffee shops that have just opened. Even if only a few of them live up to the industry standards, their role is very important. They grow our market by drawing consumers away from mainstream coffee and initiating them into specialty coffee. (…) The biggest challenge, like in any other industry, is the workforce. Finding the right people for the kind of hospitality we want to provide is very difficult. The second challenge is actually to consolidate the community of specialty coffee which is happening more slowly than in other countries.
How do issues of sustainability play into this evolution of the specialty coffee business? Why a specialty coffee business as a sideline?
a great responsibility.” The idea for Beans &
First of all it comes from sourcing the coffee
Dots was born while Adelina Ivan, my partner,
and paying the right price. Protecting the
Well, because of the coffee of course, and then
and I were having a cup of specialty coffee
farmers’ communities and helping them to
because of the community that was created
with our friends at Steam Coffee shop, so as
grow in order to be able to provide the best
around it and the responsibility for keeping it
you can see the quote turned somehow into
quality beans is extremely important. For
alive that comes with it. Our idea as Beans &
reality.
us, working exclusively with The Barn Coffee Roasters for our beans meant respecting
Dots founders was not to create just another
from the very beginning all these principles
spend the whole day without getting bored.
What are the main characteristics of the specialty coffee business in Romania? And the main challenges?
As James Freeman, founder of Blue Bottle
At the beginning the specialty coffee scene in
only a matter of cost but also a responsibility
Coffee, once said: “People fall in love at cafes,
Romania was created by professionals, people
to the environment. Last but not least, taking
people have deep and important conversa-
that really knew about specialty coffee, so its
care of your people and creating an employer
tions in cafes, they meet people they might
grounds are solid and healthy. Then it had
culture for specialty coffee is important. (…)
marry or go into business with or both, so it’s
organic growth and this happened at the same
We have to give first, before asking.
specialty coffee shop, but to create a community space where people can come and
of doing business. Then using responsibly all our waste materials from water to cups is not
www.business-review.eu Business Review | October 2018
GOING OUT 43
Bucharest, a world-class specialty coffee city? At the beginning of April, a European Coffee Trip article went viral locally after asserting, “Bucharest is becoming a world-class specialty coffee city.” And we all agreed on that, taking into consideration the coffee boom. It seems it all started back in 2013 with Origo, whose founders opened up their coffee shop and also a training center, along with a roastery. And then the others followed in their wake. By Oana Vasiliu BOB COFFEE LAB Piața Charles de Gaulle 3 If you’re a first-time visitor, come here to enjoy the owners’ signature drinks, V60WCRC16 and WCIGSPU03 Irish; one follows Niculae’s recipe for the World Coffee Roasting Championship 2016, and the other one is the recipe Ungureanu used at the World Coffee in Good Spirits Competition 2015. Then enjoy the conversation with the baristas and order your favorite.
DOSE CAFE Calea Dorobanți 56 Bucharest scene constitutes third wave coffee
A
For Belgian flavors, Dose Cafe should be your destination, as it brings coffee from the Caffenation roastery in Antwerp. The atmosphere
ccording to European Coffee Trip sta-
baristas. For example, there is Bob Coffee
is cozy and both the baristas and owners are
tistics, Bucharest has one specialty
Lab, co-owned by Alexandru Niculae and
incredibly friendly. At weekends the place
cafe per 52,000 inhabitants, which
Paul Ungureanu, respectively the World Cof-
hosts wine & beer tasting, using local rather
is more than Berlin (1 per 67,000 inhabitants)
fee Roasting Champion 2016 and the third
than mainstream producers.
or Copenhagen (1 per 72,000 inhabitants),
placed entrant at the World Coffee in Good
with over 50 outlets serving specialty coffee.
Spirits Competition 2015, while Floriana
GUIDO COFFEE
Experts confirm that what’s happening on the
Vlaicu of Guido Coffee was the first Roma-
Mihai Eminescu 182
Bucharest scene constitutes third wave cof-
nian world finalist in the World Coffee in
This is another homegrown Romanian roast-
fee, a concept that according to The Perfect
Good Spirits Championships, among others.
ery, co-owned by Floriana Vlaicu, the first
Daily Grind means increasing coffee quality,
But most importantly, the first generation of
Romanian world finalist in the World Coffee in
more direct trade, a greater emphasis on sus-
local baristas, who came up between 2012
Good Spirits Championships. It’s a transpar-
tainability, lighter roast profiles and innova-
and 2016, are “students” of the same schools,
ent roastery: while you enjoy your espresso,
tive brewing methods. “We chase sweetness,
learnt a lot from each other, did their training
you can watch your barista roast, cup, and bag
complexity, and distinctiveness in our brews.
in the UK or in Germany to fine-tune their
the very coffee you’re sipping. From time to
And we’re happy to pay more to receive this,”
knowledge and skills and now serve us coffee
time, Guido hosts enjoyable public cuppings.
notes the publication, and we could not agree
with a bit of culture between our sips.
more. “When customers find out that coffee
ORIGO
tastes different from what they are used to,
ARTICHOKE
Lipscani 9
in a good way, they become passionate about
Calea Victoriei 45
Definitely the place to be when you start your
it. They want to try different origins, farms,
If you like Dark Arts in London, then Arti-
coffee-hunting journey in Bucharest. It has its
and infusions. They discover the third wave,”
choke is the place for you. Besides coffee,
own roastery as well, and the chatty baristas
the owners of Dose Cafe, one of the newest
they serve delicious all-day breakfasts and
can guide you through the different batches
coffee shops in Bucharest, told The Perfect
pastries. The coffee shop also functions as
of coffees from around the world, how they
Daily Grind.
a small art gallery promoting local artists.
behave with various serving methods and
Some of the exhibited works are by Arti-
info about tastes. It’s like a coffee lesson
choke’s barista illustrators.
which you don’t want to end.
And what’s more, this is a world-class specialty coffee city thanks to its incredible
www.business-review.eu Business Review | October 2018
44 EXPAT EYE
Getting cross: wrong-headed referendum tries to drag Romania backwards BR’s resident British expat ponders the forthcoming referendum, the so-called Coalition of the Family, and the changing social attitudes of young Romanians. By Debbie Stowe
A
country on the margins of Europe. An ill advised, unnecessary referendum, allowing reactionary political forces
to drag the nation back to the dark ages. But let’s take a break from Brexit this month. Because it’s Romania’s turn for a stupid vote, on whether to restrict the constitutional definition of marriage to a man and a woman, thereby outlawing gay unions. As we all know, the government coffers here are overflowing, with schools, hospitals and other public infrastructure all generously funded, so there’s plenty of money left over for a EUR 35 million referendum. Oh, wait… But the waste of money is merely the hors d’oeuvre in the banquet of wrongness that is this referendum. Firstly, let’s look at the practicalities. The aim is to ban same-sex marriage – which
are widespread in Romania. Spend your EUR
tag boicot (boycott), Romanians are urging
35 million on that.
their compatriots not to vote, as if turnout
Fourthly, this would be a backwards move,
falls below 30 percent, the outcome is invalid. From my view as an outsider, this re-
makes it sound as if same-sex couples can
against the prevailing European tide. Despite
currently marry here. Of course, they can’t.
the few voices still harking back to pre-1989
sistance is especially cheering as it wasn’t
Even in more progressive Western nations,
Romania, European integration has largely
always so. In my first years in Bucharest, dur-
marriage equality has only been obtained in
been a force for good here. From higher sala-
ing the early and mid-2000s, I taught English
the last five or ten years.
ries, more foreign travel, and wider consumer
at multinational companies, which brought
choice to the smoking ban, Romania’s EU
me into contact with extremely bright young
homosexuality being decriminalized to gay
journey has coincided with (and played a big
graduates. When our discussions turned to
marriage took nearly 50 years. Romania is
role in bringing about) healthier, wealthier,
social issues like race and sexuality, I was
only 17 years into that journey, and the lobby
better travelled citizens with much more (and
often saddened by what I heard.
for marriage equality is in its infancy.
better) to do, buy, see and eat.
In the UK, for example, the journey from
So the vote seeks to ban something that is
Alongside this is – or should be – the em-
While I could understand that a pensioner, who had grown up in a closed country
brace of liberal, European values: freedom,
dominated by propaganda, seldom left Ro-
equality, inclusivity. As Anca, a software de-
mania, and lacked internet access, might still
internet meme has it, the referendum was
veloper on EUR 2,000 a month, plans her next
consider homosexuality an illness, to hear a
launched by one man with five wives, and
romantic foreign mini-break on her iPhone
university-educated, polyglot 20-something
another with a mistress 30 years his junior.
while sipping a RON 13 specialty coffee, how
say so was disheartening. So it’s wonderful
Rather like Donald Trump – who’s had three
incongruous that if that mini-break happens
that today’s university-educated, polyglot
wives and cheated on every one – cheerlead-
to be with Ioana rather than Ion, this is still
20-something is more likely to be sharing pro-
ing family values in the US.
seen as something shameful.
gay, anti-coalition memes.
hardly imminent anyway. Second is the rank hypocrisy. As an
Thirdly, even if one genuinely believes the
The referendum follows a pattern in Ro-
I hope the boycott is successful – as we EU-
nonsense that same-sex marriage imperils
mania’s recent big news stories: rotten leaders
based Brits know only too well, the fact that
the “traditional” family, the latter faces far
depress everyone by their low, self-serving
the young, educated, and open-minded vote
greater threats. Poverty, domestic violence,
schemes, and the Romanian public inspire us
against stupid things doesn’t mean stupid
children left at home by emigrant parents – all
by their spirited opposition. Under the hash
things don’t win votes.
www.business-review.eu Business Review | October 2018
RESTAURANT REVIEW 45
THE FRENCH CONNECTION >>> Le Bistro Francais, 18 Nicolae Golescu, 0756 018 393 <<<
T
hose of you who know the bars
– St Amour and Valencay – and two cow’s
in this town will doubtless have
cheeses – Epoise and Compte. OK, they were
been familiar with Galleron, the
thumb nail size portions, but what else could
have any of the mains that I have listed
you expect for RON 55?
here. I breezed past the House the next day,
most beautiful bar in the nation. It came
been plated up and brought to your table. And now here comes the rub. You can’t
to you resplendent with marble pillars and
We passed on ‘egg with black truffles,
only to find they had all changed. Yes, it’s
ornate plaster work. It was so stunning that
comte (cheese) and foie gras’ at RON 65. For
a bit frustrating, but no matter. It goes to
everybody, upon entering for the first time,
an ice cold summer soup there was ‘tomato
prove that the House does not hang around
remarked, “What a beautiful house this
gazpacho with parmesan and asparagus
waiting for replacement ingredients once
could be.” And that was the problem, for it
foam’ at RON 55, and 50 grams of Iberico ham
the stock has been exhausted. They just
had too many rooms separating the drink-
at RON 95.
change the dish. So why have I listed all of
ers. So there was plenty of ‘wow factor’ but
But let’s get down to the mains. I had a
no ‘buzz factor’. So they closed a year ago.
generous veal fillet with green asparagus
Then along came Le Bistro who took
wrapped in an envelope of comte cheese
the above dishes? Simple. It is to illustrate how creative the House can be. And now to the bad part. When our bill
over the premises. I marveled at the menu,
with morels in a cream wine sauce, at RON
arrived I could barely believe my eyes, for
which was totally French, but quelle hor-
125. It was perfect. Blondie dived into a slow
at the foot of the bill was a ‘guide’ advis-
reur, they told me the chef was Romanian.
cooked lamb at RON 120, with a smoked egg-
ing you on how much to tip. It beggars
Surely the wheels of his plane must have
plant puree plus a pea puree, together with
belief that the House could be so vulgar
kissed French tarmac in order to produce
a hot bean salad with harissa on the side.
as to ask for a tip, but this offensive note
such an authentic menu. But my fears were
Harissa is a hot chili dip emanating from Tu-
recommended that you should give 10
assuaged when they told me they have a
nisia and it should be blistering hot. But no, it
percent for a bill of RON 360 or less, and for
French Executive Chef, who comes and
was dumbed down to the weak standards of
a larger bill, you should pay 15 percent. Do
goes and designs the menus after training
Romanian taste.
they expect you to believe that if you have
the staff before jetting off to France. It is anything but a humble bistro; rather
I wished I had indulged myself in their ‘pork belly with chorizo foam, lemongrass
ordered more expensive dishes, the staff have worked harder for you?
it is a hugely upmarket Brasserie, which is
and crushed pine nuts’ at RON 115. I also
‘reassuringly expensive’. Away to the start-
missed out on baked fish in a salt crust, and
avarice served to remind me that I was
ers, and no self-respecting French chop-
their ‘John Dory fish with squid, artichoke
in greedy Bucharest, and not in tranquil
house would be without its cheese board.
puree and rich garlic sauce’ at RON 125.
France.
And what a wonderful selection there was: Blue Stilton, Roquefort, two goat’s cheeses
All of these ingredient listings belie how attractive the dishes are when they have
This craven example of shameless
Michael Barclay Mab.media@dnt.ro
www.business-review.eu Business Review | October 2018
46 CITY
Cultural calendar
By Oana Vasiliu
at the Venice International Film Festival.
National Theatre Festival October 19-29, several locations
Some 36 performances will be staged during the National Theatre Festival Romania 2018 – mostly in Bucharest, Targu Mures, Sfantu Gheorghe, Cluj-
Damien Rice concert October 2, National Opera Bucharest
Les Films de Cannes à Bucarest October 19-28, Cinema PRO, Cinema Elvire Popescu, Cinema Muzeul Țăranului, Cinemateca Union
Irish singer-songwriter Damien Rice will perform a sold-out con-
Napoca and Timisoara. The organizers are dedicating the 28th edition of the festival to theatre director Catalina Buzoianu, a notable cultural figure whose artistic projects and theatrical
cert in Bucharest. The Dubliner
teaching and staging have deeply
is known in large part for his
influenced Romanian theater
musical contribution to film and
over the last 50 years.
television: his song 9 crimes was featured on the animated film
The Cat Empire concert October 31, Arenele Romane
Shrek, The Blower’s Daughter was used on the soundtrack of
pop-up museum that will travel
the 2004 romantic drama Closer,
without return to big offices and
while Delicate accompanied TV
workplaces following its launch
Local audiences will be able to
show Lost.
in the framework of Noaptea
see the much-awaited Cold War,
Albă a Galeriilor (NAG). George
from Pawel Pawlikowski, win-
folk music under his label Heffa.
Vasilescu, Claudiu Cobilanschi,
ner of the Best Director award
A philanthropist, he recorded
Simona Constantin, Suzana
at Cannes; Ayka, from Sergey
Australian ska and jazz band The
songs to support the Dalai Lama
Dan, Cosmin Filișan, and Soker.
Dvortsevoy, awarded for Best
Cat Empire returns to Bucharest
on the album Songs for Tibet:
es are the selected artists that
Actress for Samal Yeslyamova;
this autumn. Formed in 1999, it
The Art of Peace.
collaborated with the Rahova-
Dogman, from Matteo Garrone,
has six members, namely Felix
Uranus community, MNAC
winner of the Best Actor award
Riebl (vocals, percussions), Harry
Bucharest’s neighbors, as well as
for Marcello Fonte; and 3 Faces,
James Angus (vocals, trumpet),
with residents of Aleea Livezilor
from Jafar Panahi, awarded (ex-
Will Hull-Brown (drums), Jam-
(Ferentari), to create four works
aequo) for Best Screenplay. Guest
shid “Jumps” Khadiwhala (decks,
Rice also produces indie and
White Night of Galleries October 5, National Museum of Contemporary Arts
that bring together two opposing
of honor at the ninth edition of
percussion), Ollie McGill (key-
MNAC Bucharest curates an
worlds, marginalized communi-
the festival is Mexican director
board, backing vocals), and Ryan
itinerant visual art exhibition
ties and young professionals
Carlos Reygadas, who world pre-
Monro (bass, backing vocals).
on inequality in life chances and
working in big towers. Access is
miered his latest film Our Time/
Early bird tickets at RON 85 are
ethnic differences, a nomadic
free of charge.
Nuestro Tiempo in competition
still available.