BUDGET DEFICIT TO RISE TO 4.4 PERCENT THIS YEAR STORYTELLING AS A BUSINESS DRIVER
December, 2019 / Volume 23, Issue 12 www.business-review.eu
24
LOCAL STARTUP ECOSYSTEM TO REMAIN IN INVESTMENT MODE AS IT ENTERS 2020 30 GAUGING THE EFFECTS OF THE US-CHINA TRADE WAR ON ROMANIA’S STARTUPS
32
RETAILERS ON MISSION TO ENRICH CUSTOMER EXPERIENCE
Photo: Dreamstime
WHERE ROMANIA TALKS BUSINESS
6
www.business-review.eu Business Review | December 2019
EDITORIAL 3 MACROECONOMY
• Editorial •
Anda Sebesi
6 Budget deficit to rise to
• Editor-in-Chief •
4.4 percent this year, significantly exceeding the 3 percent limit
COVER STORY
Hoping for a better 2020
8 Retailers on mission to enrich customer experience
ENTREPRENEURSHIP
T
he last few years have been transformational for retail,
30 Local startup ecosystem to
both globally as well as in Romania. Technology continues
remain in investment mode as it enters 2020
to change the rules of engagement, consumers are more
demanding than ever, and getting them to notice a brand amid all
32 Gauging the effects of the
the noise on the market is a growing challenge for players from one
US-China trade war on Romania’s startup industry
year to the next. At the international level, brick-and-mortar stores continue to
INTERVIEW
evolve in many ways, and more and more retailers are using physical space to experiment with technology, location size or customer services. Studies found that many store concepts in 2018 involved downsizing, with Ikea, Barnes & Noble and Nike all opening or announcing plans for small format stores. For Ikea, the move was motivated by the needs of urban shoppers, while both Barnes & Noble and Nike focused on creating community-driven spaces for
38 Global whisky market becoming more uniform in terms of consumption and business models
customers.
CITY
Looking to the Romanian market, we see that players on the local retail scene are pushing the pedal on innovation and coming up with new formats in order to better meet the needs of their increasingly sophisticated customers. And as pundits say, customers’ expectations will rise even higher in the coming period. Aggressive nationwide expansion, a wide diversity of formats, a better shopping, entertainment and leisure offer, just to name a few, are the main directions that players on the market are eager to follow in the pursuit of being as close to their customers as possible. Looking back, we can all agree that 2019 has been a challenging year for all the players in the local business environment. Business Review wishes you a Happy New Year and let’s hope for a better 2020!
40 Constantin Brancusi under the Brussels spotlight
41 The Two Sides of music story
42 Unfinished Romanian conversations at the Venice Biennale
44 Where to do your Christmas shopping this year
EDITOR-IN-CHIEF: Anda Sebesi JOURNALISTS: Aurel Constantin, Mihai Cristea, Romanita Oprea, Oana Vasiliu CONTRIBUTORS: Ovidiu Posirca, Sorin Melenciuc COPY EDITOR: Anca Alexe PHOTO EDITOR: Mihai Constantineanu PHOTOS: Dreamstime ART DIRECTOR: Raluca Dumitru PUBLISHER: Bloc-Notes Media Network ADDRESS: 58 Stirbei Voda Street, 3rd Floor, District 1, Bucharest, Romania LANDLINE: 031.040.09.31 SALES MANAGERS: Radu Fireteanu, Alexandra Rosca EVENTS MANAGERS: Mara Dragoiu EVENTS & MARKETING MANAGER: Luiza Luca PRODUCTION: Dan Mitroi DISTRIBUTION: Eugen Musat EXECUTIVE DIRECTOR: George Moise GENERAL MANAGER: Catalin Alistari USA MANAGER: Oana Molodoi FOUNDING EDITOR: Bill Avery EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu SUBSCRIPTIONS on Manpres Distribution
Publicație auditată pe perioada Apr 2015 - Mar 2016
ISSN NO. 1453-729X
www.business-review.eu Business Review | December 2019
4 NEWS
WHO’S NEWS BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at mihai.cristea@business-review.eu
Simona Podgoreanu has joined KPMG in Romania as Human Resources Director. Simona is a senior executive with almost 20 years of experience in human resources. She was the HR Director at Agricover for over 13 years and an associate professor at ASSEBUS Executive MBA programme and ExecEdu for 16 years. Throughout her career, she has developed extensive knowledge and experience of HR and Organizational Development, and has postgraduate qualifications from top business schools such as Harvard, IESE Barcelona, and HEC Montreal.
This investment strengthens the company’s position as the leading producer of pre-baked bread and pastry in Romania
La Lorraine Romania invests EUR 12.5 million in new production line at Campia Turzii plant By Aurel Constantin The largest bakery and
rustic bread, made with nutri-
and pastry in Romania. Our
pre-baked pastry factory in
tious ingredients such as mayon-
country has been chosen for
Romania, La Lorraine Romania,
naise and seeds. It is almost fully
its geographical positioning
has invested EUR 12.5 million
automated, with a capacity of
and because it can cover a large
in a new production line at its
160,000 products per day. The
market in this region. We are
Campia Turzii plant. Products
line is equipped with an aerosol
constantly trying to learn about
made here will reach both the
dispenser which achieves better
market trends and needs, and
domestic and the export mar-
hydration of the dough, resulting
this new line responds to the
kets. In this way, the plant in
in a better bread, a higher quality
wishes of consumers as it will
Campia Turzii remains one of
of the core and the bark, and
produce fresh, nutritionally
the most modern and high-tech
longer freshness.
rich maize and seeds to obtain
factories on the continent. The fifth production line will be dedicated to high quality
Adrian Zuckerman has been confirmed by the US Senate as the new Ambassador to Romania. Born in Bucharest, Zuckerman is a real estate lawyer who immigrated to the United States as a child, and he still speaks fluent Romanian. He graduated from the Massachusetts Institute of Technology in 1979 and from the New York Law School in 1983. Adrian Zuckerman will succeed the incumbent Ambassador Extraordinary and Plenipotentiary Hans G. Klemm. page 5
“This investment strength-
the taste of artisan bread,” said
ens our position as the leading
Razvan Bosomoiu, General
producer of pre-baked bread
Manager at Lorraine Romania.
Rockwool opens its first factory in Romania By Aurel Constantin The Rockwool group, a producer
per year, and it is the largest such
of mineral wool, has opened its
unit in our country. The factory
first factory in Romania, having
is located on a 30-hectare plot
made an investment worth EUR
of land in the Ploiesti West Park
50 million. It has a capacity of
industrial zone.
approximately 45,000 tonnes
Rockwool products, used es-
Part of the Rockwool production will go to export, especially in countries close to Romania
www.business-review.eu Business Review | December 2019
NEWS 5
European Commission, EIB set up Circular Economy Fund Dan Gheorghe was appointed Chief Investment Officer at NN Pensii. He has 12 years of professional experience in the financial industry, having started his career in 2007 as an Investment Banking Analyst. He will be responsible for developing the investment strategy and coordinating the private pension portfolio managed by NN, by managing the approximately EUR 4.5 billion in assets, representing the pension savings of over 2 million people in Romania.
By Aurel Constantin The European Commission and the European Investment Bank (EIB) have announced the completion of the public procurement process for the selection of an investment advisor to set up and manage the European Circular Bioeconomy Fund (ECBF). The new fund will provide access to finance – in the form of equity, debt or quasi-
The fund will provide access to finance to circular bioeconomic firms
equity – to innovative circular bioeconomic companies and projects of various sizes. ECBF
Commission to facilitate access
that bring bio-based innova-
Management will raise funds
to finance for innovation and
tions closer to the market,” said
from public and private inves-
research through a wide range
Carlos Moedas, Commissioner
tors with a target fund volume
of financing tools and advisory
for Research, Science and In-
of EUR 250 million and aims
services.
novation.
for a first close in Q1 2020. A
“Sustainable bioeconomy has
“With the launch of the
proposal for the EIB to invest
the potential to play a major role
European Circular Bioeconomy
up to EUR 100 million in the
for the European Green Deal. It
Fund, we have reached an
fund will be submitted to the
will help us reach our environ-
important milestone to ensure
EIB’s Board of Directors for
mental, climate and biodiversity
that groundbreaking projects
approval. This investment
targets in line with the UN Sus-
in the sector get the financ-
will be backed by a guarantee
tainable Development Goals. The
ing they need,” said Andrew
from InnovFin – EU finance for
European Circular Bioeconomy
McDowell, EIB Vice-President
Innovators, an initiative of the
Fund will fill the funding gaps,
responsible for agriculture and
EIB Group and the European
attracting private investments
bioeconomy.
Erhan Savas has been appointed Country Managing Director for ABB in Romania. His role will also include the Local Business Manager position for the Electrification business with oversight responsibility for the Republic of Moldova. Savas holds a Master’s degree in Management from the University of Mannheim, Germany. He joined ABB in 2008 and he has since held various roles of high responsibility at ABB in Germany and Turkey.
pecially for building insulation, will mainly be delivered locally, as Romania is one of the largest insulation markets in Europe. Part of the production will go to export, especially in countries close to Romania. About 150 people work in the Rockwool factory, most of them from Prahova County. By the end of the year, the total number of Rockwool employees in Romania should exceed 170 people. Indirectly, the factory should bring in another 300 jobs in services and logistics.
Miroslav Majoroš has renewed his contract with Telekom Romania, extending his tenure as CEO for one more year, starting January 1. 2020. A Radio, Television and Digital Communication graduate of the Slovak University of Technology in Bratislava, Majoroš was appointed CEO of Telekom Romania on January 1, 2016, having previously served on the Board of Directors at Slovak Telekom since 2003.
www.business-review.eu Business Review | December 2019
6 MACROECONOMY
Budget deficit to rise to 4.4 percent this year, significantly exceeding the 3 percent limit After analysing the state of public finances and the measures required to bring the budget within reasonable limits, the new PNL government announced that Romania would reach a budget deficit of 4.4 percent of GDP in 2019. It is far worse than the projected 3 percent deficit, and an effect of the measures taken over the past three years. By Aurel Constantin
In the Eurozone, the budget deficit was at 2 percent in 2015 and it reached 0.5 percent in 2018
T
he budget problem is a result of the
that the revenues were overestimated. He
space has already been used up by the broad
spending structure, said Ionut Du-
explained that the budget problem is a result
increase in current public spending (public
mitru, chief economist at Raiffeisen
of the spending structure. Salary spend-
sector salaries, pensions). According to the
Bank Romania, at the annual conference of
ing stands at almost 12 percent of the GDP.
European Commission’s estimates from
the Association of Financial-Banking Analysts
Furthermore, the new Pension Law brings a
November 2019, Romania could register the
in Romania.
spectacular increase in the budgetary effort,
highest public budget deficit in the EU in
from about 9 percent of GDP currently to over
2020. Public debt (estimated at 37.2 percent of
14 percent of GDP in a few years.
GDP in 2020) is on an upward trend as well.
“The budget deficit is very large. We saw a deficit of 2.8 percent of GDP in October, with many unpaid bills by the state. Investment
There was also a slowdown in economic
spending was well below what had been bud-
growth, and third quarter the figures were
DEFICITS IN EUROPEAN COUNTRIES
geted for the year. Practically, as the spend-
below expectations. The predicted economic
The budget deficit is a problem in many
ing was made, social expenses were higher
growth for this year is less than 4 percent,
European Union countries. While half of the
than the budgeted value, while investment
with around 3 percent for next year.
28 countries recorded budget surpluses, the
expenses were lower,” said Ionut Dumitru.
Romania is positioned unfavorably com-
other half is on a deficit. Cyprus and Roma-
While the revenue side was well below ex-
pared to the other countries in the region in
nia are the only ones that will exceed the 3
pectations, it was obvious from the beginning
the event of a global or regional crisis. Fiscal
percent value.
www.business-review.eu Business Review | December 2019
MACROECONOMY 7 Similarly, firing 5 percent of public employees,
in Romania amounted to EUR 4.23 billion
nia and the rest of the EU. In the Eurozone,
meaning 60,000 people, would bring up to 0.6
(compared with EUR 4.5 billion euros in
the budget deficit was at 2 percent in 2015 and
percent of GDP.
January-September 2018). Also, total external
There is a trend difference between Roma-
it reached 0.5 percent in 2018. For the entire
All these measures together represent 1.2-
debt increased by EUR 8.39 billion in the first
28 countries of EU, the deficit was 2.4 percent
1.3 percent of GDP, and they might be enough
9 months, with the increase coming mainly
in 2015 and 0.7 in 2018. In Romania, the defi-
if they are applied next year, but “what are
from euro-bonds issued by the Finance
cit was 0.6 percent of GDP in 2015, reached 3
you going to do in 2021?” Lazea asked.
Ministry.
percent in 2018 and it will go to 4.4 percent this year. In order to still have low interest rates from
The chief economist stressed that the
The balance of goods recorded a deficit
increase of the pension point to RON 1,265
that was EUR 2.3 billion larger while services
from September 1, 2019 results in an addi-
had a EUR 343 million larger surplus.
international markets and investors, Roma-
tional deficit of about RON 3.3 billion or 0.3
nia must provide a clear sign that its budget
percent of GDP for the last four months of
73.83 billion as of September 30, 2019 (68.2
deficit will shrink in the coming period. As
this year and RON 10 billion or 0.9 percent
percent of total external debt), up 8.1 percent
projected, in 2020 the deficit will go back to
of GDP for 2020. The increase of the pension
from December 31, 2018. The short-term
3.3 percent and it will drop below 3 percent
point to RON 1,775, by 40 percent, will result
external debt on September 30, 2019 reached
in 2021. If the trend is confirmed, the markets
in an additional deficit of RON 10.6 billion or
the level of EUR 34.4 billion (31.8 percent of
will overlook this year’s high deficit.
0.96 percent of GDP in the last four months
total external debt), increasing by 9 percent
of 2020, respectively RON 31.8 billion, or 2.7
compared to December 31, 2018.
The long-term foreign debt totaled EUR
PENSIONS ON THE RISE Keeping the deficit down in 2020 requires pensions not to increase by 40 percent in September 2020, as planned. Economists point out that we cannot deliver the increases promised by the former government, so the law must change in order for the raises to be postponed. The postponement is the only measure that could bring the deficit marginally above the budget deficit limit of 3 percent, says Valentin Lazea, chief economist of the National Bank of Romania
percent of GDP for the whole of 2021. “These figures do not take into account
The increase in the direct public debt in the first nine months of 2019 stemmed mainly
another ticking time bomb that lies under
from euro-bonds issued by the Finance
Romania’s consolidated budget, namely the
Ministry at a nominal value of EUR 5 billion
as well as citizens, believe that a budgetary
planned pension recalculation supposed to
and from the influence of the variation in
adjustment of 2.5 – 3 percent of GDP is “a
take place in 2021 to correct inequalities be-
the prices of securities issued by the public
piece of cake” and that it can be done through
tween people retired in different years, which
administration in the amount of about EUR
better tax collection, additional taxes on spe-
will add to the deficit, so that in 2022, the
2.7 billion, diminished by repayments made
cial pensions, public staff layoffs and so on,
deficit would reach 6.5 percent of GDP,” added
towards loans contracted from international
but this is a wrong view. He pointed out that
Valentin Lazea.
bodies amounting to EUR 1.59 billion.
ing with figures of a magnitude of 2.5 percent,
CURRENT ACCOUNT DEFICIT
was 17.1 percent in January - September
i.e. RON 27 billion or EUR 5.5 billion, means
The current account of the balance of pay-
2019, compared to 22.6 percent in 2018. The
that you’re living in another world.”
ments recorded a deficit of EUR 8.1 billion
coverage of imports of goods and services on
during the first 9 months, compared with EUR
September 30, 2019 was 5 months, compared
special pensions could bring a maximum of
6.79 billion during the period January - Sep-
with 4.9 months on December 31, 2018.
RON 1 billion to the budget each year, a better
tember 2018, according to data published by
The degree of short-term external debt
collection of the VAT could mean at most RON
the central bank. These numbers would also
coverage, calculated at the residual value,
5 billion, if it is pursued constantly for several
have to change in 2020 in order to keep the
with the foreign reserves the BNR had on
years, and the return of the dividend tax to
deficit under control.
September 30, 2019 was 75 percent, compared
(BNR). According to him, many decision makers,
The long-term external debt service rate
0.1 percent of GDP is RON 1 billion, and “play-
The measure of adding an extra tax on
10 percent could bring at most RON 1 billion.
Direct investments by non-residents
with 74.1 percent at December 31, 2018.
8 COVER STORY
www.business-review.eu Business Review | December 2019
RETAILERS ON MISSION TO ENRICH CUSTOMER EXPERIENCE
Photo: Dreamstime
www.business-review.eu Business Review | December 2019
With the local retail market being a vibrant scene where players come up with new and innovative formats in order to better meet the needs of their increasingly sophisticated customers, expectations are even higher for the period to come. Aggressive expansion nationwide, a wide diversity of formats, a better shopping, entertainment and leisure offer, just to name a few, are the main directions that players on the market are eager to follow in the pursuit of being as close as possible to their customers. As technology imprints its advance onto the entire user experience, the impact of new technologies like Artificial Intelligence (AI) and Internet of Things (IoT) on consumers will definitely reshape the way the retail sector will look in the future. By Anda Sebesi
COVER STORY 9
A
ccording to data from CBRE Research, 11 new brands made an entrance on the Romanian retail market in the first nine months of this year, of which four came over in Q3. “While
in the first half of the year we saw the entrance of brands like Victoria’s Secret or Topshop/Topman, in the last three months brands like Burger King, Falconeri, Marc O’Polo and Longines have decided to tackle the Romanian market. These new brands chose Bucharest as their first location and mainly preferred the commercial centers,” said Carmen Ravon, head of advisory & transaction services, retail at CBRE Romania. The company advised Victoria’s Secret and Burger King about their entrance onto the local market. According to the same study, the stock of retail spaces reached 3.65 million sqm, after 66,200 sqm have been delivered in a retail park and three extensions were completed in the first three quarters. 91 percent of the new retail space area is located in regional cities. For Q4, CBRE Research estimates that 130,800 sqm of retail spaces will be completed, an area that cumulates six new projects and two extensions, with 91 percent of deliveries to be in regional cities. “Cities like Sibiu, Brasov, Targoviste and Targu Mures are about to attract new retail spaces by the end of 2020, while Oradea or Timisoara already have the highest density at the national level, of 657 and 604 sqm / 1,000 inhabitants respectively. Although almost identical from the density perspective, the difference between these two cities is represented by the type of projects they have. In Oradea, the ratio between commercial centers and retail parks is almost equal, while in Timisoara retail parks represent 15 percent versus 85 percent for commercial centers,” added Ravon. From the retailer’s perspective, Geanina Ghiculescu, head of retail marketing at METRO Cash & Carry Romania, says that the Romanian retail market is expanding continuously. “Despite the increasing trend of digitalization, this year we saw most players on the market developing their brick-and-mortar locations. That is because the consumption continued to bloom and the main decision-making factors for purchase remain proximity and price. We also saw this consumption growth in the LaDoiPasi stores, where, on average, the value of a shopping session increased by more than 10 percent,” she says. According to her, in terms of trends, the latest developments in the climate crisis are shifting the retail paradigm towards social commerce. “The new generation of consumers is more responsible when it comes to food waste and the environment. Retailers are now trying to educate their customers for a more sustainable life, offering extra services such as recycling (from plastic to oil), clothes donations, biodegradable bags and access to more organic food.” As Fulga Dinu, country manager operations at Immofinanz Romania puts it, the current retail market is characterised by dynamism, but this year it was not as dynamic as it was in previous years in terms of the opening of new shopping centers or new arrivals of famous brands on the local market. From this point of view, it was interesting to notice several big international fashion brand openings this year. “One of the obvious trends on the local market is the mix between the online and offline and the creative ways of adapting the online concept offline. Another trend is the shift to cre-
www.business-review.eu Business Review | December 2019
10 COVER STORY
ating an experience in the store and this includes showrooms, kids’
affairs at Kaufland Romania. With these openings, Kaufland reached
playgrounds, events, family entertainment, and so on,” says Dinu.
127 stores nationwide. “We’re looking to be closer and closer to our
As for expectations about the evolution of the retail market in
customers so that shopping can be an easier and simpler process for
the next period, Ghiculescu says that the in-store physical experi-
them. Hence, we are flexible and permanently adapt our formats.
ence remains the cornerstone of food retail. “In 2020, we expect the
This is why we chose to expand to malls too,” he adds.
market to grow even further, considering the consumer’s preference for proximity shopping. With the help of Big Data integrated mar-
BETTING ON INSPIRING CLIENTS
keting, retailers will develop hyper-personalized assortments and
In the first half of 2019, Mega Image continued its strategy of
offers to have a permanent connection with the consumer,” adds the
nationwide development and expansion and inaugurated 23 new
representative of METRO Cash & Carry Romania. At the same time,
stores in different regions. Its strategy focuses on the proposition
sustainability and social commerce will become increasingly impor-
of offering shopping inspiration to its customers on a familiar and
tant to more consumers,
close area. After two years
and retailers will have to
of extension on mature
rethink their strategy to-
and high-potential mar-
wards a purpose-oriented
kets like Cluj-Napoca and
business. “This giving-
Timisoara, Mega Image
back strategy will allow
continued this year to
brands, both retailers and
expand its operations in
suppliers, to improve their
Moldova, by opening its
contribution to the com-
first supermarket in Ba-
munity and have a more
cau, in April. In addition,
humane relationship with
the company took over the
their clients,” concludes
Zanfir supermarket chain
Ghiculescu. In her turn,
from Vrancea county, in
Dinu of Immofinanz says
a move that consolidated
that the retail market will
its position in the region,
definitely continue to
with 10 new stores that
adapt to the new trends,
have been gradually inte-
and from this point of
grated within its network.
view we will see much
In the first part of this
more experience and more
year, the retailer focused
entertainment. ”Shopping centers will also be upgraded, but the
on refurbishing five of its ten stores in Focsani and Bacau and fol-
percent will be lower than this year. Overall the market will be on a
lowing that, Mega Image reached new cities like Adjud, Panciu and
growth trend, but to a lesser extent that it was in 2019,” she says.
Targu Ocna, by refurbishing other Zanfir stores. “We’re accelerating the pace of our extension and reaching new regions, powerful urban
TAKING THE FIRST STEPS INTO A MALL
centers, where we intend to gradually consolidate our leadership
In mid-November Kaufland Romania opened its first hypermarket
on the proximity sector. Our ambition is to be close to our clients,
located in a commercial center, namely the new Promenada mall in
to integrate better into their lifestyle and inspire them with our
Sibiu. The opening is part of the company’s new strategy to place its
products every day,” stated Mircea Moga, CEO at Mega Image. The
stake on adaptability and expand its activity to rental spaces, along
company announced earlier this year that its expansion strategy
with the development of a large chain of stores on its own lands.
would continue in the second half of 2019 and would include the
Adapting its formats, the dynamic and flexibility in its strategy
consolidation of its presence in the Moldova region, by opening its
of expanding to new spaces are part of an ample process of mod-
first stores in Iasi county - in four cities by the end of the year - and
ernisation and renewal which started in the last few years. “While
in Timisoara and Cluj, too. At the same time, Bucharest, Giurgiu,
2019 brings the first Kaufland store in a mall, in the last year we’ve
and Prahova are still on its radar.
launched dynamic formats like the first store of our chain to be opened in a real estate compound, seasonal pop-up stores set up in
A MINI TOWN WITHIN A MALL
tents located in resorts, stores with green façades made of plants or
Recently, Mega Mall Bucharest announced it had completed the
those with community urban gardens on their roofs or in the park-
refurbishment of its food court, under an investment of EUR 3.2
ing lots. As part of its modernisation, Kaufland recently launched
million. The 10,000 sqm have been redesigned entirely and set up
the newest ultra-store concept which embeds elements from the
as a mini indoor town. The design concept has been developed by
universe of malls – with aisles like sushi-bar, food court or glass
Corvin Cristian Studio, starting from the idea of “experiences”. The
walls,” says Valer Hancas, communication director and corporate
urban design of the reshaped food court in Mega Mall comprises
www.business-review.eu Business Review | December 2019
COVER STORY 11
sturdy ash wood decorations and furniture along with natural ve-
HOW DOES THE INTERNATIONAL RETAIL SCENE LOOK?
neer, marble, yellow copper and metal. Spaces are set out in several
Global commercial real estate leaders are optimistic about the
“neighbourhoods” structured as mini-districts of a city.
industry’s prospects over the coming year, despite global economic
“The food court is an anchor for commercial centers, and visi-
volatility, according to Deloitte 2020 Commercial Real Estate Out-
tors’ expectations are very high. For the modern client, a mall is
look. 76 percent of respondents expect a positive evolution of the
much more than a space for shopping – it has become an integral
industry in the next period. The survey shows that the tenant ex-
part of the community, and this role attracts the responsibility to
perience has become a top priority for most commercial real estate
create spaces which offer a pleasant atmosphere, suitable for meet-
leaders, with a focus on investing in new technologies.
ings and leisure. We will continue to invest in solutions meant to
“The high level of optimism among commercial real estate
offer to our clients the best shopping and leisure choices,” stated
players is not surprising. In times of economic volatility, investors’
Alexandru Suiu, center manager at Mega Mall.
attention goes towards tangible, high quality assets, which provide a medium or long-term investment horizon. When sudden eco-
ELECTRO-RETAIL GOES BIG
nomic changes occur, the real estate industry typically reacts within
Altex Romania, one of the long-lasting retailers specialised in
six to 12 months. In Romania, the commercial real estate sector is
electronics and IT equipment, recently opened its 20th store, in
one of the most stable, given that demand is still higher than the
Satu Mare, following an investment of EUR 8 million, and created
supply. Considering the competition on the labour market, on the
40 additional jobs. The company estimates that it will have over two
one hand, and the consumption increase on the other, the interest
million customers in its first operational year. “With each store we
for office and commercial spaces is natural and will remain high
open, we intend to inspire a reshaping of local retail, to offer to our
over the next period,” said Alexandra Smedoiu, partner at Deloitte
customers equipment that enhances their comfort and a complete
Romania, Real Estate Industry Leader.
online and offline experience. We expect our Media Galaxy in
In this year’s outlook, Deloitte experts explore a new element:
Satu Mare to be a driving force for our entire network, considering
the impact of the new technologies that are reshaping tenants and
that we address a larger mass of potential customers, from both
end users’ experience, such as AI (artificial intelligence) or IoT
Romania and abroad. We are convinced that our store will be a pole
(Internet of Things). In this context, 92 percent of respondents plan
of interest for customers from Hungary and Ukraine, who will find
to maintain or increase their tenant experience-related technology
our offers attractive and will take into account the difference of VAT
investments. As for smart buildings, they will become the norm
from 27 percent in their countries to 19 percent in Romania,” says
over the next five years, according to approximately three-quarters
Dan Ostahie, CEO at Altex Romania.
of respondents.
www.business-review.eu Business Review | December 2019
12 COVER STORY
Proximity stores still among Romanians’ top shopping preferences Business Review sat down with Geanina Ghiculescu, Head of Retail Marketing at METRO Cash & Carry Romania, about the LaDoiPasi retail chain’s strategy on the local market and how its latest brand campaign has influenced its brand awareness. By Anda Sebesi What is the business model implemented by LaDoiPasi and how is this model reflected in the development of the franchise?
preferences, after hypermarkets and
LaDoiPasi has an independent and
As of November 2019, the LaDoiPasi
sustainable business model that reflects
network reached 1,035 stores, having
both customers’ expectations and
added more than 300 since last year.
supermarkets. In this context, METRO leads the proximity segment in Romania, opening a new store every day.
entrepreneurs’ needs. The franchise network relies on the ever-changing ingly looking for proximity stores that
To what extent did the latest LaDoiPasi brand campaign influence your brand awareness?
can offer them a wide range of products
Through this campaign, as well as
and services.
through the team’s efforts to expand
needs of customers, who are increas-
LaDoiPasi aims to support local
the franchise, LaDoiPasi has definitely
entrepreneurs and encourage them to
seen a growth in visibility as a proxim-
start their own businesses. Once an
ity store. According to our research,
entrepreneur becomes part of the fran-
the brand gained a significant share of
chise, we share with them our know-
spontaneous awareness, with 7 out of
how in retail, we build a business plan
10 people recognizing the store when
together and we invest in equipment
prompted.
and layout to create a modern store. By
The “Suntem de-ai locului” cam-
affiliating with the LaDoiPasi franchise,
paign was based on the relationship
store owners have access to consul-
between store owners and customers
tancy on all business areas (branding, diversified product range,
in their communities and on the attributes that customers appreci-
competitive pricing, know-how transfer, modern equipment and
ate the most: trust and familiarity. We were happy to find out in our
integrated marketing communication). All these elements also bring
research that the message we transmitted throughout the campaign
multiple benefits to the end customer, who enjoys a pleasant buying
resonated with consumers’ perception. LaDoiPasi is associated more
experience. But most importantly, LaDoiPasi offers each entrepre-
than other stores with making clients feel welcome and respected,
neur the benefit of operational and managerial independence.
so we’ve managed to build an emotional connection that we will continue to nurture in the long term.
What were the results recorded by LaDoiPasi this year? Although the retail sector is one of the industries facing the most
What are the LaDoiPasi network’s plans for next year?
digital disruption, consumers still prefer to shop in physical stores
Our objective is to continue to support as many local entrepreneurs
as it allows them to have a sensory
as possible in developing their
experience. The latest GFK study
businesses and together make the
confirms it, with Romania being
lives of our communities easier
among the European countries that
each day. Growing the number of
have seen the biggest growth in
stores and becoming more acces-
brick-and-mortar retail (+7.1 per-
sible to our customers is another
cent) compared to last year. Prox-
major objective for us. In the fol-
imity stores continue to be one of
lowing year, METRO’s goal is to
the customers’ top three shopping
reach 1,400 franchise shops.
www.business-review.eu Business Review | December 2019
14 COVER STORY
Retail sector moves to mixed-use projects With the local retail scene being very competitive and full of both large and smaller players, developers need to think outside the box and have a different approach if they want to attract more and more sophisticated consumers in Romania. By Anda Sebesi
I
The employees working in Iulius Town office buildings are a loyal public for both the restaurants and the stores
In IULIUS projects, parks are the main anchors
n recent years, the Romanian retail market posted the highest
comprise unique retail concepts for the region and new international
growth in the region and it is likely to stay on this upward trend
brands. This development has been imposed by a clear demand com-
in the next year. During this time, we have witnessed a sustained
ing from the market,” adds the Iulius representative.
development of the retail sector, which has now reached a high level
As Diaconescu says, all the projects developed by Iulius are lead-
of complexity. This is due to the expansion of large retail chains and
ers on the regional markets where the company operates. “They are
consumers becoming less interested in using traditional stores to do
centers of attraction even for neighboring countries because of their
their shopping.
brand mix and entertainment offering. For example, Iulius Town
As pundits say, an increase in the standard of living and qual-
Timisoara welcomes customers from Serbia and Hungary, Palas
ity of life along with the advance of technology, automation and a
Iasi gets customers from the Republic of Moldova and Iulius Mall
wider range of services offered to the consumers are some of the
Suceava has visitors from Ukraine,” she says.
factors which have led to this development of the local retail sector.
Making continuous investments in innovation and permanently
“Retailers now have the opportunity to change their business using
thinking about adding new components to the project allows Iulius
sustainable development models, based on the expectations of their
to maintain its position on the market. For example, creating active
consumers and their interaction with them,” says Oana Diaconescu,
urban environments which meet the local community’s wide range
head of the leasing division at Iulius. She adds that IULIUS compa-
of needs – from shopping to leisure, business, social interaction, and
ny’s projects are in line with this upward market trend. “The spaces
recreation – and maintaining permanent and close communication
we offer to retailers have increased – if we refer mainly to Iulius Mall
with its customers – are two ways to support this endeavour.
Timisoara, a project which has been extended over the past few
“This dialogue helps us know what the public wants and under-
years, in parallel with the development of the Iulius Town mixed
stand how to meet their needs and what should be improved. We
project. Today in Timisoara we have the largest retail area outside
started to develop our urban regeneration projects – Iulius Town
Bucharest, with over 450 stores on more than 120,000 sqm, which
Timisoara, Palas Iasi and Iulius Mall Cluj-Napoca, which integrate
www.business-review.eu Business Review | December 2019
COVER STORY 15
retail, office, leisure and entertainment components – considering
local community meets and socialises. It has already been the host
the demand on the market,” says Diaconescu. According to her, this
of events like open-air movies, urban art festivals, scientific experi-
concept is the future in the real estate sector, and it can lead to eco-
ments for the general public, sports competitions and activities for
nomic growth by adding value to the local community.
kids. During the winter, the skating rink will be the main attraction. As for financial results, Diaconescu says that the turnover gener-
IULIUS TOWN COMES WITH NEW BRANDS
ated by Iulius Town in the three months since its official opening
Since its inception, Iulius Town has been very attractive for retailers
is 21 percent higher compared with the same period of last year.
and this has been translated into a wide list of new entries for the re-
“Segments like family fashion, food and beverages, and cosmetics
gion: Zara Home, Oysho, Intimissimi, Calzedonia, Marks & Spencer,
are those which posted the highest increases. As for the traffic in
C-House Cafe Milano, Manufaktura, V-generation, Superdry, New
the mall, it increased by 15 percent compared with the same period
Era, Next (Kids),
of 2018, except
Liu Jo, Grid, Sizeer,
the cafeterias and
Primigi, Vagabond,
restaurants with
Beautik Haute
direct access from
Parfumerie, Taco
the park and the
Bell, Ted’s Coffee,
retailers from the
Tucano Coffee, and
ground floors of
El Unico, to name a
the three already
few. “Our projects
operational office
add value to the
buildings,” says the
communities and
IULIUS representa-
hence we encour-
tive.
age competitive local business a strong market
AN EVERLASTING PLACE FOR CITIZENS
proposition. Iulius
As Diaconescu
initiatives with
Town hosts plenty of themed cafés and restaurants owned by en-
puts it, Iulius Town seems to have always been part of the lives of
trepreneurs from Timisoara or the region like Daily, Sova’s, Lexico,
Timisoara citizens. “This is because IULIUS is a brand they have
Select Bistro Cafe, Ana Lugojana, and others. They came with unique
been attached to since 2005, the year when the company opened
food and beverages concepts,” adds the Iulius representative.
the largest mall outside Bucharest. It is easy to notice that the entire community embraced this project, which is a proof for us that it was
HEAVY FOOT TRAFFIC AND STRONG RESULTS FOR IULIUS TOWN
an adequate one that filled a gap in the market. It became a pole of
According to Diaconescu, the annual foot traffic in the company’s
interaction and social effervescence,” she says. Plus, she adds that
projects, whether in Iasi, Timisoara, Cluj-Napoca or Suceava,
Iulius Town has great potential due to its positioning because it at-
exceeds 68 million visitors. “The annual foot traffic in Iulius Mall Ti-
tracts clients from Serbia and Hungary (a public who is already loyal)
misoara exceeds 16 million visitors and we expect to reach 20 million
who benefit from a shopping and entertainment offer that is wider,
after its integration into the Iulius Town mixed project. We think that
more interactive and better aligned with the Western trends. “We
for retail projects to be successful, they have to offer a mix of experi-
can also talk about the more than 5,000 employees who are already
ences to their customers. People no longer come to the mall just for
working in Iulius Town office buildings and who are a daily and loyal
shopping. They look for a certain lifestyle, unique events, leisure,
public for both the restaurants and the stores.”
entertainment and a place where they can meet their friends,” says Diaconescu.
WHAT’S NEXT ON THE RETAIL SCENE?
She also highlights the importance of the powerful anchors,
As Diaconescu says, retail projects are becoming increasingly com-
which generate increases. “In IULIUS projects, parks are the main
plex now, by adding different functions. “As we have already seen
anchors, and they offer many attractions for people of all ages. In
in our mixed-use projects, the big winners – both among those who
addition, there are functions like a conference and event centre, a
operate on the real estate market and among retailers – will be those
kindergarten and a primary school, the largest health and fitness
who will understand that they need to offer a complex experience
club in Romania which will be opened this month by World Class,
to the consumer, apart from meeting their immediate needs. In my
the VIP cinema concept with all-inclusive dinner and film, and the
opinion, mixed-use is the watchword for the years to come. The key
largest medical hub in the region which will be integrated into the
as a developer is to be creative when it comes to adding new func-
tallest office building in Romania.” Last but not least, Iulius Gardens,
tions to your projects in order to attract consumers who are becom-
the park at the heart of the complex, is a vibrant place where the
ing more and more demanding,” she concludes.
www.business-review.eu Business Review | December 2019
16 HR
The burnout syndrome and its toll on professionals’ lives According to the World Health Organization, burnout is listed in the 11th Revision of the International Classification of Diseases (ICD-11) as an occupational phenomenon, but it is not classified as a medical condition. It is a syndrome conceptualised as resulting from chronic workplace stress that has not been successfully managed. By Romanita Oprea out start to set in, the yield drops even more,” said Alecsandra Ionita, wellbeing specialist at Smart Experience.
THE PREDISPOSITION TO Last year, the Bucharest College of Physicians conducted a study revealing that 55 percent of Bucharest doctors suffered from personal burnout, 52 percent from professional burnout, 36 percent from burnout related to patient interaction, and 24 percent suffered from all three types. “Lately we have particularly studied the behaviour of Millennials at work, because most of the companies we work with mainly have employees belonging to this generation. Using international Alecsandra Ionita, Smart Experience
T
Madalina Uceanu, Career Advisor
studies and our local surveys, we discovered that nearly three in ten Millennials are very often or always burned out at work and about
he burnout syndrome is character-
unemployment, insomnia, diabetes, heart
70 percent of them experience at least some
ised by three dimensions: feelings
disease, and even death.
burnout. Compared to 5 years ago, burnout
of energy depletion or exhaustion;
Burnout has been studied and diagnosed
syndrome has advanced significantly, with
increased mental distance from one’s job or
in a variety of occupations such as medical
more and more companies looking to imple-
feelings of negativism or cynicism related to
staff, teachers, social workers, and people
ment programs in order to target and combat
one’s job; reduced professional efficacy.
working in the financial sector,” said Olga
this problem among their employees,” ex-
Udrea, Psychotherapist | Coach | Neuroscience
plained Madalina Uceanu, senior consultant &
Enthusiast Mind Initiative.
founder at Career Advisor.
A UK survey, for instance, found that nearly 30 percent of human resource directors thought burnout was widespread in
“More alarming is that even if the em-
What generates it? According to Madalina
their organisation, while a recent report from
ployees of corporations work over 30 percent
Uceanu, some of the causes are related to
Harvard declared physician burnout in the US
more than the European average, a Eurostat
our emerging economy context: someone
to be a public health crisis, potentially costing
report shows that productivity in Romania
who is now in their mid-40s started working
the economy USD 4.6 billion a year.
is six times lower than the EU average. And
before the year 2000 when working during
we have a big problem here. It is a matter of
the weekends or overtime was the norm and
the global population, burnout pervades the
productivity, education and personal beliefs:
not the exception, if you wanted to keep your
lives of an estimated 5-7 percent of the gen-
our parents taught us to work hard, not
well-paying job in a multinational. “Moreover,
eral population: 210 million people worldwide
necessarily to be efficient, but to be seen and
I think that we were lacking the proper educa-
and 11 million in the US. For those suffering
accepted. Spending long hours at work over a
tion in how to manage our emotional relation-
from it, burnout is a slow, terrifying slide into
long period of time inevitably leads to chronic
ship with our job. Romanians tended to be
darkness, with pervasive consequences like
stress. And when the first symptoms of burn-
perceived even by expats as more emotional
“As one of the most recent phenomena in
www.business-review.eu Business Review | December 2019
18 HR
on what mattered most. Having periods of relaxation after high stress periods, especially if you are in a management position, is a duty not only for yourself and for your family but also for the people in your team. Only with a crystal-clear mind does a leader have the power to be effective and emphatic and make the best decisions in business and life,” said Dana Bulat, general manager & owner United Media Services. As a specialist who has been working for more than 20 years in the marcomm industry, one of the most dynamic and demanding fields, Bulat knows and understands the high importance of trying to maintain a lifestyle that is as balanced as possible, and she is very interested in the well-being of her team. Moreover, as Raluca Mihaila points out, trying to be different in an industry where cliRaluca Mihaila, Utopic Brain
Andreea Neagu, psychologist
ents want to be different, yet don’t dare to, is a nightmare for any agency trying to do their job. Stress, frustration, tensions come along.
about their jobs, bosses and work environ-
forward as individuals and will not help them,
“The marcomm industry also has another
ment, while also taking a lot of personal
as international companies, understand that
trait: you need to prove yourself endlessly.
confirmation and satisfaction from work
they wrong us just because they can and
You’re never good enough and you’re always
results. That worked rather well for the organ-
because we don’t know how to say no.
as good as your last best project. Being in the
isations, as having employees who were so
Unfortunately, the burnout syndrome is
paradigm of always trying to overcome chal-
fully dedicated to the business was working
quite often seen in the advertising industry.
lenges and outdo yourself sets the stage for
miracles,” explained Uceanu. Moreover, ac-
“Whether people are working physically too
work overdoses.”
cording to Raluca Mihaila, Founder of Utopic
much or they cannot handle stress, the effect
In this context, one might wonder, how
is quite visible and spread out. I am very
can well-being experiences help people in
tations we pulled together over decades.
fortunate to like what I do so from this per-
corporations avoid the syndrome? According
Working too much and not really caring about
spective things are looking pretty well. Over
to Alecsandra Ionita, there are dedicated pro-
our mental and physical health, ignoring the
the years, I have been exposed to numerous
grammes for combating burnout syndrome,
sounds of our soul and passions and main-
trainings which emphasised the importance
through which employees become familiar
taining the phrase “work-life balance” when
of the “work-life balance” concept and I took
with the term, find out about the causes and
work should be 100 percent about living,
them seriously. Also, getting older and hav-
especially about ways to avoid falling into
not separated from it, will not help us move
ing a family were crucial factors in focusing
this trap. Furthermore, the classic well-being
Brain, we don’t have the exercise of failure and that is the starting point of burnout: you think you have it, you are taught to never give up, people still don’t appreciate you enough, so you keep on doing until you break. “This vicious cycle can make us blind to the alternative: collaboration, open talks, trusting one another, value-based teams, honest work and trustworthy environments. And these would be the premises for what we all search for: the virtuous cycle. None of the upper elements of our beings help us express ourselves, fail and learn from it, collaborate with others, understand trial and error and what it is like to be imperfect,” said Utopic Brain’s representative. Therefore, we learn by doing, and usually by falling very far behind the false expec-
www.business-review.eu Business Review | December May 2016 2019
COVER STORY HR 19 14 fied, as well as finding out the roles an individual has in their life, how much time they spend in those roles and what changes can be made in the matter. “The need for professional and personal life. There are many people that
programs help the employee discover new
drown themselves in their professional lives,
passions and hobbies, and bring more balance
therefore running away from the personal
to their life.
ones. Unfortunately, there can be deep
In looking for a more balanced life, people
3
traumas hiding behind a so-called successful
should also look towards taking better care of
professional path. I have to remind you of the
their bodies, as well as their minds. Playing
difficulties of creating emotional connections
sports, going to the gym, taking up dance
with others, of getting involved at a social
classes, reading more and going to spas are
level in inter-human relationships. They are
some of the best solutions for taking care of
all based on countless fears,” said psycholo-
oneself. “Even though they sometimes find it
gist Andreea Neagu. Therefore, she suggests
hard to take time for themselves and benefit
that one should get involved in pleasant ac-
from a little bit of time off and pampering in a
tivities that bring positive emotions and grow
spa or any other well-being area, the feeling of
the frequency of those actions. Knowing
guilt disappears once the client starts enjoy-
oneself, an action that leads to identifying
ing that service. The secret lies in prioritising
some personal purposes, a sense of life for
yourself and realising you deserve to give
each person, setting priorities, focusing on
yourself more attention and time, because
resources and activities that bring accom-
you are worth it. The burnout syndrome
plishments are key to fighting burnout.
is more visible among people working in a
Olga Udrea, Mind Initiative
“Another important aspect is paying atten-
corporate environment where deadlines are
tion to your health. Quality sleep, good food,
very tight and targets are high and hard to
proper hydrating, physical relaxing exercises
reach,” said Angela Coman, co-founder Belle
(meditation, yoga, dance, jogging), bring
Maison Spa.
multiple benefits and balance the general state of being. Moreover, someone who be-
STEPS TO BE MADE
lieves they are close to a burnout should seek
Taking those aspects into account, the first
the help of a good psychologist, a specialist
piece of advice she would give is for each
that will help them find the source of the
of us to try to reach a mindfulness state. “It
problem,” added Andreea Neagu.
types of causes: 1) causes related to the professional environment: high workload and responsibility, time pressure and extended work schedule, events with negative emotional impact, lack of appreciation, hostile work environment, unsatisfactory relationships with colleagues, lack of respect in working relationships or within the team, low levels of financial satisfaction; 2) causes related to personality: perfectionism and excessive need for control, waiting for immediate rewards, enthusiasm and exaggerated expectations at the beginning of the career, low emotional stability, poor adaptability and stress resistance, self-confidence, frustrations related to the discrepancy between reality and job expectations; 3) causes related to lifestyle: insufficient leisure time, insufficient involvement in relaxing activities and social activities, lack of social and family support, failure to observe the need for sleep.
makes us more aware of the context we are in
Not dealing with the situation properly
to collapse, but you may not know why, and
and offers us different perspectives on things.
and not treating the cause and the syndrome
miss it entirely. Eventually, your body simply
It gives us energy instead of using it up. In
can lead to difficult situations and negative
shuts down to prevent you from work-
this manner, we start doing things in the right
socio-economic consequences, physiological
ing. Burnout is not laziness, burnout is not
order and become more efficient. One must
manifestations (the worsening of an illness or
mediocrity, it is not the price we must pay for
realise that not all the things we deal with at
even developing one).
glory and success, is not recovering after one
work have the same importance and, in some
Thus, burnout can be “contagious” and
good night’s sleep or a holiday. It’s nothing
cases, some are not even necessary,” added
perpetuate itself through social interactions
to be ashamed of if you find yourself in this
Angela Coman. How is burnout treated? First
on the job. “Burnout progress slowly, your
condition. Burnout is serious,” explained
of all, the reason behind it has to be identi-
health, relationships, and well-being start
Udrea.
www.business-review.eu Business Review | December 2019
20 ENERGY
Hidroelectrica looking to list in 2020 State-owned company Hidroelectrica, one of the largest energy producers in the country, is ready to list on the stock market, according to board president Bogdan Badea, who said that one of the problems the company is facing now is the fact that the Romanian Waters agency is planning to ask the company to pay a higher fee for milled water. By Aurel Constantin Badea, referring to the fact that the company is interested in buying CEZ assets in Romania. Furthermore, the effects of Emergency Ordinance 114, adopted by the government in December 2018, are growing the risk of Hidroelectrica becoming insolvent again, due to an order by the Energy Regulatory Authority (ANRE). “We are at a critical moment. When the famous ordinance and Order 10 of ANRE were issued, Hidroelectrica highlighted the fact that the price for the population would not decrease, and it has not decreased. Moreover, statistics will show a migration from the regulated regime to the competitive regime of a TWh, which means that the competitive market has offered more benefits to final consumers (...) Yes, prices (on the competitive market, Ed.) have increased and this is something that Hidroelectrica pointed out: when we go back to the regulated market, prices on the competitive markets will increase,” said Badea. The problem is that nobody wants to carry out a thorough analysis of the energy system. ”It is very difficult for me, as a manager, to explain to shareholders - 80 percent of whom are represented by the Romanian state - why Hidroelectrica was forced to bear a loss of RON 189 million so far (unpaid money from Hidroelectrica has proposed an investment plan of RON 5.5 billion over the next four years
“
the difference between the free market and regulated prices, Ed.), why we had to sub-
The Romanian Waters agency has de-
areas,” said Bogdan Badea. In this context, the
sidise other companies. We are still talking
cided to increase our price by about 23
company is no longer able to pay additional
about losses, but no one informs us of the
percent on water, which will affect not
dividends. “Based on its performance, Hi-
cause of these losses. Was it a regulatory er-
only Hidroelectrica, but also other produc-
droelectrica has been able to grant additional
ror? Was it a management error? Was it greed?
ers, including coal and nuclear, telling us that
dividends to shareholders over the last two
We don’t know,” said Badea.
they have higher costs. This for us means a
years. Investment plans were not affected. As
total cost of RON 410 million, up from RON
for the opportunities offered by the market
but the deregulation was done in a year and a
334 million. So on the one hand, we are
in terms of diversification and listing - which
half, and the effects are still showing.
regulated to sell very little and at a very low
we want in 2020 - it is no longer appropriate
price, well below the market price, and on the
to issue additional dividends. We want to
INVESTMENT PLAN
other hand, we have increasing costs in all
diversify our activities and our portfolio,” said
Hidroelectrica has proposed an investment
The ordinance was enforced overnight,
www.business-review.eu Business Review | December May 2016 2019
COVERENERGY STORY 21 14
plan of RON 5.5 billion over the next four years. Bogdan Badea noted that he would resume the project of the hydroelectric plant in Pascani, which had been abandoned, adding that technical solutions will be re-analysed. “The project in Pascani was initially meant to be abandoned. As we re-analysed the technical solutions and the recalibration of the general project concept, we managed to comply with the estimated value that we shareholders had approved. As such, the contract will be signed in the coming
weeks for the construc-
tion part of RON
140 million, then
we will con-
clude negotia-
tions with the
other four
partners
regarding
the hydro-
mechanical
equipment
and the
electrical
elements,”
said Bogdan
Badea at
the “Focus
Energetic”
conference. An 11 MW be built in Pascani,
power plant will and it requires the
construction of accumulation dams as well as some new equipment. This year, the refurbished group 6 of 55 MW at the Stejaru hydroelectric plant will become operational. “We are also in advanced negotiations with our subsidiary Hidroserv to contract upgrade services at the Dej power station, which is the next power station halfway down the Olt river. Basically, with this power plant, we are finalizing the upgrade of all the groups in that facility,” said Badea. At Racovita, the works on adduction will be
the 3,200-meter Poiana Marului resumed, after they
were stopped dur-
ing the insolvency
period. “In ad-
dition, we are
in the bidding
phase with
the Vidraru
refurbish-
ment, and
we have
five bid-
ders. It is
a procure-
ment proce-
dure that
involves
negotiating
technical
and financial
solutions. It is a
project worth over that we hope to finalise
EUR 80 million by the end of this year,”
said Bogdan Badea. Hidroelectrica’s net profit decreased by 8.3 percent in the first half of the year, to RON 901.5 million. Hidroelectrica’s turnover increased by almost 18 percent in the first half of 2019, to about RON 2.35 billion. For 2019, the company has planned investments worth RON 532.03 million. Hidroelectrica estimates total revenues of RON 3.51 billion for this year, at a net profit of almost RON 824 million. Hidroelectrica has about 3,500 employees. The company is controlled by the Romanian state, with a stake of 80 percent, through the Energy Ministry, and the other shareholder is Fondul Proprietatea. The company operates 208 plants, with a total installed power of 6,444 MW.
www.business-review.eu Business Review | December 2019
22 INTERVIEW
Glovo aiming to lead every market it enters 257 cities. 33 countries. All the big capital cities in EMEA. 9 countries in South America. This is the global coverage of Glovo, the Spanish delivery startup that has recently announced its entry on the Arad market, its 9th Romanian city, after Bucharest, Cluj-Napoca, Timisoara, Iasi, Brasov, Craiova, Constanta and Sibiu. The app is expected to expand to three new Romanian cities by the end of this year. In this context, BR talked with Victor Racariu, the general manager of Glovo Romania, and found out more about the company’s plans and strategies. By Romanita Oprea Name Glovo’s top 5 cities in terms of numbers and product deliveries Bucharest, Timisoara, Cluj, Brasov, Iasi.
What are the most requested services and why? Are there differences between cities on this segment? Food is by far the biggest one, followed by supermarkets, the “anything” option, and the courier service. For example, the courier category is a lot bigger in Cluj-Napoca than in other cities.
What influences people’s consumption behaviour? If a city has very high traffic levels, the courier category will grow a lot because nobody has time to travel around the city to deliver an envelope. One of the biggest influencers of demand is actually weather: during rain, snow or very high temperatures, demand increases significantly.
What does the expansion to Poland mean to you and why did it happen at that precise moment?
ity, with plans for further expansion on the
Poland has become an incredibly attractive
The main challenge of this industry, in
destination for technology startups who are
Do you plan to expand to other countries as well?
starting to establish and build their technol-
Yes, we are always thinking of expansion, but
finding couriers. The unemployment rate in
ogy teams, due to the country’s techno-
also we want to consolidate our positions on
Bucharest is around 1 percent, and we need
logical history and prosperous economy. It
the current markets. We have great examples
thousands of couriers to handle the demand.
represents a very good consolidation of our
of countries where we became market leaders
This is, and probably always will be, our big-
business in Europe, as we purchased a strong
in less than half a year, so these are the ones
gest challenge.
market player. Another very important aspect
we tend to go for. Our ambition is to lead
is that we opened our second tech hub in Po-
every market we enter and to provide a first
land. Poland is huge, we expect it to become
class express delivery experience for our us-
How much do you think the app will change and evolve in the next 2 years?
one of our biggest markets very soon.
ers, couriers and partners.
We will push non-food categories a lot more,
market.
Glovo will hire 40 new engineers and 50
What changes have you seen recently on the market and why do you think they have happened? Romania and Central Eastern Europe, is
such as mobility (scooters), laundry or who
tech and product experts, working mainly in
Who does Glovo primarily target?
knows what other new ideas we will have
the Warsaw office. It is expected that this will
Everybody that needs something from the
during this time. Glovo will be a super app for
constitute half of Glovo’s technical capac-
city. We want to be the Google of your city.
customers.
www.business-review.eu Business Review | December 2019
24 STORYTELLING
Storytelling as a business driver We have always been surrounded by stories. As studies show, over half of human conversation comes in the form of stories and we, as humans, are more receptive to stories than we are to data or hard facts. That has to do with the fact that stories help us relate, empathize and offer our brains the time they need to process the information in a form that is easily digestible and more memorable. By Romanita Oprea obtain in return a change of attitude, opinion or behaviour. So we use analogies, structures, characters, facts and even emotions to bring people into our story and connect in order to further develop our projects. Just like in life. A business plan without a good narrative behind it will most likely end up in the ”might have been a great project” recycle bin. Facts state exactly this, pure data, no conclusion or emotion behind it. Adding a story, a relatable and easy to follow conclusion or encouragement will trigger some emotion and therefore your facts are more vivid and memorable,” said Anca Paun, winner of Speakings HR 5th Edition and Cluster Talent & OE Manager SCEA BAT.
THE HUMAN APPROACH What about personal branding? In Anca Banita’s opinion, personal branding is about choosing the most relevant and inspiring Anca Paun, Speakings winner
B
Anca Banita, coach & trainer
stories about yourself to tell on the public scene. “I always advise my clients to start
esides having been a buzzword for
talking about stories with allegory: fables,
from asking themselves: what is my ‘why’ for
some time, used and overused in
stories of wise people, which are relevant for
doing what I am doing? The why is always a
many marketing and advertising
a certain situation. One needs research and
story or more stories combined. I encourage
conversations, storytelling has also proven
it’s up only to them to find the right story.
them to find these stories and share them
to be a powerful business tool and a skill that
They must have the right effect,” said Dunuta.
on their personal platforms or when appear-
every business building a powerful and last-
Moreover, as the Speakings representative
ing in the media, because these stories come
ing brand should understand and use wisely.
says, even the less pleasant stories that teach
from the heart and have the power to touch
That’s because when done the right way,
you a lesson can be a good source – one can go
the hearts of others,” explained Anca Banita,
storytelling can do wonders for a business.
whichever way they want, depending on how
coach & trainer. Moreover, apart from the
And most importantly for a business environ-
they think they can strike gold. “The only
why story, one can bring different stories
ment, stories sell.
rule is being careful to choose the ones that
about their profession. Old and new stories
How can one bring storytelling into busi-
no longer have an emotional charge. And last,
about how you do business or what it really
ness meetings? According to Andrei Dunuta,
but not least, your passions are an interesting
means for you to be a doctor/lawyer/coach,
founder & public speaking trainer at Speak-
source of stories – think about what can be
etc. “You can also talk about your vision: we
ings and SelfTrust Academy, there are many
put into a travelling or art experience. There
love to hear stories about dreams and about
ways to do it. The first type of stories are
are many possible variables,” added Dunuta.
the way someone wants to contribute to
related to the “why” of numbers. “Any KPI has a reason why it’s important. Then, we are
“In a business presentation, just like in
making the world a better place. So, what are
day-to-day life, we try to send a message and
you dreaming to create in 5-10 years? Last but
www.business-review.eu Business Review | December 2019
26 STORYTELLING
not least, tell stories to explain the world we
I added pictures, and the numbers were a
becoming more and more important to go
live in from your expert point of view. I loved
personal experience from one corner to the
beyond the facts and tell a story and make
the example of a blog post from a leadership
other,” recalls Dunuta.
things approachable, even on the business
coach explaining how a singer managed to
In her turn, Banita sees that clients have
side. Our brain is built to listen to stories and
win a television contest by showing leader-
been increasingly open to telling a personal
through them make sense of the world we are
ship skills. These stories have great educa-
story with authenticity and courage. And
living in. “We love the stories because they
tional potential,” added Banita. The purpose
it does takes courage to show exactly who
have been helping us since we were children to explain the reality, to imagine it and to develop our imagination, therefore our brain is a story factory put on a continuous mode. We make up stories about anything that happens to us – from small things such as a gesture, someone’s look, a tone of voice to something more important. We are a meaning making machine, as I heard at a personal development class. Stories have a role of also bringing the heart into the equation because, many times, we are just in our mind, on autopilot and we don’t even realise it,” said Anca Banita. And yet, how is good public speaking an instrument in discover-
of all these stories is to show our human side
you are and to share your life in business
ing today’s leaders in the organisation you
and bring our heart into the picture, to see
contexts. One can be judged, even rejected.
work with? According to SelfTrust Academy’s
how other can resonate with us so that, after
“And sometimes, you wonder if it’s worth the
representative, tomorrow’s leaders need
this step, we decide whether we want to do
risk. I would say that it depends on the values
an exhibition space. They need contexts in
business together. The coach or trainer would
that are guiding your life. Is authenticity a key
which to be seen, where they can express and
advise people to harness their passions, the
value to you? Is it courage? Or self-expres-
expose their ideas and perspectives, where
most important revelations of the last years,
sion? If so, coming up with real stories will be
they get the courage to show themselves.
the books they’ve read or other experiences
an option you will take into account, together
Through the Speakings concept that Dunuta
that contributed to who they are today, all
with everything that comes along with it. Any
brings to companies, him and his colleagues
correlated with what they have to express in
paradigm change will see some resistance,”
are doing internal public speaking contests in
the business meeting.
added Banita.
which anyone can take part, and many times
Still, Anca Paun considers it to be a slow
the winners have been the newcomers or the
CLIENTS’ EVOLUTION
process. According to her, most companies
ones that hadn’t stood out until then, but
Every year it looks like clients are getting
are oriented towards a direct and very spe-
who later on became keynote speakers for the
closer and closer to appreciating and wanting
cific type of communication, while story-
company or are moderating internal events.
this type of approach. They are also becoming
telling is associated with the more creative,
There have also been people who after such
more open because, many times, as Andrei
looser, relaxed way of addressing things.
an event were promoted or went on to take
Dunuta points out, there are some boring
E-mails and daily interactions are meant to be
management positions in other companies.
moments in meetings when participants are
straightforward, as short and concentrated as
“For a story to inspire, to provoke change,
not really paying attention to each other. And
possible, which is quite far from the storytell-
to drive results, it needs to speak to the audi-
that sometimes makes one wonder why they
ing concept of explaining things with a short
ence’s heart, to have meaning and purpose,
even met in the first place. “Therefore, the
story. “Without naming it as such, selling
besides the cognitive, rational side of facts.
manner in which one holds a presentation
ideas is a quality that is appreciated in most
Make your stories memorable, not just
becomes important, in order to make people
companies, regardless of the department or
interesting, build them for what the audience
in the room hear the message. For example,
seniority level. But from this appreciation to
needs, as closest to their level of understand-
I had one client with whom I worked for a
building sustainable programs to develop this
ing and challenge them just a bit to get the
board presentation and I helped her pres-
skill there is still a serious gap,” commented
result you desire. And ideally, if situation al-
ent numbers in a report using storytelling. I
SCEA BAT’s representative.
lows it, add some humour as well,” concluded
took out a lot of information from the slides,
It’s extremely obvious that today it’s
Anca Paun.
www.business-review.eu Business Review | December 2019
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www.business-review.eu Business Review | December 2019
28 INTERVIEW
Apa Nova bets on digital transformation Irina Munteanu, CFO Veolia Romania and Apa Nova, tells Business Review about the appropriate ways in which local companies should approach competitiveness and what they can do to increase it against their regional or international rivals. She also highlights the measures Apa Nova has taken in order to increase its competitiveness in Romania. By Anda Sebesi tional rival only if they have resources: labour force, existing infrastructure, technological and financial resources, advanced technology and efficiency in their industrial structure. The competitive advantage arises when a company can use the required combination of resources at low costs or when these resources are used at a higher quality level. This is what we do at Veolia Romania and Apa Nova Bucharest.
Speaking of money: how big of a budget does a company need in order to increase its competitiveness? A business increases its competitiveness through the added value it brings to the society it to which it belongs. Professionalism, competence, efficiency can be budgeted differently depending on the type of business.
What is the current situation of Romanian businesses regarding competitiveness?
the business in the directions required by the different types of customers depending on
What did Apa Nova do in order to increase its competitiveness?
Competitiveness means excellence in Roma-
each business (current, aspiring or potential).
Apa Nova has undergone a natural process of
nia. It offers energy to economic life, stimu-
In order to become competitive, companies
modernisation and renewal, with increased
lates economic sectors regardless of the busi-
in Romania must innovate, be efficient and
efficiency and performance, both in terms of
ness environment, creates ideas, generates
keep in touch with today’s consumers’ needs.
service quality as well as in terms of modern
high standards based on incentive legislation,
Digital technology is revolutionising cities.
processes and a customer-oriented organ-
funding, and business success. Competitive-
More connected and better managed, smart
isational culture. In each of the projects,
ness is a fundamental business benchmark
cities are optimising the operation of their
campaigns and process that our company
that comes with globalization. Our goal on
infrastructures and increasing their competi-
has carried out over time, the main focus was
the Romanian market is to develop advanced
tiveness, attractiveness, and sustainability. As
always on the environment. Furthermore,
technologies dedicated to water manage-
they become more efficient and transparent,
concepts like IoT, robotisation and AI must be
ment and energy to improve competitiveness,
they are responding to the new expectations
an integral part of the logbook and strategic
reduce our environmental footprint, create
of their citizens, who want to take a more
axes of companies looking to adapt to the new
jobs that cannot be outsourced and establish
active role in managing their cities. This is
market demands and external environment.
a model that can be exported.
why it is important to use digital platforms for
In this context, this is why Apa Nova is con-
employers and clients and to have access to
ducting a broad process of digital transforma-
all that digitalization means.
tion on three pillars: customers, operational
What are the best strategies Romanian companies should adopt to increase competitiveness?
processes and employees. To implement its annual digitization programs, Apa Nova allo-
nificant results, a careful analysis of the mar-
How can local companies increase their competitiveness against regional or international rivals?
ket is very important, followed by developing
Companies represent a national or interna-
expected results.
In order for Romanian companies to have sig-
cates carefully analysed investment budgets, in order to meet eligibility criteria and get
www.business-review.eu Business Review | December 2019
30 ENTREPRENEURSHIP
Local startup ecosystem to remain in investment mode as it enters 2020 Some EUR 1 billion has been raised by startups in Central and Eastern Europe (CEE) in 2019, with the investment environment for entrepreneurs set to remain dynamic through to 2020. In Romania, funding activity will continue to grow next year, according to market players. By Ovidiu Posirca of EUR 30 billion. “The local investment market will continue to develop - two more Romania-focused VC funds are expected to launch in 2020, while the prospect of finding another UiPath will continue to draw interest from investors mostly from Bulgaria, Poland, the UK, and the US,” Bogdan Iordache, founder and chairman of the How to Web Conference, told BR.
STABLE OUTLOOK FOR 2020 Going into 2020, he suggested that it was “hard to believe” that funding for startups in CEE countries would exceed EUR 1 billion once again, but we might see bigger series A rounds above EUR 10 million. In total, there were 38 investments made in local startups, with more than half of the funding raised by firms based in Bucharest. Tech startups continue to hold a large share in the funding ecosystem. “Unless we see another unicorn originating from the CEE region next year, our expectation is that the 2020 funding environment in CEE will be similar to the one seen in 2019,” Sergiu Gidei, partner at law firm CEE Attorneys/Boanta, Gidei si Asociatii, told BR. “As for the Romanian environment, we believe that next year will bring an important increase of funding for start-ups due to a More than USD 10 billion was invested in European tech companies in the second quarter of 2019 ocally, the largest funding deals of
L
report published by How to Web. The report
more than EUR 1 million each were
also counts the EUR 516 million raised by
recorded by Elrond, TypingDNA,
UiPath in 2019 as funds attracted in CEE. This
FintechOS and Happy Recruiter. Bucharest
funding round alone represents half of the
led in terms of both the total number of deals
region’s total investment. Across the region,
and the amount of capital raised in 2019,
there are startups valued at more than USD
according to the Eastern Disruptors 2019
1 billion (unicorns) with a combined worth
www.business-review.eu December Business Review | May 2016 2019
number of seed/series A rounds envisaged to be raised next year. In our estimation, next
ENTREPRENEURSHIP COVER STORY 14 31
to the State of European Tech report. “The increase in large-scale deals of more
restructure their operations and seek a profitable path. The likes of Uber and WeWork,
year’s funding shall amount to EUR 20-25
than USD 100 million is driving the growth
which were stars in Silicon Valley, have
million (compared to EUR 12.75 million raised
of total capital invested in Europe. In 2019,
recorded a combined loss in value of around
in 2019 – according to the Eastern Disruptors
these deals accounted for 36 percent of all
USD 100 billion in 2019, according to a Wall
Report and assuming that UiPath’s series D
funding raised by European tech compa-
Street Journal report.
funding is excluded from the calculation),”
nies,” analysts wrote in the report.
Gidei added. The report points out that startups
The industry verticals in which funding
“We are in dot-com bubble 2.0, except it’s not happening in the public markets but in
for startups have shot up in the past year
the private markets,” said Vitaliy Katsenel-
founded in the fintech, enterprise software,
are security, energy, and food, each with a
son, chief executive of Investment Manage-
security and health fields raised a large share
growth of more than 100 percent. Currently,
ment Associates Inc, quoted by the WSJ.
of funding rounds topping EUR 1 million.
there are at least 174 European tech com-
The potential for new startups being created
panies with a valuation of more than USD 1
in the tech field remains high in Romania if
billion. Compared to 2010, the
we look at the workforce. Romania has the
number of European unicorns
second biggest number of developers in the
rose 13-fold.
CEE region. Of around 1 million developers in
The report further points
CEE, some 118,000 are in Romania, while Po-
out that Europe has produced
land comes first in with 254,000 developers.
more tech initial public offer-
Tech workers are the best paid profes-
ings (IPOs) than the US for six
sional group in Romania, with an average
consecutive years, including
monthly wage of RON 5,851, which is more
more tech IPOs in the first nine
than EUR 1,220. Senior software developers
months of 2019.
can earn more than EUR 3,000 from large
In the first three quarters of
companies or they can opt to do freelance
2019, the top 10 IPOs in the US
work for international customers, which
recorded a combined market
means that their incomes can grow even
cap of USD 153 billion, while for
more.
Europe this figure stood at USD
“The challenge is to keep highly skilled
22 billion.
For instance, flexible workspace provider WeWork saw its valuation drop from USD 47
billion to USD 8 billion in less than one year.
labour in the country, and to be able to at-
“Though Europe has yet to produce a
tract high-performing human capital from
company that comes close to rivaling the
32 billion compared to its IPO valuation in
abroad in order for investments in the region
value creation of trillion-dollar market
May.
to grow,” Sebastian Pauna, investment analyst at Morphosis Capital, told BR. Pauna suggested that the bigger funding
cap companies like Microsoft or forgotten that Europe has produced more than
neled towards Roma-
one USD
nian startups as more
100 billion
private equity and ven-
tech com-
ture capital funds have
pany. SAP,
the country.
UiPath, the robotic process automation
Apple, it’s often
rounds could be fun-
become fully focused on
Uber’s market capitalization shrank by USD
Europe’s largest public tech company by market cap, has now
RECORD FUNDING PERIOD FOR EUROPEAN TECH COMPANIES
grown to be valued at more than
More than USD 10 billion was invested in Eu-
USD 150 billion,” according to the report.
(RPA) startup with Romanian roots, recently announced it would cut some 400 jobs as
ropean tech companies in the second quarter
it seeks to become profitable. The startup,
three months. In the first nine months of
FALLING VALUATIONS FOR STARTUP BEHEMOTHS
2019, European tech companies raised an av-
Some of the startups that have burned bil-
last spring, is planning to go public, accord-
erage of USD 3.3 billion per month, according
lions of dollars to scale up have started to
ing to market reports.
of 2019, the largest amount ever raised in
which reached a valuation of USD 7 billion
www.business-review.eu Business Review | December 2019
32 ENTREPRENEURSHIP
Gauging the effects of the US-China trade war on Romania’s startup industry As the United States and China, the world’s two largest economies, are still negotiating a trade agreement, investors in startups are becoming more cautious and are asking founders to focus on profits. In Romania, the effects of the ongoing trade tensions have had a limited impact on the entrepreneurial scene, mainly due to the relatively small size of the market. By Ovidiu Posirca
O
n the back of tariffs levied so far between the two countries, US imports of Chinese products fell by
USD 35 billion in the first half of 2019, according to a United Nations report, which added that the majority of costs resulting from the tariffs have been passed down to American households. Meanwhile, the Chinese startup scene is starting to lose steam over the trade restrictions imposed by the US. Just seven unicorns (startups with a valuation topping USD 1 billion) appeared in China in the first half of 2019, compared to 30 in 2018. “The speculative investment mentality that’s dominated China for the past few years has cooled right off this year,” said Michael Norris, a Shanghai-based research and strategy analyst at consultancy AgencyChina, quoted by Bloomberg.
CRUCIAL LINK TO US TECH SECTOR The US and China each have more than 200 unicorn startups. While in China, digital payments giant Ant Financial is valued at USD 150 billion, in the US, the most valuable startup is software company Infor, whose valuation is estimated at around USD 60 billion. Startups in greater China had raised over USD 32 billion from venture capital funds by September, compared to around USD 112 billion in the same period of 2018, according to Preqin. Meanwhile, US VC-backed companies raised USD 82.6 billion in the first three quarters of 2019, according to CB Insights data. In Romania, the effects of the ongoing The US-China trade war will not have a significant adverse impact on the Romanian entrepreneurial environment in 2020
trade tensions have remained limited, with investors expecting the flow of funding deals
www.business-review.eu Business Review | December May 2016 2019
ENTREPRENEURSHIP COVER STORY 14 33
on the startup market to maintain a steady
Brazil, Paraguay, and Uruguay. Sebastian
very challenging scenario, from a financial
growth path in 2020.
Pauna, investment analyst Morphosis Capi-
perspective, for a startup.
“We believe that the US-China trade war
tal, suggested that this move would open
“The smaller the company, the more frag-
will not have a significant adverse impact on
more opportunities for European companies.
ile their economic state, and changes like this
the Romanian entrepreneurial environment
“With a growing funding environment
are massively disruptive,” Klein told the Wall
in 2020. Of course, in case of extensive trade
and an increasing number of deals, the
Street Journal.
EU HIT BY US-CHINA TRADE SPAT The EU economy is being impacted by the slowdown in global trade, according to fresh data from Paris-based Organization for Economic Cooperation and Development (OECD). Arancha Gonzalez, the executive director of the International Trade Centre (ITC), part of the UN, has warned that the continued trade war could generate a “major recession.” “All of this is pointing in one direction. If we keep digging into that same hole, we will be looking into a major recession,” Gonzales told CNBC, referring to a potential trade war war, there will be some adverse effects on
outlook for the Romanian entrepreneurial
the world economy so Romania could be im-
ecosystem remains very healthy as we ap-
pacted by the negative domino effect, but the
proach 2020,” Pauna told BR.
magnitude thereof is difficult to estimate,” Sergiu Gidei, partner at law firm CEE Attor-
between the US and the EU. Both imports and exports fell in the some of the largest economies in the EU. For instance, Germany’s exports fell by 0.4 percent
PRESSURE ON SUPPLY CHAINS COULD HURT STARTUPS
in the third quarter, while imports were
Last summer, US president Donald Trump
by 1.8 percent in Q3 compared with Q2, while
dustry and the Chinese one is rather limited.
ordered American companies to “immediate-
imports declined by 0.4 percent.
As the rest of Europe, Romania is more con-
ly start looking for an alternative to China,”
The overall drop in exports across the G20
nected to the US tech market, says Bogdan
claiming they should boost their manufac-
group stood at 0.7 percent. The economies in
Iordache, founder and chairman of the How
turing facilities in the US. The situation is
the group account for about 85 percent of the
to Web conference.
particularly difficult for hardware-building
world’s output.
neys/Boanta, Gidei si Asociatii, told BR. The connection between the local tech in-
“The impact of the ongoing trade war on both the funding environment and the ecosystem at large will probably be minimal, un-
startups that outsource specific parts to Chinese production facilities. Eric Klein, a partner at venture capital
down 1.8 percent. Exports from the EU fell
“European merchandise trade has been impacted significantly by uncertainty surrounding the trade war and Brexit,” said
less it significantly affects the US economy,”
firm Lemnos, which invests in hardware
Timme Spakman, an economist at ING,
Iordache told BR.
startups, says that shifting production from
quoted by the Financial Times. He added
China would entail months of re-engineering
that “the slowdown of German industry had
progressing slowly, the European Union has
production facilities. This means that compa-
an impact on European trade, as German
been moving swiftly to ink new trade deals
nies would have to dramatically slow down
producers ran down inventories rather than
with Singapore, Japan, Vietnam, Argentina,
or stop production for several months - a
importing new intermediates”.
While the US-China trade negotiations are
www.business-review.eu Business Review | December 2019
34 TECH
GoTech World 2019: 10,000 visitors and 140 exhibition stands GoTech World (formerly Internet & Mobile World), the home of the digital economy in Central and Eastern Europe and the largest B2B expo-conference, took place in Bucharest and brought hundreds of IT & digital solutions suited to the digital needs of today’s economy. By Aurel Constantin For Telekom Romania, it is normal to support the digitization of businesses so that they can develop at an accelerated rate. There were 7 finalist companies that presented their concept and solutions this year in the pitch held on the GoTech World main stage. One of them was KINDERPEDIA, an interactive digital solution that brings kindergartens/schools, educators, teachers and parents together on the same platform. The second one was ESX, a digital system that uses a single subscription to centralise over 75 sports and fitness clubs in Romania, offering unlimited access to users through a single registration. Druid Enterprise Chatbots presented a conversational AI platform that
O
The priority for major ICT companies is to make the process of digital transformation in the B2B direction as accessible as possible
allows any company, regardless of industry, to create virtual assistants that improve productivity and deliver multi-channel personalised experiences.
ver 10,000 visitors attended this
This was a very important event which
years’ edition and were be able to
promotes innovation for all societies looking
discover and interact with the most
to the future, where the Zucchetti group was
interpreting X-ray images that uses artificial
among the protagonists.
intelligence to generate accurate interpreta-
innovative IT & digital business solutions. They saw 140 exhibiting stands of multina-
“Zucchetti Romania, through its multiple
Next was Xvision, an application for
tions of medical imaging, helping radiologists
tional and local companies, on an exhibitional
headquarters distributed across the country,
be more accurate and efficient in their work.
area of 7,194 sqm.
is able to offer support and assistance to all its
There was also Zetta Cloud, an innovative
clients, responding promptly to the demands
technology company focused on providing
of the event was to help Romanian and East-
of any type of company thanks to its highly
software solutions dedicated to automatic un-
ern European companies in general adapt as
specialised and professional staff, guaranteed
derstanding of online content using artificial
quickly as possible to the digital transforma-
by the Zucchetti brand,” says Bogdan Bratu,
intelligence, and Neticle, one of the fastest
tion process.
Global Operations at Zucchetti.
growing B2B SaaS start-ups based in Hungary,
Similarly to previous editions, the purpose
offering text analysis solutions for companies
This year, the urgency of the need for re-
in 9 countries in the CEE region.
newal is certainly greater due to innovations
GO STARTECH
such as blockchain and artificial intelligence,
The main partner of the Go StarTech pro-
which are the main players. Therefore, the
gramme was Telekom Romania, a company
which develops a digital health management
priority for major ICT companies is to make
that supports innovation among entrepre-
system for pregnant women and mothers
the process of digital transformation in the
neurs at the beginning of the road. Through
with young children, which aims to reduce in-
B2B direction as accessible as possible, as
its business philosophy and the promise of
fant mortality and improve the overall health
well as faster and simpler, and it has to be
#BUSINESSLIBER, Telekom Romania has
of mothers and their babies.
seen as fundamental in all sectors, in order to
radically changed the market for telecom-
increase efficiency and productivity.
munications services offered to companies.
The last presentation was from FEMYO,
In addition, 13 other entrepreneurial tech initiatives presented their solutions and
www.business-review.eu December Business Review | May 2016 2019
services at the GoTech World event: Nummo
COVER STORY TECH 35 14
With a team of over 500 specialists and
World, SYSWIN Solutions provides high-
Kids, ECOTREE, A Bug Tracer, OncoChain,
projects in 45 countries, TotalSoft innovates
performance IoT and M2M solutions for com-
Octavic PTS, Prepi, K-Book, I’m Fine, Smart
and develops new software platforms that
panies, in order to respond to the integrated
EpiGenetX, Milluu , BAAM, Cyscale, CGArte-
focus on accessibility, by easily integrating
interconnection of operational systems.
facts.
third-party solutions, upgrading to Cloud
SysAgria is a smart solution that can be the
and adopting new technologies. A.I. and IoT
core of precise agriculture, allowing perma-
technologies are integrated into the
CYBERSECURITY
Charisma platform for business
For decades now, cybersecurity
process transformation and
has been one of the main con-
nent data collection and analysis from the soil and the air, protecting farmers from the risks of crop disease, and thus increasing crop
cerns of IT specialists. As
optimising current solu-
quality. SYSWIN Solutions also showcased
technology advances and
tions.
two SmartCity solutions, based on sensor
So far, system com-
business users focus their activity more and more on
patibility was one of the
their mobile devices, secur-
greatest obstacles for work productivity. Konica Mi-
ing sensitive data becomes
nolta, one of the most important
more critical. Several presenta-
providers of integrated IT services
tions were on display at GoTech.
technology: SmartAir City for monitoring urban pollution levels and SysParking for the development of smart parking systems. Robotic Process Automation (RPA) is one of the technologies that will change the way we work, enabling companies and public
certSIGN, Romanian company specialised
and solutions, presented for the first time
agencies become more efficient and competi-
in developing cybersecurity apps, presented
its new innovative technology for modern
tive. Using software robots that imitate and
its mobile security solution for companies at
offices – Workplace Hub – a complex platform
integrate human actions into companies’
GoTech World. Together with the Samsung
of online products and services, connected
digital systems, RPA helps optimize pro-
Knox platform, certSIGN showed integrated
and focused on work environments, unique
cesses, relieving employees of the burden of
solutions for a fast and safe digital transfor-
among IT services and solutions worldwide.
repetitive tasks.
mation of each company, in order to com-
Launched at the beginning of year in
With an impressive evolution, UiPath, the
Romania, Workplace Hub is a game changer
leader of the global RPA market, was the .NET
which aims to simplify IT processes, contrib-
Stage Partner at GoTech World and presented
uting to the improvement of personal work
its vision on the Automation First concept,
experience and team collaboration, through
in a technology era where people use RPA
mobility and easy information sharing. Work-
technology in as many processes as possible,
DIGITAL BUSINESS SOLUTIONS
place Hub includes processing and storage
adopting the vision of using a robot for every
TotalSoft, one of the most important busi-
systems based on state-of-the-art HP servers,
employee.
ness IT systems providers in Central Europe,
high level security solutions using Sophos
attended GoTech World and displayed its Cha-
technology, local and cloud back-up func-
structure and marketing solutions for large
risma platform, which ensures a 360-degree
tionalities using Acronis solutions and Wi-Fi
businesses (Fortune 500) which provides so-
view of the business, regardless of industry:
services, together with advanced printing
lutions such as Big Data, RPA, Nation Brand-
finance, retail, distribution, production,
functionalities, all single-managed by Konica
ing, and many more. Transiris displayed its
services, construction, agriculture, energy or
Minolta.
creative and marketing automation solutions
pletely eliminate paper documents. NTT DATA Romania displayed innovative B2B security management solutions, such as corporate security monitoring, cyber threat detection, web security or vulnerability management services. The cybersecurity services developed by NTT DATA Romania are based on advanced analysis capacities, including Machine Learning and management of information that compromise app security, allowing the identification of possible security threats which are undetectable through classic methods.
Transiris is a company specialized in infra-
at GoTech World. One of the most important
medical. TotalSoft is the preferred supplier of
recent projects in its portfolio is the world-
10 global suppliers of software solutions for
INTERNET OF THINGS (IOT) AND ROBOT PROCESS AUTOMATION (RPA)
the leasing industry.
Through the solutions displayed at GoTech
America Federal Government.
ERP solutions in Romania and one of the top
wide brand strategy for the United States of
www.business-review.eu Business Review | December 2019
36 5G
Huawei waiting for Romanian authorities’ decision on 5G development Huawei is trapped in the trade war between the US and China while it remains at the forefront of 5G technology research and development and tries to show everyone that it has no intention to spy on its users for the Chinese government. By Aurel Constantin 200 million phones in 2018, overpassing Apple, and has already sold 185 million terminals in the first 9 months of 2019. It estimates sales of 240,000 smartphone units this year. Normally, it sells half of its phones in China and the other half goes to countries all over the world. But the ratio may change after the US banned the use of its equipment; Gartner data for the last trimester show that only 40 percent of its sales were outside China. Yet the company has some of the best phones on the market today, in terms of both performance and camera features. The advantage Huawei has is that it uses its own chips, Kirin, and builds the terminals in its own factories. As Huawei spokesman Joe Kelly says, it is easier for a company that owns all the production stages to make a phone or other device. While Apple spends 18 months on the drawing board before it gets to the final product and Samsung needs 12 to 15 months, Huawei only needs 9-10 months. This means it can come onto the market with the latest Huawei has invested several billion dollars in 5G research in the last 10 years
T
technologies quicker and explains why Apple is now the last to bring features that are 6-12 months old to their phones.
he company has invested several
of electronic devices for companies based in
billion dollars in 5G research in the
Hong Kong. It was founded by Ren Zhengfei
last 10 years. Development started in
in 1987 with a capital of USD 3,500. In 1992
be seen in high-end phones like the foldable
2009 and only now will it start to generate
it started to develop on the domestic market
one, which was recently launched in China. At
an income. The duration of the research also
and it began its global expansion after 2000.
a price of EUR 2,500, the phone was sold out
explains why the Chinese company is ahead
It reached USD 100 billion in sales in 2018,
of its main competitors, namely Ericsson and
and this year it will surpass that number after
Nokia.
it made USD 84 million in the first 9 months.
Today, Huawei is the producer of 20 per-
The appetite for the latest technologies can
in the first minute. Around 30,000 foldable terminals were available.
The company has been divided into several
US MEMORANDUM
cent of the world’s communication devices
business lines and it has become an inter-
Romania, Poland and Estonia have signed
and its share will probably increase after the
national giant. It has operations in over 170
5G memorandums with the US government
deployment of 5G connectivity.
countries and around 188,000 employees
regarding 5G connectivity security. The docu-
from 160 different nations.
ment does not specify any names of Chinese
A HISTORY OF GROWTH Huawei started 32 years ago as a manufacturer
Huawei is the second biggest smartphone producer in the world, after Samsung. It sold
producers like Huawei or ZTE, but it is clearly positioned against them. Romania has yet to
www.business-review.eu December Business Review | May 2016 2019
COVER STORY 5G 37 14
start its tender for the new 5G frequency spectrum, and it still hasn’t turned the memorandum into law. The country is waiting for the European Union to finalise the 5G ”toolbox”, where some new security measures are expected. Talking about the US ban, Huawei Vice President Catherin Chen said that it can’t be a security issue. “Over the past 30 years, Huawei has had a very good track record in securing equipment. We have provided services to 3 billion users in over 170 countries and regions and this history speaks for itself. If we’re asked whether there is any ‘backdoor’ found by any government or any hacking organization in Huawei equipment, the answer is no. Has there been any major incident caused by our computers? No, never,” says Catherine Chen, Huawei
Catherine Chen. The Trump administration has a problem with 5G network development. The US has
increase costs by 30 percent, and that is a situ-
no domestic 5G developers; the biggest the
ation no one wants to see.
world are Huawei, Ericsson and Nokia. Sam-
“The European Union has also issued a
sung, ZTE and other small producers are also
document on the security of 5G networks,
“We will invest even more in cybersecurity and related technologies. We have already decided to invest USD 2 billion to strengthen our software and hardware capabilities. If there are countries that are concerned about cyber security, I said that we were open to signing agreements with these governments to ensure that our network has a high level of integrity. Apart from these kinds of agreements, we have offered to be tested and evaluated by other governments. So far, we have agreed to this type of cooperation on cybersecurity evaluation with the governments of Germany, Brussels, and Canada,” said Catherine Chen. The company estimates that Romania would lose EUR 6.7 billion and 7,100 jobs if it banned Huawei from its 5G infrastructure. The company has 2,100 employees in Romania, from a total of 12,200 employees in Europe. It has a Global Service Center in our country, which is considered to be one of Huawei’s two most important pillars in Europe, alongside Germany. Indirectly, it has created 5,000 jobs in Romania. The sales of the Huawei group in Romania go up to RON 1.8 billion. “I am very confident that things will not
involved in the field, but none are American.
which proposes setting up high cyber secu-
go in this hypothetical direction (banning
Banning Chinese developers will increase the
rity standards and verification tests. I fully
Huawei in Romania, Ed.) , because such a
cost of 5G infrastructure by 50-60 percent and
support these approaches because these
decision would have to take into account the
they will still not be “in control” of the equip-
measures are fact-based and could bring bet-
technological development, the welfare of
ment. In Europe, Romania included, banning
ter control over these cyber threats,” said the
consumers, as well as the competitive cost of
Huawei would also reduce competition and
Huawei Vice President.
the tariff plans,” said Catherine Chen.
www.business-review.eu Business Review | December 2019
38 INTERVIEW
Global whisky market becoming more uniform in terms of consumption and business models Glenfiddich, the most awarded single malt whisky in the world, was present at the third edition of Whisky Fest in Bucharest. On this occasion, Alexandrion Group brought Struan Grant Ralph, Global Brand Ambassador William Grant & Sons to Romania, in order to hold two mentoring sessions. BR sat down with Struan for an exclusive interview about Glenfiddich’s positioning and strategy, as well as the global whisky industry and its experience on different markets. By Romanita Oprea
ABOUT Struan Grant Ralph he has been Glenfiddich’s Ambassador since 2016. He has a Master’s degree in Chemistry and strong knowledge in the art and science of making and producing whisky. His love for this drink guides his steps all over the world, from Osaka, Manilla, Melbourne, Kuala Lumpur to New York and Bucharest. You worked in some distilleries prior to being a brand ambassador. How has that helped you in your current career? It helped a lot and I was fortunate enough to grow up in an area of Scotland that was pretty famous for its distilleries. The first few jobs I had were in distilleries. Right now I represent a very famous Scottish whisky brand and I still have the same passion for whisky making and the culture around it. It gave me a head start; I was quite young back then, I enjoyed it and it gave me that passion and knowledge as well.
So were you passionate about whisky prior to working there or did it develop when you started out? I think I was finding out. I was definitely passionate about it; I thought it was a very noble art. It was fascinating industry and in the countryside, where I am from, it employs a lot of people, some of whom are really talented, and lots of friends and family have been embroidering whisky so this is where I took the inspiration from.
How important are your country’s heritage and history with whisky, both for you and for the brand? For a lot of these brands, the heritage is the starting point. And for a lot of them it will probably dictate the style of the liquid and the way we make it. The heritage might be family ownership or it might be a large merchant company. It is really the building block for everything we do. Glenfiddich has a very important founding figure called William Grant who is very inspirational, as he installed this great spirit of independence and family ownership. Family companies of our size are quite rare across the world, and especially in whisky.
www.business-review.eu December Business Review | May 2016 2019
And I think this is really important because we
COVER INTERVIEW STORY 39 14
may have never interacted with you.
when we will be talking about education,
get to be much more independent, powerful and pioneering.
You’ve worked on both the Asia Pacific market and the American market. What are the main differences between them when it comes to whisky? And can also compare them to Europe?
gle malt industry, so things like this evening
From what other points of view have the social media and new technologies of recent years impacted the way your brand communicates?
mentorship and advocacy, the fact that over
I think it’s better with social media because
is the responsibility we have: training people
we were able to communicate quite well.
and telling them more stories.
From someone who grew up as I did – first
this weekend I will do seminars for over 200 people training them about whisky – those are the kind of actions we should take. This
In whisky, most of the competing brands
Consumption is different. I would say Asia
time being an ambassador all I had was a lap-
would be friends anyway. Scotland is a small
is more about bottle consumption and quite
top and a Blackberry, there was no Facebook,
place, and if you think about the distilleries
high energy consumption. In some of the
no Instagram, no anything, and now with
around my hometown, I believe that there
more traditional trading places it tends to be
just one phone you can travel the world and
is room for everybody. I don’t think this is a
talk to everybody. Right
very competitive category, actually.
now the messages are reaching consumers in
disadvantage is that
You once said that Glenfiddich has a very creative backbone. Tell us what creativity means to you and how that is manifested in the brand.
social media is a very
Creativity for us I think is the ability to
competitive market and
experiment and take risks, push boundaries
that there will be a lot
and maybe do things that normally wouldn’t
of people competing
stand before. Historically, we’ve done this
for the same attention
before. In terms of things that we’ve released
on the whisky seg-
as a distillery and the bold things we did – we
ment. Still, I don’t know
had the first single malt whisky that was ex-
an instant and that is a huge advantage. One
by bottle, sometimes mixed with things such
whether that would be a disadvantage or not
ported outside Scotland. We are experiment-
as green tea, in cocktails. America is quite
because, historically, we have been really
ing with different types of casks, with very
traditional with single malt, and it has a big
good at it. But it has certainly changed, in
forward thinking things to reduce waste or
hospitality industry (lots of hotels and bars).
the nine years of my career I’ve been seeing a
the impact on the environment. But in terms
In Europe it varies, because you have very big
very rapid change.
of what we do as ambassadors, it’s the dayto-day creativity to be able to do whatever
single malt countries such as Britain, France,
you want to represent the brand. Which has
starting to see the different regions becoming
How is Glenfiddich positioning itself right now on the whisky market and what are your goals for the following years?
more and more similar. I’ve been to 86 coun-
Luxury positioning. In a nutshell: elevating
tries and you start to see similarities in terms
experiences for whisky drinkers, releasing
of consumption and business models.
whiskies that are going to be celebrated and
How do you think the brand’s history is being represented today and how hard is it to still be able to do that?
consumed with energy and excitement. We
I think that maybe for us it is not too hard. We
Why do you think this is happening?
are really excited to be launching the 32 year
have a really rich history and we’ve been tell-
I think it’s due to globalization in business.
old Grand Cru. Romania itself has a great
ing it for such a long time that it seems quite
Brands are trying to go for some consistency,
potential for Glenfiddich, it is an important
easy. We have celebrated that history a lot
but then, because people are so digitally con-
market for us and we will continue to release
over the years and the fact that we come from
nected, someone in Shanghai knows exactly
very high quality whisky and to provide
an independent family business means we
what is trending in New York as they have
people with new experiences and causes for
can tell people why that is important and how
either travelled there or the trend starts to be
celebration.
it can benefit them. It’s a foundation to the
and Germany and then you have some that are just starting to pick up the single malt. I am
always been really important to us as well.
brand to talk about the history, the heritage,
the same, etc. Drinking trends are becoming
the brand; there is some great storytelling
nected than we’ve ever been. For example, I
Do you think you have competition on the market?
can do an event in Sydney and someone can
It’s interesting because Glenfiddich is a mar-
telling great stories and cheering that with an
watch it live in Alaska. Because we have social
ket leader and therefore the only competition
audience that might be new to the category
media now, people get a good understanding
may be ourselves. I think that we as market
and is finding out about these new things for
of what you are as a brand even though they
leaders have a responsibility to drive the sin-
the first time.
quite similar. I think that we are more con-
there. So much about great whisky is about
www.business-review.eu Business Review | December 2019
40 ARTS
Constantin Brancusi under the Brussels spotlight Until January 12, 2020, a retrospective exhibition of Romanian artist Constantin Brancusi will be taking place in Brussels, at Bozar, as the flagship event of EUROPALIA ROMANIA. This is the first time a solo exhibition highlighting the work of this particularly versatile artist takes place in Brussels - the last retrospective was held in Paris almost 25 years ago. Business Review checked in to see the artefacts. By Oana Vasiliu
Leda, Brancusi’s own interpretation of swan
Brancusi’s Mademoiselle Pogany
The Kiss can be seen in Craiova’s Art Museum
Brancusi’s Fish
The Wisdom of the Earth, the sculpture that Romanian government couldn’t manage to buy
T
Sleeping Muse, originally hosted by Centre Pompidou Paris France
here are some artists who don’t need
several different series: the Muses, the Birds
any introduction as key figures in the
(Maiastra, Bird in Space), and the Torsos, The
history of art; this is also the case for
Kiss (which can regularly be seen on display
Constantin Brancusi, who is considered to
in Craiova’s National Museum of Art), Leda,
have been a pioneer of modernism.
as well as the highly-acclaimed Wisdom of
The exhibition features over 25 sculptures by Brancusi, which were brought together
the Earth. Moreover, several pieces are being show-
from museums and private collections
cased for the first time alongside works by
around the world, presenting the artist’s great
Rodin, under whom Brancusi briefly studied
techniques. Next to works from the early
– allowing visitors to make a direct compari-
part of his career, the exhibition also features
son.
The beginning of the world sculpture
www.business-review.eu Business Review | December 2019
MUSIC 41
The Two Sides music story At the beginning of this year, celebratory news was once again released for audiophiles: vinyl sales grew by double digits last year. Of course, statistics are compiled for developed markets such as the US and UK, but this trend has started to appear in Romania, too. Not so long ago, a new vinyl record shop opened up in the city centre, offering a great collection of music genres and an online presence that tells music stories about the available albums. Who’s behind the initiative? Business Review talked with Alin Bittel, the owner of Two Sides Records. By Oana Vasiliu psychological split between the mindset of a record collector and running a profitable business.
How do you make a selection in terms of what discs to display? The selection is based on our favourite music, on what we believe is quality music that is less represented on the market or not represented at all, as well as all-time classics and music that will never get old, like classic jazz, rock or alternative that everybody will recognise. We have a mix of non-commercial and commercial music, based on a compromise between lesser-known titles we love and would like to introduce to the public and the sustainability of the business. We are also in contact with leading innovative labels and other people from the music industry all over the world, who inspire us and help us with Photo: Cornel Brad
our selection.
Is Bucharest a good market for this type of business? Yes, and it’s not alone. With our future
What got you into music so deeply that you turned it into a business?
There is always a risk in any business. There
e-commerce plans we can cover the entire
is a lack of curated record stores in Bucharest
country and the region.
The magic word here is passion. Making
compared to other European capitals. We can
a business out of your passion or hobby
easily make a comparison with the specialty
is an ideal situation. Sharing your love for
coffee market, which was non-existent in
music with others and getting the chance
Bucharest until 5-6 years ago and now is well
to promote very good music that is not that
developed. I believe other niches that are
Where will vinyl records be in the far future? Does the physical form have a place there or do you think this resurgence is temporary?
well-known to the local public is a great op-
thriving in the main EU capitals will also have
It is difficult to make a prediction, but based
portunity.
a place on the local market.
on the data from the past 5 years the market
In an industry where the future is uncertain, how did you decide to open a record store? Did you feel it was a risk?
What are your everyday struggles in running a record store?
growing worldwide so we do not see any
The selection of music and making the
format is here to stay.
for music recorded on a physical format is slowdown for the near future. The physical
www.business-review.eu Business Review | December 2019
42 INTERNATIONAL ART
Unfinished Romanian conversations at the Venice Biennale Probably the most important art event worldwide, the Venice Biennale, just closed its doors - and the odds of it returning are not so good: Venice experienced its second largest tide ever and several exhibition spaces went under water. The lagoon is slowly sinking. May We Live In Interesting Times. By Oana Vasiliu Cini, The Battle Between Carnival and Feast, which took place at the same time as La Biennale. Around ten paintings were specifically created for this project - from the artist’s own self-portrait to Donald Trump’s kind of portrait. And just around the corner from Palazzo Cini, Romanian sculptor Constantin Brancusi and Romanian painter Victor Brauner were welcoming guests in Peggy Guggenheim’s palazzo, this amazing art place where the world’s best artists of the 20th century found
T
Andra Ursuta’s exhibition in the Arsenale
their home. Amazing Venice.
he 58th International Art Exhibition, titled May You Live In Interesting Times, was curated by Ralph Rugoff
and organised by La Biennale di Venezia, chaired by Paolo Baratta. Among the 79 nations invited to showcase their art vision, the Romanian pavilion was represented by three artists who endured the communist era, and was curated by art historian and theorist Cristian Nae. The group’s exhibition—Unfinished Conversations on the Weight of Absence—presented new versions of individual installations by Belu Simion Fainaru, Dan Mihaltianu and Miklos Onucsan - not necessarily surprising, but certainly talking about one of the
Divorce Dump, as it was showcasted in Biennale’s Giardini (Andra Ursuta)
Adrian Ghenie’s self-portrait
Belu Simion Fainaru interactive art for the Romanian pavilion
The one and only Brancusi in Peggy Guggenheim’s palazzo
most interesting times for our nation, communism. But the real surprise was discovering Romanian-born US artist Andra Ursuta and her installations in the official selection of La Biennale. A series of anatomical hearts hinging on paradox and irony, in an attempt to expose and disrupt the power dynamics that perpetuate the precarious boundaries between violation and banality, indifference and empathy, abjection and humour. What’s more, Romania was even better represented in the wonderful city of art - with a solo exhibition by Adrian Ghenie in Palazzo
www.business-review.eu Business Review | December 2019
44 CHRISTMAS
Where to do your Christmas shopping this year In a rush for Christmas shopping? Don’t worry, we’ve got you covered with a series of recommendations that will help you find everything you need. By Oana Vasiliu
Dispozitiv Books
Pick one of the many Christmas artsy fairs
BOOK LOVERS & MORE
better place to find out who’s new on the
The Carturesti bookstore chain is the place
market and learn about designers’ approach
to be for inspiration - and they provide that
to fashion & lifestyle than the Christmas
free-of-charge wrapping service, which can
fairs. This year, it seems there are more and
be very helpful at this time of year. They sell
more designers’ fairs to help you find the
a lot of interesting art deco stuff like mugs
perfect gifts. From fashion to jewellery, from
and pots, but also goodies - premium choco-
home-made candles to natural and organic
late, candy jars, and more.
cosmetics, from food goodies to Christmas
The Dispozitiv Books store is kind of atypical - it offers international magazines and publications, mostly artsy stuff - like
decorations, they can all be found at the fairs listed below. Dichisar de Iarna - Dec 7-8, Impact Hub
Monocle, Dream, The Plant, The gentlewom-
/ Inauntru Bounty Fair - Dec 14-15, Casa
an, 032c, and many more. The bookstore can
Universitarilor / Christmas concept - Dec 7-8
be found on 20 Popa Nan Street. Check their
& Dec 14-15, Palatul Telefoanelor / Noel - Tar-
opening hours via social media channels -
gul Cadourilor de Designer - Dec 14-15, Hanul
they reply really quickly.
Gabroveni / Mezanin Market - Dec 14-15 &
Antic Exlibris - probably the best known international book outlet in Bucharest - an
Attend Fundatia Victoriei’s workshop
Dec 21-22, Palatul Universul / Vis de Iarna Dec 15, Impact Hub Universitate.
impressive collection of discounted books, from art to hobbies to food to travelling and everything in between, plus an interesting
DIY PRESENTS A bunch of Christmas workshops are avail-
Make your own wreath
selection of children’s books. The bookstores
able this season, and a hand-made Christmas
until midnight on December 24, so don’t
are in the old city centre - you might want to
wreath or ornament can be great presents.
worry: you’ll certainly find something for
have a look.
Check out Art & Hobby Studio (Dec 19), Fun-
your loved ones, even if you leave it to the
datia Calea Victoriei for festive decorations
last minute.
GOING TO THE FAIRS
for Christmas dinner (Dec 19), Maison Dadoo
Romanian designers are getting featured
(Dec 7-8 & Dec 14-15).
on buyers’ wish lists increasingly often, especially at this time of year. There is no
And, of course, there are always shopping malls - most of them will probably stay open
Shop wisely and try not to spend all your money on Christmas gifts - it’s more about being jolly and being home for Christmas than it is about presents.
www.business-review.eu Business Review | December 2019
46 RESTAURANT REVIEW
From Zero to Hero: Selgros Cash and Carry
I
n a handful of years, Selgros grew from
to raise standards of chefs throughout the
frozen displays as needed. You should note
one hypermarket in Brasov to 22 stores
land, twice yearly they the hold a spectacular
that they carry a stock of up 300 species of
in every major city. On the way, they
cooking event in their “Gastronomic Cen-
fish and fish products. If you have a fresh
carved a niche for themselves as one of the
ter – Arena Bucatarilor” where 33 chefs from
fish counter at your local Selgros, they will
largest quality food suppliers to the catering
all over Romania compete for a cash prize,
clean it and fillet it upon your instructions.
industry and to the public, with a unique
together with an entry to another competi-
Last year they sold 4,500 tons of fish across
array of imported products and brands.
tion ‘Les Chefs en Or’ held in L’Equip Hotel
their stores. Another triumph was their
in Paris.
Bistro Gourmet, in house dining of the high-
I am in their massive flagship cash and carry in Brasov, and with three stores in
The chefs prep and cook at live worksta-
est standard. It has an open kitchen, and I
Bucharest I can see how the range of foods
tions in a public hall. The viewing galleries
mean open as you sit around the chefs in
together with their innovations will filter
are packed with members of the public, all
the kitchen. A sample of their menu reveals;
down to local stores.
keen to watch and learn. And you may be
Beef tartar with foie gras, scallops with
quite sure that the competing chefs are also
prawns and a salad lettuce, garlic, spinach
chilller cabinets which draws the moisture
learning and fine honing their talents by
saffron and peppers, bouillabaisse… and
out of the meat over several weeks. This
watching each other.
many more dishes.
For instance they have beef dry aging
tenderizes it and produces more flavour.
The 33 chefs were then whittled down to
It really was the equal of many of the
The beef comes from their own factory in
8 by a process of elimination. These have a
Romania, together with imported beef from
‘shoot out’ to determine the winner, who was
the world’s most famous ‘beef countries’ –
Emanuel Mocan from Cluj. If you want fur-
on traditional dishes, prepared (usually
Ireland, USA, Poland, Brasil and Uruguay.
ther proof of their dedication to their mission
domestically) without skill, care or sophis-
They truly have a passion for food as
to inform and educate, they even have their
tication. Food was made simply to keep
evidenced by their not-for-profit education
own TV show on Pro TV called Arena Bucata-
you alive. It was just “heat it and eat it”.
and training scheme for aspiring chefs. We
rilor, broadcast on Sundays at 10.00 a.m.
Selgros Cash and Carry has done more than
should all be grateful for this selfless act as
And now away to fish. They import
best restaurants in Bucharest. For the last 70 years Romanians dined
any other organization to break that mold
the graduates will not necessarily work for
fresh fish from all over the world. This they
by introducing the country to a whole new
Selgros. You may find them cooking in a
freeze (under a Romanian health license) at
adventurous, exciting gastronomic world.
restaurant near you.
anything up to minus 40 degrees. Thereafter
As an extension of their determination
it is put in storage to be withdrawn to fill the
Michael Barclay Mab.media@dnt.r0