BR/09/2018

October, 2018 / Volume 22, Issue 9

www.business-review.eu

INDUSTRIAL AND LOGISTICS: LOOKING TO THE 4 MILLION SQM THRESHOLD

10

PLAYERS QUESTION WASTE INDUSTRY’S READINESS FOR NEW TARGETS

32

HOW A START-UP CAN ATTRACT AND RETAIN ITS TALENTS

34

LOCAL START-UPS BEGIN TO RIDE THE CRYPTO TREND

36

Photo: Dreamstime

Two decades of the new Romania

www.business-review.eu Business Review | October 2018

EDITORIAL 3 REAL ESTATE

• Editorial •

Anda Sebesi

6 Bucharest office market: four top executives share their take

• Deputy Editor-in-Chief •

10 Looking to the 4 million sqm threshold

COVER STORY

W

Eyes wide open to the future

12 Twenty-twenty vision: two decades of the new Romania

hen multinational companies made their entrance on the local market they generated a major change in their sectors. They came with a well-established corporate

culture and a clear set of values and missions which, in time, had a

SUSTAINABILITY

significant positive impact on the entire economy.

30 Biodeck: nothing is lost and

In the last 20 years Romania has witnessed not only economic development as a result of the emergence and growth of sectors

everything is reused

32 Rubbish laws: players ques-

such as automotive, real estate, retail, energy and banking, but a significant change in the mindset of the local workforce. Dur-

tion waste industry’s readiness for new targets

ing the past two decades, Romanian jobseekers of all ages have reshaped the local workforce and made companies rethink their HR policies according to their expectations. Once the younger

MARKETING AND COMMUNICATION

generations of employees emerged, they forced bosses to take a different approach to them, as they built their careers according to their specific sets of values.

38 Crisis communication man-

This period has marked a profound change in the behaviour

agement still in its infancy

of Romanian consumers too. The entrance of international retail

40 Experiential marketing jumps

chains along with increased access to a large number of retail for-

on technological bandwagon

mats has refashioned the Romanian shopper’s behaviour.

Last but not least, technology has had an increasing impact

CITY

in Romania during this time – from the wide range of gadgets to which Romanians have access, to lenders which have constantly invested in technology to improve banking infrastructure and

42 Brewing business: the

the security of customers’ finances, and the still embryonic IoT

specialty coffee trade in Bucharest

concept.

44 Getting cross: wrong-

Yet Romania still lags behind its European peers in many sectors, which means we should keep our eyes wide open to the

headed referendum tries to drag Romania backwards

future as we embark on the next 20 years.

46 Cultural calendar

FOUNDING EDITOR: Bill Avery EDITOR-IN-CHIEF: Ioana Erdei DEPUTY EDITORS-IN-CHIEF: Sorin Melenciuc, Anda Sebesi JOURNALISTS: Anca Alexe, Aurel Dragan, Georgeta Gheorghe, Romanita Oprea, Oana Vasiliu CONTRIBUTOR: Ovidiu Posirca COPY EDITOR: Debbie Stowe PHOTO EDITOR: Mihai Constantineanu ART DIRECTOR: Raluca Piscu PUBLISHER: Bloc-Notes Media Network ADDRESS: 58 Stirbei Voda Street, 3rd Floor, District 1, Bucharest, Romania­­­­ LANDLINE: 031.040.09.31 EXECUTIVE DIRECTOR: George Moise BUSINESS DEVELOPMENT DIRECTOR: Oana Molodoi SALES DIRECTOR: Ana-Maria Nedelcu SALES MANAGER: Alexandra Rosca EVENTS DIRECTOR: Alina Moldovan EVENTS MANAGER: Mara Dragoiu MARKETING: Eugenia Pupeza PRODUCTION: Dan Mitroi DISTRI­­BUTION: Eugen Musat EMAILS: editorial@business-review.ro, sales@business-review.ro, events@business-review.ro­

Publicație auditată pe perioada Apr 2015 - Mar 2016

ISSN NO. 1453-729X

www.business-review.eu Business Review | October 2018

4 NEWS

WHO’S NEWS

the US is considering infrastructure projects, defense,

BR welcomes information for Who’s News.

Submissions may be edited fo­­­r length and clarity.

Get in touch at anca.alexe@business-review.ro

technology and digitization; in other words, we support this initiative. American investments in this region amount to USD 26 billion and are steadily increasing, so we are following with interest the developments in your region,” Richard Morningstar, founding director

Vanya Panayotova will become L’Oreal Romania’s country general manager in January 2019. She was nominated for the position after Gilles Antoine took on a new role within the group. Panayotova has 20 years of successful FMCG experience and an impressive career in leading international companies and large entrepreneurial businesses.

In Romania, she has held two different positions in the past: general manager of Orbico Romania and market strategy & planning sector manager at Procter & Gamble.

of Global Energy Center, told participants at the summit.

US Energy secretary Rick Perry argues that energy security is vital to the national security of each state

US, EU urge eastern bloc to focus on energy, trade

The Austrian president even claimed in Bucharest that Nord Stream 2, aiming to supply avoiding Poland and the three

US and EU representatives

national security of each state,

Baltic states, is strengthening

have used a Bucharest summit

and that energy should never be

gas security.

to urge leaders of the 12 mem-

used as a means of intimidation

ber states of the Three Seas

or as a threat to national security.

Initiative (3SI) to focus more on

He mentioned Russia’s aggres-

In energy, several countries, including Romania, are trying to become regional hubs and

energy security, trade coopera-

sive attitude as the leading sup-

jeopardize the chances of their

tion and investment to sustain

plier in Europe and announced

rivals.

development, amid concerns

the launch of the Partnership for

over rule of law in the region.

Transatlantic Energy Coopera-

to be a regional energy plat-

tion.

form that contributes to both

in the 3SI Bucharest Summit

page 5

approach to energy security.

Germany with Russian gas by

By Sorin Melenciuc

One of the main participants

Calin Clej is the new marketing director of Huawei Consumer Business Group Romania, the local subsidiary of the second largest smartphone maker in the world. Clej has over 17 years of experience in strategic marketing, branding and brand consolidation. He previously held a regional leadership role at PepsiCo. In his new position, Clej will be responsible for developing the brand’s global leadership vision and marketing strategies, as well as adapting the marketing team’s capabilities to develop and manage a marketing mix centered on the end-user’s local profile.

But some European participants take a different

In order to make them more

“Romania has the potential

regional and European energy

was the US Energy secretary

cooperative, the US promised its

security,” Romania’s Klaus

Rick Perry, who argued that

allies in the region investment

Iohannis said in a speech at the

energy security is vital to the

and security. “I assure you that

Bucharest summit.

Wages up by 46 pct over 10 years, outstripping productivity growth

By Sorin Melenciuc Real wages in Romania rose

economist Valentin Lazea said

by 45.7 percent between 2008

recently.

The economist pointed out that another key-indicator, the

and 2017, while productivity

“For the 2008-2017 period,

unit labor cost (ULC) – wages

increased by only 27 percent.

real net wages increased by 45.7

seen from the employer’s per-

However, the wage cost burden

percent, and productivity by 27

spective – increased by only 14.7

on employers is acceptable

percent, so real net wages grew

percent during the same period,

due to lower taxes, National

much faster than productivity,”

due to lower taxes on wages.

Bank of Romania (BNR) chief

Lazea said, quoted by Mediafax.

Lazea forecasts that pay

www.business-review.eu Business Review | October 2018

NEWS 5

The new funding round comes six months after the company raised USD 153 mln from Accel, Capital G and KP

UiPath hits USD 3 bln valuation after receiving USD 225 mln from Sequoia Capital and CapitalG

By Georgeta Gheorghe UiPath, Romania’s first IT

raised USD 153 million from Ac-

leader in The Forrester Wave™:

unicorn, has tripled its value in

cel, Capital G and KP, and saw its

Robotic Process Automation, Q2

six months after receiving USD

valuation shoot to USD 1 billion,

2018 report, its website reports.

225 million in a new funding

achieving unicorn status. So far,

The company, which has offices

round from Sequoia Capital

it has received USD 400 million

in over 15 countries, received

and Google’s CapitalG, the WSJ

in funding. “After years toil-

the highest score among all

reports. The Robotic Process

ing in obscurity, three start-ups

vendors in the current offering

Automation (RPA) software

have suddenly hit the jackpot

category. Forrester gave UiPath

provider, currently a market

in a corner of the enterprise-

the highest possible score in

leader, began as a Bucharest-

software market sprinkled with

the “Market Presence” category

based start-up founded by

artificial intelligence,” the WSJ

and one of the highest scores

a team of ten led by Daniel

wrote about UiPath Inc., Blue

in the “Strategy” category.

Dines, the company’s CEO, and

Prism Group PLC and Automa-

The RPA provider also scored

Marius Tirca (CTO). The new

tion Anywhere Inc. “Now they

highest in the criteria of Bot

funding round, led by Sequoia

are racing to one-up each other to

development/core UI/desktop

Capital and Capital G, comes

appear the market leader.” UiPath

functions, architecture, system

six months after the company

has recently been recognized as a

management and reporting.

in Romania will continue to increase as a consequence of high migration rates, a skilled workforce shortage and rising wages in the public sector.

Romania’s average net monthly earnings growth rate eased to 13.3 percent year-on-year in July, the slowest pace since February, according to National Institute of Statistics (INS) data.

Average net monthly earnings declined by 0.5 percent monthto-month, from RON 2,721 (EUR Valentin Lazea, BNR chief economist says that real net wages grew much faster than productivity

584) in June – a record high – to RON 2,708 (EUR 582) in July.

Mihaela Popa is the new interim general manager of CEC Bank, appointed by the Finance Ministry until the position is taken over by a permanent CEO – a newly-established role within the bank. Popa has over 30 years of experience in banking, and joined CEC’s management team as VP of the corporate division in September 2007, after having served as sales director of the Bucharest branch. She started her career in 1978 at the Romanian Foreign Trade Bank.

Alina Cazacu is the new head of marketing at Elefant.ro, one of the biggest e-commerce players on the local market. She previously held positions at Telekom and broadcaster ProTV. In these roles, she developed and launched several online projects, including a video platform. Before joining Elefant. ro, she set up her own digital marketing company.

Liviu Tudor was elected president of the European Property Federation, which advises all EU institutions on the development of real estate-related public policy. He is also the CEO of Genesis Property and the president of the Romanian Association of Building Owners. Tudor, who created an organized structure to represent owners and investors in the Romanian real estate sector and later brought it into the EPF, will take over at a time of consolidation and expansion of the EU in South-Eastern Europe.

www.business-review.eu Business Review | October 2018

6 REAL ESTATE

Bucharest office market: four top executives share their take There is around 2.7 million sqm of modern office space in Bucharest these days and the figure might reach the 3 million sqm milestone by the end of the year. The market recorded one important transaction in the first half of the year, and another in August, together worth close to EUR 400 million, and new leasing contracts are announced every week. That is what we see. Four of the most high-ranking executives in the industry share the view from the inside.

By Razvan Zamfir

Fulga Dinu, Immofinanz

L

Ema Iftimie, Globalworth Real Estate

iviu Tudor, president of Genesis

will be making high-volume deliveries, as we

and Unirii View office buildings, both located

Development; Ema Iftimie, head of

generally speak of multi-phase projects lo-

in the Unirii area, will seek the attention of

leasing at Globalworth Real Estate;

cated on the Ring 1 subway ring,” says Mirela

large companies due to their easy access

Fulga Dinu, country manager at Immofinanz;

Raicu, corporate officer division of ESOP

and large number of urban amenities. In the

and Emma Toma, leasing manager of AFI

Consulting l CORFAC International.

center-north area, a single building is due this

Europe told BR how the office market is mov-

And the market is preparing itself for new

year, Globalworth Campus - Building B.

ing and what we can expect from the sector

arrivals. First is Campus 6.1, the first building

and from their companies through to the end

in Skanska’s Campus 6 project, right next to

Boulevard area, will have the first offices

of the year.

the Polytechnic University of Bucharest and

available from 2019, when the first two class

The newest office area, in the Expozitiei

which has future tenants such as NXP, the

A office buildings are expected to be delivered

THE STATE OF THE OFFICE MARKET

London Stock Exchange Group, Superhippo

to the Expo Business Park project developed

“This year, the office space supply will grow

and Regus. Another project in the center-west

by Portland Trust, the company that sold Or-

by 55 percent over last year, and 2019 will see

area that will deliver new space soon is AFI

egon Park complex to Lion’s Head Investment

a further 69 percent increase in the stock of

Tech Park, with a total of 22,000 sqm ready

in S1 for around EUR 180 million.

space delivered. Most office buildings will be

in 2018. Among the tenants are World Class,

delivered in the center-west area, where this

Knauf, Hilti and Game World Group.

year’s largest volume of pre-rentals came. We

Also by the end of this year, the Day Tower

A competitor in the Expozitiei area is GTC’s City Rose Park, which will deliver the first office space since 2010. In total, 94,000 sqm of

www.business-review.eu Business Review | October May 20162018

COVER REALSTORY ESTATE14 7

FULGA DINU, IMMOFINANZ Immofinanz is one of the largest players in the office space market in Bucharest and owns nine income-generating office properties with a total lettable area of 190,000 sqm.

The main assets in the office field include Iride Business Park, myhive Metroffice, myhive S-Park, Victoria Park, Baneasa Airport Tower, Global Business Center.

We continue to invest in our international myhive concept in Romania, which is well received by our tenants. The three myhive buildings in Bucharest are S-Park myhive, Metroffice myhive and myride Iride Tower with a total surface of 65,000 sqm.

At present, we are not developing any new office building, but depending on the market’s evolution, we have the land to do so.

Liviu Tudor, Genesis Development

Both in Romania and abroad, offices have become more than simple workplaces. They are now platforms where companies can

office space will be built in the area. Together with the sale of Oregon Park, in August,

class business park in the center of Bucharest.

In the next 18-24 months, AFI Europe Ro-

express their values, promote organizational culture and tell their story. Owners who

Forte Partners and Dedeman signed the most

mania is planning to start the second phase of

understand this change of mindset among

expensive transaction of the last ten years (in

AFI Tech Park, meaning an additional 22,000

tenants and have the flexibility to translate it

2008 Deutsche Bank fund RREEF acquired

sqm of GLA, spread on eight floors with office

into personalized office space will be one step

Upground office and residential project from

space and encompassing around 2,000 sqm

ahead in the market. For Immofinanz, this

Ioannis Papalekas for EUR 340 million, but

of retail space on the ground floor.

perspective is defining and through the inter-

the crisis blocked the transaction). An invest-

Planned to be completed in Q1 2020, in an

ment fund of the DIY retailer took over The

ultra-central location in Brasov, our company

Bridge offices for EUR 200 million.

has started to develop AFI Park Brasov, an of-

national myhive office brand we are looking to answer the needs of our tenants.

fice project including 25,000 sqm GLA Class A

EMA IFTIMIE, GLOBALWORTH

EXECUTIVE VIEWS ON THE OFFICE MARKET

Business Park, on top and integrated into AFI

The Globalworth portfolio includes, in the

BR asked the four executives the same

Brasov shopping mall that will offer 45,000

Romania and Poland office, industrial and

questions, regarding the office stock their

sqm leasable area and a mix of tenants. Two

mixed-purpose properties with a total letta-

company owns, the evolution of the stock in

Class A office buildings are planned to be de-

ble area of approximately 950,000 sqm, with

the next 18 to 24 months, the situation and

veloped in two phases: Phase A: 15,000 sqm

a value of about EUR 2 billion. In Romania,

evolution of the Romanian and Bucharest

GLA and Phase B: 10,000 sqm GLA, designed

our buildings offer over 570,000 sqm, and in

office market and, finally, the main visible dif-

to answer the expanding needs of IT&C and

Poland we have reached a portfolio of over

ferences between the Romanian market and

multinational companies in Romania by

375,000 sqm in less than a year, becoming the

neighboring countries.

offering a suitable space in terms of techni-

largest investor in the Polish office market.

cal specifications accompanied by required

EMMA TOMA, AFI EUROPE AFI Europe Romania has a track record of

expansion options.

Romania has a constantly developing of-

In the coming period, we will continue to focus on identifying new opportunities that will enable us to consolidate our position and

developing office projects of approximately

fice market with healthy indicators (supply,

expand our portfolio both on the Romanian

250,000 sqm GLA.

demand, vacancy) and high quality office

market and on the Polish market.

After the success of AFI Park – 100 percent leased, a 70,000 sqm GLA hub for IT&C mul-

stock.

Regionally we have now for a number of

Currently, the third office building in Globalworth Campus, Tower 3 (35,000 sqm)

tinational companies, located near AFI Co-

years managed to attract large and important

in Bucharest is under construction and we

troceni, a project voted several times among

international players who have set up their

will start work on a new phase of expansion

the overall best designed office buildings in

offices and have since continued to expand in

of the TAP platform in Timisoara, which will

Romania – AFI Europe Romania is currently

Romania, due to our high quality workforce

offer approximately 20,000 sqm, which we

developing AFI Tech Park, a 56,000 sqm A

as well as office stock tailored to their needs.

will deliver in Q1 2019. Moreover, this year

www.business-review.eu Business Review | October 2018

8 REAL ESTATE

we want to start developing two new office buildings in the Barbu Vacarescu area, Globalworth Square and the fourth building of the Globalworth Green Court.

Romania is an increasingly attractive destination for real estate investments, and this is evidenced by the evolution of the total volume of investments in the second half of 2017, when it was 24 percent higher than in 2016 and the second largest volume in 2008.

Data for the first half of 2018 show that demand for office space remains high in Bucharest. In addition, the vacancy rate of only 8.4 percent demonstrates the need on the market for several office projects in the capital. These data give us every reason to believe that the ascendant trend of the local real estate market will be maintained at least Emma Toma, AFI Europe

until the end of this year.

According to market estimates, over 900,000 sqm of new office space will be de-

In the next 18-24 months, we plan to

terrace and treadmill, free Wi-Fi and relaxation in Novo Park.

livered in Bucharest over the next three years,

invest in the new facilities area: finishing

including around 185,000 sqm to be delivered

the outdoor pool in West Gate, parking on

this year and 350,000 sqm next year. So,

the Park & Go in the Precizia area, introduc-

with a series of contract extensions for peri-

given the high demand for workspaces, we

ing a bike-sharing system in both parks and

ods of five to eight years (eg PPD Romania,

expect the number of transactions and rents

improving exterior relaxation areas.

Alpha Bank, HP, Luxoft), some together with

to grow at the same pace.

Our efforts are designed from the perspec-

And for us, the last two years have come

office or office extension – Siemens or Societe General European Business Services.

Compared to the other markets in the

tive of the continuous improvement of em-

region, including Poland, in Romania the

ployee experience. The presence of modern

availability of high quality projects is still

and varied facilities is increasing in impor-

rest will enter an area of easy stabilization.

relatively low, but the forecasts for the next

tance in choosing an office space or a job.

New poles (eg the Orchid or Exhibition area)

We believe that the office market in Bucha-

period are optimistic. First of all, if we look

The Romanian office market remains

will probably attract important investments.

at funding issues, we will see that terms and

highly attractive for multinationals and will

But here, unfortunately, we are talking about

conditions have improved considerably over

influence the development of office space

relocations and not new tenants.

the past few years, approaching what inves-

and new buildings. They will also start look-

tors could now find only in the main markets

ing at other major cities in the country (such

12 years ago, with the development of the

of Central and Eastern Europe. In addition,

as Cluj, Timisoara and Iasi), but there is an

West Gate project, the city needs to develop

the demand for easily accessible, energy-

even greater problem of finding a skilled labor

in the south or east. Only then will we be able

efficient Class A office buildings that provide

force than in the capital.

to reduce the pressure exerted on the capital’s

easy access to public and private facilities

This trend is already seen if we look at

As we created the western pole, more than

existing infrastructure.

An upward trend will be the development

and provide high-quality work spaces to their

these cities, where real estate activity in the

tenants together with other facilities, is in-

office segment has started to accelerate in the

of co-working spaces. They are successful

creasing and thus contributes to maintaining

past six months to a year.

internationally, because they manage to meet

stable rents and a high occupancy rate.

But in order to maintain a healthy market,

the demands of the new generation, which

it is important that office development ad-

wants non-traditional offices connected

LIVIU TUDOR, GENESIS DEVELOPMENT

vances organically, with new tenants, not just

through technology and community needs.

Genesis Property has developed the West

from the relocations of multinationals.

Lately we have seen the rise of various Euro-

Gate and Novo Park office parks, totaling

People want to be given an experience,

pean brands. Noteworthy, however, is that

approximately 150,000 sqm of Class A office

to have access to community activities, be

the absolute global leader of the co-working

space. Genesis Property is also the devel-

connected both in the digital world and in the

spaces – WeWork – is waiting.

oper of West Gate Studios, the first privately

real world. That’s why we thought of adding

And we are preparing ourselves for the

owned campus, comprising 800 studios and

new facilities: an accommodation unit in the

future – we will invest in a large project in

apartments for rent.

West Gate office park, an outdoor pool with

western Bucharest.

www.business-review.eu Business Review | October 2018

10 REAL ESTATE

Looking to the 4 million sqm threshold Romanian industrial and logistics stock has exceeded the 3 million sqm threshold, reaching 3.12 million sqm at the end of H1 2018. Almost 90 percent of the current stock is concentrated in Bucharest and in four other cities – Timisoara, Cluj-Napoca, Ploiesti and Brasov.

By Razvan Zamfir

The logistics and industrial market is waiting for the 4 mln sqm milestone

A

national, the industrial and logistics

ment had an unusual start. Just when the

market in Romania had a fairly

economy was heading fast for a brick wall ten

cautious start to the year, as only a little over

years ago, the industrial market was riding

wards 16 percent in Bucharest, while the stock

100,000 sqm was delivered. For the second

high. Take Bucharest, for example, which

remained more or less unchanged for many

half of the year, approximately 450,000 sqm

saw the delivery of more than 600,000 sqm

years, until it started growing more convinc-

is due to be completed, with more than half

of modern warehouse space in 2007-2008,

ingly in 2016.

of the projects planned or under construction

increasing more than threefold (from 300,000

being located in Bucharest (54 percent).

sqm), to just under 900,000 sqm.

ccording to analysis by Colliers Inter-

Outside the capital, Timisoara, Cluj-Nap-

In fact, the industrial and logistics seg-

As with the office segment, the ultra-low

oca and Ploiesti will attract the largest volume

vacancy rates in those years probably led to

of deliveries.

an overshoot in terms of both deliveries and

demand from tenants, which proved unrealistic in the post-crisis world.

Consequently, the vacancy rate shot to-

Battered and bruised after the recession, rents have started creeping up in recent years, but they can currently be a quarter lower than a decade ago.

In terms of market structure, there have

www.business-review.eu Business Review | October May 20162018

COVER REAL ESTATE STORY 11 14

been some significant changes that highlight

and production companies, amid increased

the rapid expansion of third-party logistics,

demand for electronic products, cars, etc.

with logistics players and distributors now

Approximately 2.8 million sqm of the total

holding more than half of the market in terms

market stock of 3.2 million sqm is concen-

CLUJ-NAPOCA

of demand (versus 38 percent in 2007); many

trated in the five cities mentioned (Bucharest,

With a logistics and industrial surface be-

market participants now see much more

Cluj, Timisoara, Ploiesti, Brasov). We are

tween 230,000 and 330,000 sqm, the Transyl-

value in outsourcing this activity.

rapidly approaching 4 million sqm of modern

vanian capital is the third largest Romanian

industrial space in a much more mature

submarket.

A notable exception is retailers, whose

The vacancy rate is 3 percent and rents vary between EUR 3.6 and EUR 4/sqm/month.

share of take-up has decreased steadily from

market at investor level, making this segment

a decade ago, with many of the large big box

even more interesting for large developers

50,000 sqm, while supply was around 20,000

players in Romania now having developed

who are still not doing business in Romania.

sqm.

their own logistics network.

We observe a resumption of demand for new

Demand in the first half of 2018 reached

Cluj-Napoca warehouses are full, the va-

production areas after a cautious period for

cancy rate is zero, and rents oscillate between

online retailer, eMag, which is developing

both new companies and those already pres-

EUR 3.8 and EUR 4/sqm/month.

its own 600,000 sqm warehouse outside

ent on the market,” said Costin Banica, head

Bucharest. The first phase of the project cov-

of industrial at JLL Romania.

Another example is that of the largest

ers 120,000 sqm and the total investment will reach EUR 65 million. Currently, this is probably the single real estate submarket acting as dynamically as before the crisis if we look at deliveries.

PLOIESTI Even though Ploiesti is not necessarily a

ROMANIA’S MOST IMPORTANT PLAYERS AND LOGISTIC SUBMARKETS Romania has five

BUCHAREST RULES THE ROOST

important industrial

The first half of 2018 brought an interesting

and logistic submar-

shift, as Bucharest accounted for a little over

kets, which account

a third of the total compared to around half

for close to 90 per-

for the whole of 2017; in the capital, inter-

cent of 3 million sqm

est continues to be heavily geared towards

countrywide.

western and northern areas, while the various

BR collected key

cities in Transylvania nearly match the over-

data from the five

all deliveries in Bucharest. Ploiesti is also high

leader-cities with

up on the list.

Colliers International

“This dynamic is in tune with the general trend of regional cities outpacing the

and JLL real estate consultants’ support.

capital in terms of economic growth over the

strong real estate city in the other segments

medium term as migration patterns and busi-

BUCHAREST

of the market, its position close to the center

ness interest shift towards other parts of the

The capital city makes up more than half of

of the country has made it interesting for

country. In terms of developers, CTP was the

the available surface, more than 1.6 million

developers and it holds close to 300,000 sqm

biggest supplier of new storage spaces in H1 –

sqm.

of logistics and industrial space.

almost half of the total, but WDP, VGP, Alinso

In the first half of the year demand reached

Rents in the city range between EUR 3.6

Group and Transilvania Constructii also

250,000 sqm and supply close to 135,000

and EUR 3.9/sqm/month and the vacancy rate

expanded their portfolio quite significantly,”

sqm, with potential development about

is close to zero.

Laurentiu Duica, director of the industrial

300,000 sqm in existing logistic parks.

division at Colliers International, stated.

And the market continues to grow, keeping

The vacancy rate is around 5 percent, and rents are above EUR 4/sqm/month.

pace in the last two or three years, driven by

BRASOV Finally, Brasov, right in the center of the country, has become interesting for logistics

the growth of consumption, even if the fig-

TIMISOARA

and industrial players in recent years and has

ures seem to be losing their power somewhat.

The second submarket by surface is Timisoara

managed to reach 180,000 sqm.

“The industrial space market has proved to be very dynamic in the past two to three

with more than 400,000 sqm.

Demand in the city has reached 20,000

Demand and supply were balanced at 10,000 sqm.

years, strongly influenced by the increase

sqm and supply is around 50,000 sqm. New

in consumption. The demand came from

projects are planned, like the 175,000 sqm

and rents oscillated between EUR 3.75 and

both the logistics / distribution segment

one being prepared by Globalworth.

EUR 4/sqm/month.

The vacancy rate was, again, close to zero,

www.business-review.eu Business Review | October 2018

12 COVER STORY

Twenty-twenty vision: two decades of the new Romania

By BR Team

Photo: Dreamstime

The last two decades have marked a profound change for Romania, both in terms of economic development and the business environment. The local market has taken significant steps in key sectors. Meanwhile, young generations of workers have reshaped the face of the local labour market, forcing companies to adapt their HR strategies to their expectations. For the past 20 years BR has mapped these developments. This cover story highlights some of the sectors that have undergone significant transformations and positively influenced the entire local economy.

www.business-review.eu Business Review | October 2018

COVER STORY 13

Banking system maintains focus on development Romania’s banking sector went through a wave of privatizations in the late ‘90s. This opened the market to large international financial players that in the past two decades have remained committed to the country despite the crisis that ravaged a large share of the global economy starting 2008.

T

By Ovidiu Posirca

he size of the banking

By June 2018, the rate further

sector compared to

fell to 5.71 percent.

In this period, lenders

Romania’s GDP was the

lowest among all EU member

restructured their operations,

states in 2017. The share of

shedding branches and staff,

bank assets in GDP fell under

and selling billions worth of

50 percent in Romania, while

bad loans.

Bulgaria’s financial intermedia-

Talking about banks’

tion is almost double, according

crisis management during

to Florin Neagu, director at the

the financial crisis, Sergiu

National Bank of Romania. By

Oprescu, head of the Romanian

comparison, in 1999, Romania’s

Association of Banks, says the

lending amount against GDP

measures undertaken by lend-

was similar to that of Bulgaria.

ers were adequate and helped the system successfully face

In 1999, Romania had 41

post-crisis challenges. “In the

credit institutions, out of which 37 had private capital and seven were subsidiaries of foreign banks.

past 10 years, the contribution of shareholders to the capital of bank-

Almost two decades later, in 2017, there were 35 credit institutions on

ing subsidiaries operating in Romania stood at around EUR 4 billion

the market, out of which 22 had mostly foreign capital. There were

in the banking system,” Oprescu told HotNews.ro, adding that the

seven subsidiaries of foreign lenders. Statistics from the central bank

outlook of the local banking sector is good. The solvency rate of the

show that financial intermediation represented 24.6 percent of GDP

system reached 20 percent in June 2018, one of the highest rates for

in 1996.

at least 10 years, said the ARB head.

By 2000 it had fallen to 9.3 percent. In early 2018, BNR governor Mugur Isarescu announced that the country’s financial intermedia-

FROM THE FIRST ATM TO BANKING BY FACIAL RECOGNITION

tion continued to fall to 27 percent of GDP, the lowest share across

Lenders have constantly invested in technology to improve banking

the European Union. Nonetheless, around 90 percent of all funding

infrastructure and the security of customers’ finances, and develop-

granted in Romania comes from banks.

ment has been significant over the past 20 years. In 1995, the first

The biggest privatization in the banking sector to date remains

ATM was installed on the local market, the same year when the first

the sale of BCR to Austrian Erste Group for EUR 3.7 billion. Since the

bank card was issued locally. The first mortgage was granted in 2002.

transaction was completed in 2005, BCR had remained the biggest

Now, the largest banks have ongoing digitization strategies and have

lender in Romania by assets. However, in late 2018, Banca Transil-

started to automate most of the mundane and repetitive operations.

vania became the biggest bank by assets after taking over Bancpost.

The organization, based in Cluj-Napoca, managed to become number

Lenders are looking to sell consumer loans online and have upgraded their platforms to provide a seamless experience on mobile.

two in the system in 2016 when it overtook French BRD in asset value. Several years later, the banking sector faced one of its biggest challenges stemming from the global financial crisis. Although lenders didn’t need any financial support from the state, they incurred serious losses that totaled RON 3.6 billion between 2010 and 2012. In 2014, losses reached a record of RON 4.7 billion.

The banking system returned to the black in 2015. During the crisis, the rate of non-performing loans rose steadily and hit a record of 21.9 percent in 2014, according to BNR standards. It fell to 11.3 percent in June 2016, according to European Banking Authority criteria.

Milestones in Romania’s banking sector 1995 – launch of first credit card and first ATM 1998 – Groupe Societe Generale enters Romania through acquisition of BRD 2001 – Raiffeisen enters Romania through Banca Agricola takeover 2005 – Erste Bank takes over BCR in biggest privatization in local banking sector 2002 – EFG purchases Bancpost in privatization process 2011 – launch of first contactless card 2017 – Banca Transilvania becomes biggest lender in Romania by assets

www.business-review.eu Business Review | October 2018

14 COVER STORY

Finding the right mix in the energy sector Romania’s energy sector has gone through several inflexion points in the past 20 years, marked by a wave of privatizations and attempts by the state to start new investment projects that have yet to materialize.

I

By Ovidiu Posirca

n the gas sector, the eyes of

the electricity distribution

investors are fixed on the

networks between 2008 and

Black Sea, where discov-

2017 and over EUR 1 billion to

ered deposits could help the

upgrade and expand the gas

country maintain its energy suf-

network.

ficiency for decades to come.

One year before the massive

Meanwhile, the sector requires

privatizations in the electric-

an estimated EUR 10 billion in

ity sector, the government

fresh investments on the long

had agreed to sell a controlling

term to replace aging infra-

stake in oil company Petrom to

structure.

Austrian oil major OMV. This

In the past decade, the

has been one of the key deals

country has fully liberalized the

in Romania’s energy sector to

prices on the electricity market

date. In 2007, KazMunayGas,

and on the gas market for con-

the state-owned major from

sumers. Through to 2021, gas

Kazakhstan, launched its

prices for households should

operations in Europe following

also be fully liberalized, accord-

the acquisition of Romania-

ing to the latest government targets.

In the electricity production sector, in close to two decades Romania has seen the gradual transition of the economy to cleaner

based Rompetrol Group. The company said that it would continue to invest in the local refining capacities at Petromidia.

In the same year, Romania launched its second nuclear reactor at

production capacities. In 2003, coal had a share of 41 percent in Ro-

Cernavoda, with nuclear energy covering around 20 percent of the

mania’s electricity output, followed by hydrocarbons with 26 percent

country’s electricity consumption since then.

and hydro power with 24 percent. Nuclear energy had a share of 9

Moving to 2011, the country started to see a massive influx of

percent in the production mix, according to energy regulator ANRE.

investments in the renewable sector. More than EUR 7 billion went

Overall electricity production stood at 56.91 TWh.

into green power production facilities. Capacities in the wind sector

Fast forward to 2017 and close to 40 percent of Romania’s electric-

soared in six years from 826 MW to 3.1 GW at the end of 2017.

ity production came from renewable sources, mainly hydro power

Between 1998 and 2016, Romania’s oil production dropped al-

and wind capacities with shares of 23.42 percent and 11.64 percent,

most 42 percent to 3,801 thousand tonnes, while the gas output lost

respectively. The share of coal in the production mix fell to 26.56 per-

almost 30 percent to 7,862 thousand tonnes of oil equivalent.

cent, while nuclear and natural gas capacities generated 18.11 percent and 15.22 percent of Romania’s electricity respectively. The country’s electricity output had climbed to 61.3 TWh.

PRIVATIZATIONS AND STRATEGIC INVESTMENTS The local energy sector has gone through several key moments in the past 20 years. In 2005, the government completed the privatization of state-owned electricity and gas supply and distribution companies, which gave a unique chance to Western utility groups to launch operations in Romania. German E.ON, Italian Enel and Czech CEZ have built strong operations in Romania for more than a decade and poured billions of euros into developing the infrastructure in a bid to improve the services provided to end-consumers. The main utility firms operating locally have invested EUR 3 billion to upgrade

Milestones in Romania’s energy sector 2004 – OMV gains controlling stake in Petrom through privatization 2005 – Romania approves privatization of major electricity distribution players 2007 – KazMunayGas buys controlling stake in Rompetrol Group 2012 – Romania starts to record massive investments in renewable sector; - Petrom starts commercial operation of gas-power plant at Brazi for electricity generation - CEZ completes in Romania the biggest onshore wind farm in Europe after investing EUR 1.1 billion 2014 – Price liberalization of gas and electricity markets completed for companies 2017 – Price liberalization of electricity prices completed for households

www.business-review.eu Business Review | October 2018

COVER STORY 15

The Industrial Revolution 4.0, the internet and the IT industry 1990s Romania was in a pit when it came to technology. Decades of closing the doors on new technologies and innovation had rendered Romanian industry and the economy old and inefficient. And for a full decade, until 2000, there were only small steps in turning industry around, towards technology and digitalization.

T

By Aurel Dragan

he wave of privatiza-

get off the group due to lack

tions in the 1990s didn’t

of interest from other institu-

solve the problem for

tions. That meant investments

many of the industrial giants

before 2000 were delayed and

set up in the communist era.

the real kick for the industry

The economy went through a

came a decade later.

cleaning process, not started

Today, the software and

by the authorities, but driven

IT services industry employs

by the changes forced by the

around 100,000 people and

opening of the country, by glo-

is worth EUR 4.5 billion. It

balization. Digitalization came

could have been double that

in small steps, introduced first

if it had started in 2000; still, it is one of the fastest-growing

by the public; people wanted to be in touch with the latest innovations and forced companies to

industries in Romania. Also, it is one of the most future proof; the

eventually adopt them.

Industrial Revolution 4.0 means automatization for the entire mass-

The internet started to develop in the 1960s in the USA and in

production of goods and other things with robot operators capable

1982 the protocols (TCP/IP) were invented. The name was set in the

of self-configuration and diagnosis. Germany was the first country to

same year, a short version of ‘internetworking’. It took off a decade

use the term Industry 4.0 in 2011 and now the European Union has

later and soon appeared in Romania, through landlines. This could

a program for the Digital Single Market, inside the program Europe

be seen as the first step in transforming Romania into a modern

2020.

country. The first interconnection hub was set up in 1992 and the .ro

After 2007, not only did the IT industry develop rapidly in Roma-

domain was established in the same year. Meanwhile, the first dial-

nia, but production companies became more and more automatized.

up connections were launched by Romtelecom in 1993, starting the

All the factories opened in the last decade are operated mainly by

‘internet café’ era.

machines, with high production efficiency, many of them in the auto

In 1995 the internet became public globally and the service started to develop in Romania too. In the same year Microsoft launched Win-

industry (like the Daimler factory in Sebes).

Its internet speed put Romania up among the global forerunners,

dows 95, the operating system that introduced personal computing

alongside developed countries like South Korea and Japan. There

to those who were not IT specialists. Microsoft had its first office in

are over 8 million Romanians using the internet on a daily basis and

Romania in 1992, but it became an important one almost a decade

around 20 million connections (both fixed and mobile). And the

later, when spending on IT software and services become significant.

workforce in IT, although small in comparison with the population,

The internet and hardware to use it went hand in hand so while small neighborhood networks were installed, users started to buy more and more PCs. At the beginning of 2000, the internet was expanding rapidly and the big operators started to buy up the small companies. 2007, when Romania joined the European Union, found the country with a well-established internet infrastructure and a mobile network, things that would go on to help develop the IT industry.

In 1999, under the government lead by Radu Vasile, a project for the IT industry was put on the table for the first time. But even though it was accepted by the prime minister, the project failed to

is very well educated and growing by the year.

Milestones In 1992 the first landline connection for the internet is made between Romania and Vienna, Austria.

In 1995 the internet becomes public globally and the ‘internet café’ era begins in Romania.

In 2000 the first broadband internet through coaxial connection is introduced.

In 2007 Romania becomes part of the European Union and the software and IT services industry takes off.

In 2018 Romania has around 100,000 professionals in IT and the value of the industry reaches EUR 4.5 billion.

www.business-review.eu Business Review | October 2018

16 COVER STORY

Perking up: HR market moves beyond basic benefits as workplace evolves With employees and jobseekers now expecting their packages to go beyond salary and traditional bonuses, the local HR market has changed significantly in the past two decades. Meanwhile, international trends in this field will sooner or later reach the local workforce.

W

By Anda Sebesi

hile back in the

NEW TIMES, NEW JOBS…

‘90s salary and

With the entrance of multi-

financial incentives

nationals on the Romanian

were the main tools used by

market, which pushed the

companies to attract and retain

pedal on their development

their employees, things have

here, new jobs have emerged.

changed dramatically with the

The pharmaceutical sector is

emergence of the younger gen-

such an example. When multi-

erations of employees. Bosses

national pharma firms decided

are more and more focused

to extend their businesses in

on offering a wide range of

Romania in the early 90s, the

non-financial benefits to their

concept of a medical repre-

employees. Pundits say that

sentative was nonexistent. A

schedule flexibility has become

decade later, in 2007, this job

more important, especially for

was among those listed in the

financial, legal and HR profes-

Romanian Jobs Code (COR).

sionals. The option to work

Then, an increase in their size

flexibly anytime between 7am

persuaded pharma companies

and 8pm has become a regular

to create new types of jobs in

demand for both existing and

fields like business develop-

potential employees, along

ment, field force effectiveness,

with working from home and

regulatory affairs and govern-

medical and gym subscriptions.

mental affairs.

During the past two decades,

But the pharmaceutical

Romanian jobseekers of all ages have reshaped the local workforce

industry is not the sole example when it comes to creating such new

and made companies rethink their HR policies according to their

positions. With the development of the sustainability and social re-

expectations. The emergence of the concept of wellbeing is an ex-

sponsibility concepts in Romania, many companies – both Romanian

ample in this regard. The concept has developed gradually over the

and international ones – created specific positions for this area of

last few years and now the psychological wellbeing of its employees

activity, like CSR specialist or CSR manager. The aim was to create

is an important aspect for any organization. This has become a focus

a distinct department responsible for the development and imple-

for both HR departments and employees of multinational companies

mentation of CSR projects nationwide.

operating on the local market.

From corporate medical subscriptions, to an attractive package

… AND CREATIVE WORKSPACES

of both financial and non-financial perks, gym subscriptions and a

In the past ten years companies have become more aware that pro-

friendly working environment, the majority of companies active in

viding a “happy” working environment, where individuals can ex-

Romania have understood the importance of the wellbeing of their

press their creativity and feel like they are part of the organization,

talent. At present, there are over 50 types of wellbeing programs on

might be the key for bosses to score highly on the attractiveness

the Romanian market, focusing on different aspects such as physical

scale for current and future generations of workers. As people’s work

and psycho-emotional health, personal development and various

changes, their needs change. And as needs change, work environ-

hobbies.

ments must also change to remain supportive. The evolution of of-

www.business-review.eu Business Review | October 2018

COVER STORY 17

fices as places primarily for process work to places for creative work

reality for the Romanian workforce too. For example, in addition

has profound implications for the effectiveness and productivity of

to the work-life balance benefits that it gives its employees, Adobe

employees. To meet the needs of companies, real estate developers

Romania offers its employees the opportunity to buy Adobe shares at

now offer a wide range of complementary services like gyms and

a preferential rate within an internal savings program. “In addition

kindergartens, aiming to create communities that will make reloca-

to the salary increases, high performers get Adobe equity stakes

tion more difficult.

which they can trade, allowing them to benefit directly from the company’s success. While last year the price of a share was USD 130,

TRAINING GIVES DOUBLE BOOST

today it is USD 250. So, employees who buy or receive equity stakes

It has been a long time since training stopped being merely a tool

have significant extra-salary benefits,” Cris Radu, senior director of

to motivate the employees of a company – regardless of its field

engineering and site leader at Adobe Romania, told Business Review

of activity, origin or size – and started to also support its develop-

earlier this year. He adds that this is one of the most popular benefits

ment. Coming back to the pharma industry, while in 1998 it was all

with the company’s employees and a very effective tool to retain and

about “on the job” training, ten years later companies in this sector

motivate the team.

started to offer training packages adapted to each stage of the career path of a medical

INTERNATIONAL WAVE ENGULFS ROMANIA TOO

representative, from selling

Digitalization has already

skills to programs based on

refashioned some industries

negotiation techniques or area

and jobs, and on the medium to

management.

long term it will reset the entire business environment. More

EMPLOYER BRANDING BECOMES CRUCIAL

than a third of UK jobs could

In the past two decades com-

by the early 2030s and robots

panies active in Romania have

could take over 38 percent of

learned that their reputation

current US jobs in the next 15

as desirable employers is a key

years, says a report released

factor to attract employees in

by PwC, cited by Emerg-

general and talents in particu-

ing Technologies’ Impact on

lar. Many of them now focus

Society & Work in 2030, a study

their efforts on the concept of

conducted by the Institute for

employer branding, in an at-

the Future and Dell Technolo-

tempt to retain their employ-

gies. In addition, the tasks and

ees more easily. Employees

duties workers will perform

are the company’s first brand

will be markedly different from

ambassadors. Positive emo-

what they have studied. The

tions like being proud of their

same study says that around 85

be at high risk of automation

job, their team and their projects are enhanced by truly understand-

percent of the jobs that today’s learners will be doing in 2030 haven’t

ing their role within the company, its mission and vision and what

been invented yet.

differentiates it from others. If this is not happening, employees

As processing power increases tenfold every five years, humans

will find another job where they feel good. As Richard Branson

will be eclipsed by computers in many areas, says the study. Ma-

once said, “If you run a business, put on top your employees, then

chines will bring lightning speed and accuracy to all manner of tasks.

your consumers, and then your shareholders.” Authentic employer

However, it would be a fallacy to assume that technology is making

branding that is not limited to a cleverly-packaged recruitment

human effort redundant. It’s doubtful that computers will have fully

process is an important factor in increasing employee loyalty and

mastered the fundamental, instinctive skills of intuition, judgment,

retention. It is also an effective tool in attracting candidates who fit

and emotional intelligence that humans value by 2030.

the values and demands of an organization. According to Boston

As Romania is part of the global business environment, it is

Consulting Group, employer branding is ranked fourth within HR

impossible for it to avoid the implications of the digitalization on its

programs for its impact on profit.

workforce. All of its sectors are already or will be highly affected by the digitalization phenomenon. Technology industries and IT, the

EMPOWERING EMPLOYEES

creative industries (mainly marketing and advertising), agriculture

The employee of today is no longer just a member of a working team.

and tourism are some of the sectors which digitalization has already

He or she has the chance to prove they can do more. And this is a

impacted or will have a significant positive or negative impact.

www.business-review.eu Business Review | October 2018

18 COVER STORY

Telecom, a mobile phone in every pocket Telecommunications in Romania in the last 20 years are an example of what an industry is able to accomplish when it is not constrained by regulations. Mobile communications came at a time when fixed lines were dominating the country and while one company, Romtelecom, kept the monopoly for landlines, investors in mobile were free to develop.

T

By Aurel Dragan

he first mobile phone came

by the number of customers and

in 1993 with the company

things stayed the same in the com-

Telefonica and the Telemo-

ing years.

In 1999, Romtelecom launched

bil service. It was the first attempt to introduce a new technology in

the first GSM services with its

the country, but the handsets were

company Cosmorom. The service

very big, with a car-like battery,

was called Cosmo and offered only

and it was more suitable for a car

prepaid at first, launching monthly

phone with an NMT 450 system for

subscriptions some time later.

communications. It had no success

It was the third GSM operator to

whatsoever due to the high price.

enter the market.

Telefonica sold Telemobil to

In 1996 the Ministry of Com-

Inquam in 2001 and Zapp was

munication set up the first public auction for two mobile telecommunication operating licenses in

launched. Around the same time, in 2000, France Telecom bought

the Global System for Mobile Communications (GSM). By the end of

Orange from the United Kingdom and in two years decided to unify

the year, on November 15, the winners were announced: Mobil Rom

the brand across the whole group. So Orange appeared in Romania,

and MobiFon. On April 15, 1997, MobiFon launched the first mobile

replacing Dialog. Three years later, Connex was bought by Voda-

service under the brand Connex. It scored a world record, having

fone and later replaced the Connex brand. And in 2005, Cosmorom

managed to build a telecommunication network from scratch in just

became Cosmote after being taken over by the Greek operator OTE,

135 days. Soon, nine big cities came under the operator’s coverage,

then recently became Telekom, after entering the Deutsche Telekom

Bucharest, Bacau, Brasov, Cluj-Napoca, Constanta, Craiova, Galati,

family. Zapp disappeared in 2009 when it was bought by Cosmot.

Timisoara and Sibiu. For a few days, there were long queues in front

The latest big operator on the market is Digi, from RCS & RDS,

of Sala Palatului, the place in Bucharest where customers could buy

in 2008. Even though the company had been operating cable TV

a mobile phone. No one imagined that the service would have such a

and internet all over the country since the beginning of the 1990s,

huge success. On sale were cheap mobile handsets, made by Sagem

it entered the mobile communications industry when the market

and Alcatel, usually black bricks able only to make phone calls and

was already mature. But with free handsets and very cheap monthly

write short SMSs. Connex ended the year with 112,000 monthly sub-

subscription it managed to gather over 3.3 million customers.

scribers. Two months after MobiFon, Mobil Rom, owned by France

Today, telecom operators have more than 20 million customers

Telecom, launched the Dialog service. It became operational in all

and the technology is 4G all over the country, heading for 5G in the

the cities that Connex was covering, minus Sibiu. But Dialog was the

coming years.

first to launch a roaming service in seven countries in Europe and, in November 1997, the first prepaid card, a service called Alo GSM. Dialog had just over 100,000 customers at the end of 1997. One year later, Connex registered 325,000 subscribers and Dialog 308,000.

Predictions for the next years were still low, 1 million subscribers by 2005, a target that was hit five years earlier, in 2000.

Monthly subscriptions were still expensive and the phones were not cheap. But slowly, phone brands like Nokia, Siemens, Ericsson, Motorola, Philips and others found their way into the market. The Nokia 5110 was one of the most successful, along with the Ericsson T20. Dialog decided to enter all the cities with more than 20,000 inhabitants and in 1998 had a network that covered 90 percent of the population. This was how it overtook Connex as industry leader

Milestones In 1993, Telefonica launches Telemobil, the first mobile operator in Romania, working in the NMT 450 system.

In 1996, the Ministry of Communications sells the first GSM licenses, MobiFon and Mobil Rom being the buyers.

In 1997, both Connex and Dialog become operational. The battle between the two begins.

In 2000, the number of mobile phone customers surpasses 1 million.

In the same year Cosmorom launches a mobile service.

In 2002, Orange replaces Dialog and the number of users exceeds 4.5 million.

In 2005, Connex launches 3G services and one year later becomes Vodafone.

In 2013, 4G technology is launched.

www.business-review.eu Business Review | October 2018

20 INTERVIEW

Making a bright future Elsa Monteiro, head of sustainability and corporate communication at Sonae Sierra, tells Business Review about the Bright Programme and its importance in reducing energy consumption and carbon footprint at the shopping centers the company owns and manages.

By Anda Sebesi

What can you tell us about the way that Sonae Sierra embeds the sustainability concept in its business strategy?

environment. Our approach to sustainability

office impacts and attract and retain talented

focuses on creating shared value across three

people in our company.

Our sustainability strategy is embedded in our

across our investment portfolio; through the

business model and governance structure.

active marketing of sustainability services to

Sonae Sierra’s achievements since we set our

our clients and through our corporate sustain-

sustainability journey more than 20 years ago

ability practices and with our employees. By

Sonae Sierra won the Silver Stevie Award at the 2018 International Business Awards with the Bright Programme. How important is this recognition for your company?

have earned us international recognition and

doing so, we protect the long-term value of

As the International Business Awards are the

several awards. Through our sustainability

our assets by managing operational risks and

world’s premier business awards program,

history, we have strengthened our brand and

increasing resource efficiencies; we deliver an

it comes as a high recognition of our long-

reputation amongst key opinion makers,

exemplary service and experience to inves-

standing commitment to energy efficiency

and we are consistently recognized for our

tors, partners, service clients, tenants and

in both our own and in our clients’ portfolio.

best-in-class approach to safety, health and

building visitors; and we reduce our corporate

This is especially true in a year where they

levels: through engagement with partners

www.business-review.eu Business Review | October 2018

INTERVIEW 21

The first task was to find building energy

raised the minimum average score required to

billion, 63 percent of all potential savings of

qualify as a Stevie winner, so as a 2018 winner

the program. There still are 64 actions being

simulation software that could be adapted to

we are especially proud of our achievements

implemented, requiring EUR 2 million. These

deal with the necessary level of complexity. A

(winning amongst 74 nations and territories,

would generate yearly potential savings of

dedicated internal team adapted a commer-

totaling more than 3,900 nominations for the

EUR 1.3 million (9,400 MWh) or equivalent to

cially available solution to create the ‘virtual

awards).

5 percent of our 2017 electricity consumption.

standard shopping centre’ (VSSC) tool. The

Achieving substantial energy savings

tool allows Sonae Sierra to accurately predict

What can you tell us about the Bright Programme and its importance for the market?

and permanently improving the indoor air

the optimal energy consumption of every

quality are the main objectives of the Bright

shopping center in its portfolio.

The Bright Programme is an innovative one

Programme. In addition, efforts needed to be

The team developed two benchmarks:

designed in 2013 by Sonae Sierra with the

made to ensure that the technical resources

a reference benchmark and an operational

objective of reducing energy consumption

are used as much as possible at any time as

benchmark. The reference benchmark calcu-

and carbon footprint at the shopping centers

energy-efficiently as possible, given the sig-

lates the optimal energy consumption of the

it owns and manages. Bright encompasses

nificant fluctuation in the number of people

shopping center if it contained state-of-the-

four areas of action: modeling optimum

present in the shopping center throughout

art equipment. The operational benchmark

consumption for each building and analyzing

the day.

calculates the optimal consumption, based on the equipment the shopping center actu-

the consumption profile, identifying and implementing optimization measures, continuous monitoring of consumption and implementing management solutions to enable maintain-

How did the Bright Programme enable you to identify energy optimization measures across shopping centers?

ally contains. The model therefore indicates

A major problem in

and the shopping centers that were under-

shopping centers that are underperforming due to their equipment, and those that are underperforming due to management practices.

The results of a pilot audit were analyzed

ing the building’s energy performance at an

achieving continuous improvements in

performing by the greatest margin were

optimum level. The immediate result was that

energy efficiency has been the difficulties

earmarked for on-site visits. The use of the

Bright Programme has allowed Sonae Sierra

associated with predicting how people use

reference and the operational benchmark

to target specific improvement measures for

technology. How people interact with equip-

allowed site visits to be targeted towards

its portfolio, lowering energy consumption

ment such as HVAC systems, for example, can

either technical performance or management

across the board and considerably reducing its

have a profound effect on energy consump-

practices.

environmental footprint, while maintaining or

tion. It is therefore important to be able to

even improving the level of service to tenants

differentiate between inefficiencies that are

sharing exercise whereby employees were

and visitors.

due to technical reasons and those that are

provided with training in best practice, and

On-site visits represented a knowledge-

behavioral in nature.

effective management

What is the added value that Bright Programme brings for the market?

Finding a model that

processes that had

could account for both

developed organically

So far, the program has enabled Sonae Sierra

these factors proved ex-

were fed back to Sonae

to identify 249 energy optimization measures

tremely difficult. Quite

Sierra’s sustainability

across 28 shopping centers.

simply, such a product

team. Any initial skepti-

was not yet available on

cism soon dissipated

With a total investment cost of EUR 1.8 million, 185 of these measures already implemented allowed Sonae Sierra to reduce energy

as local teams saw the

the market.

Therefore, Sonae Sierra developed the

results of the program and the recommenda-

consumption by 18,400 MWh, equivalent

Bright Programme to create its own model.

tions it inspired. Sonae Sierra ensured that

to EUR 2.3 million, representing 10 percent

Traditional benchmarking tools struggle to

recommendations were presented as ideas

of our 2017 annual electricity consumption.

account for local or regional-specific factors,

rather than orders, with which shopping

This also delivered a reduction in greenhouse

and shopping centers that are located in unfa-

center teams were invited to engage.

gas emissions equivalent to 44 percent of

vorable climates are therefore often misinter-

our shopping centers’ 2017 carbon footprint

preted as inefficient. The Bright Programme

took a step into the unknown. It looked

(based on grid average emissions factors).

improves on these by allowing us to monitor

beyond theoretical benchmarks to engage

the energy consumption of our shopping

with the actual energy consumption of its

mented were quick-wins with little or no

centers against a virtual simulation, identify-

assets and set in motion a process to achieve

investment requirements from the sites:

ing technical improvements and enhancing

tangible, appreciable economic and environ-

EUR 300,000 invested generated EUR 1.4

management practices.

mental gains.

Some 70 percent of the actions imple-

With the Bright Programme, Sonae Sierra

www.business-review.eu Business Review | October 2018

22 EMPLOYMENT

Romanian paradox: staff shortages despite high number of unemployed Only around half of working-age Romanians has a proper job, but many bosses claim that the second-poorest EU member state is experiencing a workforce crisis. This is a paradox for a country where millions of people are missing from the job market despite being unemployed or largely underemployed.

By Sorin Melenciuc percent of the income distribution do not work, and another 28 percent remain engaged in subsistence agriculture,” World Bank experts said in a recent report, called From Uneven Growth to Inclusive Development: Romania’s Path to Shared Prosperity.

Unemployment in Romania is highly concentrated in poor rural areas – mainly in Moldova and southern Wallachia – where the labor force is largely unskilled and where there are few opportunities. But this lack of opportunities is not compensated for by labor force mobility.

“Low internal mobility further reinforces Romania’s dual development challenge – less than 2 percent of the population reports having moved in the past five years, implying that The IT sector is among the industries in Romania that are already paying well

T

toward economic opportunities,” World Bank experts say.

he local labor force shrank from 11.6

population – considered “self-employed in

million people in 2000 to 8.8 million

agriculture”.

in 2017, a dynamic exacerbated by

structural constraints inhibit internal mobility

For most of them, this label is just another

However, a visitor to these poor rural areas in Romania would be surprised to discover that few people are interested in taking jobs,

word for “jobless”, as they usually live in

as the few existing opportunities mean eight-

With a fertility rate among the lowest in

poor rural areas, with very few employment

hour-per-day jobs on national minimum wage

the EU, such demographic trends are likely to

options, and have small plots of arable land

(around EUR 250).

continue, experts say.

usually used just to cultivate their own food.

emigration.

“The main source of this problem is

Experts say this is partly due to the still powerful model of “working abroad to get rich”.

HIDDEN WORKFORCE

education, but low mobility also plays a role.

However, Romania has only around 5 mil-

Only the young people are ready to move to

lion employees – and its employment rate is

another region for a job,” Oana Datki, an HR

should I work here every month for RON

among the lowest in Europe.

expert, told Business Review.

2,000 when I could work two or three months

Hidden in the official statistics, millions of

These individuals are part of a large

“There are many people who say: why

each year abroad for more than EUR 1,000

Romanians are living on the edge with limited

Romanian population cut off from economic

and live the rest of the year on it? It is a strong

income and options.

growth, according to experts.

model of getting a better life by working

The latest National Institute of Statistics

“Romania’s prosperity is not equally

abroad, but many don’t realize the costs:

(INS) data, seen by Business Review, show

shared, as the bottom 40 percent is largely

working hard in humiliating conditions, in

that Romania has 1.6 million working-age

disconnected from the drivers of growth.

many cases,” Datki said.

adults – or 19 percent of the total employed

Close to half of the people in the bottom 40

In fact, many Romanians described as

www.business-review.eu Business Review | October 2018

EMPLOYMENT 23

EU foreign employees in Romania was 17,089 in July 2018, an all-time high, but a negligible figure compared with the numbers seen in Western European countries.

Turkey and China are by far the two leading countries of origin of migrant workers in Romania, with 3,627 and 2,120 employees respectively, followed by Moldova (1,787), and Vietnam (1,554).

SKILLED WORKFORCE CRISIS Despite this new trend of importing foreign workers, Romania shows few outward signs of a workforce crisis.

In fact, official data indicate the opposite Many people in poor rural areas regularly receive remittances from relatives working in Western countries

trend. Romania’s job vacancy rate declined by 0.08 percentage points in the second quarter of this year compared with the second quar-

“self-employed in agriculture” live in house-

accommodation and food service activities,

ter of 2017, to 1.25 percent, National Institute

holds where there are mixed income sources:

which employ hundreds of thousands of

of Statistics (INS) data show.

pensions, social assistance, black market / day

people in Romania, the average wage is EUR

laborer salaries, and benefits in kind.

340, according to official data.

Their total real income is sometimes close

Foreign workers welcomed

The number of vacancies declined by 2,700 year-on-year, to 61,400 in the second quarter of 2018.

to or even higher than the minimum wage

Despite this large domestic workforce

This trend is in sharp contrast with the

– and this leads to little incentive to take on

source, employers and the government are

impressive economic growth Romania experi-

full-time jobs.

looking abroad to find staff .

enced last year, posting a 6.9 percent GDP

Some people in this category are also

Recently, coastal business owners in

increase, the highest in the EU. According to official data, the workforce

temporarily working abroad, where they earn

Romania have said that they are having an

enough to spend a few months in their home

increasingly tough time finding seasonal

shortage is concentrated in areas like services

country without working and to make some

workers to provide essential services for the

(with a 2.9 percent job vacancy rate in Q2

investments in their own homes.

tourism industry. They urged the government

2018), a consequence of the fact that much of

to make it easier for them to hire workers

the economic growth in Romania is the prod-

from other countries.

uct of a consumer bonanza, stimulated by

With around 3.5 million Romanians working abroad, many people in poor rural areas regularly receive remittances from relatives

In July, Romania’s government increased

working in rich Western countries, and this

2018 quotas for non-EU foreign workers by

lessens the need to work locally.

over 5,000 work permits, in response to high

But this model could change when wages in Romania exceed a certain threshold, becoming an incentive to work.

“The best incentive to push these people

demand from local companies claiming they are affected by the workforce crisis.

The government decided to increase by 5,200 the contingent of newly admitted work-

years of wage-led growth government policy.

Other workforce shortages are in the industries requiring highly skilled workers.

“All sectors are affected by labor force shortages but the worst affected industries are IT, services in general, manufacturing and logistics,” Datki outlines.

However, even more serious labor short-

into the job market is the money they could

ers on the Romanian labor market this year

earn. When wages in Romania approach lev-

for the two major categories of employment

ages are currently being experienced in

els in Western Europe, people will naturally

– up to 8,000 permanent workers and 2,400

the EU by more advanced economies, with

prefer to work in their own country,” Datki

posted workers.

sophisticated structures and high wages.

says.

But few foreigners are currently working

In fact, Romania posted the seventh low-

in Romania, official data show. During the

est rate among the 28 EU member states in

rose by 13.3 percent year-on-year in July, to

first seven months of this year, Romania is-

the second quarter of this year, Eurostat data

RON 2,708 (EUR 582), but remain the second-

sued work permits for 4,395 non-EU foreign

show.

lowest in the EU after Bulgaria.

employees who came mainly from Vietnam,

Average net monthly earnings in Romania

Among EU member states, the highest job

Turkey, Nepal, Serbia and Sri Lanka, accord-

vacancy rates in the second quarter of 2018

are already paying well. In the IT sector, the

ing to Labor Ministry data sent to Business

were recorded in the Czech Republic (5.4 per-

monthly average wage was EUR 1,412 in July.

Review.

cent), Belgium (3.5 percent), the Netherlands

However, some industries in Romania

But most employees earn much less. In

Official data show the total number of non-

(3.1 percent), and Germany (2.9 percent).

www.business-review.eu Business Review | October 2018

26 COMPANIES

Altex, three decades tracking the ups and downs of the economy The biggest local offline retailer, Altex – Media Galaxy, started life in the early 1990s. Its story is interwoven with Romania’s recent history with all its ups and downs over the last 28 years.

Today, there are over 100 Altex or Media Galaxy stores around the country.

By Aurel Dragan

A

t the beginning of 1990, Dan Ostahie realized that the market of electronic appliances in the town of

Piatra Neamt was empty. So he started to import second-hand television sets from Switzerland. In 1993 he opened the first Altex store in Piatra Neamt and the sales it posted convinced the owner to open shops in other towns as well. The market across the entire country was lacking electronics and electric appliances, with most of what was available being made in Romania. And the waiting period for buying an old-technology color TV was a few months.

When the market opened to imports, at first it was flooded with second-hand electronic devices. Then, step by step, stores started to bring new products, usually cheap

Dan Ostahie, Altex

and low-tech, then better and better devices.

It was also a time when customer purchasing power was very low. Today one can buy a

economy, which was lurching from one crisis

created the Altex Group, which included the

decent quality TV set with the equivalent of

to another, and ended only in 2000 when

Altex store network, the 8TIM logistics and

half of the minimum wage; in the 1990s one

things managed to get back on track. Inflation

transport company, and Italromtex, a whole-

would have to take out a credit line for the

reached 150 percent and interest rates were

sale distribution and sales firm. One year

same thing.

up to 140 percent. “I was on a trip outside

later, in 2001, Altex opened 22 new stores and

the country when employees from the Piatra

reached a turnover of USD 20 million. Focus-

ics. Between 1994 and 1997, Altex opened a

Neamt store called because everybody was

ing on medium-sized stores, the company

chain of 50 stores in all the major cities of the

closing their stores,” said Ostahie, who

was expanding rapidly and in 2002 reached a

country. And so did the competition, like the

decided back then that his stores would

total of 62 branches, while revenues rose to

Mondo retail chain, later taken over by Cosmo

continue to trade. But the crisis eventually

USD 25 million.

and then by Flanco, and Domo, firstly named

forced Altex to close more than half of its 60

Interexpo. Altex managed to become the dis-

stores and lay people off. Between 1997 and

economy was booming and consumer confi-

tributor for brands like Whirlpool and Indesit

1999 the company restructured; at the time it

dence was sky-high. In 2003, Altex became

and expanded the portfolio of products sold.

was active in retail sales, wholesale, transport

the biggest national chain-store of electronics

and service.

and house appliances, with sales of USD 136

But people were eager for new electron-

The first step back for the business was in 1996, when inflation hit the Romanian currency hard. It was a big blow for the entire

In 2000, just as the economy was starting to grow, Altex outsourced its services and

Sales exploded in the next five years as the

million.

It was the era of “ID credit”, the financing

www.business-review.eu Business Review | October 2018

COMPANIES 27

9.9 million in 2007 and RON 50.1 million in 2008. When the next crisis hit the economy, in 2008, turnover was a record for the time, at RON 1.26 billion, only to fall to RON 760.4 million in 2009.

The retail business is not an easy one, especially considering the low profit margins.

One of the firm’s main competitors, Flanco, had a network of 64 Flanco stores and 21 Flanco World stores in 2008. But its debts to the banks sent it into insolvency in 2009, and it was revived only after it was bought by Asesoft (and later by Iulian Stanciu). Today, the company has 124 stores, mainly small and medium size and in small and medium towns.

Another competitor, Domo, which opened in 1994, managed to stay afloat until 2007 when it was taken over by the private equity fund Equest Investment Balkans. But it didn’t

Media Galaxy

find success afterwards, and today exists only in the form of a website with the name Domo.

Five Domo stores, with their entire stock, was taken over by Altex.

line that was available in stores and required

earnings of RON 3.04 million in 2002 the in-

no supporting documentation up to a certain

dicator went up to RON 32.9 million in 2003.

limit. Everybody was buying again, eager

One year later net profit was RON 27.6 million

to sell part of the business, and was not in

to sample the luxury of a washing machine,

and in 2005 RON 22.1 million. Subsequent

danger of entering insolvency, even after

a bigger TV set or the first air-conditioning

expansion sent the company into the red,

the setback of 2009. One year later, after

unit. It is funny that, in 2018, people are talk-

with losses of RON 14.1 million in 2006, RON

another restructuring of the business and the

Altex was the only one that didn’t have

ing about the return of “ID credit”, but today a buyer’s financial situation can be checked in minutes through the Fiscal Authority (ANAF) database. The “ID credit” era will never return, Ostahie said back in 2009.

THE NEXT CRISIS Altex wanted to try the model of the big brands from developed countries and launched Media Galaxy, a brand that was supposed to be a big store specialized in electronics and household appliances. The first branch was opened inside Unirii Store in Bucharest, but it was not as successful as expected. The unit in Unirii remained the biggest in the Altex network until 2009, when it was closed.

The company’s revenues were rising fast, from RON 114.3 million in 2002 to RON 433.8 million in 2003, RON 594.1 million in 2004 and RON 993.7 million in 2005. The first year when Altex reached RON 1 billion was 2007, posting RON 1.05 billion. The net profit had pretty much the same trajectory. After net

Altex in Iulius Mall in Cluj

www.business-review.eu Business Review | October 2018

28 COMPANIES

re-evaluation of stores (some were closed and

Milestones:

others were opened), the company, renamed Altex Romania, had a turnover of RON 811.01 million and net profit of RON 16.5 million.

“We were lucky to be a part of the European Union. If we hadn’t been, it would have been much worse,” said Ostahie of the crisis.

2010 was the year when recovery started for Altex, a couple of years before the economy as a whole. After a turnover of RON 882.7 million in 2011, revenues jumped to RON 1.13 billion in 2012. After closing 2015 with RON 1.96 billion and net profit of RON 16.4 million,

1992: The first Altex store is opened in Piatra Neamt.

1997: The company has a 50-store retail chain.

1999: Due to the economic crisis that started in 1996, Altex restructures its activities and closes inefficient stores.

2000: The company is outsourcing services and creates the Altex Group, including logistics, transport, distribution and wholesale.

2002: The retail chain reaches 62 stores.

2003: Altex becomes the leader in the electro-retail sector with the biggest network of stores.

2004: The Media Galaxy brand is launched and the first store is opened in Unirii Shopping Center.

2007: With revenues of EUR 317 million, the company consolidates its leader position and changes its name to Altex Romania.

2009: The company is hit by the crisis and closes 49 Altex and 15 Media Galaxy stores.

2010: The first HP store opens, the first in Europe for the American company.

2017: The company’s turnover reaches RON 3.28 billion as it continues growing.

the company’s business jumped to RON 2.75 billion in revenues and RON 39.7 million in net profit. It had to reduce its social capital by

Sales in the electro-retail sector have

bank for another three years. To be eligible,

RON 3.01 million to cover losses during the

grown in recent years due to the increased

customers must be aged between 18 and

crisis, but the numbers remained positive.

wages and pensions. The trend to buy

75, with minimum income of RON 800 for

products of better quality translates into

employees and RON 510 for retirees. While it

BLACK FRIDAY

bigger prices. According to GfK Consumer

looks like “ID credit”, the 20 minute response

In 2011, online retailer eMag, a competitor of

data, in the first half of 2018, the market for

time means that officers check the financial

Altex, launched Black Friday, an American

household appliances went up by 8.4 percent

situation of the customer via ANAF.

promotion that takes place in November. It

compared to the first half of 2017, while the

is not done the same as it is in the USA, but

value of the typical shopping cart rose by

with 4,000 employees and still goes by the

it has managed to create a customer craze

4.6 percent. The frequency of buying also

pledge “twice the difference” if a customer

for discounts. All shops have adopted this

climbed by 3.7 percent and the volume of

finds the same product cheaper in another

way of selling and have different campaigns

products by 4.3 percent.

store. Considering that the Ministry of Envi-

throughout the year. Altex took “Black

Altex has a fully digital platform for

Today, the company has around 100 stores

ronment will soon start a “Rabla” program for

Friday” a step further, and instead of keeping

financing consumers, developed with TBI

household appliances, a voucher system for

up the campaign for a day or a weekend, it

Credit, and also has a Credex, through which

those who replace an old device with a new

runs it for the entire month. “Black Friday

it offers credit in stores, in partnership with

one, electronics sales will continue to climb.

is the most important event for discounts

UniCredit Consumer Financing. In 2018, the

Which is good news for Altex and its competi-

over the year so we wanted to let custom-

company extended its partnership with the

tors.

ers choose according to their needs, not to buy on impulse,” said Ostahie, adding that a prolonged “Black Friday” is to the advantage of the customers.

Altex and Media Galaxy organize four discount events over the year, for each season.

While the last quarter records the highest sales, the discount events account for over 50 percent of the year’s sales. eMag managed to become marker leader in electro-retail sales in 2017, when the online seller’s revenues reached RON 3.309 billion, while Altex sales were at RON 3.283 billion. eMag, controlled by the Naspers group from South Africa, grew after it took over the online shop Fashion.ro and it is worth noting that the revenues that the company has in other countries. This means that Altex, while being the biggest offline retail chain, still has the highest turnover.

Altex, a store that looks like a wholesale

www.business-review.eu Business Review | October 2018

30 SUSTAINABILITY

Biodeck: nothing is lost and everything is reused Bio. Plates and bowls, cutlery, cups and lids, straws, bags. Is it possible to transform plastic into a sustainable and environmentally friendly object? Tudor Georgescu, Biodeck’s managing partner, says yes, in an attempt to change the packaging industry and culture.

By Oana Vasiliu by-products and renewable resources. The production process is more environmentally friendly than the plastic one, having 30 to 85 percent lower carbon emissions, depending on the product. In composting facilities the products break down in three to six months and what results is the compost, which is very nutritious for the soil. The products respect the principles of the circular economy, where nothing is lost and everything is reused, and where things are done with great respect for the environment.

O

In your presentation, you wrote, “We plan to provide packaging that comes from responsible and renewable sources.” What are those sources?

The majority of our products are made n a hot June day in the capital, melt-

to break down and how environmentally

from rapidly renewable resources such as

ing under the sun, I took a coffee-

friendly it is. It can take plastic, depending

sugarcane pulp or cornstarch. After the

to-go in packaging on which was

on the product, from years to thousands of

extraction of juices from sugarcane, the fiber

years to break down.

that remains is called bagasse and is used in

written 100% bio. I said to myself, “That’s impossible,” and investigated the situation.

A compostable product, however, is

order to make our products. Normally this is

What I found was that a Romanian company

automatically biodegradable. Compostable

a residual ingredient and would get thrown

has challenged itself to offer a sustainable

goods are organic matter that breaks down

away, but it can also be used in a more effi-

alternative to single-use plastic and foam,

to become a pile of nutrient-rich soil. By

cient and environmentally friendly way. For

using a system where nothing is lost and ev-

respecting conditions such as storage and

example, one of the big problems at a global

erything is reused. And now it is conquering

temperature, the decomposition process

level is coffee cups that can’t be recycled.

the Romanian markets, step by step.

does not usually last more than 12 weeks.

The common misconception is that they are

To be certified-compostable, a product goes

made of cardboard and they can be, but the

Let’s start at the beginning. What is a biodegradable product?

through various tests, the most common

problem is that they are lined with plastic.

being EN13432. All Biodeck products are

Our coffee cup lining is made of bioplastic,

A material is considered biodegradable if it

independently certified and respect the

made from plants, not oil, and can be easily

breaks down under the activity of microor-

worldwide standards for compostability.

composted, even with coffee stains on it.

Can you name a few of your clients and your best selling products?

this includes a wide range of products for

You aim to find a sustainable alternative to single-use plastic and foam. Can you explain the new technology on which you based these Biodeck products?

which the decomposition stages are harmful

This category of products is part of the so-

are checkout bags (starting from 1 July the

and not time-defined. Plastic is biodegrad-

called bioplastics category. This means they

plastic ones are forbidden), bin liners and

able too. The question is how long it takes

are made of biomass resources, agricultural

coffee cups.

ganisms. Usually, the timeframe needed for biodegrading must be specified but this is often left aside. Advertising a product as being just biodegradable is misleading because

Carrefour, Dedeman, and Mercato Comunale are some of our clients. Our bestsellers

www.business-review.eu Business Review | October 2018

ADVERTORIAL 31

How to grow Tomorrow’s Forest in five easy steps WHO? The Association of Forest Administrators, the Stefan cel Mare University in Suceava and Holzindustrie Schweighofer Romania.

WHAT? A multiannual project that aims at planting one million seedlings over a five years period.

WHERE? In Romania, on private forest land whose owners applied to take part in the project.

WHEN? The project started in 2017 and will continue through 2024, with five years of planting and three years of maintenance works

WHY? Wood is a renewable resource and, often enough, forest regeneration takes place naturally, without the need of any external intervention.

However, when this is not possible, the owner is legally compelled to carry out reforestation activities.

There are, nevertheless, cases when they cannot cover the costs, either because they have not harvested any wood, or because they were given back areas with regeneration difficulties.

The Tomorrow’s Forest project comes to meet the needs of private owners to regenerate their forests.

Romania’s Association of Forest Administra-

plots of forest land who had serious reforesta-

controls, and Tomorrow’s Forest’s plus is

tors joined forces with the Stefan cel Mare

tion problems and, because the Forest Districts

that it does not only plant seedlings, but also

University in Suceava and Austrian-based

could not finance them through the special

performs follow-up and maintenance works,

Holzindustrie Schweighofer last year, under

regeneration fund, have found the only viable

argues Palaghianu. “The first control is done

the brand name Tomorrow’s Forest (Pădurea

chance in Tomorrow’s Forest.”

1-2 months after a planting, followed by an

de mâine).

The project, which is financed to the tune

Adds Tomorrow’s Forest project manager Ionut Apostol: “Once we finished the planting

annual control in the following 2 years, to apply course corrections, if needed.”

of one million Euro, aims to help private

session in spring we started checking the new

forest owners who have a hard time covering

reforestation applications, and we’re talking

of applications, as it has gained visibility lo-

reforestation expenses. Since it first started,

about over 15 areas in 7 counties. One thing is

cally. The initial plan was to plant an average

in September 2017, Tomorrow’s Forest has

clear, there are plenty of forest land plots with

of 200 – 250,000 seedlings per year, but the

helped eight such owners regenerate their

serious regeneration difficulties. Cases range

number can grow, depending on the needs of

forest land, with 163,880 seedlings being

from small properties that have been hit by

the applicants and the eligibility criteria.

planted on almost 40 hectares of land.

various calamities ten years ago, to hundreds of

The project sees an increasing number

“The Tomorrow’s Forest project proves

hectares damaged by wind in a single storm last

our commitment to a responsible manage-

from the University of Suceava and eligibility

year. The majority of the areas in our project are

ment of forests in Romania,” says Apostol.

criteria include being a small owner, without

hard to reach, with extreme work conditions and

“Through our actions we want to improve

any ownership problems and under an ad-

it’s impossible to get the job done with volun-

the life of local communities and generate

ministration contract with a Forest District,

teers’ mobilisation. A major problem at Forest

quality educational content to help shape

either private or state-owned. “We have

Districts everywhere, as a matter of fact, is find-

the next generation, teaching respect and

evaluated a large volume of applications,

ing seasonal workers for reforestation and other

love for nature and its richness.”

from small owners which had not met other

types of forest work.”

Applications are evaluated by specialists

forms of financing,” says Ciprian Palaghianu,

There are few other initiatives in Romania

You can always contact us at contact@

Ph.D., project director from the Stefan cel

that cover such a large volume of planting, they

padureademaine.ro and you can follow our

Mare University of Suceava. “These were

mainly cover small surfaces, without additional

activity on Facebook or YouTube.

www.business-review.eu Business Review | October 2018

32 SUSTAINABILTY

Rubbish laws: players question waste industry’s readiness for new targets New legislation on recycling and waste management is bringing a lot of changes for companies involved in the process. FEPRA International, a responsibility transfer organization, organized a seminar for partners in order to explain the changes and what the main actors in the industry must do.

By Aurel Dragan

T

he new requirements for packaging waste management bring changes that will have a major impact on all retail-

ers, suppliers, distributors and manufacturers. Among the main requirements of the law is that 65 percent of waste must be exploited and 60 percent recycled. The numbers are 70 percent for paper and cardboard, 45 percent of plastics, 65 percent of glass, 70 percent of steel, 30 percent of aluminum and 50 percent of wood.

“By stressing the economic instrument of ‘extended producer responsibility’, the new Emergency Ordinance (OUG) 74/2018, amending Law 211/2011 on waste management and Law 249/2015 on packaging and

Ionut Georgescu, president of the board at Fepra International, explaining that it will not be easy to change all the contracts by the end of November this year

packaging waste (PPW) management creates several challenges for companies introducing

collection of returnable packaging waste and

‘service-guilty’ in this area, so if the legisla-

PPW on to the Romanian market,” Gheorghita

for the reimbursement of guarantees for the

tion is clearer and the responsibilities are

Diaconu, director of environmental services at

related packaging waste. The amount set for

shared correctly, we will have results as well.

KPMG, told Business Review.

the guarantee related to primary packaging is

At present we do not have coherent legisla-

RON 0.5 /package,” says Diaconu.

tion, we only have obligations and others only

“The most important of the proposed legal changes that will come into force starting 2019

From January 2020, all companies that put

rights,” Gabriel Moiceanu, president of the

will lead to additional costs for producers,

packaged products onto the Romanian market

Federation of Intercommunity Development

while companies using returnable packaging

must also use at least 5 percent reusable

Associations (FADI), told Business Review.

will be required to organize their collection

packaging, but not less than the average of

from the final users so that they take back a

reusable packages used in 2018-2019. And this

unaware, and the integrated waste manage-

minimum of 90 percent of related packag-

percentage will increase annually by 5 points

ment system does not seem to find a balance.

ing waste. Also, entities which manage the

until 2025. “This requirement will create real

Environmental legislation is not in line with

process of reaching the recovery and recycling

challenges for entities which cannot use reus-

tax provisions, public service law (L 51, L

targets for PPW by themselves will only be

able packages for their products. Apart from

201) and funding memoranda for this area,

permitted to manage their own packaging

the possibility to use this type of packaging

so we have a lot to do. Regarding the changes

waste. This will create difficulties in organiz-

for secondary and transport packages (e.g.

imposed in the legislation by Government

ing a collection network. If, during 2019, these

wood pallets), it will be difficult to reach this

Emergency Ordinance 74/2018, I can antici-

companies fail to achieve the legal, they will

rising target,” adds Diaconu.

pate that many measures cannot be applied

be required to transfer this obligation to an-

“We find that there are partitions left are

by the established dates, firstly as we do not

other entity which is authorized to take over

UNCLEAR LEGISLATION

have many implementing rules and a transi-

these responsibilities. Also, any point of sale

Not only are the requirements challenging

tion period after the entry into force of these

with a surface area of more than 400 sqm will

for the entities, but the legislation is rather

rules is definitely necessary,” says Moiceanu.

be required to organize special places for the

unclear. “Administrative units are usually

January 1, 2019, seems unrealistic also

www.business-review.eu Business Review | October 2018

SUSTAINABILITY 33

will rise significantly, bearing in mind the efforts which will be needed to increase the quantity of recovered/recycled packaging waste,” says Diaconu.

It is clear that the role FADI plays between municipalities, producers, collectors etc. will grow in the future. “FADI acts as a professional association on behalf of the members to harmonize and complement the legislation in this area, and in this respect makes proposals to amend the legislation, participate actively in the working groups as well as in the specialized committees of the two chambers,” says Moiceanu, noting that it also provides Gheorghita Diaconu, director of environmental services at KPMG, talking about the changes in the new law

a communication platform to disseminate examples of good practice.

Just as important is the OTR (Responsibil-

from the financial and contractual point of

contractual responsibilities,” says Moiceanu.

ity Transfer Organization), where FEPRA is

view, since many things need to be imple-

“The situation is currently unclear, as it

active. It has a market share of 32 percent of

mented in a short time. “Previous experience

was before this legislative change. Paradoxi-

the OTR industry and 20 employees. In the

has taught us that we do not do well at apply-

cally, in September, the carton, plastic and

first half of this year it managed to report

ing major changes in a very short timeframe,”

glass targets were reached for 2018, and in this

over 133 million kg of which 73 million kg was

says Diaconu. Or as Ionut Georgescu, presi-

context I consider that the recycling percent-

recycled and nearly 7 million kg harnessed.

dent of the board at Fepra International, puts

age for the packaging in the municipal frac-

it, it is not easy to change all the contracts by

tion exceeds 40 percent,” says the president of

one for each of Romania’s development

the end of November this year, paperwork

FADI of the municipal waste situation.

regions, allows the application of the “pay for

that would have to be done by all the actors

The same cannot be said about the private

The Regional Waste Management Plans,

what you waste/consume” principle by local

in the industry, including the 9,000 collectors

sector and future targets. “Taking into ac-

public authorities and introduces phased

around the country.

count the current status of the waste manage-

obligations on the level of readiness for

ment process and the shortfall in Romania’s

re-use, recycling and other material capital-

MENTALITY CHANGE REQUIRED

performance when measured against the

ization. Waste producers and waste holders

The change in how we use waste and packag-

targets set by European Directives, it will be

are required to separately collect at least the

ing must start with our way of looking at it.

difficult to achieve the new goals. Pressure on

following categories of waste: paper, metal,

“Firstly, there is a need for a change of men-

producers, and on the organizations taking

plastic and glass, in order to ensure a high

tality among all actors involved, including

over the extended responsibility for them,

degree of recovery.

consumers. All of us need to understand that the responsibility for efficient waste management is collective, and everyone should have a clear role in achieving real progress. This will help Romania to move up from last place in the EU for recycling rates. Improved awareness and investment in separate collection infrastructure for waste are crucial,” comments Diaconu.

And the problems at the municipal level are also found in the field of reporting what and how much we recycle. “Reporting is poor and inconclusive for a correct analysis of the situation in Romania. There are many recyclable quantities that do not appear in local government reports, although they were collected from that administrative area by different collectors, other than those with

Gabriel Moiceanu, president of the Federation of Intercommunity Development Associations (FADI) talking about recycling

www.business-review.eu Business Review | October 2018

34 HUMAN RESOURCES

How a start-up can attract and retain its talents Like any other firm, regardless of sector or size, a start-up needs a clear business strategy, with specific goals and targets. Along with that, a human resources strategy is mandatory, although many would argue that it is premature to implement it in a company’s early stages.

By Anda Sebesi Plus, they will never promote their business before launching on a specific market because many of the businesses have a long tradition on other countries or regional markets. “Yet large companies attract potential employees through what they do differently on the market and use social media intensively by implementing creative recruitment campaigns. For example, LinkedIn has become extremely popular among such companies,” adds Bradea.

Today, a jobseeker will no longer be interested in a common recruitment posting, be it an entrepreneurial company or a multinational one. He or she is well prepared and informed and will decide to go or not for a job interview, based on the quality of the recruitment advert – the so-called ghosting phenomenon.

According to Bradea, along with the Sorina Bradea, Thomas International Romania

P

financial incentive challenge, start-ups also face the problem of the diversity of respon-

undits say that at present, many

of each individual and of the working teams.

sibilities of a position. In general, in a small

Romanian start-ups ignore the im-

“To speak of an HR strategy an entrepreneur

company an employee is responsible for

portance of a clear approach to their

should know from the start what is the orga-

suppliers, customer care and a mix of other

human resources. “There are few start-ups

nizational culture he or she intends to imple-

executive tasks, all at the same time. “Small

now which embed a HR strategy in their

ment within his company, set the structure

companies need an employee to be a mix of

business plan. More and more entrepreneurs

of his or her workforce based on skills and

flexibility and specialization, which is very

set medium-term targets, objectives and

behaviours, define a plan for compensations

difficult to find on the labour market,” adds

activities, but there are few who think of

and benefits and set a performance manage-

the representative of Thomas International.

the people they need, where they will find

ment system,” adds the representative of

Sketching an employee of a small company,

them and what they will do with them once

Thomas International Romania.

Bradea would say that he or she should be

they are part of the firm,” says Sorina Bradea,

While some HR tactics to attract candi-

hands-on, dedicated, loyal, creative, disci-

partner at Thomas International Romania and

dates are similar to those implemented by

plined, tenacious, specialist, flexible, honest,

entrepreneur.

larger companies, others are significantly dif-

talented, determined, active and proactive under the supervision of the entrepreneur.

In her opinion, the HR strategy of a

ferent in the case of a start-up. For example,

start-up should anticipate the long-term

large companies will never make use of the

behaviour within the company, considering

image of their founder to attract employees

its culture and different contextual develop-

and will not promote their vacancies through

HOW CAN START-UPS INCENTIVE THEIR EMPLOYEES?

ments: attitudes, values system, ambitions

their network of personal acquaintances.

According to Bradea, at a start-up, incentives

www.business-review.eu Business Review | October 2018

are often offered on a discretionary basis so the entrepreneur decides to whom and what is the incentive.

“It is an ongoing surprise. But the most important thing when it comes to incentives is not what you give but to give what you promised to give! An employee is sensitive to unsettled promises,” says Bradea. Gym subscriptions, health insurance, online library and library subscriptions, access to retraining programs, bonuses for innovation and creativity, different incentives depending on their results and performances, access to different specialized magazines, in-kind benefits like fruit or vegetables delivered to the office and shopping cards are some of the

HUMAN RESOURCES 35

How can start-ups attract and retain employees The main crucial challenge that start-ups face is that no one knows anything about them. This can be both a positive aspect – at least there is no negative information about their corporate culture – and a negative one – they are not attractive to their potential employees. But what should they do?

With a well-known entrepreneur – he or she could use their image instead of promoting the position.

If the entrepreneur is not a public person – there are many other ways, with the following being the most relevant: To promote the business before setting it up or looking for personnel, making use of what differentiates it from the crowd and the sector in which it operates; To use social media intensively; To use his or her network of friends and acquaintances who can recommend him/ her honestly to potential candidates; To consult with specialists in order to post job offers/creative and attractive job offer videos. It is worth investing in this area as such adverts will attract attention; To be part of chat lists where potential candidates could be present.

incentives that start-ups could use to retain their talents.

the cumulative work of three people and had

similar both for larger companies and smaller

cumulative responsibilities,” explains Bradea.

ones. Keeping promises, a high quality of

PERSONNEL TURNOVER HITS EVERYONE

She adds that while in a large company the

management – at each hierarchical level,

“The math is simple: if a company with 1,000

tasks are redistributed until another person

including at entrepreneurial level – a clear

employees loses 10 employees each month,

fills the vacancy, in a small one the tasks are

vision and mission along with long-term ob-

its turnover is 1 percent. But if a start-up

often taken over by the entrepreneur. “And

jectives which needed to be communicated

has 10 employees and loses 1 of them, its

this is because in general, the members of the

to the employees, respecting the employee,

turnover is 10 percent. Which of the two

team are already overloaded,” she says.

encouraging initiatives and compensating

companies has a problem? For sure it is the

Because every company, regardless of its

the valuable ones, are some of the tools used

smaller one that is in trouble because the em-

size, is significantly impacted by personnel

by any organization to fight against staff

ployee who left it for another company did

turnover, the measures taken to combat it are

attrition.

www.business-review.eu Business Review | October 2018

36 CRYPTOCURRENCY

Local start-ups begin to ride the crypto trend With the combined value of the top 100 cryptocurrencies exceeding USD 210 billion on a global market with high price fluctuations, more start-ups in Romania are looking to issue their own tokens to raise financing more easily and reach a critical mass of consumers. But anyone seeking to invest in cryptocurrencies or to back a start-up issuing a token should be wary of the associated risks, say financiers and legal experts, as regulation in this field is in a nascent stage.

By Ovidiu Posirca

Some trading practices that are banned in the traditional financial system are alive on crypto exchanges

A

lready, there are more than 1,600

nesses working with cryptocurrencies and

authorities looking to take a soft approach in

listed tokens, coins, virtual and

other blockchain technologies can,” Vlad

terms of regulation.

cryptocurrencies, according to Coin-

Nistor, CEO of Coinflux, the digital currency

marketcap. Any fluctuation in the price of Bitcoin, the most expensive cryptocurrency,

exchange, told BR. According a report commissioned for the

“Of course, as with any business, current regulation applies fully whether you are developing your product using an SQL database,

continues to remain a topic in the main-

European Parliament, cryptocurrencies are

or a blockchain. If you are selling securities,

stream media, while conventional financial

a special case among digital currencies as

for example, there are securities laws and

players are also looking for business in this

their characteristics include the absence of

regulations you need to follow before you can

area.

a central counterparty, non-discriminatory

execute a public sale of shares or other finan-

public access, and security against fraudulent

cial instruments. I’ve seen little interest from

SOME COUNTRIES TAKE FIRST STEPS TO REGULATE

spending.

Romanian authorities in blockchain technol-

Nistor says that the European Union

ogy, and even less in regulating it,” he added.

“Cryptocurrencies can’t be regulated due to

has been open to blockchain, the underlin-

When talking about distributed ledger

their decentralized model. However, busi-

ing technology of Bitcoin, with European

technologies, there are still a lot of challenges

www.business-review.eu Business Review | October 2018

CRYPTOCURRENCY 37

regarding regulation from a fiscal and legal

ent’s platform will use Ethereum’s smart con-

funding raised stood at USD 6.2 billion. In the

perspective. However, we are still far from

tract mechanism to incentivize its users on

same year, the volume of IPOs reached USD

considering regulation being introduced at

a merit-based system by allocating a specific

190 billion, according to a report from EY, the

EU level, says Cosmina Simion, partner at

number of tokens for this purpose.

professional services firm.

902 ICOs tracked by TokenData, 142 failed

already issued licenses after launching its

ARE ICOS THE NEW HOLY GRAIL FOR FINANCING?

legislation in early 2018 and Malta adopted

Initial Coin Offerings (ICO) have been com-

failed after fundraising. Another 113 project

a legislative package as recently as this sum-

pared to the Initial Public Offerings (IPO) on

were dubbed “semi-failed” because their

mer.

the stock exchange by some commentators.

teams have gone off the radar or their com-

In the case of ICOs, costs are lower for the

munity disappeared. This brings the failure

carried out in closed circles, we have not seen

start-ups and the whole procedure is carried

rate to 59 percent, according to Fortune

any official attempts at regulating virtual cur-

out faster. But this doesn’t mean that the

Magazine.

rencies so far. In any event, if and when such

risks are reduced. An ICO is a sort of crowd-

materialize, we would expect them to come

funding where the company sells crypto-

chain projects are no different. The risk

from the Romanian Financial Supervisory

coins, or tokens, typically to raise money in

of investing in any start-up is significant,

Authority,” Simon told BR.

the form of other cryptocurrencies, which it

irrespective of whether you are buying actual

can then exchange for traditional currencies

shares, or tokens. Some companies prefer

to fund its operations.

ICOs because they are able to raise more

Data from Bitcoin.com show that out of

law firm NNDKP. Some states have taken the first steps to regulate this field. Gibraltar has

“In Romania, while discussions might be

Meanwhile, the report commissioned by the EP notes that some trading practices that are banned in the traditional financial system are alive on crypto exchanges.

“The lack of a clear and forcefully implemented

ICOs should be seen as highly-speculative

before raising funding, and another 276

“Nine out of 10 start-ups fail, and block-

money than using traditional funding methods, like angel investors or ven-

investments, says Inti Paolucci,

ture capital. There is also less

partner at Gapminder,

oversight over how they

the venture capital fund that has

spend their money. The

increasing uncertainty

invested in

time and effort spent

and probably prevents

a series of

raising the money is

regulatory framework is

institutional actors

Romanian

usually similar,” said

from entering the

start-ups.

Nistor.

market and providing the crypto ecosystem with additional liquidity which would eventually reduce

The lack of regula-

“For a

tion or oversight leaves

start-up, an ICO

considerable space for fraud

is a faster and easier

and schemes meant only to

way to raise funds. However,

drain money from “bona fide investors,”

volatility. However, regulatory action

in most cases it denies the entrepreneur a

against fraud and manipulation is compli-

proper view of the investors’ background and

adds Simion of NNDKP. At present, an ICO

cated by the progressive development of

investment strategy, potentially jeopardiz-

doesn’t offer the same revenue participation

decentralized exchanges,” said the report.

ing future rounds and successful exit paths.

rights as traditional equity investors and

For both investors and entrepreneurs, ICOs’

this could enhance the risk for traditional

preneurs that have issued coins for their

main advantage is the speed of the overall

investors.

start-ups in order to finance operations. For

transaction, being exponentially faster than

instance, Scienceroot, which aims to create a

traditional funding vehicles,” Paolucci told

could, from this perspective, help both

global scientific ecosystem, finished its first

BR. The venture capitalist says the uncertain-

investors and entrepreneurs in that it could

token sale this summer.

ty can be managed by investors in an ICO, but

lend more stability and trust to these invest-

opacity is rarely an acceptable parameter.

ment vehicles, which could ultimately help

Nonetheless, there are Romanian entre-

“We took this approach because we believe that everyone should be able to invest

“The anonymous structure of the transac-

“The substantive regulation of ICOs

entrepreneurs in developing business,” said

in the project and in science,” Vlad Gunther,

tions affects transparency and it could be an

the partner, underlining that regulation

co-founder of the start-up, told BR in an

attractive platform for money laundering,”

should not stifle innovation.

interview in July.

says Paolucci.

Code of Talent is another start-up plan-

The failure rate of ICOs remains high at

The EP report noted that the regulatory responses of 25 countries that saw the

ning to fund its operations by issuing its own

international level. Out of 800 ICOs com-

highest amounts of funds raised through

token. The blockchain-powered micro-learn-

pleted in 2017, only half raised more than

ICOs differed. China has banned ICOs, while

ing platform is in the pre-registration stage

USD 100,000 and only a third were able to get

Russia has a looser approach. Most of the

for its token sale that will launch in October.

listed on exchange markets, according to a

countries use existing financial law and ap-

report by IcoRating.com. The total amount of

ply it to ICOs as well.

According to its White Paper, Code of Tal-

www.business-review.eu Business Review | October 2018

38 COMMUNICATION

Crisis communication management still in its infancy Handling a communication crisis appears to remain a problem in Romania, whether it’s a political, economic, social or even media situation gone wrong. Companies need to understand that they must have a 112 call in their agenda at least to have a different, outside view of the situation from a communication/crisis expert, players say.

By Romanita Oprea CITR Group, revealed that the number of entrepreneurs that had faced an image crisis in the last year grew from 60 percent in 2016 to 68 percent in 2017. Still, most of them remain positive as 74 percent don’t believe they will face this type of problem again. The majority (60 percent) consider that at the core of their crisis were internal problems and business decisions, less social media (26 percent) or the product itself (14 percent). The study had a sample of 85 entrepreneurs in Romania, most of them having between 20 and 100 employees and businesses older than five years.

“Their level of preparation depends on their previous history and crisis episodes, how exposed they are or how much they are Ana Maria Diceanu, Brain 4 Strategy

D

willing to invest in their own communication specialists. And also, this depends on whether the company is part of a multinational group

espite all the efforts that some agen-

weak spot somewhere in the business. I think

or not. My personal experience has taught me

cies are making, trying to educate the

this is one of the main barriers in crisis man-

that companies are not ready for crisis – no

market (clients and other colleagues)

agement in Romania; it is difficult for people

more than they were in 2008, for example,

through workshops and conferences, when a

to accept that not everything is 100 percent

although they now shout ‘crisis, crisis’ or ‘we

crisis blows up it is often met by a lack of prior

okay,” said Diceanu.

have a crisis’ much more often than in the

preparation, but also a lack of knowledge of

Moreover, as Raluca Ene, managing direc-

past,” said Raluca Negrea, managing partner at MakeSense.

how the situation should be handled properly.

tor of Chapter 4 Romania, points out, the

So what steps should be taken and where does

ever changing channels spectrum has made

Romania really stand?

communication more complex than ever.

survive and successfully deal with a tough

She knows some companies that could

Companies’ audiences are now present all

crisis. These firms rely on people that she ad-

& CEO of Brain 4 Strategy, the nature of a

across these channels, and they need quick,

mires and envies in the best possible way on

crisis is that nobody can predict what, when

correct and clear information. “They have a

a professional level. Such people rarely shout

and how something bad will happen. But,

reaction back and companies have to be there

“crisis”. “Otherwise, if I check my WhatsApp I

to remain with their reputation intact, or

to answer in the next second. The transition

am afraid I’ll find ‘we have a small crisis’ or ‘I

at least minimize the damage, companies

from the unidirectional way of transmitting

will be late, I have a crisis at the office’ written

should invest resources in understanding and

information to the conversation is the biggest

in messages quite often. I sometimes have the

acknowledging the possible risks and issues

switch in the history of communication. It

impression that some people expect a crisis

they might face. “One thing is certain, a crisis

needs self-awareness, resources, and trust.

at any time, although the companies they are

will happen. Sometimes it is difficult to accept

But we are getting there at a rapid pace,” said

representing have never planned for one. I

that such things can happen, or that there is a

Ene. A GMP PR study, conducted alongside

believe that this shout of ‘crisis’ comes from a

According to Ana Maria Diceanu, founder

www.business-review.eu Business Review | October 2018

COMMUNICATION 39

Raluca Ene, Chapter 4 Romania

Raluca Negrea, MakeSense

general anxiety we all feel and because of the

if the communication partners are changed

crisis management teams. Social media guys

inexperienced people in crisis management –

like socks or chosen in a pitch where deliver-

should understand and know the difference

especially those who have been recruited in

ables related to crisis are mentioned and put

between an issue and a crisis. They need

recent years,” added Negrea.

together just as a way to check them off from

to monitor and report, and they need to

a chart,” said Negrea.

understand that when we are talking about a

How has the situation changed or evolved

crisis the communication must be one – one

in time? According to Diceanu, because we have seen an increase in the number of

CHANGE IS WITHIN US

message, one approach. “It is not nice to see

difficult situations brands find themselves

So where should the change come from then,

a hasty response on Facebook now and ten

in, crisis communication preparedness has

and what further should and could be done

minutes later a different response, a differ-

improved. The Brain 4 Strategy representative

in order to educate the market? In Raluca

ent message and even a contradiction. One

believes that even though there is still a lot to

Ene’s opionion, preparation is the key word.

other thing that needs to change is the way

be done, we see more and more companies

Companies of any size should consider

management looks at mistakes, errors. If they

investing in crisis plans, crisis management strategies and crisis communication training.

Still, the MakeSense representative believes

preparing for a crisis the same way they approach fire prevention, or natural disaster prevention: by continuous information and practice, together

tend to ignore them or rather cover them up, then employees will do the same and possible risk will not be identified/recognized on time.

Companies should encourage employees to speak up,” urged the Brain 4 Strategy representative.

that fear of a crisis is

with the right team of

more and more present.

specialists. “What we

You can identify it easily

can do more is to be the

Negrea’s opinion? There are lots of events

Where should agencies do more, in Raluca

consultants our clients

and conferences which approach the issue of

on the front line, respon-

deserve and raise the red

crisis, which create opportunities for debate

sible for communication.

flag every time a potential

and case studies. “But concrete and local

crisis situation arises, and not

examples are missing. Sometimes, we are

in almost all the people

And she thinks that the capacity to deal with and manage a crisis, the know-how and the ability

only to them, but to other similar companies, or the industry, or even at

meeting just to say we have met and we talk in order to hear ourselves more than we bring added value.

to act have decreased alongside the frequent

the level of the economy. By explaining to

personnel changes companies have seen in

them the implications of the respective situ-

Local case studies are missing, from which

the past few years, with the emergence of

ations and learning from those experiences,

the interested parties can learn how the crisis

start-ups which have less to lose and with the

we can raise more awareness of the high need

was anticipated and how the agency and the

general superficial trends we are all con-

for preparedness,” added Ene.

company prepared for it, what exactly hap-

fronted with. “Let’s be realistic here – crises

In her turn, Diceanu believes that along-

do not emerge every day. It’s difficult to face

side what has been done already, today

them if the company does not have a plan or

social media teams should be included on

pened when the crisis started and what were its effects a few years later,” added Negrea.

www.business-review.eu Business Review | October 2018

40 MARKETING

Experiential marketing jumps on technological bandwagon Technology and innovation are changing the game in advertising more and more. Consumers want more interaction and interest from their favorite brands and engagement is going to be the name of the game for a while. Experiential marketing takes it closer to them, say players. BR found out more.

By Romanita Oprea

Maia Novolan, Syscom Digital

E

Irina Mateescu, Digitalee

xperiential marketing is all about

– into the environment they still frequent the

experiences into B2B shows and changing

engagement and interaction, being

most, offline. 360° interaction is perceived as

the game”, said Mateescu. “There is also a

truly memorable in your consumers’

more personal and emotional and therefore

certain disruptiveness across all domains that

minds and hearts and building relationships.

it plays a decisive role in making someone

is putting, for example, architects or product

It’s a strategy that provides customers and

loyal to a brand and, of course, leads to an

creators in the position to talk about creativ-

prospects with an in-person experience that

increased likelihood of purchase. Also brands

ity rather than a creative director. Even the

must be unique and engaging.

can use virtual and augmented reality such

socializing part is now more experiential at

as storytelling, helping customers to connect

these types of events: we are no longer talk-

director at Syscom Digital, one of the main

with the brand while learning more about

ing about only exchanging business cards

trends is the 360° interaction between brands

specific details and view dynamic anima-

during breaks, but about using technology to

and customers which starts online and contin-

tions,” explained Novolan.

create meaningful connections with apps like

According to Maia Novolan, managing

ues offline (or vice versa). It basically means

In her turn, Irina Mateescu, partner at

Networking Tables,Whova, Bizzabo,” added Mateescu.

offering them a unique, memorable and com-

Digitalee, considers that a great trend is B2B

plete experience, to obtain a “wow” effect by

events, trade shows and different confer-

engaging them in both channels, beginning

ences. “In 2018, but also last year, I distin-

comes to experiential marketing include VR

online and continuing offline or activating

guished several new concept events with

(Virtual Reality) and AR (Augmented Reality)

them offline and having the climax online or

a huge potential to challenge the famous

experiences. Augmented Reality set-ups con-

through other digital channels.

TEDx talks (such as Unfinished, Brandminds,

sistently rank as one of the hottest attention-

Digitalium,etc). By using experiential market-

grabbers at trade shows and live events in

ing, event organizers are bringing lifestyle

2018. Marketing Dive’s introduction to AR

“The experience is not limited to online, but it is transposed – through digital devices

The latest trends to be watched when it

www.business-review.eu Business Review | October 2018

MARKETING 41

“At an interna-

ing different types of interactive shelves,

tional level a pos-

engagement booths, and interactive totems,

sible trend to watch

perfect for shopping interactivity. For events,

closely, which has

the most used activations use Kinect ap-

newly entered every-

plications, digital totems, photo-booths with

body’s vocabulary, is

specific experiential components like 360°

immersive tech-

photo-carousel with social media integra-

nology. We know

tion, VR glasses or augmented reality apps

already that online

installed on our tablet fleet – these are some

video, although

examples of customized applications that

no longer a tech

we can implement to create a truly unique

innovation in itself,

branding or shopping experience,” said Novo-

is much more well-

lan. Looking at budgets and how much clients

received by users, so

are investing in the field nowadays, Novolan

it is more and more

affirms that clients in general love experien-

used. Therefore any

tial marketing, but the problem arises when

interconnection of

measuring awareness or results. “We focus

video content with

mainly on developing activation with quan-

other tools (video

tifiable results, so clients can measure their

with voice calls, or

KPIs, but the overall awareness is often hard

interactive videos,

to measure. So clients, as they have to tick

or video personal-

the box of KPIs and numbers among their job

ized content etc),

description’s annual obligations, may choose

has become more

the easy way by putting the money into ads.”

attractive to users.

Dumitrascu appreciates that, compared

trends found that the most successful imple-

Live video streaming and immersive content

to previous years, there is clearly increasing

mentations of AR were those where the brand

amplify the brand message and spread the

interest in tackling this field and saving some

provides goggles with apps that have been

reach, and are considered ‘the cherry on the

of the budget for ‘WOW’ ideas. “However, not

customized for the event, over brands that

cake’. ‘Immersive’ is the new word most fre-

all campaigns have to include experiential

created apps for event attendees to down-

quently heard this year while I was attending

and I think here is where we have an essential

load onto their own phones. It blends digital

conferences and exhibitions in the USA,” says

role as consultants. If there’s no real need for

components into the real world, allowing

Maia Novolan.

it, we don’t have to do it. If it doesn’t translate into a really meaningful approach or doesn’t

users to interact with virtual content in the real world, while thanks to tools such as the

LOCAL VERSUS INTERNATIONAL

help make a real connection with the audi-

ARkit, many brands can extend the in-store

Still, one has to wonder how Romania is doing

ences, again, no need for it,”.

experience by building their own AR apps.

compared to Western countries. The Mc-

This interactive experience allows consumers

Cann PR representative believes that we are

experiential marketing event or campaign?

to feel more engaged with a brand, leading to

not yet at their level, but definitely moving

According to Mateescu, they are people

an increased likelihood of purchase. “End-

quickly towards understanding the essential

with a very active lifestyle, always on the

users will lead the way for advertisers and

role that experiential plays – from uplifting

go, but whose attention is very hard to keep

give an unexpected boost by showing interest

the communication towards brand love to

alive towards a brand message, and a little

and engagement with new forms of content.”

shaping authentic business models. The good

posh. ”Butterfly” people for whom being

added the Digitalee partner.

news is that, in the past few years, we’ve seen

in a certain place at a certain time means

this shift in many industries. In Novolan’s

something, but also those who consume any

& account director at McCann PR, coordina-

opinion, the intersection between digital,

kind of experience very fast. Subjects that

tor of the experiential division, thinks that

social and geo-localized marketing is unfortu-

are micro-influencers among their peers who

above all, it’s about how you use the tools to

nately not sufficiently exploited by brands in

can generate dozens of native comments on

really bring to life an idea, a brand or a vision.

Romania.

their posts without making any money out of

At the same time, Mihaela Dumitrascu, PR

Translating big data into meaningful insights,

“Nowadays, building an omni-channel

Which takes us to who is the target of an

it are also part of any experiential marketing

merging realities and technology to create

presence, especially in retail, is crucial on

audience. Tech-savvy people with a medium

memorable experiences are just a few of the

a very competitive market. The Romanian

to high income working in disruptive domain

most valuable means to build a two-way

market needs to work much more on that.

and new-generation entrepreneurs are easier

bridge between the brand and its audiences.

We have the know-how and we are produc-

to attract to such initiatives.

www.business-review.eu Business Review | October 2018

42 GOING OUT

Brewing business: the specialty coffee trade in Bucharest There is a time for the corporate path and there is a time for your own business. And both can work together. This ethos might sum up Anca Ungureanu, who is currently first VP, identity and communication director of UniCredit Bank, but also co-founder of Beans & Dots, one of Bucharest’s best spots to enjoy Berlin’s greatest coffee, The Barn. Ungureanu’s first cup of coffee came at university, when her host served her a Turkish brew. And she says it was the best thing she’d drunk until then. Her love story with The Barn Coffee bloomed years later, in Berlin. And now she has brought it to Bucharest.

By Oana Vasiliu time as the public education. A critical mass of coffee aficionados was reached and that made it possible for the second wave of expansion to happen. If you take a walk in Bucharest you will see countless new specialty coffee shops that have just opened. Even if only a few of them live up to the industry standards, their role is very important. They grow our market by drawing consumers away from mainstream coffee and initiating them into specialty coffee. (…)

The biggest challenge, like in any other industry, is the workforce. Finding the right people for the kind of hospitality we want to provide is very difficult. The second challenge is actually to consolidate the community of specialty coffee which is happening more slowly than in other countries.

How do issues of sustainability play into this evolution of the specialty coffee business?

Why a specialty coffee business as a sideline?

a great responsibility.” The idea for Beans &

First of all it comes from sourcing the coffee

Dots was born while Adelina Ivan, my partner,

and paying the right price. Protecting the

Well, because of the coffee of course, and then

and I were having a cup of specialty coffee

farmers’ communities and helping them to

because of the community that was created

with our friends at Steam Coffee shop, so as

grow in order to be able to provide the best

around it and the responsibility for keeping it

you can see the quote turned somehow into

quality beans is extremely important. For

alive that comes with it. Our idea as Beans &

reality.

us, working exclusively with The Barn Coffee Roasters for our beans meant respecting

Dots founders was not to create just another

from the very beginning all these principles

spend the whole day without getting bored.

What are the main characteristics of the specialty coffee business in Romania? And the main challenges?

As James Freeman, founder of Blue Bottle

At the beginning the specialty coffee scene in

only a matter of cost but also a responsibility

Coffee, once said: “People fall in love at cafes,

Romania was created by professionals, people

to the environment. Last but not least, taking

people have deep and important conversa-

that really knew about specialty coffee, so its

care of your people and creating an employer

tions in cafes, they meet people they might

grounds are solid and healthy. Then it had

culture for specialty coffee is important. (…)

marry or go into business with or both, so it’s

organic growth and this happened at the same

We have to give first, before asking.

specialty coffee shop, but to create a community space where people can come and

of doing business. Then using responsibly all our waste materials from water to cups is not

www.business-review.eu Business Review | October 2018

GOING OUT 43

Bucharest, a world-class specialty coffee city?

At the beginning of April, a European Coffee Trip article went viral locally after asserting, “Bucharest is becoming a world-class specialty coffee city.” And we all agreed on that, taking into consideration the coffee boom. It seems it all started back in 2013 with Origo, whose founders opened up their coffee shop and also a training center, along with a roastery. And then the others followed in their wake.

By Oana Vasiliu BOB COFFEE LAB Piața Charles de Gaulle 3 If you’re a first-time visitor, come here to enjoy the owners’ signature drinks, V60WCRC16 and WCIGSPU03 Irish; one follows Niculae’s recipe for the World Coffee Roasting Championship 2016, and the other one is the recipe Ungureanu used at the World Coffee in Good Spirits Competition 2015. Then enjoy the conversation with the baristas and order your favorite.

DOSE CAFE Calea Dorobanți 56 Bucharest scene constitutes third wave coffee

A

For Belgian flavors, Dose Cafe should be your destination, as it brings coffee from the Caffenation roastery in Antwerp. The atmosphere

ccording to European Coffee Trip sta-

baristas. For example, there is Bob Coffee

is cozy and both the baristas and owners are

tistics, Bucharest has one specialty

Lab, co-owned by Alexandru Niculae and

incredibly friendly. At weekends the place

cafe per 52,000 inhabitants, which

Paul Ungureanu, respectively the World Cof-

hosts wine & beer tasting, using local rather

is more than Berlin (1 per 67,000 inhabitants)

fee Roasting Champion 2016 and the third

than mainstream producers.

or Copenhagen (1 per 72,000 inhabitants),

placed entrant at the World Coffee in Good

with over 50 outlets serving specialty coffee.

Spirits Competition 2015, while Floriana

GUIDO COFFEE

Experts confirm that what’s happening on the

Vlaicu of Guido Coffee was the first Roma-

Mihai Eminescu 182

Bucharest scene constitutes third wave cof-

nian world finalist in the World Coffee in

This is another homegrown Romanian roast-

fee, a concept that according to The Perfect

Good Spirits Championships, among others.

ery, co-owned by Floriana Vlaicu, the first

Daily Grind means increasing coffee quality,

But most importantly, the first generation of

Romanian world finalist in the World Coffee in

more direct trade, a greater emphasis on sus-

local baristas, who came up between 2012

Good Spirits Championships. It’s a transpar-

tainability, lighter roast profiles and innova-

and 2016, are “students” of the same schools,

ent roastery: while you enjoy your espresso,

tive brewing methods. “We chase sweetness,

learnt a lot from each other, did their training

you can watch your barista roast, cup, and bag

complexity, and distinctiveness in our brews.

in the UK or in Germany to fine-tune their

the very coffee you’re sipping. From time to

And we’re happy to pay more to receive this,”

knowledge and skills and now serve us coffee

time, Guido hosts enjoyable public cuppings.

notes the publication, and we could not agree

with a bit of culture between our sips.

more. “When customers find out that coffee

ORIGO

tastes different from what they are used to,

ARTICHOKE

Lipscani 9

in a good way, they become passionate about

Calea Victoriei 45

Definitely the place to be when you start your

it. They want to try different origins, farms,

If you like Dark Arts in London, then Arti-

coffee-hunting journey in Bucharest. It has its

and infusions. They discover the third wave,”

choke is the place for you. Besides coffee,

own roastery as well, and the chatty baristas

the owners of Dose Cafe, one of the newest

they serve delicious all-day breakfasts and

can guide you through the different batches

coffee shops in Bucharest, told The Perfect

pastries. The coffee shop also functions as

of coffees from around the world, how they

Daily Grind.

a small art gallery promoting local artists.

behave with various serving methods and

Some of the exhibited works are by Arti-

info about tastes. It’s like a coffee lesson

choke’s barista illustrators.

which you don’t want to end.

And what’s more, this is a world-class specialty coffee city thanks to its incredible

www.business-review.eu Business Review | October 2018

44 EXPAT EYE

Getting cross: wrong-headed referendum tries to drag Romania backwards BR’s resident British expat ponders the forthcoming referendum, the so-called Coalition of the Family, and the changing social attitudes of young Romanians.

By Debbie Stowe

A

country on the margins of Europe. An ill advised, unnecessary referendum, allowing reactionary political forces

to drag the nation back to the dark ages. But let’s take a break from Brexit this month.

Because it’s Romania’s turn for a stupid vote, on whether to restrict the constitutional definition of marriage to a man and a woman, thereby outlawing gay unions.

As we all know, the government coffers here are overflowing, with schools, hospitals and other public infrastructure all generously funded, so there’s plenty of money left over for a EUR 35 million referendum. Oh, wait…

But the waste of money is merely the hors d’oeuvre in the banquet of wrongness that is this referendum.

Firstly, let’s look at the practicalities. The aim is to ban same-sex marriage – which

are widespread in Romania. Spend your EUR

tag boicot (boycott), Romanians are urging

35 million on that.

their compatriots not to vote, as if turnout

Fourthly, this would be a backwards move,

falls below 30 percent, the outcome is invalid.

From my view as an outsider, this re-

makes it sound as if same-sex couples can

against the prevailing European tide. Despite

currently marry here. Of course, they can’t.

the few voices still harking back to pre-1989

sistance is especially cheering as it wasn’t

Even in more progressive Western nations,

Romania, European integration has largely

always so. In my first years in Bucharest, dur-

marriage equality has only been obtained in

been a force for good here. From higher sala-

ing the early and mid-2000s, I taught English

the last five or ten years.

ries, more foreign travel, and wider consumer

at multinational companies, which brought

choice to the smoking ban, Romania’s EU

me into contact with extremely bright young

homosexuality being decriminalized to gay

journey has coincided with (and played a big

graduates. When our discussions turned to

marriage took nearly 50 years. Romania is

role in bringing about) healthier, wealthier,

social issues like race and sexuality, I was

only 17 years into that journey, and the lobby

better travelled citizens with much more (and

often saddened by what I heard.

for marriage equality is in its infancy.

better) to do, buy, see and eat.

In the UK, for example, the journey from

So the vote seeks to ban something that is

Alongside this is – or should be – the em-

While I could understand that a pensioner, who had grown up in a closed country

brace of liberal, European values: freedom,

dominated by propaganda, seldom left Ro-

equality, inclusivity. As Anca, a software de-

mania, and lacked internet access, might still

internet meme has it, the referendum was

veloper on EUR 2,000 a month, plans her next

consider homosexuality an illness, to hear a

launched by one man with five wives, and

romantic foreign mini-break on her iPhone

university-educated, polyglot 20-something

another with a mistress 30 years his junior.

while sipping a RON 13 specialty coffee, how

say so was disheartening. So it’s wonderful

Rather like Donald Trump – who’s had three

incongruous that if that mini-break happens

that today’s university-educated, polyglot

wives and cheated on every one – cheerlead-

to be with Ioana rather than Ion, this is still

20-something is more likely to be sharing pro-

ing family values in the US.

seen as something shameful.

gay, anti-coalition memes.

hardly imminent anyway.

Second is the rank hypocrisy. As an

Thirdly, even if one genuinely believes the

The referendum follows a pattern in Ro-

I hope the boycott is successful – as we EU-

nonsense that same-sex marriage imperils

mania’s recent big news stories: rotten leaders

based Brits know only too well, the fact that

the “traditional” family, the latter faces far

depress everyone by their low, self-serving

the young, educated, and open-minded vote

greater threats. Poverty, domestic violence,

schemes, and the Romanian public inspire us

against stupid things doesn’t mean stupid

children left at home by emigrant parents – all

by their spirited opposition. Under the hash

things don’t win votes.

www.business-review.eu Business Review | October 2018

RESTAURANT REVIEW 45

THE FRENCH CONNECTION >>> Le Bistro Francais, 18 Nicolae Golescu, 0756 018 393 <<<

T

hose of you who know the bars

– St Amour and Valencay – and two cow’s

in this town will doubtless have

cheeses – Epoise and Compte. OK, they were

been familiar with Galleron, the

thumb nail size portions, but what else could

have any of the mains that I have listed

you expect for RON 55?

here. I breezed past the House the next day,

most beautiful bar in the nation. It came

been plated up and brought to your table.

And now here comes the rub. You can’t

to you resplendent with marble pillars and

We passed on ‘egg with black truffles,

only to find they had all changed. Yes, it’s

ornate plaster work. It was so stunning that

comte (cheese) and foie gras’ at RON 65. For

a bit frustrating, but no matter. It goes to

everybody, upon entering for the first time,

an ice cold summer soup there was ‘tomato

prove that the House does not hang around

remarked, “What a beautiful house this

gazpacho with parmesan and asparagus

waiting for replacement ingredients once

could be.” And that was the problem, for it

foam’ at RON 55, and 50 grams of Iberico ham

the stock has been exhausted. They just

had too many rooms separating the drink-

at RON 95.

change the dish. So why have I listed all of

ers. So there was plenty of ‘wow factor’ but

But let’s get down to the mains. I had a

no ‘buzz factor’. So they closed a year ago.

generous veal fillet with green asparagus

Then along came Le Bistro who took

wrapped in an envelope of comte cheese

the above dishes? Simple. It is to illustrate how creative the House can be.

And now to the bad part. When our bill

over the premises. I marveled at the menu,

with morels in a cream wine sauce, at RON

arrived I could barely believe my eyes, for

which was totally French, but quelle hor-

125. It was perfect. Blondie dived into a slow

at the foot of the bill was a ‘guide’ advis-

reur, they told me the chef was Romanian.

cooked lamb at RON 120, with a smoked egg-

ing you on how much to tip. It beggars

Surely the wheels of his plane must have

plant puree plus a pea puree, together with

belief that the House could be so vulgar

kissed French tarmac in order to produce

a hot bean salad with harissa on the side.

as to ask for a tip, but this offensive note

such an authentic menu. But my fears were

Harissa is a hot chili dip emanating from Tu-

recommended that you should give 10

assuaged when they told me they have a

nisia and it should be blistering hot. But no, it

percent for a bill of RON 360 or less, and for

French Executive Chef, who comes and

was dumbed down to the weak standards of

a larger bill, you should pay 15 percent. Do

goes and designs the menus after training

Romanian taste.

they expect you to believe that if you have

the staff before jetting off to France.

It is anything but a humble bistro; rather

I wished I had indulged myself in their ‘pork belly with chorizo foam, lemongrass

ordered more expensive dishes, the staff have worked harder for you?

it is a hugely upmarket Brasserie, which is

and crushed pine nuts’ at RON 115. I also

‘reassuringly expensive’. Away to the start-

missed out on baked fish in a salt crust, and

avarice served to remind me that I was

ers, and no self-respecting French chop-

their ‘John Dory fish with squid, artichoke

in greedy Bucharest, and not in tranquil

house would be without its cheese board.

puree and rich garlic sauce’ at RON 125.

France.

And what a wonderful selection there was: Blue Stilton, Roquefort, two goat’s cheeses

All of these ingredient listings belie how attractive the dishes are when they have

This craven example of shameless

Michael Barclay Mab.media@dnt.ro

www.business-review.eu Business Review | October 2018

46 CITY

Cultural calendar

By Oana Vasiliu

at the Venice International Film Festival.

National Theatre Festival October 19-29, several locations

Some 36 performances will be staged during the National Theatre Festival Romania 2018 – mostly in Bucharest, Targu Mures, Sfantu Gheorghe, Cluj-

Damien Rice concert October 2, National Opera Bucharest

Les Films de Cannes à Bucarest October 19-28, Cinema PRO, Cinema Elvire Popescu, Cinema Muzeul Țăranului, Cinemateca Union

Irish singer-songwriter Damien Rice will perform a sold-out con-

Napoca and Timisoara. The organizers are dedicating the 28th edition of the festival to theatre director Catalina Buzoianu, a notable cultural figure whose artistic projects and theatrical

cert in Bucharest. The Dubliner

teaching and staging have deeply

is known in large part for his

influenced Romanian theater

musical contribution to film and

over the last 50 years.

television: his song 9 crimes was featured on the animated film

The Cat Empire concert October 31, Arenele Romane

Shrek, The Blower’s Daughter was used on the soundtrack of

pop-up museum that will travel

the 2004 romantic drama Closer,

without return to big offices and

while Delicate accompanied TV

workplaces following its launch

Local audiences will be able to

show Lost.

in the framework of Noaptea

see the much-awaited Cold War,

Albă a Galeriilor (NAG). George

from Pawel Pawlikowski, win-

folk music under his label Heffa.

Vasilescu, Claudiu Cobilanschi,

ner of the Best Director award

A philanthropist, he recorded

Simona Constantin, Suzana

at Cannes; Ayka, from Sergey

Australian ska and jazz band The

songs to support the Dalai Lama

Dan, Cosmin Filișan, and Soker.

Dvortsevoy, awarded for Best

Cat Empire returns to Bucharest

on the album Songs for Tibet:

es are the selected artists that

Actress for Samal Yeslyamova;

this autumn. Formed in 1999, it

The Art of Peace.

collaborated with the Rahova-

Dogman, from Matteo Garrone,

has six members, namely Felix

Uranus community, MNAC

winner of the Best Actor award

Riebl (vocals, percussions), Harry

Bucharest’s neighbors, as well as

for Marcello Fonte; and 3 Faces,

James Angus (vocals, trumpet),

with residents of Aleea Livezilor

from Jafar Panahi, awarded (ex-

Will Hull-Brown (drums), Jam-

(Ferentari), to create four works

aequo) for Best Screenplay. Guest

shid “Jumps” Khadiwhala (decks,

Rice also produces indie and

White Night of Galleries October 5, National Museum of Contemporary Arts

that bring together two opposing

of honor at the ninth edition of

percussion), Ollie McGill (key-

MNAC Bucharest curates an

worlds, marginalized communi-

the festival is Mexican director

board, backing vocals), and Ryan

itinerant visual art exhibition

ties and young professionals

Carlos Reygadas, who world pre-

Monro (bass, backing vocals).

on inequality in life chances and

working in big towers. Access is

miered his latest film Our Time/

Early bird tickets at RON 85 are

ethnic differences, a nomadic

free of charge.

Nuestro Tiempo in competition

still available.