BR/07/2017

WHERE ROMANIA TALKS BUSINESS September, 2017 / Volume 21, Issue 7

www.business-review.eu

6

APS ROMANIA: THE ACADEMY OF EMPLOYEES

22

SMART CITY BUSINESS CASE: THE ALBA IULIA EXPERIENCE

24

ROMANIA SEEKS TIGHTER CONTROL OF COMPANIES’ FINANCIALS

28

Millennials: the driving (work) force

Photo: Betfair Development Romania

DEVELOPERS PUSH THE PEDAL ON RESIDENTIAL INVESTMENTS

www.business-review.eu Business Review | September 2017

• Editorial •

EDITORIAL 3 REAL ESTATE 6 Developers push

Anda Sebesi

the pedal on residential investments

• Editor-in-Chief •

8 Logistics & industrial market could set new records by yearend

COVER STORY

Millennials changing the working pattern At present, companies worldwide are making huge efforts to face the increasingly challenging business environment, where

10 Millennials: the driving (work) force

INTERVIEW

consumers have refined their behavior and a brand has the power to make or break even the largest organizations. In such a complex context, companies need to face one of the most challenging generations of employees: Millennials. Born between 1980 and 2000, Millennials will make up half of the global workforce by 2020,

26 Phil Heasley: Romania ‘fits well with ACI Worldwide’s Midwestern roots’

according to the 2016 CBRE Global Overview, called “Millennial Myths and Realities.” As all other previous generations of employ-

CITY

ees, they have their own specifics which are forcing companies to adjust their HR practices.

This young generation of employees needs to know that their opinion is taken into consideration when working for a company, do not agree with the idea of complying with senior managers’ requests just because the hierarchical rules say so and expect work to be less of a duty, but rather a source of learning, fun and meaning.

They no longer abide by the idea that work is work and play is play, but expect the two to mix. Furthermore, there is a worldwide trend showing that younger people are less interested in financial stability or markers of social success, such as owning a house or a car, but more preoccupied with freedom, flexibility, having as many meaningful experiences as possible and contributing to society beyond their immediate circle. Thus, companies need to understand and offer them a suitable working environment in order to capitalize on the newest human resource available now.

37 Stretching your Anonimul frame of mind 38 Enescu Festival brings music magic back to Bucharest 42 From killer moving air to planning your daily shower 45 Restaurant review: Trying out Barrio 46 Calendar

FOUNDING EDITOR: Bill Avery, EDITOR-IN-CHIEF: Anda Sebesi, DEPUTY EDITOR-IN-CHIEF: Simona Bazavan JOURNALISTS: Georgiana Bendre, Georgeta Gheorghe, Otilia Haraga, Romanita Oprea, Ovidiu Posirca, Oana Vasiliu, HEAD COPY EDITOR: Debbie Stowe COPY EDITOR: Eugenia Pupeza, PHOTO EDITOR: Mihai Constantineanu, ART DIRECTOR: Raluca Piscu PUBLISHER: Bloc Notes Media, ADDRESS: No. 10 Italiana St., 2nd floor, ap. 3, Bucharest, Romania­­­­, LANDLINE: Office: 031.040.09.31 EXECUTIVE DIRECTOR: George Moise, BUSINESS DEVELOPMENT DIRECTOR: Oana Molodoi, SALES DIRECTOR: Ana-Maria Nedelcu MARKETING: Marius Andronic, Patricia Neamtu PRODUCTION: Dan Mitroi, DISTRI­­BUTION: Eugen Musat ISSN NO. 1453-729X EMAILS: editorial@business-review.ro, sales@business-review.ro, events@business-review.ro­

www.business-review.eu Business Review | September 2017

4 NEWS

WHO’S NEWS

has a track record of underexecution), while higher wages

BR welcomes information for Who’s News.

Submissions may be edited fo­­­r length and clarity.

Get in touch at simona.bazavan@business-review.ro

will increase social contributions,” said Fitch. In addition, Fitch forecasts that Romania’s budget deficit will widen to 3.7 percent of the GDP this year, from 3 percent in 2016. PM Mihai Tudose recently reaffirmed that Romania will maintain its deficit below 3 percent.

Agency experts revised

Diana Cernaianu is the new HR director of TotalSoft. With over 20 years of management experience, Cernaianu has solid knowledge of HR and transformation processes. During this period, she has coordinated several integration, development and efficiency processes within big companies. Cernaianu graduated from the Cybernetics, Statistics and Economic Informatics Faculty at the Bucharest University of Economic Studies and has an MBA in marketing from the Romanian-Canadian University.

Sinziana Pardhan has been promoted to country head of P3 Romania. She is taking over from Blake Horsley, who has become P3’s group development director. Her promotion comes only three months after she joined the local subsidiary of the logistics investor and developer as acquisitions director. Pardhan has extensive experience in investments, acquisitions and disposals. She previously spent nine years working for real estate consultancy Colliers.

Prior to that, she worked for SOPOLEC and the Romanian Green Building Council. page 5

Romania’s GDP growth forecast upwards for 2017, up to 5.1 percent from 4.8 percent. “We Fitch revised Romania’s GDP growth forecast upwards for 2017, up to 5.1 percent from 4.8 percent

forecast growth to slow in 2018 and 2019 as policy stimulus eases, to 3.4 percent in 2018

Romanian economy risks overheating, says Fitch

and 3.5 percent in 2019, but it will remain above the ‘BBB’ category median (of around 3 percent), allowing further convergence of GDP per capita with rating peers,” Fitch said in a statement.

By Georgeta Gheorghe

According to data released The Romanian economy risks

fiscal targets, as tax revenue

by Eurostat in mid-August,

overheating, as “wages outpace

has remained flat and spending

Romania recorded a 5.7 percent

productivity growth”, while

risen. Romania’s budget deficit

year-on-year growth in Q2,

the budget deficit will get close

(cash basis) over the first five

the biggest economic growth

to 4 percent, the Romanian

months was almost three times

among EU member states.

economy risks overheating,

as large as in the previous year.

According to government

rating agency Fitch warned.

We expect some offsetting cuts

forecasts, Romania’s economy

“Cuts in excise duties

to government consumption and

is expected to grow by 5.2

and VAT have led to missed

capital spending (where Romania

percent this year.

Deputy director Alin Barbu appointed interim BVB head

By Georgeta Gheorghe Alin Barbu, deputy director of

tion’s activities. Former chief

the Bucharest Stock Exchange,

executive Ludwik Sobolewski,

was appointed interim head

whose term expired on August

and will oversee the institu-

21, is awaiting a decision of the

Alin Barbu will oversee the institution’s activities

www.business-review.eu Business Review | September 2017

NEWS 5 want to take the money that is there […] it’s just that, if it proves best for Romanians, we will give more money to Pillar I.” According to the Fund Managers Association in Romania (AAF), all economic and fiscal policy measures with a major

Romania’s PM dismissed the information that the Pillar II pensions would be dissolved

PM Tudose considers increasing contribution to Pillar I pensions

impact on the economy should be part of a program designed to support the long-term development of the economy, to be adopted in a predictable way and only after a prior consultation with the main players on the market.

“The compulsory private pension funds have had a

By Georgeta Gheorghe

significant contribution to

Prime Minister Mihai Tudose

is very high, for the amounts

the development of the local

announced the possibility of

that flow into Pillar I to be a little

capital market and of the

increasing the contribution

higher than those that go to Pillar

Romanian economy and have

to the Pillar I pensions, which

II. Discussions are in advanced

the potential to create the same

is currently equal to that

stage,” Tudose said, after the

positive effects in the future

disbursed into Pillar II, arguing

meeting of the Executive Com-

once their assets increase,”

that the performance of the for-

mittee of the Social Democratic

the AAF said in a statement.

mer surpasses that of the latter.

party (PSD). “The state is a better

Any step backwards is bound

“I asked - and it was also

manager,” Tudose argued, adding

to have negative effects, and

a political decision - that the

that it was “a way of increasing

represents a real danger that

finance ministry, together with

pensions.”

undermines its sustainability

the pension system representa-

Furthermore, the PM dismissed the information that

the development of Romania’s

to see whether it is opportune,

the Pillar II pensions would be

capital market, the association

now that the economic growth

dissolved. “It is not true that we

warned.

BVB Council regarding his status.

contract for the mandate of the

Since 2009, Alin Barbu has

deputy director was not taken

been one of the two BVB direc-

during the BVB Council meeting

tors authorized by the Financial

that was summoned to deal with

Surveillance Authority Council

the topic on August 18, due to

(ASF). Moreover, as per the pro-

lack of quorum.

visions of the Constitutive Act

At the same time, no decision

and BVB Council decisions, he

was made to remove Sobolewski

is authorized to coordinate the

from his position.

The legal circumstances did

According to a BVB report

not prevent Sobolewski from

published on August 21, Ludwik

continuing his mandate at the

Sobolewski’s mandate expired

helm of the BVB, however, he

“creating an unusual legal situ-

decided to step aside and await

ation.”

the decision of the BVB Council

The decision to extend the

Ionut Voinea has been promoted to VP for integration & operations, CEE, at American group Liberty Global, which owns UPC Romania. His present position is technical director of UPC Romania. Voinea started his career in 2006 within the customer care department, and has held several management positions with the company in Romania, Hungary and other CEE countries. In 2015, he was appointed technology director and in early 2017 he took over additional responsibilities for the CEE region.

and creates a spillover effect on

tives should make an analysis

activity of the BVB.

Ion Sterian has been appointed general director of Transgaz, following a decision by the company’s administration board. He had been serving in the post in an interim capacity since May, replacing Petru Vaduva, who stepped down before his term was due to end in June.

The state-owned company’s administration board has also decided that Marius Vasile Lupean will serve as economic director.

on the matter.

Nadia Oanea has been appointed partner of Grant Thornton, effective July 2017. She joined Grant Thornton in 2015 as executive director and head of the Grant Thornton Romania tax department . She has 18 years’ experience in the field of taxation, of which 8 years as state tax inspector and 10 years in tax advisory. Besides her extensive experience in domestic tax issues, Nadia is specialized in international taxation, covering direct and indirect tax implications of cross-border transactions, transfer pricing and matters related of taxation of individuals.

www.business-review.eu Business Review | September 2017

6 REAL ESTATE

Developers push the pedal on residential investments House prices are expected to maintain their upward trend through to the end of the year, after picking up speed this first semester. In the meantime, developers are boasting of investments in new projects to match the growing demand.

By Simona Bazavan not think there is a risk of overheating. The market is maturing and this trend is led by the ever evolving consumer needs,” Ahmet Buyukhanli, CEO of Opus Land Residential Development, tells BR. He expects prices to go up by between 5 and 10 percent on average by yearend in Bucharest.

As to when property price hikes will ease, this could happen in the event of a mix of factors, believes Nita: house prices going up faster than incomes, fewer properties changing hands, fewer prospective buyers and supply picking up once more.

FULL SPEED AHEAD Developers are certainly taking notice of the While housing demand has been going up in H1, supply has been more sluggish

E

existing demand, with several major players announcing investment plans. Earlier this summer, real estate company Impact Devel-

conomic growth, low interest rates

the past three years house prices have posted

oper & Contractor bought a 22,000 sqm plot

and support schemes such as the

average quarterly growth rates of 2.5 percent,

of land in the Domenii area of Bucharest for

government-backed Prima Casa pro-

Imobiliare.ro data indicate. By comparison,

EUR 10.6 million (VAT not included) on which

gram spurred housing demand the first half

the rise stood at 3.1 percent in the second

to build some 600 apartments.

of the year, which in turn pushed up asking

quarter of this year. “Although the growth

prices throughout the country, data indicate.

rate was somewhat justified by the ratio

start this autumn and the first 268 units are

The trend looks set to continue throughout

between demand and supply, these fast price

scheduled for completion in the spring of

the rest of the year, despite concerns about

hikes are considered unsustainable, including

2019.

how sustainable these price increases are.

by the central bank. House prices on the local

The much-sought after plot of land is lo-

market are growing faster than the European

cated between the Kiseleff and Ion Mihalache

been more sluggish. “Although most eco-

average, according to Eurostat and the Na-

boulevards in an area of the city “known as

nomic indicators look favorable for real estate

tional Institute of Statistics,” added Nita.

the next office pole,” say company represen-

While demand is going up, supply has

Works on the first development phase will

tatives. The project will feature nine apart-

acquisitions, the existing supply is consider-

This has raised concerns about a possible

ably lower than a year ago. To be precise, our

market overheating, especially in cities such

ment blocks going as high as 13 floors. Homes

data indicate that supply in the main cities is

as Cluj-Napoca, yet consultants and devel-

will range from studios to three-bedroom

down by about 31 percent,” said Dorel Nita,

opers suggest that overall growth remains

apartments.

head of data and research at Imobiliare.ro, in

sustainable. “The local residential market

a recent company report.

is on a new normal cycle. I wouldn’t say we

dential compounds on the local market, its

are dealing with a market explosion, and I do

flagship project being Greenfield in northern

And prices are indeed picking up. Over

Impact is known for developing 16 resi-

www.business-review.eu Business Review | September 2017

REAL ESTATE 7

HOUSE PRICE RISES THROUGHOUT ROMANIA AT END OF Q2 City Cluj-Napoca Bucharest Timisoara Constanta Brasov Iasi YOY

+11.7%

+12.9%

+7.7%

+8.3%

+5.3%

+5.4%

QOQ

+4.9%

+3.4%

+3.5%

+4%

+1.8%

+2.4%

Average price (EUR/sqm)

1,330

1,240

1,080

1,020

950

920

Source: Imobiliare.ro

year, we will build another 40,000 sqm of

BUCHAREST NEIGHBORHOODS WITH GREATEST PRICE INCREASES IN Q2

residential area, and the works are underway

Neighborhood Average price Q2 increase Parcul Carol (Cantemir – Marasesti)

EUR 1,620/sqm

+16.7%

Giurgiului

EUR 970/sqm

+7.9%

Grivitei – Gara de Nord

EUR 1,110/sqm

+6.6%

Dorobanti-Floreasca

EUR 2,050/sqm

+6.2%

Dristor-Vitan Vechi

EUR 1,280/sqm

+6.1%

as planned. Currently we are delivering five blocks of flats totaling about 350 units. We also have around 100 villas under construction,” adds the CEO.

PRICES ON THE UP The average asking price on the residential market stood at EUR 1,120/sqm at national

Source: Imobiliare.ro

level this June, up by 6.7 percent compared Bucharest.

apartment in a good location. Right now there

to the end of December 2016, according to

is almost nothing available in the market

data from real estate platform Imobiliare.ro.

is planning to start works this summer on a

for such buyers, even if we take the second-

Throughout the country, asking prices for

residential project in the capital’s Bucurestii

ary market into consideration,” Mindaugas

new homes posted a sharper increase, ac-

Noi neighborhood. “It will consist of a gated

Valuckas, CEO of Hanner Holding, recently

cording to the same source.

complex, green areas, sports facilities as well

told BR. Overall, local buyers are getting more

as a commercial center, served by a metro sta-

sophisticated and demanding, especially as

their price expectations by 5.4 percent

tion at the entrance to the project. As part of

they also generally have more disposable

throughout the first semester. The average

the first development phase, two residential

income. “When we first started The Park

asking price for old apartments – meaning

buildings consisting of 190 apartments, mean-

residential project, some people said that we

mainly properties built before 1990 – was EUR

ing 16,000 sqm of built-up area, are scheduled

were spending too much money and that no

1,144/sqm this June, up by 5 percent com-

for development,” Tal Roma, development

one would buy. But we proved that people

pared to the end of last year. By comparison,

manager at AFI Europe Romania, previously

do care about the quality of the housing they

on the primary market, average asking prices

told BR. Given that the Israeli developer

buy. I expect this medium segment to grow

stood at EUR 1,254/sqm, a 7 percent rise,

purchased the plot ten years ago, the timing

even further. We are talking about people

indicate Imobiliare.ro data.

for starting its first residential project on the

willing to pay around EUR 100,000 or more

Romanian market is telling. “Now, finally, as

for a three-room apartment. And I think it is

first semester were posted outside Bucharest,

the residential market has recovered from the

very sustainable because this segment is not

with Cluj-Napoca leading the ranking. In the

crisis, we have decided to enter this market

driven by incentives from the government. It

western city, asking prices went up by 10 per-

segment and invest in our first residential

will continue to grow even further as this is

cent, reaching an average of EUR 1,372/sqm.

project in Romania. Patience always pays off

linked to the IT industry, which remains on an

As elsewhere, the growth rate was stronger

in real estate,” said Roma.

upward trend,” he added.

on the primary market than on the secondary

Another local player, AFI Europe Romania,

Lithuanian developer Hanner is another

Overall, the number of new apartments to

In the capital Bucharest, sellers increased

However, the steepest price increases this

market. While the average asking price for old

player that considers the timing right for a

be completed and delivered this year is pro-

apartments reached EUR 1,402/sqm, up by

new investment. The company wants to start

jected to be the highest since 2009, according

9.6 percent since the end of last year, that of

works by yearend on its mixed-use office

to Buyukhanli.

new apartments increased by 12.3 percent to

and residential project on the grounds of

The developer managed to sell 258 homes

EUR 1,330/sqm.

the former Grivita Brewery in center-west

totaling 22,000 sqm in its Cosmopolis project

Bucharest. The developer particularly tips the

in Bucharest in the first five months of this

main regional cities throughout the country,

medium segment of the market as having the

year, according to company data. This means

Imobiliare.ro data suggest. The average hike

potential for future growth.

it is on track to reach its 540 unit target for

stood at 9.6 percent in Iasi (reaching EUR 936/

2017 and post a slight increase on the previous

sqm in June), 8.2 percent in Timisoara (EUR

apartment a few years back and now want to

year, says Buyukhanli. Meanwhile, the de-

1,111), 7.3 percent in Constanta (EUR 1,044),

upgrade, not only to a larger one but a quality

veloper is making room for new buyers. “This

and 6.2 percent in Brasov (EUR 956).

“There are many people who bought an

Asking prices saw gains in all the other

www.business-review.eu Business Review | September 2017

8 REAL ESTATE

Logistics & industrial market could set new records by yearend With industrial & logistics space take-up racing beyond consultants’ expectations this first semester, the market looks set to reach new highs by yearend.

By Simona Bazavan “The local industrial & logistics market is going through an effervescent development phase in term of both demand and supply.

This year has maintained 2016’s upward trend, establishing new record levels for deliveries and leasing transactions. We are confident that this trend will be maintained for the next two to three years,” says Rodica Tarcavu, partner, industrial agency, at Cushman & Wakefield Echinox.

Throughout 2016, more than 370,000 sqm of industrial & logistics space was completed across the country, marking the highest

STRUCTURE OF NET TAKE-UP IN H1 2017

Czech real estate company CTP is the main player on the Romanian logistics and industrial market

A

record level of over 300,000 sqm

than the level we were expecting for the

of logistics & industrial space was

entire 2017. Should the same growth rate be

leased in the first half of 2017, ac-

maintained, we could witness demand hit-

cording to data from real estate consultancy

ting a new record high,” says Costin Banica,

Cushman & Wakefield Echinox. JLL Romania

associate director and head of the industrial

estimates the figure at over 350,000 sqm,

agency at JLL Romania. By comparison, com-

which makes it 54 percent higher than the

panies leased 460,000 sqm of industrial &

same period a year ago.

logistics space last year, which back then was

New demand – meaning expansions or new leasing contracts – was up by 51 percent

an all-time high, he adds.

Retailers and logistics companies were the

in the first six months of 2017, and repre-

main tenants driving up demand, account-

sented about 65 percent of the overall leasing

ing for 65 percent of leasing activity in H1.

activity, indicate JLL data.

“Manufacturing is gaining ground with a 22

“Demand on the industrial & logistics

percent share, yet many companies here opt

market has surpassed our estimations, given

to build their own facilities,” say JLL repre-

that first semester leasing activity is higher

sentatives.

Bucharest

56%

Roman

12%

Pitesti

12%

Timisoara

9%

Cluj-Napoca

4%

Ramnicu Valcea

2%

Ploiesti

2%

Oradea

2%

Turda

1%

Source: Cushman & Wakefield Echinox

www.business-review.eu Business Review | September 2017

REAL ESTATE 9

level of new supply recorded so far, say C&W Echinox representatives. This year, however, the level of new supply is forecasted to be 25 percent higher than in 2016, given that more than 450,000 sqm of industrial & logistics space is scheduled for completion. In H1 2017, approximately 80,000 sqm was delivered.

Some 56 percent of this year’s stock will be delivered in Bucharest and 14 percent in Timisoara, followed by Pitesti (9 percent), Cluj (5 percent), and Ploiesti and Sibiu (each with a 2 percent share), they add.

Overall, the stock of industrial & logistics

MAIN LEASING TRANSACTIONS IN H1 Project Tenant City Surface (sqm) CTPark Bucharest

DSV

Bucharest

55,000

CTPark km 23

DSV

Bucharest

35,000

CTPark Bucharest West

NOD

Bucharest

31,000

WDP Roman

Profi

Roman

27,000

Cateasca (Arges) Arctic Pitesti 21,000 P3

Tibbett Logistics

Bucharest

17,000

P3

Altex

Bucharest

15,000

Wdp

Carrefour

Bucharest

11,500

LogIQ Mogosoaia

Fildas

Bucharest

11,500

Source: JLL Romania

space reached 2.65 million sqm at the end of H1 2017, according to C&W Echinox data.

The most developed market in the country

logistics spaces in Romania reached 4 percent

real estate company CTP. The developer has

remains Bucharest, accounting for approxi-

at the end of H1 2017, indicate C&W Echinox

reached a portfolio of about 600,000 sqm

mately 45 percent of the total stock. Outside

data. In Bucharest, the vacancy rate dropped

after having pursued an aggressive takeover

Bucharest, Timisoara has a share of approxi-

to 3 percent, with approximately 31,000 sqm

policy for the past two years. It is followed by

mately 12 percent of the total existing stock,

available. Prime headline rents for A-class

P3 with a 430,000 sqm portfolio. Belgian WDP

followed by Ploiesti, with 10 percent, and the

units range from EUR 3.75-4.25/sqm/month,

is the third largest player on the local indus-

area around Cluj-Napoca area, with 8 percent.

while effective net rents are around EUR 3.45-

trial & logistics market, followed by another

3.9/sqm/month, depending on the city, area

Belgian firm Alinso, with a 160,000 sqm park

logistics was three times higher than the vol-

and technical specifications, according to the

in Ploiesti, Logicor with about 150,000 sqm

ume of new deliveries already leased, average

same source.

and Olympian and VGP each with portfolios

Given that new demand for industrial &

vacancy rates remain very low, say JLL representatives. The vacancy rate for industrial &

The main player on the Romanian logistics & industrial space market remains Czech

of approximately 100,000 sqm, according to C&W Echinox data.

10 COVER STORY

www.business-review.eu Business Review | September 2017

MILLENNIALS: THE DRIVING (WORK)FORCE Seen as the next generation of employees, Millennials have the power to make companies adjust their organizational culture in order to meet their needs and demands. But who are they and what are their career preferences? What should a company do to be on their “desirable� employers list? BR talked with specialists to get their point of view.

By Anda Sebesi

COVER STORY 11

Photo: Betfair Development Romania

www.business-review.eu Business Review | September 2017

www.business-review.eu Business Review | September 2017

12 COVER STORY

T

he Millennial generation seems to have attained an almost

from their work and a place which provides challenges and opportu-

mythical status: that they are a group so different in values,

nities to develop rapidly. They prefer to gain new experiences across

beliefs and expectations that they challenge the status quo

different projects rather than have the opportunity to progress,” says

across every aspect of our lives. From academic literature to the popular press, debates rage about how “different” Millennials really are.

Born towards the end of the last century, Millennials now make

Maranca.

Millennials look for companies where their opinion is taken into consideration and where they get constant feedback; they are not attracted by organizations that implement classical biannual or annual

up the youngest segment of the workforce—the fresh talent that

evaluations and that are focused on barriers imposed by hierarchic

employers are eager to attract.

levels.

They are growing in affluence and, for a growing number of

“Plus, they have a preference for companies with a well-known

organizations, understanding the needs and desires of this genera-

brand that already offers them a good experience as consumers.

tion is crucial.

They want to work for a dynamic employer whose business is dedi-

According to the 2016 CBRE Global Overview, called “Millennial Myths and Realities,” that cited a PwC study called “Millennials at

cated towards a specific contribution,” adds Maranca.

By contrast, Millennials who graduate from different industrial

work: Reshaping the workplace”, by 2020, Millennials born between

schools that specialize in a wide range of technical professions, focus

1980 and 2000 will make up half of the global workforce. With such

their interest on developing their career abroad.

a large voice, Millennials’ decisions about where they

MORE MEANING AND LESS MONEY

work, how they work

Alis Anagnostakis,

and whom they work

trainer, coach and

for will have lasting

founder of Mind

consequences for the

Learners, says that, in

global economy and

her work with senior

for real estate. For ex-

managers, she sees

ample, let’s consider

more and more of a

the workplace, which

gap between expecta-

plays a significant

tions and perceptions

role in staff well-be-

when it comes to the

ing and productivity.

younger generation.

Employers looking to

“Often, younger em-

attract and retain the

ployees are perceived

best and the bright-

as unreliable, super-

est in the “war for

ficial, entitled and I

talent” will need to

even heard the word

know what motivates

‘spoiled’ being used

Millennials and how

to describe them – all

their needs may differ from those of previous generations, pundits

that for reasons that are partly justified and partly, in my opin-

say.

ion, have to do with a culture gap between two generations,” says

But who are Millennials – the current generation of employ-

Anagnostakis. She adds that, by comparison, some employees from

ees who are about to change the organizational culture and force

the older generation, who grew up in the early days of multinational

companies to adjust their strategies to their needs and demands

presence in Romania, seem to care less about fun working spaces,

accordingly? Seen from their educational perspective, Millennials

flexible schedules or companies that offer interesting work environ-

are split into two different categories on the local market: gradu-

ments and a sense of meaning and belonging. They tend to value

ates from universities and graduates of different industrial schools.

more job stability, career growth prospects, and generous financial

“Both categories of Romanian Millennials challenge the local labor

packages.

market,” says Mihaela Maranca, general manager at Randstad Roma-

“Millennials on the other hand tend to expect work to be less of a

nia, a subsidiary of Randstad, a top global recruiting company. The

duty, but rather a source of learning, fun and meaning. This younger

differences between the two of them come from their professional

generation no longer abides by the idea that work is work and play is

interests, types of companies they prefer to work for and their pref-

play, but expects the two to mix. There is a worldwide trend show-

erences for a specific working environment, just to name few.

ing that younger people are less interested in financial stability or

“Millennials who graduate from university prefer to have a job in a flexible environment that meets their need for a sense of meaning

markers of social success, such as owning a house or a car, but more preoccupied with freedom, flexibility, having as many meaning-

14 COVER STORY

www.business-review.eu Business Review | September 2017

ful experiences as possible (versus

ees into the group and explaining the

accumulating as many possessions as

reasons behind the goals which need to

possible – which was the obsession of

be achieved, those goals become their

older generations) and contributing to

own and they become more relaxed

society beyond their immediate circle,”

towards the aspects mentioned above,”

explains the founder of Mind Learners.

he adds.

Younger people seem to be more

The financial issue is collateral for

interested in making a difference in

Millennials, say pundits. However,

the world and, although many of them

despite this, in the past years it was no-

don’t really know how to articulate

ticeable that candidates put significant

that. They expect their employer to

pressure on increasing the levels of

provide a sense of meaning and con-

salary offered by employers for differ-

tribution, to offer a flexible schedule,

ent jobs. “They have financial demands

the possibility to work remotely and to recognize their performance more frequently. “They are no longer content to sell their time and energy in exchange for money. They

that significantly exceed the pay scale of the companies,” says Maranca of Randstadt.

As for their engagement with the business, a study conducted

expect innovative environments and to have fun at work. This

by Gallup last year, called ‘How Millennials Want to Work and Live,’

need, when it’s not being fulfilled, tends to lead to oppositional

showed that just 29 percent of Millennials are engaged in their job,

or rebellious behaviors, which can

6 out of 10 say that they are open to

easily be interpreted by employers as

new job opportunities and just 50

superficiality or irresponsibility,” adds

percent intend to stay with their cur-

Anagnostakis.

rent company in the next year. “This

As Robert Machidon, general man-

is happening while organizations with

ager at APS Romania says, people want

better employee engagement are more

to have a decent and fair remuneration,

productive, post less incidents to their

they want to have their achievements

workplace and a smaller percentage

recognized and promptly compen-

of absenteeism, while their work has a

sated. Moreover, young people want

higher impact on the company’s profit-

to get together and get involved in

ability,” says Maranca.

order to fulfill their expectations. “I guess what Millennials hate most is being bored and undervalued. And if you understand this, you can actually

HOW DO MILLENNIALS SET THEIR CAREER? The way Millennials react when read-

engage them and create a bubbly work environment where people

ing a staffing notice reveals what they expect from their potential

not only contribute by doing what they have to do, but also come up

employer, say experts. “A traditional announcement has small

with fresh ideas,” adds Machidon.

chances of attracting their attention, while they will react positively

According to him, Millennials’

to a unique, vivid one. Millennials

expectations from potential employers

want an authentic dialogue, and are

refer to respect, opportunities, money

eager to be challenged and to be of-

and fair treatment. In other words, the

fered the chance to build something

usual stuff, but in different proportions.

special, with an impact on society,”

They fiercely protect their after-work

says Maranca of Randstadt. She adds:

life, they want to be free to enjoy their

“Millennials expect a job to offer

money and their time with friends and

them the chance to develop and a way

co-workers. “So, if you organize team

to contribute to a cause. When this

building exercises, they have to be

doesn’t happen, Millennials need to

really good and meaningful. If you get

change their job and thus the job hop-

them to work overtime, it has to be for

ping phenomenon begins.”

a good reason and if you want them to

So, to what extent are Millennials

join your CSR initiatives, it has to be for

job hoppers? According to CBRE global

causes that are important for them, not

overview, the idea that Millennials ex-

only for your company,” advises the general manager of APS Roma-

pect to change employers frequently—or even that they want to hold

nia. “On the other hand, I also noticed that, by integrating employ-

a “portfolio” of roles with different employers simultaneously— is

www.business-review.eu Business Review | September 2017

OPINION

Simona Nicolaescu, owner of Dynamic HR, trainer and coach

Millennials are burning.

With burnout.

COVER STORY 15

also at odds with what the Millennials CBRE surveyed. When asked about their ideal career ladder, the majority seem to have similar attitudes to previous generations. Most want to work for the same or a small number of companies during their career, while only a tiny proportion want to work for a large number of companies or change jobs frequently. As researchers found, 62 percent of Millennials see their ideal career as with the same or a small number of employers.

However, there are national differences in attitudes towards employment, with respondents in Mexico expressing the greatest appetite for change. German millennials, on the other hand, are the most loyal, with a third wanting to work for one company throughout their careers, says the same overview.

A recent survey conducted by Manpower and cited by CBRE in their global overview, found that Millennials want to move on and move up, but more often than not, they expect to advance with the same employer. The overwhelming majority of Millennials also want lifelong learning and are willing to spend their own time and money on further training. Almost two-thirds say the opportunity to learn new skills is a top factor when considering a new job.

Burnout can happen to anyone anytime regardless of their gender, age, social or professional status. It is in close connec-

Like the traditionalists before them, they want the security of full-time work to ensure they can maintain their standard of living.

tion with the specifics of each individual: the way he or she

Rather than wanting one job for life, Millennials understand that

knows how to manage their thoughts, emotions, life experi-

continuous skills development is necessary to remain employable.

ence and past psychologically unsettling events. And yes, that

The same CBRE study shows that most companies recognize

so called “too late” moment can be reached by anyone! The

that the “war for talent” is real, and that they cannot take employee

consequences of extreme chronic stress are physical and men-

loyalty for granted. In this era of LinkedIn and job vacancy websites,

tal distress, cynicism, detachment or a feeling of misachieve-

it has never been easier for staff of all ages to identify opportunities

ment. They all are the result of a sum of profound causes like

elsewhere and for competitors or head-hunters to target your top

the lack of control of their work and social support, setting up some goals they don’t strike a chord with, assuming some responsibilities that are not in line with their specifics and the lack of “pressing the pause button.”

It’s little wonder that, of all employees, Millennials are the

talent. When coupled with the difficulty in finding satisfactory and stable employment in today’s competitive job market, it’s hardly surprising that young people tend to move between employers until a better “fit” can be found.

Overall, the study found that the idea that Millennials are some-

most affected by burnout. They grew up and live in a world of

how pre-programmed for job-hopping seems misplaced; rather than

speed, where results are required quickly. They want to dem-

desiring a nomadic career pattern, they are pursuing personal chal-

onstrate and set out to have at least the same results as those with professional experience. Sometimes, they want to exceed them, generating a gap between their individual capacity

lenge, development, variety and skills enhancement.

Elsewhere, Machidon of APS says Millennials build their career as they go along. “In the beginning, they want to experience a lot of

and their self-imposed performance. Along with the pressure

things and this may appear disconcerting to the people around them,

of self-overtaking, often there are other organizational issues

as some of these experiences (work ones) tend to be quite short.

that have a strong impact on amplifying major stress at work:

They do not plan long term, that is for sure. However, many of them

their unclear role in the organization and very close deadlines.

are very good at spotting great opportunities and making the most of

Many employees complain about their unclear role and feel a

them. You cannot blame them if they do not want to spend too much

significant pressure when they have many tasks and problems

time in places they do not like. But rather, you should be happy

to solve. Plus, they feel incapable when they don’t meet oth-

when they choose to stay with you in the long run, this is a good

ers’ expectations. Thus, organizations that face such problems

testimony to the quality of the work environment you provide,” says

should solve them or hire people with the capacity of tolerat-

the representative of APS.

ing the ambiguity. Millennials prefer positive interactions with their colleagues, a less stressful shuttle, the satisfaction

A GOOD WORK-LIFE BALANCE

of their current job and rest. They look for jobs that can offer

According to the CBRE study, at present, 56% of Millennials world-

them lots of benefits, better payment and schedule and a more balanced work-life ratio.

wide think that work and leisure should be separate; they are not always-on and they value their personal time.

As the first generation of digital natives, Millennials’ aptitude

www.business-review.eu Business Review | September 2017

16 COVER STORY

have a mutual influence. Thus, this is an additional reason for paying

IN MOST MARKETS, WORK-LIFE BALANCE COMES BEFORE CAREER PROGRESSION WHEN EVALUATING JOB OPPORTUNITIES

attention to well-being programs,” adds Nicoalescu.

MILLENNIALS BRING WELL-BEING TO THE NEXT LEVEL

RELATIVE DEGREE OF IMPORTANCE (EXCLUDING SALARY)

According to a study conducted by Deloitte last year that analyzed the answers of about 7,700 Millennials from 29 countries worldwide,

Good work-life balance

16.8

Opportunities to progress/be leaders

13.4

Flexibility i.e., remote working, flexible hours

11.0

the professional/personal balance posted the highest score, followed by the opportunity to progress in a company or be leaders (but not necessarily holding a formal leadership position). So what do Millennials expect from their professional career and how do they mix it

Sense of meaning from my work

9.3

Professional development training programs

8.3

The impact it has on society

6.8

The quality of its products/services

6.4

Strong sense of purpose

6.2

Opportunities for international travel

5.9

towards well-being seems to be the expectation that work should

Fast growing/dynamic

4.4

be a source of joy and satisfaction, not just something that has to

A leading company that people admire

4.3

be done to earn money and be able to “build a life” after work. For

Invests in and uses the latest technology

4.1

many young people, the border between work and life is becoming

The reputation of its leaders

3.1

blurred, or at least this seems to be their aspiration,” says Anagnosta-

with well-being?

“Young people seem to be keener to cultivate well-being in their lives. We see more and more people actively practicing sport, healthy eating, sharing and sustainable living. Part of this inclination

kis of Mind Learners.

Source: Deloitte

However, she highlights that there is the other side of the coin, which might give credit to some of the labels being placed on Millen-

with technology and its ubiquity in their lives changes their ap-

nials by the older generation. Issues like the fact that the younger

proach to work, says the study. As with the rest of the workforce,

generation is suffering from the aftermath of an education system

technology blurs the traditional boundaries between work and

that is deeply flawed and misaligned with modern times; a lot of

leisure time. However, while it’s widely assumed that younger gen-

disoriented young graduates who don’t know where to go or what to

erations readily accept or even welcome this blurring, CBRE findings

do with their lives; a lot of discontent among Millennials who grew

show something different.

up protected from the outside world, raised by parents who told

Slightly more than half of the Millennials surveyed agree with

them that if they do their homework and get good grades all would

the statement, “work and leisure should be entirely separate,” while

be well - they would get a good job and be successful. “They are now

less than a quarter disagree. Millennials are not alone in expressing

confronted with the hard reality that their university degree doesn’t

discomfort with the way technology promotes the intrusion of work

mean much or that the skills they learned in school are outdated

into their personal lives.

and far removed from what employers need: the ability to survive in

At the same time, though, employees of all generations welcome

the modern labor market where they need to be resilient, have high

the ability to send personal emails or shop the internet from their

tolerance for failure, be a self-starter and a life-long learner,” adds

desks. Sensible employers will recognize the need for work-life bal-

Anagnostakis.

ance and will establish policies that demonstrate that they trust their

The well-being concept is an issue that concerns both employees

employees to use technological access appropriately. They will also

and the company they work for. The role of an organization is crucial

try to ensure that work doesn’t intrude excessively into personal life,

when it comes to achieving, assuring and maintaining well-being,

found the CBRE study.

say experts. “In the past years, companies have learned that the

“At present, Romanian Millennial employees want to mix their

well-being of their employees means their well-being, as an organi-

work with creative and relaxation moments at their workplace,” says

zation, and an assurance for the future. Well-being programs are no

Nicolaescu of Dynamic HR. She highlights this trend by speaking

longer seasonal and discontinuous. They start to become a so-called

about one of her company’s programs developed in 2010 in a call

‘modus vivendi’ <way of being> in a company,” says Nicolaescu, of

center, where the majority of employees were Millennials. “The

Dynamic HR. When applied in a strategic manner, it’s not just burn-

main goal was to increase sales by encouraging well-being. Sales

out that is avoided, she says.

grew between 30 and 100 percent in the days when our program was

However, despite companies becoming more and more inter-

implemented compared with other normal days,” adds the represen-

ested in implementing well-being programs for the benefit of their

tative of Dynamic HR. However, she warns that, despite a balanced

employees, Nicoalescu says that it is still a “work in progress.” This

split between work and personal life is equally natural, healthy and

means that organizations are not 100 percent ready to examine the

desirable, the two concepts are connected as they have a direct or

situation exactly the way it is. “When we apply the well-being audit

indirect influence on one another. “A total, extreme and clear separa-

within organizations, there are cases when the management fears

tion between the two of them is not possible, as long as both of them

that it becomes intrusive and may discover issues that the company

www.business-review.eu Business Review | September 2017

COVER STORY 17

cannot address,” adds the representative of Dynamic HR. As for the engagement of Millennials with the company they

The mindset of Romanian employees has changed significantly in the past years, and the financial incentives have decreased in

work for, Nicolaescu says that the more they are involved in choos-

importance in favor of other factors. “New generations are increas-

ing those well-being programs that are suitable for them, the better

ingly valorizing the way their working environment looks and put

they will engag with their organization. “Thus, focusing on well-

in balance the quality of life when deciding to take a job,” says Mihai

being and implementing such strategic programs can be a double

Paduroiu, head of advisory & transactions, office division at CBRE.

edge sword and a common denominator of both the employees and

At present, the majority of multinationals that operate on the

the company, with significant benefits for each of them,” concludes

local market offer a good working environment with many benefits

the entrepreneur.

for their employees (leisure spaces, unconventional working spaces, proximity to transportation.) “The offices post spectacular changes

MORE THAN A WORKING SPACE

due to the influence of the new generation of employees, too. Mil-

Millennials prefer unconventional work spaces – cafes, working from

lennials are more rational and selective when it comes to choosing

home, co-working hubs. But this usually applies to people who are

a job. They look for an employer with a permanent development in

focused on creativity or liberal arts. “What we discovered is that

order to keep up with the advancement of their career and technol-

young professionals appreciate the big Pipera sky scrapers, despite

ogy,” says Paduroiu. He adds that employers try to offer a balanced

the full elevators, the badges and the security systems, provided

working environment, a good cooperation between departments, a

they work with people they like. To be honest, back when I joined

high-quality working space that benefits from additional services.

the company I am now leading, I stayed for the exact same reason,

According to the CBRE 2016 global overview, the cafeteria is the

although initially I thought I would only have a summer job. I liked

most commonly provided facility and the most popular, followed

my colleagues, the work environment, the fact that we were all

closely by coffee bars. Each is desired by more than a third of mil-

young and enthusiastic and there was nothing we could not do or

lennials—roughly as many as currently enjoy access to them. It is

experience,” says Machidon of APS Romania.

notable that several types of facilities rate high in importance for a higher proportion of Millennials than currently have access to them; there are also some— like day care, dry cleaning and game

What should companies do to be desirable employers for Millennials?

rooms—that fewer than 20 percent of Millennials consider decisionchangers.

A lack of wellness facilities is potentially of greater concern, and

As Robert Machidon, general manager at APS Romania says, organi-

is an issue that companies are starting to take seriously. Previous

zations should be honest and authentic in their relationship with

research by CBRE has found that 74 percent of European employ-

recruits and employees. They should really care about the team

ers have some type of health and wellness program in place. The

they have and communicate with it often, so that everybody is clear

enhancement of employee health is a primary focus, but employ-

about the company objectives and embraces them. “They should

ers expect to benefit in turn, through reduced healthcare costs and

provide opportunities for career development or, if the structure of

improved productivity and performance. This is an important issue

the organization is such as it does not allow for development, they

for Millennials in the workplace, since their generation is character-

should say so from the beginning. They should listen to their em-

ized by a relatively strong commitment to health and well-being. As

ployees and respect their input and ideas, implementing whatever

Goldman Sachs reports, Millennials define “healthy” as more than

they find reasonable and fair,” adds the general manager. Based on

just “not sick” — it is a daily commitment to eating well and exercis-

the “How Millennials Want to Work and Live” study conducted by

ing.

Gallup last year, Jim Clifton, chairman and CEO of the company, says that companies have to change their organizational culture, in order

A FORCE FOR CHANGE

to meet Millennials expectations. He highlights six fundamental

Millennials are, from whichever angle we might be looking at

changes called the Big Six:

them, a force for change. They are no longer willing to be compliant, to strive hard for the salary at the end of the month, they are not as

Past

Future

respectful or fearful of authority and they are, by their very pres-

My Paycheck

My Purpose

ence, demanding that companies change.

My Satisfaction

My Development

My Boss

My Coach

restless, sometimes flawed, other times amazingly inspirational

My Annual Review

My Ongoing Conversations

generation is forcing companies themselves to transform. More and

My Weaknesses

My Strengths

more companies are seriously considering how to make work more

My Job

My Life

fun for their employees, how to create work environments that are

“I am convinced that having to incorporate this eclectic, colorful,

creative, flexible and stimulating and in doing all that, company Source: Gallup 2016

culture itself is shifting towards more constructive approaches,” concludes Anagnostakis.

www.business-review.eu Business Review | September 2017

18 DIGITAL

Very soon, BRD clients will receive financial advice from a chatbot Since the beginning of the year, BRD - Groupe Societe Generale has been developing a chatbot based on Personetics technology, which will operate via Facebook. We talked to Horia Velicu, head of the bank’s innovation lab, about the chatbot’s functions, as well as the advantages and challenges this type of AI brings.

By Georgeta Gheorghe for the Romanian language, there is not much annotated data for the machines to learn from” he explained, adding that the bot’s personality is also important.

As for whether Romanians will come to trust a chatbot with their money, Velicu is optimistic, while acknowledging there are some variables. “It all depends on the complexity of the task a chatbot would have to perform and the client’s affinity with technology. While it may take some time, I’m sure that they’ll come to trust it,” the head of BRD’s innovation

D

lab said.

In Velicu’s view, the introduction of the

uring Business Review’s Country

a full-fledged financial tool. “What started as

chatbot does not amount to a complete

Focus Community Forum in mid-

a simple bot that could only answer a couple

change in the status quo. “There will still be

June, BRD - Groupe Societe Generale

of questions about investment in equity

some areas where human interaction will be

CEO Francois Bloch announced the lender’s

funds, turned into a more complex applica-

preferred, such as double-checking certain

five-year plan to invest tens of millions of

tion that can assist customers in selecting and

information or complex situations where hu-

euros in digitalization and automation of

subscribing to investment funds, transferring

man assistance is required. The chatbots will

processes. Soon, BRD clients will be the first

money between funds, bill payment or with-

be complementary to traditional services, not

among those of the French banking giant

drawing money from their accounts,” Velicu

a substitute,” he added.

to benefit from financial guidance via a

told Business Review. The end purpose,

text conversation with an AI. “In Romania,

Velicu explained, is for the chatbot to become

will be used to identify BRD clients’ areas

Facebook usage rate is very high, so for us it

an alternative to the classical menu-based

of interest, as well as contribute to machine

made sense to start it,” Velicu explained. To

mobile banking application and ultimately

learning. The data “allows the bot to learn

this end, BRD partnered with Personetics, a

support all functionalities offered by MyBRD

to better address the needs of the client and

company that provides customer interaction

Mobile.

even become proactive and ask the client if he

technology solutions for the financial services

The main advantage of implementing this

According to Velicu, conversational data

or she needs a particular service, at a particular time.”

industry from its offices in London, New York

type of tool, Velicu argued, is the ability to

and Tel Aviv. “They are specialized in finance

offer personalized assistance to customers

chatbots and use a financial ontology to grasp

at any time, something they have come to

level and is likely to be replicated in other

the language and product information in a

expect. “We live in a world where we can do

territories, Velicu believes. “I have seen a

conversation. This differentiates them from

almost everything at almost any time. We

large interest in the Societe Generale group

the general purpose chatbots like Siri or from

must be able to provide assistance over any

regarding our chatbot experiment and yes,

other general commercial chatbot develop-

digital channel, 24/7,” Velicu acknowledged.

most probably, there will be other countries

ers,” Velicu said.

Among the challenges encountered while

The project is attracting attention at group

interested in implementing their own.” How-

The pilot project, independently devel-

developing the tool, Velicu singled out the

ever, its design, the platform and implementa-

oped and implemented by Societe Generale’s

linguistic aspect. “Until now, chatbots have

tion will depend to a large extent on the local

Romanian banking unit, is designed to offer

been developed mainly using English, while

culture, Velicu explains.

www.business-review.eu Business Review | September 2017

20 INVESTMENTS

Philip Morris targets global markets with Romanian investment In July, Philip Morris Romania announced it was investing a record EUR 490 million in the conversion of the Otopeni factory, among the group’s top performing cigarette factories, into one fully dedicated to the manufacture of HEETS for its heat-not-burn product IQOS. The investment, Branislav Bibic, managing director Philip Morris Romania told BR, spearheads the group’s efforts to offer consumers worldwide alternatives to smoking.

By Georgeta Gheorghe end of the year. “At the moment, the machinery and all the technologies are in place and the production of the first HEETS in Romania is expected to start in the near future,” Bibic told BR. The factory will experience a full conversion in 2018, when it will become an extension construction with a section for tobacco processing.

In order to support its activity, the Otopeni factory will increase its staff by 300 over the next two years, with the first wave of new employees coming in this year.

According to Bibic, they will be paid “to a standard as close as possible to the European one.” Currently, there are over 2.9 million IQOS users worldwide and PMI expects IQOS to be available in key cities in over 35 markets

P

the investment in late July in the pres-

investment project is a significant one, both

sold mainly online and in Bucharest. Since

ence of Romanian PM Mihai Tudose at

for the local market and for IQOS consum-

the beginning of this year, the product was

an event held at Bucharest’s National Theatre.

ers worldwide,” and “will contribute to the

marketed in the main 16 Romanian cities. As

“Late last year, Philips Morris International

development of the investment environment

of April 2017, IQOS has a share of 1 percent of

chief executive Andre Calantzopoulos de-

in Romania, Bibic told Business Review.

the Romania market, which consists of Bucha-

hilip Morris International announced

fined a bold vision by saying our ambition

by the end of 2017. The product was launched manufacture of tobacco sticks. “The

“The production at the Otopeni factory

in Romania in 2015 and over the last year was

rest and the largest cities in the country. “For

was to replace conventional cigarettes with

will serve both the local market and several

the tobacco industry, this means a very rapid

no smoke products,” Christos Harpantidis,

other markets around the world, Bibic said,

growth rate,” Bibic explains, adding that the

managing director Philip Morris Balkans,

noting that “IQOS has become the top priority

product has managed to achieve a 7 out of 10

said at the event. “What was considered by

in the company, both globally and locally. The

conversion rate among adult smokers.

some a revolutionary statement is something

fact that we chose one of our best performing

we have been working on for many years.

factories is further proof of our commitment

Managing Director, smuggling is a major

Starting 2008, when Philip Morris began its

to offer smokers around the world smoke free

concern for the company, which operates in

research, USD 3 billion have been invested.

alternatives,” Bibic added.

a country where, according to a March 2017

According to the Philip Morris Romania

study, illicit cigarette trafficking accounts for

We are one step closer to our smoke-free vi-

OTOPENI FACTORY TO EMPLOY 950 STAFF BY 2018

15.2 percent. “For HEETS we think we will

tant step towards this direction,” Harpantidis added.

The Otopeni factory, which currently employs

smuggling from non-EU countries, but we are

650, will be converted partially in 2017

constantly paying attention on how we can

already and will start producing HEETS by the

address this possibility.”

sion and today’s announcement is an impor-

The Otopeni plant will be PMI’s fourth production facility fully dedicated to the

be dealing in the first phase more with the

www.business-review.eu Business Review | September 2017

22 INTERVIEW

APS Romania: the academy of employees With Romania having become a business model from a management practices perspective, BR talked with Mihnea Spataru, Head of Human Resources, APS Romania to find out how it could be replicated at the regional level.

By Anda Sebesi What have been your main professional achievements that have had a direct impact on the results posted by the company on the local market?

also comes from previously successful experiences.

ABOUT Mihnea Spataru, Head of Human Resources, APS Romania Spataruâ&#x20AC;&#x2122;s main responsibilities include designing and developing the HR strategy and recruitment process in the organization, monitoring and constantly optimizing the costs of the recruitment process, building and developing relationships with internal customers and external recruitment agencies. Previously, he worked in various industries such as outsourcing, consumer goods and fashion. for us at the beginning of the projects, we are

the opportunity to take a step towards a more

According to representatives at APS holding, the management practices business model in Romania is to be replicated at the regional level. What are the defining elements that recommend it for regional replication?

complex activity or promotion. Of course,

First of all, APS Romania operates like an

we took a market survey on the spot, identi-

it would also be the internalization of the

academy. We take young employees, eager

fied the main recruiting channels, posted ads,

personnel administration, payroll or recruit-

to stand out, at the beginning of their

ment processes, which for many years had

career and we create a framework

and thus we were able to identify the

been outsourced, and implicitly managed by

in which they can grow quickly,

profiles we were looking for.

an external provider. This has generated jobs

become very productive and then

in the HR department and has given me the

transfer their accumulated knowl-

opportunity to promote young talent within

edge and experience further. In this

APS. Other investments in the future are the

way, we ensure continuity of com-

partnerships weâ&#x20AC;&#x2122;ve signed with universities,

pany performance and develop-

the strongest at the moment being the one

ment even in times of higher

with SNSPA. We have internships, appren-

staff turnover. At the same

ticeships and presentations at the university.

time, we monitor and

business in Romania and

As a result of these events, since January,

extract good practices

the one in the country

10 students have started their professional

from ongoing projects

where you are going to

careers at APS.

and replicate them in

recruit, the specifics

the process of attract-

of the labor market

ing and implementing

there and of the

I equally appreciate all the projects weâ&#x20AC;&#x2122;ve ran since June 2015, but if I had to choose one, it would be the implementation of development programs that have offered employees

You are part of a very young team of professionals that assures the management of APS in Romania. In your opinion, what are the advantages of a company that has young managers at its helm?

new business.

proud to have covered the employee need - around 50 positions. Probably, given its success, we will continue to recruit for APS headquarters in these countries and most likely for others as well in the future. In the beginning,

done sourcing, met with many candidates

How challenging is it for you to coordinate the operations of different specific markets at the same time?

You have to understand the differences between the

candidates, but also the cultural differences. The

these managers have energy, an unstoppable

What can you tell us about your professional experience in the region?

a double edged sword:

dynamism and a hunger for performance;

At the moment, we are

it is an advantage because

they do not set any thresholds or limits. Being

recruiting for our new

part of this environment, my main advantage

headquarters in Croatia

new-ness in general, but it

is that I enjoy their unconditional support

and Hungary. Consider-

can be a disadvantage when

in implementing new projects and explor-

ing that the labor market

ing new approaches and methods in human

in the two countries men-

resource management. Of course, this support

tioned was unknown land

Advantages are multiple. Being very young,

fact that you open a new company can be

the world is attracted to

candidates come with unrealistic expectations about benefits or career opportunities.

www.business-review.eu Business Review | September 2017

24 SMART CITIES

Smart city business case: the Alba Iulia experience The concept of urban digitalization is gaining ground in Romania, with the first figures on the economic benefits emerging from the first city spearheading this effort. A new report published

by German engineering group Siemens predicts that the development of Alba Iulia under smart city principles could yield total estimated benefits of EUR 532 million over the course of 35 years.

By Ovidiu Posirca

Left to right Julie Alexander, Siemens London; Mircea Hava, Alba Iulia Town Hall; George Costache, Siemens Romania; Nicolaie Moldovan, Alba Iulia Town Hall

T

he western city, home to the UNES-

residents and becoming a better connected

application means came to Alba Iulia; we

CO-recognized 12th-century Alba

city at the heart of Romania,” said Julie

signed partnerships through which they

Carolina Citadel, is focusing its smart

Alexander, director for urban development

came and made applications. There are

development on connectivity, transport and

and smart cities, lead global cities centre of

almost 300 smart lighting units. It is an exer-

energy, according to the report, which also

competence, at Siemens London.

cise to see what can be done, and of course

assessed the benefits of such investments in

Alba Iulia has inked partnerships with a

things will move forward,” said Mircea Hava,

Scottish city Aberdeen, London, Brussels and

series of technology firms that are working

the mayor of Alba Iulia, during a conference

the Kartal neighborhood of Istanbul. Siemens

on pilot projects there. In fact, it has ramped

in which the findings of the report were made

worked on the report in partnership with

up this program as it prepares to mark Ro-

public.

professional services firm Arup.

mania’s centenary, with Alba 7 Iulia being the

“We met with all the cities, spent some

The report suggests that if the city invests

place where the union of Romania was made

EUR 227 million in smart technologies, it

time with them and other stakeholders, so

official in 1918. Officials want to finish several

could reap more than half a billion euros in

in Alba Iulia we had the universities in at-

smart tech initiatives in time for next year’s

benefits in 35 years. The payback period for

tendance, with other interested parties, to

celebrations. The city has attracted tech gi-

the investment would stand at ten years.

really discuss and understand the ambition

ants such as Microsoft and telecom players

of the city, how it wants to develop economi-

Orange and Telekom. The municipality lends

the biggest initial investment of EUR 215 mil-

cally, its driver. Very quickly in Alba Iulia, it

an ear to start-ups as well, and earlier this

lion over four years, and the study puts the

became clear to the team that the driver was

year the town hosted a hackathon for the

cumulative direct and indirect benefit after

really about expanding the economy through

development of new solutions.

35 years at EUR 426 million.

increases in tourism, upgrading standards for

“All the firms that understood what this

Smart energy infrastructure would require

In addition, the city would continue to

www.business-review.eu September Business Review | May 2016 2017

SMART COVER STORY CITIES 25 14

register EUR 34 million annually in direct

towards an inter-connected ecosystem,” said

and indirect benefits after this period. Most

George Costache, CEO of Siemens Romania.

“What do we do with 100GB of data that

of the initial investments would be required for smart grids. Smart connectivity, including

we don’t filter? This information needs to get

free Wi-Fi, and smart transport, which would

to the city’s partner, meaning the citizen, in

also support the development of real-time

the way he or she needs it,” said the execu-

journey planning and smart parking, are

tive. He added that Siemens provided the

smaller-scale projects that require smaller

report free of charge to the municipality,

amounts of funding.

and that the company would participate in

On its side, the municipality has already announced plans to develop the urban

tenders, if Alba Iulia Town Hall wants smart city solutions.

Costache suggested that digitalization

infrastructure and is currently looking for

attract the private sector.

Tax increment financing (TIF) could also back investments in smart technologies. In short, this instrument allows local authorities

will certainly lead to a fundamental change

to trade anticipated future tax income for a

The municipality is seeking to secure fi-

in urban infrastructure, and that the future

present benefit.

nancing for investments of EUR 22 million in

heralds predictive maintenance of buildings

transport infrastructure. This would include

and other key parts of the city landscape.

financing opportunities.

The authorities in Alba Iulia have cited public funds and EU grants as two of the main financing sources for investments in the

the modernization of roads, the deployment of smart traffic light systems and special

FINANCING SMART CITIES

city up to now. For instance, the Alba Caro-

bike lanes. Another EUR 16 million should

With mayors in Romania exploring the

lina Citadel was refurbished with national

be invested in the thermal rehabilitation of

concept of smart cities, the financing of such

and EU support of more than EUR 60 million,

30 apartment blocks, which should make the

investments remains a challenge.

according to the report.

With a population of around 63,500, Alba

heating of homes more efficient. Moldovan

In theory, officials have to drop the old

said the city is also exploring investments in

mantra that city infrastructure must be built

Iulia welcomes some 400,000 visitors per

Virtual Reality/Augmented Reality projects,

only from public funds, in order to diversify

year, out of whom 14 percent come from

primarily for the Alba Carolina fortress, the

its financing mix for smart urban develop-

abroad. This is one of the reasons why the

city’s main tourist attraction.

ment.

municipality has inked pilot projects that aim

Siemens’ report includes several delivery

to support digital interfaces that help tourists

CRUNCHING DATA FOR CITIZENS

models and financing mechanisms that could

get around the city and find out more about

Fitting the city with sensors that can track

be deployed in Alba Iulia, such as mobility-

the main attractions.

anything from road traffic to faulty street

as-a-service, where customers pay subscrip-

Smart technologies have aroused the in-

lighting and air quality is set to generate

tions to have access to vehicles including taxi

terest of several mayors in Romania and pilot

impressive amounts of data that need to be

services or bike sharing schemes.

projects have been deployed in the capital

The municipality could raise funds by

filtered in order to help local residents.

Bucharest. Roughly half of the counties (20)

issuing bonds or tapping crowdfunding

nationwide have at least one project that was

need complex development teams including

channels. A more conventional way to raise

finished or is under development through

software engineers and hardware specialists,

financing could be public-private partner-

the smart cities concept, according to the

alongside traffic management experts, for

ships (PPP). In this way, private players and

Romanian Association for Smart Cities and

instance.

public authorities could share the risk and

Mobility.

This is why the cities of the future will

“Most of the smart city applications de-

financing for the roll-out of smart initiatives.

However, Alba Iulia is the first city that

veloped until now have focused solely on the

Romania has a new PPP law in Parliament

has attempted to integrate all these technolo-

optimization of resources. This will change.

that has yet to be approved, after previous

gies and actually get real-time feedback from

The Internet of Things (IoT) will evolve

pieces of legislation in this field have failed to

its citizens regarding its future development.

INVESTMENT REQUIREMENTS FOR ALBA IULIA SMART CITY Initial Investment*

Cumulative net direct/indirect benefit**

Energy

Field

EUR 215 mln

EUR 426 mln

15 years

Transport

EUR 5 mln

EUR 35 mln

8 years

Connectivity

EUR 6.7 mln

EUR 70 mln

10 years

*after 4 years **after 35 years Source: Siemens - The Business Case for Smart Cities Alba Iulia report

Payback period

www.business-review.eu Business Review | September 2017

26 INTERVIEW

Romania ‘fits well with ACI Worldwide’s Midwestern roots’ Phil Heasley, president and CEO of ACI Worldwide, the provider of real-time electronic payment and banking solutions, talks about the firm’s expansion plans following the relocation of its Timisoara operations into United Business Center 2, Openville Timisoara’s mixed-use project. He says that the Romanian office fits in very well with the American roots of the company, which was started in the Midwest.

ABOUT Phil Heasley President and CEO, ACI Worldwide he holds this position since March 2005 and he has more than 30 years of experience in payment systems and financial services. Previously, he was chairman and CEO of Paypower and held executive positions at US Bancport, Citicorp and Visa.

Heasley holds an MBA from Bernard Baruch Graduate School of Business and a Bachelor of Arts from Marist College.

By Ovidiu Posirca

Have you looked at other cities for expansion, such as Bucharest, Iasi or Cluj-Napoca?

offices, but we have several development en-

build a staff that we think is very maintainable

gineering sites around the world. We tend to

within a municipality, within an area. Once

pick a university, or two universities clustered

we get to a certain size, we may decide that

We actually have locations in 55 countries

in an area, and if we are pleased with our

it doesn’t make sense to grow it any further,

around the world and lots of those are sales

interaction with that university, we will try to

then we would potentially look at another city

www.business-review.eu Business Review | September May 2016 2017

COVER INTERVIEW STORY 27 14 And there are systems that add up to zero.

or some place like that, but we tend to bring

ments, and large processors around the

it to critical mass. We are 200 [people] right

world, and we tend to be mostly on the digital

You start with zero, something happens and

now; we’re going to hire 50 more by the end of

real-time side of payments, so e-commerce

then you go back to zero. And that’s how it is

the year – we believe. It’s quality that comes

and very new trends around the world, called

in the payments business: you start with zero,

first, quantity second, and our plans are to be

immediate payments. If e-commerce can be

we do the transaction.

able to expand by probably 80 to 100 more

anywhere in the world you need to have pay-

on top of that. We could have as many as 330-

ments move as fast as e-commerce.

350 people here, and then we would go and

So our projects here have been mostly in

Blockchain is actually a very good technology as it relates to that and we’re looking at blockchain because at the very end of

potentially look at another location, another

high-speed switching of payments and in our

our payment cycle is settlement and then

university relationship to form.

payment fraud products.

reconciliation. And blockchain is very good technology towards the end of our cycles,

Almost half of our employees here, 100 of the 200, came from internships and that is very important to us, so before we move away

What’s your take on fintech? Should banks be afraid?

from an internship scheme, we grow it as large

They should be afraid because – and I used

as it can get.

to be a banker – banks often represent the

so we are looking at how we would interface with blockchain in intelligent ways.

What vacancies do you have?

want as little change as possible, whereas the

Have you seen any different payment trends in Eastern European compared to other markets?

Mostly engineering and computer science

fintechs are trying to reinvent the world.

I don’t think I’ve seen that much difference.

conservative side of society, therefore they

roles. Our primary (recruitment - e.n) method

I think what we are going through right

I think innovation comes almost from any

is through interns. I’ve watched this group

now is very similar to what we went through

corner of the earth. On payments, you need

over 11 years from becoming interns, through

25-30 years ago when credit cards came in.

both innovation and critical mass, because

dating and getting married, to having kids.

You know, all the banks tried to make credit

for a payment system to work, it has to be

I’ve watched this whole thing so we

cards go away, credit cards became some-

are kind of getting the new

thing of an independent industry and the banks went back

generation come behind

and bought all the

them. So, mostly

accepted in many places. We try to look for all the innovation around the world and we make that a

credit card busi-

interns, but some a

kind of end-point,

couple of the Ger-

nesses back up

a place that can

man companies

again.

enter into the

I think the

have readjusted

same kind of

their balance and

scheme, and if

thing is going to

what not, so we

that scheme makes

happen with this:

do hire people with

you are going to get

experience too. We’re a little bit fussier on the

global payments

some very good fintech com-

sense, then it can move its way around the world.

experience side, because we

panies that are going to move forward,

haven’t enculturated them.

real-time supporting e-commerce payments,

specific to Romania, and there are 4,000

I can’t think of anything

and then they will gradually be absorbed

ideas going around the world, out of which

Do you have problems finding new people because tech firms are battling for skilled employees in Romania?

because all payments need to be regulated

only 5 or 10 might get some real critical mass.

I think we pay well, so that hasn’t become a

believe it will naturally flow into the banking

Does the Timisoara office stand out in any way compared to other regions?

big problem for us. That is a global issue (with

structure. There will be winners and losers.

The ACI company has its roots in the

at some point in time. Governments are better at regulating banks than non-banks, so I

an insufficient number of engineers – e.n.) and it hasn’t been an issue here. We’ve kept pace.

American Midwest and we are also up in the Boston area. Culturally, Romania fits in very

Salaries have grown very nicely over the last

What’s your take on blockchain and bitcoin?

ten years, we’ve tended to grow with them,

Blockchain is the underlying technology for

family oriented, and we actually encourage

so it’s not a problem yet, but it may very well

bitcoin and there are two kinds of systems.

husbands and wives to both work for the

become a problem.

There are systems that add up to 100 percent;

company, fathers and daughters, mothers

well because we are a company that is very

that is you have your money and you want to

and sons. This is a very family-centric part of

In what kind of projects is the Timisoara office involved?

make sure that your money is safe, and if you

the world and culturally it fits very well with

are getting paid interest or charged interest.

how we think. If the community has the same

ACI basically builds very large financial

Those are the systems that add up to 100

values as the company, it makes it easier for

systems for the largest banks, central govern-

percent.

the company to operate.

www.business-review.eu Business Review | September 2017

28 TAX

Romania seeks tighter control of multinationals’ financial data The government is looking to implement EU Directives on tax avoidance, and is set to receive more financial information from multinational groups active in Romania. Tax experts suggest that large corporations might reassess their business models in order to meet the demands of the fiscal authorities in Romania and across the European Union.

By Ovidiu Posirca Erosion and Profit Shifting (BEPS) principles launched in 2013 by the Organization for Economic Co-operation and Development (OECD).

This summer, Romania adopted legislation that implements enhanced financial reporting standards for multinationals, transposing Directive 881/2016 on state-by-state reporting for large companies. This applies to groups with HQ in Romania that have consolidated revenues of above EUR 750 million per year.

“The report must contain information relating to each country separately, and tax details such as: income, profits and losses before tax, corporate income tax paid/accumuIulia Dragomir, bpv Grigorescu Stefanica

T

lated, declared capital, undistributed profits, number of employees and tangible assets.

The report should also contain details of other

he debates surrounding the tax prac-

Juncker, the president of the European

entities which are group members such as:

tices of multinationals have reignited

Commission, the executive arm of the EU, in

state of tax residence and the main economic

after the center-left government led

Brussels.

activities carried out,” Pana told BR.

profit tax with a new turnover tax. The PM

EU STEPS UP TAX AVOIDANCE RULES

tax authorities to carry out a preliminary risk

said that some companies had been reporting

Last summer, European Directive no.

evaluation concerning transfer pricing, tax-

losses for more than a decade, adding that

1164/2016 (ATAD 1, the Anti-Tax Avoid-

able base erosion and profit shifting in other

Romania will work with other EU states to

ance Directive) was adopted with the aim of

jurisdictions.

tax money that is leaving Romania “without

establishing rules guaranteeing that taxes are

justification”.

paid where profits and value are generated.

In short, this reporting method allows the

by Mihai Tudose dropped plans to replace the

This July, ATAD 1 was amended by Euro-

GAUGING THE IMPACT ON MULTINATIONALS

Juncker in relation to the European Direc-

pean Directive no. 952/2017 (ATAD 2), which

The raft of new EU rules that have to be

tive of last year, which includes among other

represents the EU’s commitment to eradicat-

implemented by each member state will have

things a concerted effort by European states

ing tax avoidance practices that benefit from

limited impact on multinationals operating

for transparency and interconnectivity on the

discrepancies in the tax treatment of hybrid

in Romania, because some of the measures

financial data of multinationals or firms that

elements (e.g. forms of financing that mix the

are already present in the local legislation,

are externalizing their profits, leading to an

characteristics of loans with those of share-

according to Mihaela Mitroi, leader of the fis-

artificial reduction of the taxable base. It’s a

holders’ equity) in different EU member states

cal consultancy department at PwC Romania,

very important directive and we will have to

and third countries (non-EU), according to

Moldova and Southeastern Europe.

implement it anyway. But here we are talking

Daniel Pana, director, tax, at KPMG Romania,

about a principle that each company pays its

the professional services firm.

“I touched on this subject with President

taxes where it obtains profit,” said the PM in mid-summer, after meeting with Jean-Claude

Pana explained that these two directives actually transpose and implement the Base

She says the directives will limit the deductions that companies can make on interest expenses from intra-group loans. Romania’s fiscal authorities already regulate these loans

www.business-review.eu Business Review | September 2017

to some extent, but the new directives include

TAX 29

“These new rules are ex-

fresh restrictions. For instance, interest costs

pected to see multinational

cannot exceed 30 percent of a company’s

firms rethink their holding

accounting profit; nor can they exceed EUR 3

structures within the groups

million per year.

of companies, and also

A fresh provision for Romania included in

reconfigure transactions

the directive rules that companies transferring

carried out by firms belong-

assets such as plants to other jurisdictions will

ing to the same group,” Iulia

pay tax on the value gap of those assets com-

Dragomir, senior associate

pared to the moment of their acquisition.

at law firm bpv Grigorescu

“This rule, which already exists in certain states in Western Europe, will make it harder

Stefanica, told BR. She added that the main

to transfer manufacturing facilities to and

challenge for multinationals

from Romania,” Mitroi told BR.

will be to reconfigure their

The new directives also regulate the taxa-

operations based on the

tion of profits recorded by subsidiaries in

different ways in which the

other jurisdictions, in which the profit tax rate

provisions of the directives

is higher or lower than in Romania, and the

could be implemented by

taxation of subsidiaries from Romania abroad.

each member state.

Mitroi added that this provision would

Getting back to the idea

only apply to companies that have a net

of the turnover tax, which was heavily criti-

annual profit of more than EUR 750,000 or

cized by the private sector in Romania, the

these international provisions and found

a profit rate higher than 10 percent of their

general opinion of tax specialists is that such

it impossible to apply them,” said Pana of

operational costs.

a move would have hurt the country’s profile

KPMG. Mitroi added that the implementation of

Although some of these measures are

as an investment destination. “If Romania

already applied locally, multinationals might

had continued with the implementation of

these directives in Romania does not replace

have to make changes to their corporate

the proposed turnover tax discussed earlier

the abandoned turnover tax, which could, in

structures.

this year, it would have distanced itself from

turn, have breached the EU Directive on VAT.

www.business-review.eu Business Review | September 2017

30 TELECOM

Romania poised for quick start, slow adoption of 5G Romania was quick to embrace 3G, 4G and 4G+ technologies, and is currently on track to become the first country in South East Europe to hold a 5G spectrum auction. We spoke to telecom industry representatives about growth opportunities, as well as the competitive advantages of an early 5G technology adoption.

By Georgeta Gheorghe

I

n September of last year, the European

companies from sectors that are likely to

changer for mobile operators, industries,

Commission issued its action plan for

benefit early, had answered a call by Com-

cities and individual end-users. According to

the deployment of 5G infrastructure

missioner G.H Oettinger, responsible for

a 2016 survey by ABI Research, by 2025 the

and services, which it considers a stra-

the Digital Economy & Society, by drafting a

mobile operatorsâ&#x20AC;&#x2122; worldwide 5G revenues

tegic opportunity for Europe. Not only will

manifesto for the timely deployment of 5G in

will reach EUR 225 billion annually, with

the adoption of 5G services give economies

Europe. Moreover, the key players are com-

North America, Asia-Pacific, and Western

on the continent a competitive advantage

mitted to holding large-scale demonstrations

Europe expected to be the leading markets.

on the global market, the EC argues, it will

by 2018 and launch 5G commercially in at

Moreover, a recent EU survey showed that

also allow them to become active players in

least one city in each member state by 2020.

the benefits of 5G introduction across the

setting the global standards. Earlier, major EU-based telecom players, as well as leading

This type of synergy is hardly surprising, given that 5G is certain to be an overall game

automotive, health, transport and energy sectors may reach EUR 114 billion per year.

www.business-review.eu Business Review | September 2017

TELECOM 31

cant progress in preparing its 4G network,

core, collaboration and the best interest of all

mania is on course to become the first SEE

which is partially already 5G-ready, for

customers,” Orange Romania said.

country to tap into the opportunities the new

the transition by rolling out new baseband

technology has to offer. The road was paved

equipment to support this technology, Timos

jected to become a major game changer. By

in mid-June, when the National Authority for

Tsokanis, chief technology & information

building upon the capabilities of the existing

Administration and Regulation in Communi-

officer, told BR. Although it has not made it

networks, it will enable industrial transfor-

cations (ANCOM) launched a public consulta-

public yet, Huawei Romania has invested in

mation by providing wireless broadband

tion on the opportunity of holding a 5G spec-

5G technology, enterprise business unit direc-

services at Gigabit speeds as well as data

trum auction. The interest of industry players

tor Vlad Doicaru told BR, and will implement

connections above 10 Gigabits per second

was keen, with Vodafone Romania, Orange

in Romania all the parts of the 5G functional-

with latencies below 5 milliseconds, as well

Romania and Telekom Romania, among oth-

ity that have successfully been demonstrated

as support millions of connected devices

ers, submitting their input. The goal, ANCOM

in other parts of the world.

simultaneously (the Internet of Things).

If it follows the current roadmap, Ro-

head Adrian Dita said at the launch, was to

As far as challenges go, the implementa-

The transition to 5G technology is pro-

Moreover, it will support the emergence of in-

have all major Romanian cities benefit from

tion of 5G technology, Doicaru argues, will

novative business models across sectors such

5G coverage in less than five years. Earlier

not represent an issue. “Some challenges may

as health, transport, manufacturing, logistics,

that month, Ericsson and Telekom Romania

appear in the spectrum allocation, but they

energy, media and entertainment, and more.

had teamed up to stage the first 5G live dem-

can be solved. The adoption part is the real

onstration in the SEE area.

challenge here, and will have a longer adop-

of the 5G technology is expected to impact

tion time than that needed for implementa-

both companies and individual consumers.

tion.”

What might differ will be the timing, with

The transition to the new technology is expected to be gradual. Moreover, up until recently, some telecom players have preferred to work with more advanced 4G formats before focusing exclu-

As elsewhere, in Romania, the deployment

the former expected to reap

According to Vodafone Romania

the benefits first. “Both

representatives, the massive

will make the most

investments needed

out of this paradigm

for the deployment

change. Automa-

of 5G technol-

sively on 5G

ogy must be

tization will bring

technology. “4G+

supported

efficiency and

technology still

through an

will also allow

has a lot to offer

enhanced range

consumers to ex-

on the existing licensed spectrum, such as higher broadband speeds for the end

perience the impact

of mobile services

of technology in their

for which individuals

daily lives,” Orange Ro-

and companies will be will-

mania representatives said.

ing to pay, as well as rest on proper

At end user level, 5G technology

customers and a new range of IoT

regulations, which will allow operators to

services,” Vodafone Romania representatives

deploy the new network infrastructure.

is already anticipated by the ever-growing

told BR.

“The infrastructure law has a key role here,

data consumption. “Year to year we notice

and still needs to be adapted to the current

4G traffic increases in our network that are

generation is expected to build on, rather

market needs and demands. If blockages in

multiplied four times compared to the previ-

than replace, the 4G services currently in

the infrastructure development are not elimi-

ous years,” Orange Romania representatives

place. “Although the 5G standard is not yet

nated, the speed of the 5G network rollout

said. However, although they will certainly

finalized, the architecture of a 5G network is

will be seriously affected,” Vodafone Romania

benefit from higher speeds that will change

known,” Vodafone Romania representatives

representatives argue. Orange Romania

consumption behaviors, the impact of 5G on

told BR. “All the investments we make today

representatives share the same view and

consumers will be less relevant in the short

in our Access and Core networks, to evolve

argue that completion of the methodology

term, Doicaru argues. “5G is not a technology

our Supernet 4G+ network, are at the same

for the implementation of the infrastructure

necessarily translated into classic commer-

time preparatory steps for the introduction

law is seen as a matter of major importance

cial telco offers for end users,” the Telekom

of 5G, such as the implementation of NFV

for the daily activity of operators, as well as

Romanian representative explains.

(Network Functions Virtualization.)” Accord-

for the employment of 5G technology. One of

However, the speed of rolling out the 5G

ing to Orange Romania representatives, the

the main challenges to the deployment of 5G

technology country-wide and its adoption on

country’s largest telecom operator debuted

technologies, Orange Romania representa-

the market will depend on the monetization

the virtualization process in 2014, and will

tives further argue, is to align the telco indus-

possibilities. In Romania “the entire industry

accelerate it in order to be ready for the intro-

try in order to reach standardization and to

is still searching for 5G use cases which can

duction of 5G.

start the spectrum auction processes. “This

be monetized,” Vodafone representatives

shall be an industry effort that will have, at its

said.

According to industry experts, the next

Telekom Romania has also made signifi-

32 INTERVIEW

A self-funded haute parfumerie success story Madison Absolute Beauty, the first luxury perfumery in Romania, celebrated 10 years since its launch on the local market. The most important moment of the anniversary was the launch of two special fragrances created exclusively for its clients in Romania, by the master perfumer Roja Dove. BR met with him to learn more about the person behind international success of the Roja Dove Haute Parfumerie brand.

By Romanita Oprea

www.business-review.eu Business Review | September 2017

ABOUT ROJA DOVE His career in perfumery began in 1981, when he joined the French perfume house Guerlain, working there for 20 years before leaving to set up his own companies, RDPR and then Roja Dove Haute Parfumerie.

Dove is a celebrated ‘nose’ and has the ability to identify 800 scents blindfolded. Within the perfume industry itself, Dove has been actively involved with The Fragrance Foundation, The Jasmine Awards and The Cosmetics Perfumer Retailers Association.

When did you discover your passion for perfumes and how did it shape your professional path?

When I was six or seven years old, I was lying in bed and my mother came to me. She was going to a cocktail party wearing an evening dress and gave me a kiss goodnight; I still remember her perfume and her dress. It was the first time I made a connection between smell and a moment. Therefore, I always say that that was when I was put on the path which I was going to walk on.

When I was a young teenager, I used to spend all of my pocket money on bottles of perfume, which is quite a strange thing for a young boy to do. I could only afford very small bottles, but perfume for me was always like releasing a genie. I’ve always felt that you are opening it and you have no idea where it will take you.

And then, a woman that I used to know became the director of a very important perfume company. I’d been writing to this French house trying to find out its story, its history. It was owned by three cousins and one of them asked this friend of mine: “Who is Roja Dove?” She asked why and he answered that he was fed up of receiving faxes and phone calls requesting information. And then she said: “Why don’t you give him a job? He will be less trouble working for you.”

Today, I don’t know if the same thing would happen, because companies are different, the world is different, but they employed me. Not to be a perfumer, but to develop a perfumery

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INTERVIEW 33

training course. Which was marvelous. Sud-

of opening a shop which had, additionally,

only said one thing that would upset her:

denly, I was paid to go down to the South of

those that I thought were the best made per-

with this generation my family name dies.

France to learn about all of the raw materials.

fumes in the world. When we opened the per-

Therefore, I decided I could leave a legacy

Because of the company importance, I had a

fumery, it was the first time in the world that

behind with my family name. And so, in 2011,

red carpet put in front of me every time. I was

somebody would go to the perfume houses,

we launched Roja Perfume. I told the buyer

a young man and it felt like I was in heaven.

say what fragrances they were interested in,

at Harrods, she wanted to know more and

and have them re-done for them. It was a

then she told me she wanted to stock it in the

What were the next big moments in your career, in your opinion?

risk, because the industry wasn’t about this

main perfumery. But, never having done that

and we offered something completely dif-

before, I had to ask her how many to create

It became clear quite fast that I had a good

ferent. How I explained it to a journalist was

for Harrods. She gave me the amount and

sense of smell and I worked for this house

like the difference between pret-a-porter and

told me it would last between four and six

for 20 years and in 2001, I left. In the begin-

couture. It was like haute perfumery. And, as

months. I did just that, but in just 10 days we

ning of 2002, I was wondering how I wanted

I said the name, I decided that this was the

sold every last one of the bottles. In 10 days

to come back to the world of perfumery and,

way we were going to call it: Roja Dove Haute

we’d had the most successful launch in Har-

while invited to a dinner party, I was asked by

Parfumerie. It was the first time something

rods history up to that time and we still hold

the host if I could make a perfume for a very

was called Haute Parfumerie. Today, every

the record. Within six months, we became

important charity, as an auction lot. When

perfumery that opens is called this.

the number 1 selling brand in that shop.

everybody at the table stopped and looked at

The reason I empathize with Madeleine

And I am really proud of that, especially

me, I realized I would actually love to do it,

(Madeleine Florescu, Madison Absolute Beau-

because we are a privately owned company

as the auction is a very important event that

ty owner) is that I understand this perfumery

and it means that David beat Goliath.

happens every year, once a year, in the oldest

very well. She opened her business two years

auction room in the world. The auction house

after I opened mine and the concept was

is called Christies. Then I got in contact with

very similar. And you have to educate the

What do you think drove your success that fast?

the people that did the bottle Lotion Bleu in

customer, because what you are doing is not

First of all, I think it’s really important to un-

1985 for an art fair and I asked that, if

derstand that my industry had been

they still had the mold, if they would

bought by the detergent industry. In

redo the bottle for me. I explained

the beginning there were some very

the context (the importance of

small, beautiful, perfumery compa-

the auction, the charity purpose –

nies and some which were bigger,

against HIV/AIDS, etc.) and I thought

due to their success. Old fashioned

that if I put the bottle up, if some-

brands in the 80s and 90s were

body liked it and wanted a certain

bought by conglomerates, three of

perfume in it then they will spend

which were detergent manufactur-

more money because the perfume

ers, who were brilliant at marketing

could be what they wanted. It was up against a holiday for 6 in the Maldives and a new

the same as everybody else.

The next chapter started in 2009. I have

and made classic perfumery seem very old fashioned. Everything is about the era it’s in.

Mercedes sports car, and in this context, mine

a very close friend that I see maybe once or

When we launched, we did it at a price

fetched the biggest amount of money. Some-

twice a year and we always do this glamor-

point of GBP 295 and GBP 450, in an industry

thing that, of course, made me very happy.

ous thing: we go to Claridge’s Hotel and have

where the average price was GBP 25. I didn’t

It was really interesting as nobody was do-

a simple meal with a beautiful wine. In 2009

really care what other people were doing;

ing this. It wasn’t an idea to do it more, it was

when we met, my mother had just died and,

I never did, because you can’t care. If you

purely for the charity, but the person’s partner

even though I thought I was dealing well for

don’t stand for something, why would any-

who bought the lot, decided they also had to

the outside world, my friend gave me the best

body be loyal or even look at you in the first

have a perfume for themselves. This is how I

3-hour-long metaphoric slap in the face. She

place? I know very little about many things,

got my first customer and I decided that this

pointed out to me that I was spending my

but what I know quite a lot about is perfum-

is what I wanted to do. I was going to do be-

whole life curating and promoting everybody

ery. And astonishingly, I have spent most

spoke perfume, which is still a very important

else’s work, but when was I going to do it for

of my work-life travelling: meeting sales

part of my work.

myself?

people, meeting customers and, in doing

Around the same time, I was invited to

When I left, I called my partner and told

it, you really have a feeling for what people

Harrods, the department store, for a cup of

him I’d just had the best conversation of my

look for. I don’t sit in an office, I don’t have

tea and, literally, before I even sat down, they

career and I wanted to launch a commercial

some marketing plan drawn up by somebody

proposed that I open a perfumery with them.

brand of perfumery. And the reason I did

else, I decide how the perfume will be, how

Opening a shop wasn’t in my plans, but by the

it was because my mother, who was one

it will smell. It’s my personal point of view,

end of the cup of tea, I came up with the idea

the most upbeat people you’ve ever met,

my take.

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34 SHOPPER MARKETING

Shopper marketing: from shortterm to long-term activation With shoppers becoming more sophisticated and information-savvy thanks to digital influence, BR decided to take a look at the local shopper marketing industry and how it approaches consumers and clients.

By Romanita Oprea ogy is constantly in a changing process, but human needs are always going to be the same.

However, what technology enables us to do today is to understand and address shopper needs at an individual basis, as opposed to segmenting them into broad categories. For the first time in the history of marketing, we are able to operate on a segment of one individual customer,” explained the g7’s CEO. On their turn, Fieldstar’s representative considers that the best word describing shopper marketing in Romania would be “strive” – a continuous strive for consumers’ attention, for fresh ideas in a world with hard-set boundaries: location restrictions, budget, lowpace adoption of marketing trends by companies or consumers etc. “In contrast with other segments (creative, online, production agenCorina Chiorean, g7

N

cies), where there are lots of new-up comers every year, the shopper marketing industry seems to be an area suitable for agencies that

ine out of ten Romanians love to

trail for marketers to analyze. Technology and

have a strong background and great national

shop however, even in their daily

data are the omnipresent means to find out

coverage,” said Andreia Dinu, executive direc-

shopping activities, they tend to

what best suits one’s shopping needs – apps

tor Fieldstar.

stick to the budget. Ideally, they would prefer

and innovative user interfaces are within

to shop from only one place, but the real-

anyone’s reach.

ity shows that price is a main driver (72%),

“Although the decision-making process is

Adrian Paculea, executive director at Mercury360 Communications believes that shopper marketing is still a trend in Romania when

making stops at several shops inevitable.

faster and more fluid, the intriguing questions

it comes to agencies. “I would say that there

Romanians have big expectations when it

remain the same as in previous years - how do

are 3-4 agencies that are truly doing shop-

comes to shops’ offers and want to optimize

shoppers choose a brand? When and where do

per marketing in the Romanian market. And

their shopping process. The results were gath-

they decide to choose it? How do they decide

when I say that, I am referring to the complete

ered by the research agency GfK, from a 3,000

to switch from one brand to another? What

cycle, from shopper strategy to execution.

house panel of respondents.

earns and keeps their loyalty? We, g7, think

The market is divided into categories: strategy

that the most significant part of the answers

and concept and execution. Shopper market-

decision process is complex and subject to a

to these questions depends on creating per-

ing in Romania represents a lot of in-store, at

whole array of influences, generating valuable

sonal relevance of the brand for each shopper.

point of sales. Very few clients target through

marketing insights. According to Corina Chio-

This is the next currency – connecting the

shopper marketing campaigns online and

rean, CEO g7, the shopper has access to tons

shopper to your brand by being personally

I consider that this is a place for growth in

of data to compare and interpret. Further-

relevant, by understanding their moments of

the future. I still believe that not a lot of

more, modern shopping leaves behind a data

truth, their lifestyle and their needs. Technol-

clients are thinking their shopper market-

The buying decision is more informed; the

www.business-review.eu Business Review | September 2017

SHOPPER MARKETING 35

ing campaigns from a retailer standpoint,

only a product, rather a brand: the product,

although they should considering that each

the story, the emotional connection etc. And

one of them has a different type of business,

Millennials – this overused word – are those

different business targets; the politics of the

who are setting-up the new paradigm. An-

producers should be aligned to the ones of

other important change over the last years is

the retailer. We still have national campaigns,

the uprising mix of both digital and tradition-

somewhat customized to the shopper,” points

al solutions, in a perfect mix that has given

out Paculea.

brands the opportunity to know the shopper better,” said Paraschiv.

Coming closer to Andreia Dinu’s perspec-

Agencies’ strengths also lie in their human

tive on the agencies that are activating on this market, Mercury360’s executive director

capital. Fieldstar’s focus is to keep employees

declares that he sees a higher interest from

with great experience with a wide under-

multinational agencies in tapping this field of

standing of marketing and consumer behav-

activity. But clients are looking for specialized

ior. This year was dedicated to developing

agencies that are thinking shopper-centric and

Andreia Dinu, Fieldstar

the agency’s capacity to work with different

not consumer-centric, a competitive advan-

tools, gaining and interpreting data correctly

tage for the agency he is representing which

in order to deliver more efficient campaigns.

has always been very oriented towards shop-

“We have a mix of people on the team, with

per marketing. “In terms of budgets, more

backgrounds in marketing, statistics or cre-

and more large multinationals are starting to

ative areas. Additionally, our new technology

move budgets from the brand and media area

resources (especially AR &VR) are helping us

towards the shopper one. And here it’s really

to have an extensive perspective and answers

important to point out that shopper marketing

for various briefs and domains. In our orga-

is more than just what we do at shelf, it’s also

nization, relationship building is sometimes

about how we influence the shopper behav-

so much more than a marketing tool. It is the

iors and consumption, getting in their mind

one strategy that overcomes indifference for

and finding out what their mind processes are when making a decision, as well as trying to

Cristian Paraschiv, Fieldstar

us.,” added Andreia Dinu.

On his turn, the Mercury360 executive

influence them throughout the entire process.

director considers that interest started to

Most of the time, in Romania, when people

shift more towards the shopper marketing

think about shopper marketing, they are only

industry in Romania after the crisis started,

thinking about what happens at the selling

as a way of influencing the shopper in-store

point. And here, it’s up to the clients and the

more. And then it started to evolve beyond

agencies to convince them how important all

the one-time activations that were generat-

the steps are,” explained Paculea.

ing good sales for a short period of time.

Moreover, clients and agencies started to

Moreover, this new landscape leads to a very competitive race for the shopper’s

build platforms in order to better understand

attention, among the brands. “In Romania,

the shopper and the shopper matured by not

although the brands have understood that

just hunting promotions, making targeting

the shopping decision-making sophistication level has grown, judging by the types of con-

Adrian Paculea, Mercury360

more difficult. Therefore, things have to be seen more in-depth and complex, shifting the focus from short-term to long-term. “The

sumer engagement tactics they use, I would rather say that they chose to play it safe, at

agencies are more focused on delivering a

mechanics are changing, you have to find that

least for a time. Many marketing people I in-

complete and enhanced experience, telling

special factor that will attract the shopper

teracted with, in Romania and beyond, expect

the brand stories in a more qualitative man-

and keep him closer to your brand, something

a change in the way brands communicate

ner – from concept to implementation. Every

more than just a simple in-store activation.

with consumers and think that the industry is

single detail is important now, when consum-

Shopper strategy represents a lot more than

ready for a disruption,” said the g7’s CEO.

ers are bombed with infinite information on

just promotions. Online has changed the

their daily journey home-job-after job-home.

mechanics and the tactics a lot, creating a

CHANGES OVER THE YEARS

“Furthermore, with so many alternatives,

CRM platform can help you follow the shop-

Regarding what and how things have changed

people are more selective, paying attention

per’s moves and create a clearer view of their

during the last years in the industry, accord-

to every aspect. Price is still important when

behavior and preferences. It can also help you

ing to Cristian Paraschiv, customer experience

making the purchase decision, but now more

make it viral, something that will help the

manager at Fieldstar, the brands and their

than ever before, it’s not about purchasing

visibility of the brand,” said Paculea.

www.business-review.eu Business Review | September 2017

36 WELLNESS

Indulge in a city break for wellness near Bucharest It takes you exactly one hour from northern Bucharest to Sky Blue Hotel & Spa, a wellness and spa center situated in Paulestii Noi, near Ploiesti city. And there you’ll find well(ness) treats, from accommodation to services and food.

By Oana Vasiliu that, before you can decide whether you hate or love going to a Turkish bath, or hammam, you need to experience it at least once. One last recommendation from my side is to go to the sauna before the hammam procedure, just to prepare your skin for what will follow. And it’s not just fluff and buff.

Fitness lovers also have a place to check in, spanning two stories, with possibilities for both intensive and subtle fitness forms. The first floor houses a vast array of fitness equipment while the upper level focuses on aerobic and cardio. Moreover, the outside olympic pool was recently opened, so for the rest

S

of the warm and sunny days, it should be a good investment in your relaxation package.

ilence is the new luxury, say most of

juvenating state of complete relaxation. And

the articles that are written about the

they deliver all these. But, first thing’s first:

spa industry, whether they are news

when you arrive here, book your therapist for

deluxe ones and three apartments, with a

massages.

specially designed pillow menu. The restau-

about treatments, procedures or new forms of therapy. And we all agree that spending

Then, go get dress(ed down)for the well-

The place offers 36 rooms executive and

rant menu is well balanced between several

time and money in a wellness center means

ness facilities - whether a Finnish sauna or

international meals, from Turkish delights to

to unplug and disconnect yourself from the

steam sauna, the hot tub or the salt room -

seafood and reinterpreted Romanian recipes.

daily routine. And this is what I personally

one of the spectacular facilities of this resort.

And if you don’t feel like going to the restau-

experienced during my weekend at Sky Blue

In terms of personal recommendation, book

rant for food, room service will definitely

Hotel & Spa.

your place for the hammam. Everyone agrees

impress you.

It’s been an intense week that has my muscles in a knot, so a wellness treatment like a massage and a trip to the sauna sounded like alluring medicine. They promise steamy saunas, a beautifully designed and faithfully detailed hammam, soothing Jacuzzis with intelligent ambient lighting to spoil the senses and ease the mind into a re-

SPA market of Romania values EUR 7.7 million 160,500 tourists annually RON 160 used for SPA treatments per person 15,300 foreign tourists have benefited from SPA treatments *information provided by Ioana Marian, founder www.desprespa.ro, for Agerpres

www.business-review.eu Business Review | September 2017

FILM 37

Stretching your Anonimul frame of mind Much has been said and written about the Anonimul Film Festival, but nothing compares with the experience of actually being there, right in the heart of one of the most savage places in Europe, the Danube Delta. If you missed it once again, take a look at the photos by official photographer Dragos Asaftei , who discussed his choices with Business Review.

By Oana Vasiliu

I knew that a moon ecl ipse was taking place so I ma naged to capture a stork and its baby right in fro nt of the moon.

Photos from page 37: Dragos Asaftei

are pretty Some evenings ve to imcold so you ha are your provise and sh hers. ot blanket with

And everyone is invited to have fun before the screenings and enjoy the live bands.

Once you are here, you must not miss a sunset on the Danube or a sunrise from the seaside.

And just after that, mo rning comes with a specta cular sunrise on the beach .

And for sure you will see some pelicans.

Of course, you shouldnâ&#x20AC;&#x2122;t miss some traditional Sfantu Gheorghe food like fish soup.

In the evening, th e camping grounds gath er several hundred people.

Evenings are again about the festival-goers who come to see the movie projections.

During the daytime, the three projection halls await visitors with movies.

xing place This is a rela enjoy their le p where peo tty ey look pre time and th e you also se happy. And love.

Anyone is welcom e during screenings.

One of the m ost spectacu lar momen ts was the co ncert of Acker Quartet wh ic took place just under th h e moon rise.

www.business-review.eu Business Review | September 2017

38 MUSIC

Alexander Nikiforov

Enescu Festival brings music magic back to Bucharest Each September brings the magic of national composer George Enescu to Bucharest, this time with the festival itself.

The spirit of George Enescu is celebrated through his works and the younger generations of performers he inspired, enlivening Bucharest with the beauty of his magnificent music.

By Oana Vasiliu

I

n the introduction to his festival review in September 2011, James Jolly, Gramophone’s editor-in-chief, wrote, “Bucharest is also, as I’m discovering, a veritable Mecca for great music-making. Think

Romania, and think classical music, and the names that will probably slip easily into the mind are Dinu Lipatti, Radu Lupu, Angela Gheorghiu, Constantin Silvestri and maybe a couple of others. Come to Bucharest and the Main Man is, without a doubt, George Enescu. He gives his name to streets, to orchestras and to a music festival of commendable ambition.”

I still believe that nothing has changed since then – except that more and more Romanian classical musicians are conquering the world’s famous concert halls, while more and more foreigners are working to understand Enescu’s works to play them during the festival or the competition.

WHAT’S NEW With a new first-class international directing team – Zubin Mehta, Hon-

www.business-review.eu Business Review | September 2017

orary President and Vladimir Jurowski, Artistic Director, the Enescu Festival 2017 will put the music and creation of George Enescu in a new light, as well as classical and contemporary music in general. As part of this endeavor, the Festival will put technology to the service of classical music and creativity, presenting famous works in a new approach, giving the audience the chance to enjoy a record number of works by George Enescu (37) â&#x20AC;&#x201C; two of which will be presented at the Festival for the first time.

Another novelty of this edition is the series of 21st Century Music concerts, organized at Radio Hall. It will include performances of works by some of the most important contemporary world composers. Thirty of them, including Rodion Shchedrin, Jorg Widmann and Eliot Goldenthal (winner of an Oscar for the best original music score for Frida, starring Salma Hayek) will take part in dialogues with the audience in Bucharest during the International Composersâ&#x20AC;&#x2122; Forum, another event organized for the first time at the Festival. For six days, composers will discuss the role of contemporary music in the current

MUSIC 39

www.business-review.eu Business Review | September 2017

Andrei Gandac

40 MUSIC

All performances are currently sold out for this edition of the festival

society. Access to this event is free, based on

porary composition, reconnecting with the

of this part of the story is almost ritualized,

prior registration. Magnus Lindberg (Finland),

audience, as well as the relationship between

sometimes more oratorio-like than operatic.

Iain Bell (Great Britain), George Balint (Ro-

film and composition in the 21st century in

But his churning, dark-hued orchestral music,

mania), Nimrod Borenstein (USA), Zygmunt

a series of conferences and round tables.

with its stylistic roots in a range of late-

Krauze (Poland), Adrian Pop (Romania),

The debates are open to the general public

Romantic composers, as well as in Debussy

Dmitry Sitkovetsky (Russia/USA), Sir James

interested by the current state of music in the

and early Bartók, really comes into its own in

MacMillan (Great Britain), Rodion Shchedrin

international cultural space, as well as to the

the second half, which abandons any sense of

(Russia), Tod Machover (USA), Jörg Widmann

specialized audience and young musicians all

distance and detachment. It depicts Oedipe’s

(Germany), Dan Buciu (Romania), Thierry

over the world.

final realization of the horror of what he has done, his self-blinding and exile from Thebes

Huillet (France), Viorel Munteanu (Romania), Octavian Nemescu (Romania), Vladimir

GRAND OPENING

accompanied by his daughter Antigone, and

Cosma (France), Elliot Goldenthal (USA),

This year’s opening night features the London

the resolution and peace he eventually finds

Thomas Larcher (Austria), Doina Rotaru (Ro-

Philharmonic Orchestra under the wand of

at Colonus, with extraordinary warmth and

mania), Cornel Țăranu (Romania), François

Vladimir Jurowski, interpreting Enescu’s

tenderness. It’s not a score in which set-pieces

Nicolas (France), Detlef Glanert (Germany),

Oedipe, the most timeless story ever told,

figure prominently, but Oedipus’s assertions

Adrian Iorgulescu (Romania), Rumon Gamba

an opera in four acts. Romanian soprano

of his own innocence in the final scene, and

(Great Britain), Sven Helbig (Germany), Val-

Ruxandra Donosie and Romanian operatic

his absolution by the furies, are spellbinding.”

entin Gheorghiu (Romania), Ari Ben-Shabetai

tenor Marius Vlad Budoiu will also be staged

We will see if this kind of magical atmosphere

(Israel), Mihaela Vosganian (Romania), Ulpiu

in Oedipe. In a review from The Guardian

will be revealed on the Romanian scene at

Vlad (Romania) and Rolf Martinsson (Sweden)

in May 2016, Andrew Clements describes

the grand opening on September 2nd at Sala

will discuss the main directions in contem-

Enescu’s composition as “Enescu’s treatment

Palatului.

www.business-review.eu Business Review | September 2017

42 REPAT EYE

From killer moving air to planning your daily shower In our third monthly column reflecting on the Romanian experience from the perspective of a native whose life has primarily been spent abroad, BR’s resident repat will temporarily fill the expat’s shoes by musing on quirks and interesting experiences of life back home.

By Eugenia Pupeza

T

hree years ago, when I moved back to Romania from the US, I started telling a co-worker about the interesting

things that I would come across – little things or big things or anything that I found interesting, really. She strove to “Romanianize” me back and expose me to all the authentic Romanian things. After a while, she told me that I should write them down, immediately, before I became accustomed to my surroundings and no longer found things to be out of the ordinary. I started keeping a journal of these quirks and have finally found a place to further elaborate on them!

1

‘CURENT’

If you’ve lived in Romania for a while and have interacted with the locals, you most certainly have learned the number one cause of

1

2

3

4

90 percent of ailments, perhaps even deaths, in Romania. It’s an invisible killer, odorless and also silent; in fact, were it not for Romanians frantically screaming “close the window” and their odd behavior (to those born outside Romania), you would never even suspect its presence. ‘Curent’ (read: moving air) is a phenomenon that (at least in my experience) exists only in Romania. It is the reason why, on a blistering hot summer day, you may see little children and older people with thick, knitted woolen hats on.

It is also the reason why, if riding any form of public transportation in the summer with the windows closed (think: sauna/no AC) and someone (usually from a younger generation) attempts to open a window, someone else (usually from an older generation) promptly shouts “close the window, you want us to

www.business-review.eu Business Review | September 2017

REPAT EYE 43

become sick because of the current!?” Rest

ly if it is an older one, you will have noticed

individual houses. They are hundreds of

assured that not only older generations

the theatrical performance that surrounds

different companies across the country and

firmly believe in this phenomenon, that a

the presence of hot water. If you wake up

present, literally, everywhere. But, that is not

draft or moving air can make you sick, make

early and nobody else in the building has

the point. Perhaps it’s the branding profes-

your back hurt, give you toothache or cause

turned on the hot water, you will most likely

sional in me, but I’m sorry, I cannot possibly

pneumonia in unsuspecting and ill-prepared

not have any hot water. If you live on a

be the only one who finds the names of these

victims (think: those that do not avoid

higher floor, it will most likely take at least 15

security firms very (very!) amusing, espe-

moving air at all costs). My 20-something

minutes of leaving the hot water running for

cially considering the nature of their role.

coworker swears on her life that, because she

you to actually have hot water. If you live on

Ranging from Tiger Security to Mike Security

looked through a keyhole when she was little,

the top floor, you will freeze. So, you learn to

to IQ Security to Lion Expert to Dragon Star

the ‘curent’ caused conjunctivitis. So, if you

time your showers to that point during the

Protection to S.W.A.T. Force (no, I’m not kid-

plan on driving with the windows down this

day when your neighbors with many children

ding) to (my favorite so far) Scorseze Secu-

summer, make sure you bring a woolen scarf

give them baths. Win-win. And this lasts

rity. I mean seriously?? Seriously??!!! (Insert

with you!

year-round.

laughing emoticon here.) They seem so ironic

2

During the summer, you look forward to

HOT WATER

If you live in an apartment building, especial-

something different. On an unsuspecting day, when you come home to your apartment building, after a long day at work, you

that you can’t help but wonder how they take themselves seriously.

4

TV

might find a scribbled piece of paper that

I moved to Bucharest three years ago from

says something like “the hot water in this

(nearly) a lifetime of the marketing industry

building will be shut off for annual mainte-

in New York City. From a marketing/advertis-

nance from …. to…..” If you are lucky, it will

ing/media perspective, the US is very digital/

only be for one day; however, it usually lasts

mobile oriented. Ever since TV shows started

for around a week. In my unlucky case, I was

to be recorded on your local provider’s DVR

without hot water for two weeks. Having

or streamed to your laptop or tablet, watch-

spent my childhood in Romania during the

ing TV (in the traditional sense, dependent

Communist period, when a lack of hot water

on an hour) has become something of the

and electricity was commonplace, I wasn’t

past. Commercials, as a consequence, fol-

quite as appalled as someone who had never

lowed suit. So, when I moved back to my

experienced this before might have been.

homeland, the apartment I rented didn’t

But still, having spent the majority of my

even have a TV. What on earth for, all the

life in the US and Italy, it presented an initial

information I needed was provided through

shock. It is an interesting experience, being

the ultra-fast internet connection (which I

deprived of something essential that you take

began to cherish – I mean, I could access the

for granted every day. This year, however, I

internet on the SUBWAY – a distant dream

didn’t even have the benefit of receiving said

in NYC) on my phone or laptop. Imagine my

scribbled note. Monday evening after the

surprise upon realization of the enormous

gym, no hot water. Tuesday, no hot water.

importance of television in Romania. It is

Wednesday after the gym, no hot water.

THE medium for obtaining information, for

You’ve had enough. You go and heat water

the young and the less young. And, as much

on the gas stove and take a “shower by pot,”

as I am not a fan of media in the US, the

with some swearing involved. Thursday, you

Romanian sensationalism, when I am not in

come home to hot water and are so enthusi-

the mood to be ironic, is too much. Want the

astic that you jump directly into the shower

weather? Watch the morning and evening

after work and thank God for the miracle that

news. Want a movie? It’s on at 8pm and

is hot water on command.

10:30pm. Reruns of your favorite 90s shows?

3

Comedy Central all day.

SECURITY

The cheese factor is too much sometimes,

Walking (or driving) around Bucharest, you

especially when the weatherman starts com-

cannot help but notice the fairly abundant

menting on the Bill Gates empire and how he

presence of private, non-state security and

got there, and even more so when a family

guards – from the subway cars, to every su-

from a small town claim that their house is

permarket and corner store, to your local KFC

haunted (and make the news), but you gotta

and, sometimes, even in little booths outside

love it.

www.business-review.eu Business Review | September 2017

44 FILM

Atomic Blonde FILM REVIEW

By Debbie Stowe

DIRECTOR: David Leitch STARRING: Charlize Theron, John Goodman, James McAvoy, Sofia Boutella, Toby Jones ON AT: Movieplex Cinema, Grand Cinema & More, Happy Cinema, Cine Globe Titan, Hollywood Multiplex, Cinema City Cotroceni, Cinema City Cotroceni VIP, Cinema City Sun Plaza, Cinema City Mega Mall, Cinema City ParkLake, Cinema City ParkLake VIP

W

terribly old hat, with versions of this story – find the microfilm, unmask the mole – having been done to death back in the Cold War and ever since (Tinker Tailor Soldier Spy in 2011 being one of the most obvious recent retellings).

Two things modernize it: a woman in the lead role, and the neon-lit, punkish, high style in which events unfold.

As with all spy movies since the early

ith the often male, pale and stale

2000s, there’s a hint of Bourne, but Leitch’s

world of the action movie get-

film comes with an offbeat fashion vibe – pro-

ting recent jolts in the arm from

ceedings have the feel of an Ultravox video,

2015’s feminist take on Mad Max and the 2016

with Lorraine sashaying about Communist

all-female Ghostbusters reboot, the title of

Berlin in a series of eye-catching designer

David Leitch’s spy thriller is dispiriting. Your

coats (being unobtrusive definitely isn’t

action hero’s a woman so you name your

part of her espionage playbook). A pulsating

film after her hair color (while making a lame

soundtrack also adds to the music video vibe.

pun). Really?

Fortunately, the patronizing ends with

Some things don’t change. When a sadistic Communist army officer says to the young

the (oddly irrelevant) title. MI6 spy Lor-

punks lined up before him, “Let’s have some

raine (Charlize Theron) is a kickass – literally

fun”, you know that no fun is going to be

– agent, easily dispatching her male rivals

had, and you can prepare to flinch as some-

as she navigates 1989 Berlin, in the chaotic

one takes a beating.

period before the collapse of the wall.

Her mission: find a missing microfilm

It’s this aspect that is one of the film’s less palatable features: the excessive violence.

with all the names of the West’s undercover

Spies from different sides of the Iron Curtain

agents, which has fallen into enemy hands.

probably weren’t very nice to each other: we

It’s a satisfyingly old-school McGuffin (Hitch-

get it.

cock’s term for the otherwise insignificant device on which the plot rests).

She tells her story in flashback, during

No need to spend minutes at a time depicting graphic brutality and blood spattering everywhere. The scenes of psychologi-

a London debrief with senior officers from

cal interest, as Lorraine interacts with both

her own agency and the CIA (Toby Jones

(supposed) allies and enemies, are far more

and John Goodman). Her face is covered

engrossing.

in bruises, so we know she’s been through

As with many Cold War stories, there are

some violent encounters, but has ultimately

so many twists and volte-faces that the narra-

prevailed, or at least escaped.

tive can become confusing in a “I thought

Lorraine’s German adventures center on fellow British spy David Percival (James McAvoy), the UK’s louche, hard-drinking Berlin

he was with them”, “No, he’s really against them” or vice versa type of way.

Initially the flashback structure also strips

station chief. In a prelude to the main action,

the story of some of its suspense: if Lorraine

we see another MI6 man assassinated by

is sitting there in the debrief room at MI6 HQ

the KGB, having been betrayed by a double

in London, then she clearly hasn’t been killed

agent, thereby throwing a traitor into the mix

in Berlin. However, a coda to the main Ger-

and ramping up the jeopardy for Lorraine.

man action ensures there is further intrigue

Looking just at the plot, Atomic Blonde is

to come.

www.business-review.eu Business Review | September 2017

RESTAURANT REVIEW 45

TRYING OUT BARRIO

T

>>> Barrio, 30 Biserica Amzei, Tel 0733 222 777 <<<

he only nice thing about Barrio is

there was no cheese dip, so we had mayo as

There were none of these in my chosen

the building. It was a legal library

a substitute. The chicken tasted identical to

dish.

for the Romanian Bar, right up to

that at KFC, so no thanks. A failure.

the 1930’s. It is a hugely attractive villa

But, a larger failure loomed on the hori-

And now comes a culinary paradox. The prices are so low that we (and you) could

operating as a restaurant since the 1990’s

zon, with my “crispy duck with caramelized

easily afford to make multiple orders off the

which has passed through the hands of

soy and basmati rice.”

menu and thereafter discard your dish if

many owners - all of whom went bust!

The duck was destroyed by simply deep

you are dissatisfied, with no financial pain

The present owners are a successful

frying it. Far from being tender and moist, it

attached. On that note, let me show you

high-quality restaurant chain used to writ-

was as tough as old boots and inedible. And

the beautifully described dishes we passed

ing sexy menus. But in Barrio’s case, they

the ‘caramelized soy’ was simply a weak

on. Take for example “stuffed chicken with

stretched themselves too far, for as you

soy dip which probably has a spoon of sugar

Camembert, sundried tomatoes, prosciutto,

will see, none of the food Blondie and I

dumped into it.

sautéed spinach, and blue cheese ‘bon

tried from their sexy menu came up to our

Off we went to a “shrimp, lemon pepper-

expectations.

oncino (spicy sweet pepper)

We started off with

white wine

a bump, because

bon’.” Sounds good doesn’t it? But so did our dishes which were all a failure.

We further

sauce

passed on

the house

salmon ‘in a

must have

champagne’

searched high and

sauce.

low for

Cham-

the one

pagne? Oh

person in

give me

Bucharest

a break!

who could

Probably another mis-

not speak

description,

English. They

just like the

found her and made her our waitpound our disillusion, their

imaginary, virtual

and

ress. To further com-

garlic.” The last three ingredients were miss-

truffle. They had no champagne on the bar menu,

website describes them as “Mediterranean

ing, and the pepperoncino had been replaced

so be sure there will be none of it in the

with Spanish accents.” What nonsense,

by a mountain of broccoli, which had been

kitchen. There were references to ‘lime and

there was not a hint of anything Spanish

over-boiled to a soft, mushy stodge. Another

honey infusion’- big talk, just like the vir-

and the only accents we could hear were

disaster.

tual, non-existent pepperoncino and truffle.

Barrio is just another example of the

Romanian and one American desperately

But the worst failure was my “seafood ta-

speaking English and failing to communi-

gliatelle with truffle.” Yes, there was seafood

house taking the piss out of the customer,

cate with our waitress.

(all the usual suspects), the pasta was average

by claiming a foreign/European provenance

at best, but there was no truffle. It was re-

for their food which is not unique, and not

good, and prices are a bargain with the

placed by disguising the truffle taste with an

imported as regional and seasonal Europe-

most attractive dishes ranging between

essence made from a petrochemical product

an fare, and is nothing more than the result

RON 25-40. So Blondie ordered a simple

‘Dithiapentane’ which, although it is perfectly

of a lazy trip to the local Bucharest super-

chicken schnitzel (chicken breast beaten flat

safe to consume - is a dishonest gesture from

market. You could do exactly the same, so

and coated with breadcrumbs and spices)

the house to describe it as ‘truffle,’ for clearly,

why bother going to Barrio.

with “fry ‘n dip potatoes with blue cheese

it is not.

So let’s get down to their menu. It is

sauce.” Well, the potato was nothing more than an English chip (fat French fry) and

Worse still, any seafood pasta cries out for lashings of garlic, seasoning and white wine.

Michael Barclay Mab.media@dnt.ro

www.business-review.eu Business Review | September 2017

46 CITY

Cultural calendar Bucharest International Dance Film Festival 7-10 September, Cinema Elvira Popescu, MNAC, National Centre for Dance Bucharest, Point Hub

45 years after Pink Floyd’s David Gilmour filmed ‘Live at Pompeii’ in the legendary Roman Am-

Delahoya Festival 29-30 September, Sala Polivalenta Cluj Napoca

phitheatre there, he returned

By Oana Vasiliu

Goran Bregovic and the Wedding and Funeral Orchestra returns to Bucharest to energize the public with some Balkan music. What

for two spectacular shows, part

Delahoya is the oldest electronic

does his orchestra for Wed-

of his year-long tour in support

music festival in Romania. From

dings and Funerals (composed

of his No.1 album ‘Rattle That

1997 till this day, electronic music

of a gypsy brass band, tradi-

Bucharest International Dance

Lock’. The performances were

fans from all over the country

tional Bulgarian polyphonies,

Film Festival is the only Roma-

the first-ever rock concerts for

and also foreigners come to Cluj-

an electric guitar, traditional

nian festival dedicated to the

an audience in the stone Roman

Napoca every year to dance to

percussion, strings and Orthodox

dance film. Among movies, two

amphitheater, and, for two nights

their favorite music, presented

Church male singers) read on

performances by Sharon Frid-

only, the 2,600 strong crowd

live by well-known dj’s and bands

Bregovics score sheets? Echoes

man will take place: Caida Libre,

stood exactly where gladiators

and also by newcomers.

from Jewish and Gypsy wed-

Sharon Fridman’s current move-

would have fought in the first

ment research is rooted in several

century AD.

key elements: necessity, natural spontaneity, verticality, falls, impulse and contact and Hasta Donde, a contemporary dance duet based on the technique of contact.

Balkanik Festival 8-10 September, Gara Baneasa

DokStation Music Documentary Film Festival 14-17 September, Mihai Eminescu amphitheater, Deschis Gastrobar, Club Control, Drumul Taberei Park, Excelsior Theatre, M60 Space DokStation is dedicated to both the film- and music-loving audience and the communities in Bucharest’s neighborhoods.

During its four days, DokStation’s program will consist of recent

The Balkanik Festival is the first

documentaries premiering in

event showcasing Balkan music

Romania which uncover stories

and culture in Romania, and at its

about music – stories from the

center is humanity, multicultur-

studio, the stage or behind the

alism and expression in its purest

scenes, stories about different

form. This edition will be free of

kinds of music, words and vi-

charge, so everyone is invited for

sions, stories of musicians and

some Balkan spirit.

their failures and triumphs.

David Gilmour - live at Pompeii 13 September, several cinemas

Creative Fest 22-24 September, Romexpo Creative Fest means cool music, space & urban art, graffiti, extreme sports, street dance and freestyle, everything free of charge.

dings, chants from Orthodox

Goran Bregovic concert 29 September, Arenele Romane

and Catholic Church, Muslim invocations. His music comes from that terrible frontier where for centuries Catholics, Orthodox Christians and Muslims made war and lived together. Music that our soul recognizes instinctively and the body greets with an irresistible urge to dance.