www.business-review.eu Business Review | September 2019
EDITORIAL 3 REAL ESTATE
• Editorial •
Anda Sebesi
6 Real estate investments still
• Editor-in-Chief •
high with rising interest in industrial space
8 Turning over a new leaf: Mixed real estate projects get gardens
COVER STORY
A
Keeping the potential at high levels
10 5G will boost the digitization and transformation of Romania
lthough Romania has made significant steps forward in
ENTREPRENEURSHIP
the past few decades, it still has many challenges on its plate: from corruption to poor infrastructure and the
incoherent policies of the current government. Nevertheless, the local business environment has maintained course, proving that Romania is still attractive to foreign investors and provides opportunities for large deals. Indeed, commentators say that over recent years, Romania
24 Local entrepreneurs showing interest in AI development over global growth
has become one of Central and Eastern Europe’s most attractive
FINTECH
regions in which to start operations. According to research by JLL, by the end of 2020 the country is expected to be the second largest economy in CEE and it continues to catch the attention of investors from all over the world – not only from Europe, but also South
26 Banks and fintechs facing
Africa, the USA and China.
cooperation challenge on local market
This is why Business Review decided to dedicate a special cover story to the acquisition of UPC Romania by Vodafone Romania, one
CITY
of the largest deals in the country in recent years. The move is part of a global transaction between Vodafone Group and Liberty Global which concluded with the sale of operations in Germany, Hungary, Romania and the Czech Republic to Vodafone. But despite such headline-grabbing deals, pundits are warning that Romania may face a severe crisis as government policies and economic vulnerabilities weaken its perspectives over the medium term. With this in mind, the sustainable development of the local economy should be a top priority for our political leaders, who need to join forces to transform the economic challenges into real business opportunities.
38 New notes: Music of the XXI century
44 Expat eye 45 Restaurant review 46 Cultural calendar
EDITORS-IN-CHIEF: Anda Sebesi, Sorin Melenciuc JOURNALISTS: Anca Alexe, Aurel Dragan, Romanita Oprea, Oana Vasiliu CONTRIBUTOR: Ovidiu Posirca COPY EDITOR: Debbie Stowe PHOTO EDITOR: Mihai Constantineanu PHOTOS: Dreamstime 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 SALES MANAGERS: Radu Fireteanu, Alexandra Rosca EVENTS MANAGERS: Mara Dragoiu EVENTS & MARKETING MANAGER: Luiza Luca PRODUCTION: Dan Mitroi DISTRIBUTION: Eugen Musat EXECUTIVE DIRECTOR: George Moise GENERAL MANAGER: Catalin Alistari USA MANAGER: Oana Molodoi FOUNDING EDITOR: Bill Avery EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu SUBSCRIPTIONS on Manpres Distribution
Publicație auditată pe perioada Apr 2015 - Mar 2016
ISSN NO. 1453-729X
www.business-review.eu Business Review | September 2019
4 NEWS
WHO’S NEWS
2,500 warehouse will contain a high-performance automatic
BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at anca.alexe@business-review.ro
sorting and packing line. Located in Dambovita County, MerryBerry covers 100 hectares, on which the shrubs were planted over 2016-2017, meaning the site will reach an annual production of over 1,500 tons of blueberries from 2021. MerryBerry therefore has the potential to become the largest organic blueberry plantation
Carlo Pignoloni is the new country manager of Enel in Romania, replacing Georgios Stassis, who left the Enel Group to take the helm of Greece’s top utility Public Power Corporation (PPC). Pignoloni has a degree in Mechanical Engineering from the Polytechnic University of Milan. He joined Enel in 1990 and has held several positions across the company’s various business segments. Pignoloni is not new to Romania, having run Enel Green Power’s operations in the country from 2008 to 2011.
Elmar Geisler is the new general manager of Porsche Romania. Over the past seven years, he has served as general manager of several Porsche Holding subsidiaries in Central and Eastern Europe: Serbia and Montenegro, Albania, Kosovo, and Macedonia. Geisler started his career at Porsche Austria in 2000, when he worked in Audi’s marketing department. In 2003 he was appointed general manager of Stoddard Imported Cars in the United States. He returned to Europe in 2005 as regional manager of Porsche Inter Auto.
page 5
in Europe, competing with big established producers in Spain,
MerryBerry has the potential to become the largest organic blueberry plantation in Europe
OTP Bank finances largest organic blueberry farm in Romania
Poland, Germany and France. The MerryBerry plantation has modern video surveillance systems, GPS monitoring of the machines and an irrigation system that ensures fruit production regardless of the rainfall water supply. Besides irrigating the blueberry crop, this system also allows the introduction
By Aurel Dragan
of fertilizers in the irrigation OTP Bank Romania has lent
the stores in Romania, UK and
water after a predetermined
RON 10.5 million to fund the
Germany with which the com-
nutrition program, at different
construction of a refrigerated
pany has distribution contracts.
stages of crop development.
warehouse at MerryBerry,
For immediate access following
the largest organic blueberry
harvesting, the warehouse is
to reach 200 hectares planted
plantation in Romania. The
located in the middle of the Mer-
and to be a major player at
new facility is intended to keep
ryBerry plantation and will use
European level,” said Camil
the fruit in optimal conditions
the most advanced refrigeration
Perian, general manager of
for sorting and delivery to
technologies. The surface of the
MerryBerry.
“Together with OTP, we aim
Romanians, Serbs lead switch to phone-only banking By Sorin Melenciuc Romania and Serbia are the top
both their mobile and their PC/
CEE markets in which digital
Mac for digital banking.
banking usage is more likely to
“On average, six out ten CEE
take place solely via mobile than
banking customers make regular
exclusively on a PC or Mac, ac-
use of digital banking channels,
cording to an Erste Bank Group
with Serbia and Croatia being
report. However, even in these
exceptions at the low end and
countries, the largest single
the Czech Republic a standout at
consumer segment is likely to use
the high end. While year-on-year
Nearly a quarter of Romanians who used digital banking channels in the past six months did so only on mobile
www.business-review.eu Business Review | September 2019
NEWS 5
Passenger numbers in Romanian airports up 7.7 pct to 10.7 mln in H1 2019 By Sorin Melenciuc
Ignacio Jaquotot Calvo has been appointed to lead the administrative board of Intensa Sanpaolo Bank Romania, replacing Ezio Salvai, who left the role this spring after two years. Calvo is a Spanish national who has been with the Intesa group for a long time, having mostly worked for its Slovakia subsidiary, VUB Banka.
The 16 airports in Romania posted a 7.7 percent increase in passenger numbers in the first half of this year to 10.7 million, an all-time high due mainly to international flights, while domestic passenger traffic declined, according to figures released by the National Institute of Statistics (INS). Total passenger numbers at local airports increased from 9.9 million in H1 2018 to 10.7 million in H1 2019. International passenger traffic rose by 9.4 percent in H1 2019, to 9.42 million, while the
Total passenger numbers at local airports increased to 10.7 million in H1 2019
number of passengers carried Airport passenger numbers
with domestic flights dropped
Napoca International Airport,
by 3.2 percent, to 1.3 million,
with 1.3 million passengers in H1
have soared in Romania in the
official data show.
2019 (+3 percent compared to H1
last few years due to income
2018), followed by Timișoara In-
rises, cheap flights offered by
Henri Coandă International
ternational Airport (715,000, -2.3
low-cost airlines and poor road
Airport (Otopeni), controlled
percent) and Iași International
and rail infrastructure across
by the state-owned Aeroporturi
Airport (616,000, +17.6 percent).
the country. In the last couple
București company (CNAB),
In 2018, Romanian airports post-
of years, no-frills operators like
posted an 8.1 percent hike in its
ed a 7.9 percent increase in pas-
Wizz Air, Blueair and Ryanair
total passenger traffic in H1 to
senger numbers to 21.8 million, a
have entered the domestic
an all-time high of 6.8 million.
record high due to international
flights market in Romania, con-
The second airport in Romania
flights, while domestic passenger
trolled for years by state-owned
by passenger traffic is Cluj-
traffic slightly increased.
Tarom.
Romania’s biggest airport,
Gijs Klomp has been appointed head of investment properties at CBRE Romania. Klomp has over 17 years of experience in real estate and has been involved in investment transactions worth more than EUR 2 billion. In 2006, he set up ING Real Estate Investment Management in Romania, which was bought in 2011 by US company CBRE and became CBRE Global Investors. He also served as the managing director of real estate consultancy JLL Romania and later became a member of the NEPI investment team.
growth rates for overall digital channel usage are rather modest, they do show a steady uptrend,” the report indicates. That uptick is being driven by strong gains in mobile banking usage, particularly in South-Eastern Europe, where many banking customers rely solely on their mobile phones to handle their digital banking needs. Almost one in three Serbians and nearly a quarter of Romanians who used digital banking channels in the past six months did so only on mobile.
Andreea Hamza has been appointed senior director of the new living department established by real estate consultancy JLL Romania in its Bucharest office, which will provide consulting services for the residential sector. Prior to joining JLL, she worked as head of marketing and sales at Hagag Development Europe. Hamza has been involved in real estate transactions worth over EUR 250 million, in several Romanian cities.
www.business-review.eu Business Review | September 2019
6 REAL ESTATE
Real estate investments still high with rising interest in industrial space Over recent years, Romania has become one of Central and Eastern Europe’s most attractive regions in which to start operations. According to research by JLL, by the end of 2020 the country is expected to be the second largest economy in CEE and it continues to attract investors from all over the world – not only from Europe, but also South Africa, the USA and China. By Aurel Dragan
Daniel Cautis, Dunwell
I
Marian Orzu, Dunwell
n Q1 2019, Romanian GDP grew by 5.1 per-
and relatively low vacancy rates encourage
around 23,000 sqm in the second and third
cent, while it increased by 4.1 percent in
developers to start new projects, with almost
buildings of the Campus 6 complex.
2018 – double the total aggregated result
300,000 sqm expected to be delivered in
recorded in the Eurozone at the time. A well
2019,” said Mike Atwell, JLL head of capital
OFFICE SPACE CONTINUES APACE
performing market and the good condition of
markets Czech Republic and leader director
According to real estate consultancy company
the economy are also clearly evidenced by in-
CEE capital markets.
Colliers International Romania, there is a
vestment volumes on the real estate market.
The development of the BPO and SSC &
favorable perspective for the Romanian real
According to forecasts, the market investment
IT sectors has had a significant impact on
estate market that could be maintained until
volume is expected to exceed EUR 1.1 billion
demand for prime office space in Romania’s
year-end.
by the end of 2019.
capital. Last year, local stock was extended
The first half of 2019 saw deliveries of
by 148,000 sqm. Developers are continuing
some 185,000 sqm in Bucharest, taking the
diversify their portfolio of assets mainly
to work on expanding their project portfolios,
city’s modern office stock to 2.6 million sqm.
focused their attention on Warsaw, Prague
including Skanska, which is introducing a
This is an increase of over 10 percent com-
and Budapest. Of course, these locations are
new level of certification to the market –
pared to last year’s end-June stock, making
still highly attractive and provide favorable
WELL – and also currently has two office de-
Bucharest the most dynamic among CEE
conditions for investing capital; however, we
velopments under construction in Bucharest:
capitals. The biggest projects were: the new
are observing a significant increase in Roma-
Campus and Equilibrium. The quality of these
Renault headquarters (47,000 sqm), Busi-
nia’s investment importance, especially its
projects has attracted leading international
ness Garden Bucharest (over 41,000 sqm),
capital city. Bucharest is the country’s biggest
tenants, with Microsoft Romania becoming
The Mark and the third phase of Oregon
office market where attractive prime yields
an anchor tenant, having recently secured
Park (both in the 25,000 sqm area), Timpuri
“Until recently, investors aiming to
www.business-review.eu Business Review | September 2019
REAL ESTATE 7 “There is high interest in eastern Romania
Noi Square C and The Bridge II (both in the
CTP and WDP, which together made up over
20,000 sqm area). The new buildings had
half of the supply in recent months, though
and new, less popular locations, in Bucharest,
good occupancy rates at delivery (75 to 80
other players are also growing very fast,
such as the north-east of the city, near the A3
percent on average).
notably Globalworth, P3, MLP and Element
highway entrance (Bucharest – Ploiesti). We
Industrial. Deliveries could be to the tune of
also see high demand for inner city logistics
stood at 188,000 sqm in Bucharest in the
around half a million sqm by year end, taking
projects, known for their ‘last-mile delivery’
January-June period, the best first semester
the grand total to around 4.7 million sqm of
services, where products can reach their des-
figure in the post-crisis period. Still, reloca-
modern storage space by year-end. Romania
tination much faster, areas such as Preciziei,
tions from competitive stock amounted to
continues to look undersupplied relative to
Pipera, Theodor Pallady and Berceni being
86,000 sqm, while net take-up decreased
its CEE peers, but a market of 8 million sqm
the perfect location for such investments. The
to a reported 49,000 sqm. The vacancy rate
of modern warehouse space by the end of the
high interest and demand in these areas came
inched higher at around 10 percent from 9.5
next decade looks like a safe call.
with the investments in infrastructure, which
Total demand for modern office buildings
percent at end-2018 and 9 percent in June 2018, while Romania’s regional submarkets,
Market take-up more than doubled in the
made investors secure land plots for future
first semester, to just over 240,000 sqm (ver-
developments and created huge opportuni-
sus around 110,000
ties in the market. Moreover, secondary cities,
sqm in H1 2018). A
like Roman, Bacau, Iasi, Craiova and Constan-
notable transaction
ta, are at the forefront when it comes to new
saw Pirelli lease
investments,” said Daniel Cautis, managing
64,000 sqm at a WDP
partner at Dunwell.
facility in Slatina in one of the biggest
DEVELOPMENT AROUND CLUJ-NAPOCA
deals in recent years.
Cluj County has become a landmark in the
This helped cement a
region in terms of economic and real estate
strong lead for auto-
development. Recently, investors’ interest has
motive as a driver of
also extended to nearby cities, within a radius
demand, accounting
of about 50 kilometers, according to real es-
for 52 percent of the
tate consultancy CBRE Romania. A 26-hectare
reported take-up in
plot, classified as an industrial park, has been
the first semester.
put up for sale in Ocna Mures, and CBRE has
Also, according
obtained an exclusive mandate to develop the
which saw their take-up nearly double to just
to Dunwell data, in the first half of 2019, from
under 30,000 sqm, enjoy lower vacancy rates,
all industrial spaces traded more than 125,000
with Iasi’s virtually non-existent free space
sqm was contracted through agencies, the
Mures, near residential district Malinului, on
and Cluj-Napoca’s below 10 percent.
rest within direct deals made by developers
the site of the former soda factory in Ocna
retail and industrial area. The land is located in the north of Ocna
with tenants. Approximately 50 percent of
Mures, Alba county. In close proximity to
quite lively, with another 150,000 sqm set to
the total surface transacted in H1 2019 was in
the site, the latest salt bath treatment facility
come online in the second half of the year and
locations near Bucharest, 70 percent of the
is also being built and will be completed by
over 230,000 sqm in 2020. We expect vacan-
deals being done by agencies. Other highly
next year. Additionally, a recreational area is
cies to continue climbing gradually towards
transacted cities are Timisoara and Ploiesti.
scheduled to be established nearby.
“The Bucharest office market remains
13 percent, though the impact of relocations
Analyzing agencies’ data, over 80 percent
“The future project in Ocna Mures is an
is delayed as a huge chunk of the deals have
of the total surfaces traded were warehous-
investment-competitive alternative to cities
been pre-leases, some set to be finalized in
ing, the rest being production, with Dunwell
such as Turda, Cluj-Napoca and Targu Mures,
2020-2021,” said Silviu Pop, head of research
securing nearly 90 percent of the transactions
considering its location, only 8 km from the
at Colliers.
for future production units.
A10 motorway junction and about 50 km
For 2019, Dunwell estimates the traded
from Cluj-Napoca, as well as the existing
INDUSTRIAL GAINS INTEREST
volume to be similar to 2018 and to reach
infrastructure and utilities available,” said
Around 300,000 sqm of new modern storage
500,000 sqm, either through agencies, di-
Valentin Popescu, senior consultant within
space came online in the first half of 2019. Bu-
rectly with developers or both.
the land development department of CBRE
charest accounted for over 40 percent of the
When it comes to new industrial space de-
Romania.
total deliveries. Outside the capital, invest-
liveries, the total in modern projects exceeded
ments continue to be mostly geared towards
the 4 million sqm threshold in H1 2019, while
some of which CBRE Romania is negotiating
cities in the region of Transylvania, which ac-
the potential for new developments an-
with several food operators, since modern
counted for over one third of new I&L spaces.
nounced for this year is around 750,000 sqm
retail in Ocna Mures is currently poorly
The market continues to be dominated by
across the country.
developed.
The plot comprises a total area of 26 ha, for
www.business-review.eu Business Review | September 2019
8 REAL ESTATE
Turning over a new leaf: Mixed real estate projects get gardens Bringing nature closer to communities is a new trend on the local real estate market, with Iulius pioneering this approach in its projects in Timisoara, Iasi and Cluj-Napoca. By Anda Sebesi
Nature is crucial for a healthy life and Iulius brought it to its offices
A
t present, Iulius is the sole real
“A major investment was required to create
involved special infrastructure work, water-
estate developer in Romania making
our parks and they come with significant
proofing, significant quantities of fertile soil
significant investments in imple-
maintenance costs on top. But they represent
and advanced flooding systems.” In addition,
menting large green areas within its projects.
a strength of our projects,” say representa-
the company used a large number of ripening
As the major mixed projects it has developed
tives. They add that the company’s invest-
high trees of various species brought from
so far involve urban regeneration, this step
ments in this
was a natural one and also one of its major
area focused
concerns and challenges.
on green plots
According to Iulius representatives, the
created from
company has invested EUR 13.2 million so
scratch over the
far in the three parks developed as part of
underground
its projects: EUR 2.5 million (in the park at
car park. “The
Palas Iasi, inaugurated back in 2012), EUR 8.7
landscaping was
million (at Iulius Town Timisoara) and over
very complex
EUR 2 million (at Iulius Parc in Cluj-Napoca).
because it
www.business-review.eu Business Review | September May 2016 2019
COVER REALSTORY ESTATE14 9
Italian nurseries in all of its mixed projects, in order to create the impression that the gardens had always been there. “For example, over 1,400 trees were planted in Iulius Town Timisoara park,” add officials. Iulius Gardens in Iulius Town Timisoara also includes an 800 sqm lake, large areas of special lawn where people can rest as in any of the world’s major parks, a gazebo, avenues for walking, and restaurants and cafeterias. Last but not least, Iulius Gardens has a carousel for kids, produced for Iulius Town by a company with over 50 years of experience in the production of equipment for amusement The mixed projects developed by Iulius focus on people and were built for the local communities
parks.
A STRONG ANCHOR FOR COMMUNITIES According to Iulius officials, the company’s mixed projects developed in Iasi and Timisoara focus on people and were built for the local communities. They meet the challenges communities in urban areas face every day. “The green component – meaning nature – is crucial for a healthy life and we brought it to our offices. Those who work in the office buildings that we developed have the chance to take a break and spend it in the park or simply relaxing after their workday,” they say. Easing the lives of those who work or will work in the office buildings developed in Cluj-Napoca, Iasi or Timisoara was one of the main targets of the real estate developer. “They don’t have to cross the entire city to enjoy green grass or the shade of a tree. In Iulius Gardens in Iulius Town Timisoara also includes an 800 sqm lake
addition, our parks have become real anchors and represent an important attraction for the entire community any time of the week. This is due to the natural environment we created and the regular events held,” add the representatives of Iulius. For example, the park at Iulius Town will be a vibrant place that will host a wide range of events, from educational and recreational activities for kids to cultural happenings like concerts by the Philharmonic, festivals and art exhibitions, sporting competitions and themed markets. For all its parks the company worked with Italian landscapers who collaborated with Romanian teams of specialists. “At Iulius Town Timisoara, we worked with a German company to create the lake, because we wanted it
For all its parks the company worked with Italian landscapers who collaborated with Romanian teams of specialists
to be as similar as possible to a natural one,” conclude the Iulius representatives.
10 COVER STORY
www.business-review.eu Business Review | September 2019
www.business-review.eu Business Review | September 2019
COVER STORY 11
5G WILL BOOST THE DIGITIZATION AND TRANSFORMATION OF ROMANIA The implementation of 5G will help Romania to become more digital, while enabling transformation and modernization in the country, Vodafone and UPC CEO Murielle Lorilloux told Business Review. By Sorin Melenciuc
www.business-review.eu Business Review | September 2019
12 COVER STORY
Vodafone has taken over UPC Romania and entered a new market: convergent services. What does that mean for the customers of UPC?
Vodafone’s core business is mobile, but now you are entering a new market, with different competitors. How do you see the Romanian market in terms of competition?
We closed the deal on 1 August, after a long period of preparation,
There is a new market to address, but on the corporate segment,
having done a lot of work with both teams, Vodafone and UPC. So,
we were already in this market in some way through components
completion of the deal was the first priority. Now, we’re starting a
of our own network. On the corporate side, for our business cli-
new journey: being together and undertaking integration.
ents, we had already a full portfolio to offer, from mobile and fixed
From the customer’s point of view, we will continue to leverage the strengths we have on both sides, mobile and fixed, and our
to IoT services. So, on this side, I would say that it is going to be rather marginal
customers will continue to enjoy the quality of services, products
in terms of integration. On the consumer side, there will be added
and delivery that they receive today. We don’t want to rush and do
value due to a converged portfolio, and it will be for sure a great
too much disruption on that, because we are already delivering a
opportunity not only for us against the competition, but, first
good quality of services and we will continue to do so. Of course,
of all, for our customers – to have all the benefits from our side.
on the longer term, we are certainly going to leverage us being
Regarding the competition: from the first day I joined Vodafone
together by building a convergent portfolio of new benefits, new
Romania, I have always said that the competition in this country is
services and new innovations. This is an
unbelievable. It is a very tough market
ongoing process, it takes some time to
from a competitive point of view and
perfect, because we’ve just started the
this is to the benefit of the customers.
journey and we need to build it together.
Maybe the competition will change,
We had to balance when we’re going to
because all of us have our challenges,
launch the new services or new ben-
but on our side, I see many more
efits with doing it well, because, if we
opportunities. We will become, together,
had done it too fast, the results might
one of the biggest challengers among the
not have been too great and our clients
mobile & fixed players in the market and
would not be satisfied with what we are
I think that this is a really great oppor-
delivering. So, we had to prepare for it –
tunity.
there is a lot of IT and systems integration at stake. We also wished to produce meaningful services and benefits for customers and, when we are ready, we will offer these new services and products to them, which is actually going to be very soon. So, I’d say: if you are a Vodafone or UPC customer, be prepared, we will have great services and benefits to come.
Members of Generation Z are now becoming adults and are also becoming your clients. They grew up in a very technological environment – and your business is very technology-related. How are these new clients changing your business – and your market? They are the future and they are also, sometimes, the trend-set-
You described a lot of challenges for the management related to this integration. What are the main priorities you are addressing right now? At the moment we have three priorities. The first one is to pre-
ters. I think that one of the key components for them is to have the best experience. They don’t want to waste time, they want to get what they need quickly and easily. And I think this is all about digital. For over a year, I have set as
serve: we have two successful companies and we want to continue
a priority our digital transformation and the goal to become a tech
to deliver on our traditional businesses, on each component:
company, not only a telecom one. This is still moving forward in
mobile, fixed, TV and so on. So, that is our first priority, to continue
parallel with the integration with UPC. For me, digital transforma-
to deliver well to our combined customer base, on all our core
tion is not only important for the young generations to come, but
services. We also want to accelerate our growth, of course, and in
it is important for the entire Romanian society – the corporate side,
order to do so, we need to bring new benefits, new services, new
the general public, young adults and all our customers.
innovation to our customers – and this is the second priority we
That’s why this is at the top of our priorities. I could talk for
have. The third priority, and perhaps the most important one, is
an hour about digital, whether I’m talking about digital content,
to work together. We need to have the combined teams sitting and
digital gears, digital sales, digital interactions, and we have already
working together, learning about each other, understanding each
implemented a lot of IT capabilities that we needed to develop in
and every business and how to integrate them and to have the best
order to have the right applications and customer experience from
seamless customer experience. And this has definitely started from
a digital point of view. We have different teams and different tasks
day 1 of the integration. Both teams are engaged now and it will
for that; it is definitely one of our biggest priorities.
definitely take some time to discover how to build together.
www.business-review.eu Business Review | September 2019
COVER STORY 13
In many areas, from medical to tech companies, the trend is to create personalized offers for clients. How is this seen in your business?
through the right tools – digital, Big Data, AI – in order to make them
We have already started this journey, of being more relevant to each
that it is a combination of both. You will always have a percentage
and every customer, doing personalized offers for them, provid-
of your customers who will go fully digital, who think that they
ing, of course, GDPR consent, which has changed a lot the way we
don’t need so much personal interaction.
interact with our customers. But if we have the customers’ consent, we have the possibility
more and more relevant and allow them to have more time to interact rather than having too many repetitive tasks. So, I really think
But some will still need personal interaction and we should be ready to offer support to both types of customers.
to provide 7 to 10 times more personalized offers for our customer base than before, and we are continuing to make improvements. for your needs, and also Big Data and Machine Learning. Because
We are approaching a major event: the 5G auction in Romania. What will really bring large-scale 5G access to Romanian customers?
the more we personalize, the more we see the reaction of the cus-
For me, 5G is really about the future of Romania. It’s all about how
tomer base and we continue to learn.
fast it will come, how ready the full ecosystem will be and the take-
There are two things here: customization and personalized offers
We have also developed some Machine Learning, Big Data and
up of the technology for each and every individual, as happened for
Artificial Intelligence models in order
the 3G or 4G technologies in the past.
to continue to learn and improve our
In some way, there is a penetration
customization. This is something very
not only of devices, of network coverage.
important and related to digital because
We have already launched 5G services
you can have a personalized offer from
and we will be at the forefront of this
a call center agent or from a store agent,
technology, we will continue to innovate
but you can also expect this from the
on this side.
digital experience that you get through
We are doing this together with IoT,
your website or application and then you
because an urban IoT technology is also
expect eventually to have the right push.
very important; it is a success factor
So, we are learning, we are propos-
together with 5G. So, it is about the
ing more and more push, providing we
readiness of society. It is about ideas or
have customer consent, and what could
solutions that will help Romania to be
make sense for you as a customer to get
more digital. It is about having the ma-
as an offer, and then we can continue to
turity with the partners, with different
improve and to be more relevant for their
stakeholders, and of course, hopefully
needs.
the 5G auction going right to the success factors. Regarding the ideas or solutions that we can give to the cus-
Many warn that Artificial Intelligence threatens jobs. Do you think that this is correct or might we reach some kind of symbiosis between AI-performed tasks and human employees?
tomers: you have heard of lots of IoT solutions coming for a smart
This is twofold. Let’s start with the employees. Some of our employ-
doing it. Some others will be bigger with 5G coverage, and we will
ees sometimes do repetitive tasks, they want to engage more and
partner with some key corporate customers or public stakeholders
they want more power and tools to engage better with the custom-
to develop that. I can mention agriculture, utilities, transportation
ers they are interacting with.
and automotive.
So, everything is about that: proving to them that with the tool,
city, public transportation, smart homes or smart retail. Some of the solutions can be done through NarrowBand-IoT and we are already
Of course, holograms have been one of the showcases – it is
the intelligence, and the learning through digital solutions that
going to be a dream for gamers or music lovers in terms of latency
they will actually be able to pitch faster and more efficiently to the
and what they will be able to do. The tourism industry will also
customers. The idea is to empower them. Romanians will continue
be transformed through AR (augmented reality) and VR (virtual
to be Latin people and they will still want to have someone to talk
reality). They will be able to enrich their portfolios much more than
to, to be able to trust and to interact with sometimes.
ever before. But they need to be adapted to us. We need to build the
But Generation Z will maybe need this less than some others and
future with each industry and, of course, with the public stakehold-
this is fine, because this depends on everybody’s needs. We need
ers to be sure that we have the right success factors for the digital
to be there – I believe very much in the customer experience. Last
Romania.
year, we insourced our call centers so all call center agents are now Vodafone employees, part of the Vodafone family, with a Vodafone
Could 5G become a new driver of economic growth?
career, understanding the needs of the customer through day-to-
Absolutely. It will be an enabler of transformation, of moderniza-
day interactions and supporting them. Now, we empower them
tion, of new businesses to be created.
www.business-review.eu Business Review | September 2019
14 COVER STORY
It takes two: Global giants join forces The acquisition of UPC Romania by Vodafone Romania, part of a global transaction between Vodafone Group and Liberty Global, is one of the largest deals in Romania in recent years. But it is not the first for these companies, both making significant moves on the Romanian market along the years.
I
By Aurel Dragan
n 1996, a company
The deal made UPC one of the
called MobiFon entered
top players in the cable televi-
the market, winning
sion market with 1.3 million
one of two GSM licenses. Next
customers. At the time, UPC
year, the Connex brand was
dominated the cable TV market
launched, alongside the first
along with RCS&RDS. One year later, it completed
GSM network. The 135 days between getting the license
the acquisition of Focus Sat, a
and launching the network
satellite TV provider. Among
was a record at the time for
its later transactions was the
the development of a teleco-
2008 absorption of Cablevision
mmunication network. By
Romania, Sebamr and Electron
2005, when the mobile opera-
M. Bit Telecom. Focus Sat was
tor had almost 6.1 million cus-
the only entity not included in
tomers, it had launched XNET
the transaction between UPC
internet services for landlines,
and Vodafone.
WAP for mobile and the first 3G connection network.
AN EUR 18.4 BILLION DEAL
Vodafone Group bought
Discussions regarding a deal
MobiFon company in 2005,
between Vodafone and Liberty
but it didn’t change the brand
had been on and off since 2015.
until April 2006 when, with a laser show in the capital, Connex
The deal was announced in 2018 and was approved by the European
became Vodafone. The color of the logo also changed, from green
Commission in July 2019. The move concluded with the sale of
to red. A few days later, the company introduced the HSDPA – 3G
operations in Germany, Hungary, Romania and the Czech Republic
broadband, reaching new speeds for mobile internet connections,
to Vodafone, which paid EUR 10.8 billion in cash and assumed EUR
and Vodafone Live!, a web portal with more than 10 million users
7.6 billion in outstanding debt. It was the biggest deal completed by
globally.
Vodafone since the acquisition of Mannesmann in 2000 for GBP 112 billion.
UPC ROMANIA, A HISTORY OF ACQUISITIONS
The operation in the four countries accounted for 28 percent of
In 1992, United International Holdings, the name of Liberty Global
Liberty’s consolidated operating cash in 2017. The enlarged Voda-
back in the day, started investing in Romania by acquiring shares
fone has now around 54 million cable TV and broadband customers
in several local cable companies. UPC Romania was established
across Europe, with a potential footprint of 110 million homes and
in 1999 and later development was carried out in the same way,
businesses. Vodafone paid the equivalent of 11.5 times the opera-
with the purchase of local cable television providers in Bucharest,
ting cash flow of Liberty assets in order to strengthen its business in
Botoșani, Cluj-Napoca, Focșani, Ploiești and Sfântu Gheorghe.
Europe. As of 31 March, 2019, Liberty Global was the world’s largest
In early 2005, the firm reached 333,000 subscribers, up from just
international TV and broadband company, with operations in ten
15,000 in 2000. In the same year, UPC made the most important
European countries. This is now down to six, namely the United
acquisition in Romania, buying Astral Telecom for USD 420 million.
Kingdom, Ireland, Belgium, Switzerland, Poland and Slovakia,
www.business-review.eu Business Review | September 2019
COVER STORY 15
covering a total of 25 million homes (TV, broadband and landlines)
has the role of Consumer Business Unit Director for Vodafone and
and 6 million for mobile services. The company also owns 50
UPC.
percent of VodafoneZiggo, a joint venture in the Netherlands with 4
He joined Vodafone in 2009 and has since held a number of se-
million customers subscribing to 10 million landlines and 5 million
nior management roles, including Head of Customer Value Manage-
mobile services.
ment, Pricing and Commercial Strategy in Egypt, as well as Head of Prepaid Segment in Vodacom, South Africa. In March 2018, Mostafa
A BIG NAME IN ROMANIA
El-Beltagy moved to Vodafone Romania as Customer Business Unit
The Romanian market is divided between three companies that
Director.
have mobile communications, TV services and broadband internet.
Mihnea Rădulescu, the former CEO of UPC Romania, is now Vo-
Orange, Telekom and Digi Communications all have a significant
dafone and UPC Business Unit Director. Before becoming the CEO of
footprint on both sides of the market (mobile and fixed). Now, Vo-
UPC Romania, he has been Vice President for the B2B sector within
dafone is muscling into the competition, with 9 million customers
UPC CEE, coordinating the business divisions in Romania, Hungary,
for mobile communications and 1 million on the TV and broadband
Poland, Czech Republic and Slovakia. Cătălin Buliga is the Technol-
internet market.
ogy Director of Vodafone and
“The combination of UPC
UPC Romania. He has a 30 years
Romania’s operations with those
experience in the telecom indus-
of Vodafone Romania will lead
try, having worked for Telekom
to the creation of an important
(9 years), Liberty Global (7 years)
player with converged services
and Vodafone (14 years). Before
that will increase competition
becoming Vodafone Technology
in the telecom market, bring-
Director in May 2016, he held the
ing multiple benefits to both
position of Chief Technology
residential and business
Officer for UPC Romania and
customers – more value, more
UPC Hungary. Ioana Mihăilescu,
choice and more attractive
who joined Vodafone in 2012 as
offers. It will also help accelerate
Customer Operations Support
the pace of investment in the
Director, is now Customer Op-
telecom market,” said Mihnea
erations Director. In Vodafone,
Rădulescu, Vodafone and UPC
she also worked as Customer
Business Unit Director.
Value Management and Channel
“This transformative acquisi-
Management Director, being
tion is creating a significant
promoted to the Vodafone Cu-
partner of converged telecoms
stomer Operations Director role
services, bringing more value
in 2018.
to our customers and creating an improved ascending path
The new Vodafone and UPC Romania Finance Director is
for Romania’s digital economy. It also translates into a very good
Sibaji Biswas. He joined Vodafone India in 2011 and moved to Roma-
opportunity to challenge the dominant positions of the electronic
nia in 2017 as Finance Director. In India, he held various roles across
communications sector. The employees of both UPC and Vodafone
Corporate Finance and Supply Chain Management, while also being
have an unmatched premieres history on the local market, even in
part of the core M&A team that successfully completed the Voda-
Europe. I am confident that their combined expertise and proficien-
fone Idea merger. Melissa Fragiski will be HR & Property Director,
cy will lead to new firsts and innovation in products that will have
after joining the Vodafone team in 2012 in Greece and moving to
Romanian consumers as the most important beneficiaries,” said
Romania in September last year for the role of Human Resources
Murielle Lorilloux, CEO of Vodafone and UPC Romania.
Director. At Vodafone, she played a major role in two previous
As both leaders said, the acquisition is one of the most significant in the telecom industry in Romania and it promises to bring
M&As, as well as leading other transformational programs. Livia Dumitrescu, the Legal & External Affairs Director of Voda-
higher quality communications services to customers after combin-
fone and UPC Romania, joined Vodafone in February 2019, bring-
ing Vodafone’s expertise in mobile services with the proficiency of
ing a rich record of academic and professional achievements. She
UPC specialists in TV and fixed services.
worked for international organisations and law-firms in London, New York, Thessaloniki and Luxembourg. Livia Dumitrescu has also
NEW EXECUTIVE TEAM
established the first corporate ombudsman office in Romania, while
Murielle Lorilloux continues to be the artisan of the fusion, as CEO
concurrently occupying several leading roles with OMV Petrom SA,
of both companies, Vodafone and UPC Romania. Mostafa El-Beltagy
ultimately to become the Corporate Affairs & Compliance Director
www.business-review.eu Business Review | September 2019
16 COVER STORY
of the company. Răzvan Bogasiu occupies the role of Senior
large areas, even when devices are underground or deep within
Manager, Strategy & Wholesale. He joined Vodafone Romania in
buildings. It operates on a licensed spectrum, which means applica-
2014 as Business Development & Strategy Manager. He is also hold-
tions using NB-IoT technology will benefit from the same level of
ing the role of Integration Leader in the Vodafone-UPC Romania
security and reliability used in mobile networks today.
transaction, coordinating all integration activities, providing governance and effective tracking of the execution. The new Executive Management Team is a good representation of the multi-
Vodafone Group has been actively deploying NB-IoT technology in Spain, Ireland, the Netherlands, the Czech Republic, Turkey, Italy, Australia, South Africa and Germany.
national character of the Vodafone Group, which has mobile operations in 25 countries, partners with mobile networks
5G ALREADY ON THE MARKET Vodafone Romania has switched on the
in another 41 and has fixed broadband
first sites in its SupernetTM 5G network,
operations in 19 markets. At the end of the
ready to enable Romanians to access the
first half of 2019, the company had approxi-
outstanding capabilities of this latest
mately 640 million customers.
technology. “We are thrilled that our SupernetTM 5G network is now live in Bucharest’s busy areas and
INNOVATION ON THE GO
will expand to other major cities in Romania by the end of 2019.
Throughout its history on the local market, Vodafone Romania has
Vodafone is proud to pioneer this new and exciting journey for
invested in innovation, being the first to provide GPRS (2001), then
mobile communications services, where technology and innovation
3G (2005) and 4G services (2012). Last year, Vodafone Romania
will enable the best digital experience for Romanians,” commented
launched the first live NB-IoT (Narrowband Internet of Things) network in
Cătălin Buliga. The operator also launched the first
Romania with countrywide coverage, to
monthly subscriptions for 5G connection,
enable its enterprise customers to develop
after expanding 5G coverage to Cluj-
and implement a wide range of solutions
Napoca and Mamaia. “We are very proud to
and applications to improve their business
be amongst a handful of operators globally
processes.
and the first in Romania to have launched
This national premiere comes shortly
5G services and commercial offer. This
after a successful NB-IoT test realised by
speaks to our commitment to being at the
Vodafone Romania and OMV Petrom on
forefront of innovation not only locally,
equipment located in the proximity of pro-
but also globally, and making sure that
ducing wells, in isolated areas where there is no internet access or GSM coverage. The NarrowBand-IoT technology offers great power efficiency,
Romanian users get the opportunity to experience leading technologies. We are committed to continuing our mission and long-term investments in state of the art technologies
so devices connected through NB-IoT can
in order to support and develop the digital
run for ten years on a single battery charge,
Romanian society in the era of speed,” said
while its low bandwidth requirements
Mostafa El-Beltagy.
mean that most use cases require just a few bytes of data to be transmitted daily by
FUTURE ON THE RISE
these devices.
Apart from the integration of the two
“We have upgraded our countrywide
companies and their teams, Vodafone is
network to enable NarrowBand-IoT ser-
looking into expanding 5G, as the licens-
vices as a normal step in a world where
ing process for the spectrum is just weeks
businesses are embracing large-scale IoT
away. This will include many investments
projects. The NB-IoT technology is unlock-
made by the Romanian operator and will
ing a new wave of applications that are
lead to the expansion of IoT services. At
part of the 5G era and have not previously
the same time, it will bring more combined
benefited from connectivity due to barriers such as power, cost and
offers of fixed and mobile services from Vodafone. “For Vodafone
propagation,” said Cătalin Buliga, Technology Director.
Romania, this is a major step towards becoming a consolidated,
NB-IoT has the potential to transform business models across
convergent operator, which will be able to offer best in class fixed,
a wide range of industries due to its very specific characteristics,
mobile communications, internet and TV services. I would like to
which make it ideal for connecting thousands, or even potentially
say a big ‘thank you!’ to my wonderful team, who put passion and
millions, of devices in the field. It provides strong coverage over
purpose into everything they do,” said Murielle Lorilloux.
www.business-review.eu Business Review | September May 2016 2019
COVER STORY 17 14
18 INTERVIEW
www.business-review.eu Business Review | September 2019
Gyula Fater, OTP Bank: We might be the only bank in Romania betting on the human touch OTP Bank Romania plans to double its market share within the next five years, mainly by being more and more customer-centric, OTP Bank’s new CEO Gyula Fater told BR. By Sorin Melenciuc You are the new CEO of OTP Bank Romania, as of June. What is your experience and how have you found Romania – is it a good country for expats? Before everything else, it’s a beautiful country, I cannot wait to visit more of it. I think Romania is also good for expats. People are open, friendly, and ready to help, and many of them speak English, be it in an urban or rural environment. Professionally speaking, since most of the banking regulations conform to European norms, I’ve had no problem understanding the regulatory environment. I found a great team at OTP Bank, very competent, enthusiastic, and full of energy, not to mention ready to take on further challenges. Moreover, we are expanding, opening new branches, and the goal is to recruit colleagues worthy of our present team.
What are your targets for the bank? OTP Group is now present in 12 countries and its services are used by more than 18 million customers. Insofar as Romania is concerned, the purpose of OTP Bank is to grow organically and to improve its client service. In the first semester of this year, we more than doubled our profit, reaching RON 53.6 million, our target for the entire year. The money we make will be reinvested according to a five-year strategic plan which we implemented to double our market share and asset size. The main tool is to be more and more customercentric. We might be the only bank active in Romania that bets on the human touch.
You said that OTP Bank plans to increase its market share to 5 percent long-term. At the end of 2018, OTP Bank was the ninth biggest bank in Romania in terms of assets, with a market share of 2.45 percent. How realistic is your target and how long will it take to reach it?
www.business-review.eu Business Review | September May 2016 2019
COVER INTERVIEW STORY 19 14
It’s not an easy task, but what is? I’m with
Going digital is not a challenge, but a daily
Not in our case. We don’t go for digital or
Nadia Comaneci on this one: “Life is not easy
imperative. Of course, it is not cheap and it
physical, but for digital and physical. I
for anyone. You have to have ups and downs.
requires resources, but there is no other op-
believe customers still need personal contact
You can make mistakes. You learn and try not
tion. Hence, as we speak, we’re working on
and in certain cases even more so since prod-
to make them again. That’s pretty much my
Apple Pay, a mobile app, as well as on several
ucts are getting more and more complex. We
principle.” It is one that I share.
completely digital solutions.
are not closing branches, we’re even hiring
As far as our target is concerned, we have
I think the biggest challenge for us, and
secured resources to fund and support this
for every bank, as a matter of fact, is to make
five-year program. We have already started to
the right selection among the many ideas out
hire new colleagues and we have a very ambi-
there that are trendy nowadays: which one
tious strategy that affects all the segments.
is backed up by real customer demand and
new advisors, and we’re doing digitalization as we strengthen our physical presence.
which one is only a widely used buzzword
You recently said that OTP Bank Romania will focus on lending to SMEs. What kind of SMEs are your targets?
During the last couple of years, the Romanian banking sector has experienced a fast consolidation process, with unprecedented mergers and acquisitions. Is this process over?
with no long-term impact.
We focus on servicing our clients, from
What do you think about collaborating with fintechs: is OTP Bank open to this idea?
it is true that in SMEs (where we are quite
I don’t think the age of mergers and acqui-
Not only are we open, but we are collaborat-
the emphasis is also on full service, not only
sitions is over yet. The increasing level of
ing with them right now. Our approach is to
lending.
regulations and narrowing margins leads to
manage this at group level, so we are working
consolidation. We are also ready to take part
with the Innovation Lab in Budapest. Further-
in that if there are available opportunities.
more, this year there are a couple of fintechs
What are the main challenges when working with SMEs as a bank in Romania?
from the region that were selected for further
There are no specific challenges when work-
collaboration. We consider fintechs as poten-
ing with Romanian SMEs. This is a tough
tial partners, not enemies.
market everywhere. Most banks target the
Some experts say that the main challenge in the medium term for local banks is the incorporation of the Digital Revolution. What are the digital challenges for OTP Bank?
corporate to private individuals. However, strong) we also want to increase our value proposition to micro-businesses. But here
larger SMEs since there is significant invest-
Is the Digital Revolution a threat to employment in banks?
ment needed upfront, as in the case of retail. Whereas we also target micro SMEs.
www.business-review.eu Business Review | September 2019
20 WORKFORCE
Importing labor: a short-term solution to a historical workforce crisis Local authorities and employers alike are addressing the country’s workforce crisis by adopting a short-term solution long tried in these realms – importing foreign workers, a measure that seems to temporarily ease a long-term problem. By Sorin Melenciuc and 13th centuries through this system, and similar measures were also adopted in Wallachia and Moldavia following their foundation, in the 14th century, in the wake of the retreat of the Mongolians, according to historian Laurentiu Radvan, a specialist in medieval Eastern Europe. In fact, urban life in today’s Romania emerged through what is now called the “import of foreign workers”, even if we may extend the concept to the “import of people.” But importing people was not enough to fill the density gap and a constant obsession of local voivodes in Moldavia or Wallachia was “to fill the land with people” during the following centuries, as wars and plagues curbed population growth.
EXTRACTIVE INSTITUTIONS Urban life in today’s Romania emerged through what is now called the “import of foreign workers
Putting the economic development of a nation in its historical context may clarify some
n August, the Romanian government
I
the continent have adopted this measure. Ro-
to industrialize at the end of the 18th century,
increased quotas for non-EU foreign
mania, like most of its neighboring countries,
when urban civilization was already well
workers in 2019 by 50 percent to 30,000
was historically a poorly populated area, and
developed.
work permits, an all-time high, under the
even now its population density is three times
pressure of higher demand from local com-
lower than in Western Europe.
panies claiming they are suffering from the
aspects of the issue. Western Europe began
When the first medieval kingdoms began
Romania missed the start of modernity and its industrialization began much latter, in the first half of the 20th century, and has
to expand in the regions, they addressed the
never been completed. One of the main
low-density problem through policies de-
causes of this historical failure was the politi-
Inspectorate for Immigration, a branch of
signed to attract people in order to populate
cal and economic system in Romania, and
the Ministry of Internal Affairs, had issued
and develop the lands.
experts now have better tools to understand
workforce crisis. The authorities said that the General
this year (until August 23) 16,540 new work
These measures were mostly used in
the problem. In their book, Why Nations Fail:
Hungary and Poland through a system called
The Origins of Power, Prosperity, and Poverty,
locatio: individuals, or locatores, were paid
published in 2012, economists Daron Acemo-
is much higher, as Romanian companies
to bring people (hospites), mainly from
glu and James A. Robinson argue that political
requested 19,173 work permits during the
Germany, to settle in their sparsely populated
and institutional choices are more important
period.
realms and to develop towns, villages, crafts
than geography, climate, culture and religion
and commerce. Most towns in today’s Tran-
in explaining the emergence of prosperity or
HISTORICAL PROBLEM
sylvania, part of Hungarian kingdom during
poverty.
This is not the first time the eastern reaches of
the Middle Ages, were created during the 12th
permits for non-EU foreign employees. But the demand for foreign workers
According to them, institutions are “inclu-
www.business-review.eu Business Review | September May 2016 2019
COVER WORKFORCE STORY 21 14
sive” if many people have a say in political
have inclusive institutions and are gener-
pared to 2017, when only 219,327 people from
decision-making, or “extractive” if a small
ally developed. During most of our history,
Romania moved abroad.
group of people control political institutions
extractive institutions were remarkably stable
and are unwilling to share their power.
because most people had no choice but to ac-
FROM EXTRACTIVE TO INCLUSIVE
cept them. This was the case in Romania too.
But recent years have also brought some good
is Korea, which at the beginning of the cold
Before the Communist regime, the system
news for the country. Romanian society is
war split into two separate states which have
was stable because 80 percent of the popula-
changing, and its political institutions are un-
evolved very differently ever since: one is
tion was rural and migration was too costly,
der pressure to change as well. A real middle
now a very poor country, while the other is
while the Communist regime simply closed
class is emerging in major cities, for the first
a modern developed nation despite the fact
the borders and forced people to stay in the
time in the country’s history, and massive
that, from an economic perspective, they
country. After the collapse of the Communist
migration to wealthier states is changing the
started from the same point seven decades
regime, new borders emerged: Romanians
structure of rural communities as well.
ago. Looking at Romania from this perspec-
needed visas to travel to Western countries
tive could help better explain why the coun-
with inclusive institutions, and few were able
to this new challenge by adapting old tools
try failed in expanding prosperity and why
to fulfill the conditions or afford a visa.
because it needs people who accept it in order
One of the best examples of this concept
millions of Romanians have chosen to leave in search of a better life abroad. Historically, Romania was an oligarchy controlled by boyars or “mosieri” (who
The extractive system is now responding
This system began to change as recently
to survive. Rather than convincing people to
as 15 years ago, as Romania gradually became
stay, it prefers to bring other people – the new
part of Western security and economic insti-
“hospites” – from other extractive systems
tutions such as NATO and the EU.
who don’t really have the ambition to chal-
owned most of the main economic resources – the land), by a small group of nomenclaturemembers during the Communist regime, and by a limited number of members of political and politically-connected business classes – many of them with connections in the former Securitate or Communist Party before 1989 – after the collapse of Ceausescu’s regime. This institutional tradition is of a purely “extractive” nature, meaning that the members of the elite – in any historical period – extract most of the benefits of value-added in the economy while leaving most other people precariously disconnected from economic development. Two recent studies released by the World Bank, analyzed by Business Review, show that 40 percent of Romanians are disconnected from economic growth and that
From a purely “extractive” system, Ro-
lenge the current order.
the country’s current tax system increases
mania gradually began to evolve towards a
poverty, especially for rural households and
partially “inclusive” country, although only
to implement in Romania as the country is
families with children.
residents of large cities, where foreign invest-
in fierce competition with more developed
ment is concentrated, are connected with this
countries, which are also hit by workforce cri-
LACK OF OPPORTUNITIES
“inclusive” part of the country. But many oth-
ses, to attract people. As a result, the number
Historically, extractive institutions were
ers, and not only from the undeveloped areas
of foreign workers in Romania is still negli-
the norm since the dawn of “civilization”
of the country, saw in this new historical pe-
gible compared to other EU countries.
and the emergence of the state-concept in
riod an opportunity to escape a vicious cycle:
Mesopotamia, 6,000 year ago, while inclusive
around 4 million Romanians have emigrated
is from extractive to inclusive countries, and
institutions were a rarity until the 19th cen-
and many others continue to do so.
this trend doesn’t seem likely to change.
tury, when industrialization and spreading
Official data show that 238,926 Romanians
But the new “locatio” system is difficult
Historically, the general population flow
From this perspective, the only long-term
education forced institutional changes in the
left the country in 2018, while 181,344 resi-
policy to address the current workforce crisis
Western World.
dents of other countries moved to Romania
is to give people incentives to remain in the
last year, giving a negative migration rate
country, by offering them opportunities and a
have extractive institutions and are usu-
(-57,582). These data suggest that migration
decent quality of life, and not to put them in
ally poor, while just a minority of countries
to wealthier states accelerated last year com-
competition with immigrant workers.
Even now, most countries around world
www.business-review.eu Business Review | September 2019
22 MACROECONOMY
Crisis coming: Experts warn of crunch in 2020-2021 Romania is heading towards a severe crisis as government policies and economic vulnerabilities weaken the country’s perspectives over the medium term, according to several renowned local economists. By Sorin Melenciuc the budget structure in 2019. “A third of total revenues (RON 115 billion) come from the work of employees, meaning the contributions paid to the pension fund, and the health fund, another third comes from the taxes on consumption, VAT and excise duties (RON 109 billion), one tenth is from European funds (RON 32 billion), another tenth comes from income and property taxes, and only RON 18 billion, or 5 percent, from corporate income tax. Again: only 5 percent of the country’s budget comes from the taxation of corporate profits. Well, what functional economy has the PSD created here, where companies have such a small profit?” he argues. According to Peiu, in 2021, Romania will Romanian economy has already caught the Greek disease, due to the budget structure in 2019
be in full economic crisis, as the government will have to pay out RON 80 billion more in pensions than this year, RON 50 billion more
FIRST WARNING
(PSD) since the general election in 2016, an-
in public servants’ wages and RON 15 billion
Three highly-reputed experts have sounded
nounced it would leave the government after
more in interest rates on its debt. “And we
similar warnings that Romania is on the brink
several days of tense negotiations with the
will have a budget of only RON 100 billion
economically. The first came from Eugen Rad-
prime minister, Viorica Dancila.
higher, if we keep the same proportion of GDP as now. And look, at only 35 percent of GDP,
ulescu, a director within the National Bank of Romania (BNR). “We are in an extremely
ABANDON ALL HOPE, YE WHO ENTER HERE
the external public debt will be the same as
difficult situation, politically and economi-
The second warning came from a highly
Greece in 2009-2015. We will cross Hell and
cally. I don’t think we have the resources to
regarded political analyst, Petrisor Peiu. Us-
get out of there with a much smaller econo-
hold on for another year and a half, until a
ing Dante-esque language, he warned that
my,” he predicted.
new government, resulting from term elec-
a major crisis could occur in 2021, after the
tions, can begin to repair what is now badly
Parliamentary elections. “Here is, symbolical-
HIGH FISCAL IMBALANCES
broken,” Radulescu publicly cautioned at
ly, Romania today: in front of the entrance to
A third warning comes from Lucian Croitoru,
the end of August. He described the current
Hell, contemplating the troubling predictions
an adviser to the central bank governor in
government’s policies as “toxic” and appealed
of a dark future, but unable to return from the
Romania. “As before 2009, fiscal policy is
to political parties to form a new ruling coali-
road and get far away from that place. From
contributing to the economy’s overheating
tion and a new government “made up of truly
a disease that today seems minor and cur-
and capital inflows are high. The results are
competent people”.
able, in three years, Romania will develop a
similar to those recorded before 2009: we
His comments came just a few days after
financial cancer, which will ruin, abruptly and
have unsustainable structural fiscal imbalanc-
the Liberal Democrats’ party (ALDE) led by
without escape, all the healthy economic tis-
es, relatively large external imbalances (the
Senate president Calin Popescu Tariceanu,
sue,” he wrote in an article published by ziare.
second largest current account deficit in the
which has been part of Romania’s ruling coali-
com. Peiu argues that the Romanian economy
EU) and an external debt of EUR 103.7 billion
tion along with the Social Democratic Party
has already caught the Greek disease, due to
(in June 2019),” he wrote in his blog.
www.business-review.eu Business Review | September 2019
ADVERTORIAL 23
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The children had the opportunity not only to participate in the
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Another cherished tradition of our school life is The International
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Food Fair. On 8th of June 2019, King’s Oak students, teachers and
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and students joined in the preparation of a variety of delicious traditional foods specific for the country they represented while everyone
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www.business-review.eu Business Review | September 2019
24 ENTREPRENEURSHIP
Local entrepreneurs showing interest in AI development over global growth Entrepreneurs in the artificial intelligence (AI) field are building startups that aim to disrupt large swathes of the economy, ranging from healthcare to telecommunications, retail, finance and transportation. Some USD 1.9 billion worth of venture capital deals involving AI and machine learning companies had been carried out in Europe by the end of summer, already exceeding the funding raised last year. By Ovidiu Posirca the tech field are flocking to implement such solutions in order to secure funding.
AI – LEARNING BY DOING For instance, in Europe startups with AI in their descriptions have raised 15 to 50 percent more funding than other software startups, according to an analysis of 2,830 technology startups by London-based investment fund MMC Ventures, quoted by the Wall Street Journal. The analysis shows that 40 percent of companies classified as AI startups showed
no evidence of using AI in their products. In Europe, as of August 20, there were 323 venture capital deals involving AI and On the local market, entrepreneurs are learning the ropes when it comes to AI
G
lobally, AI-based startups from China
machine-learning startups that brought in some USD 1.9 billion, according to PitchBook. This exceeds last year’s result of USD 1.8 bil-
Among them is UiPath, a startup with
lion raised across 520 deals. On the local market, entrepreneurs are
and the USA have raised billions of
Romanian roots that has raised USD 448 mil-
dollars and a total of 11 of them are
lion from investors. The firm uses AI for its
learning the ropes when it comes to AI and
robotic process automation (RPA) platform.
machine learning functions for their products
unicorns. These are startups valued at more than USD 1 billion.
AI has become a buzzword and startups in
and services.
www.business-review.eu Business Review | September May 2016 2019
ENTREPRENEURSHIP COVER STORY 14 25 transitions, as it’s unclear at present how many workers will remain jobless due to AI implementation. McKinsey consultants suggested that the growing technology-based economy will create new jobs that should offset the decline in occupations displaced by automation. The report notes that “up to 375 million workers, or 14 percent of the global workforce, may need to change occupations – and virtually all workers may need to adapt to work alongside machines in new ways.” Berger points out that AI is booming due to a combination of powerful, inexpensive telecom. The implementation of AI has the
computer technologies, advanced algorithms
ry quite interested in developing or using AI
potential to contribute to global economic
and impressive amounts of data on almost
for their products and applications. However,
growth in the next decade, according to a
any topic.
in many instances there is a bit of confu-
report by McKinsey. The consultancy firm’s
“The Romanian tech startups are in theo-
sion, as simpler machine learning processes added to a platform or product cannot qualify the product for the term AI. In terms of
models show that AI could incrementally add around USD 13 trillion to current global economic output by 2030. This means that
FACIAL RECOGNITION STARTUPS HAVE EYES ON THE PRIZE The two best-funded companies in the AI field are both from China and are focused on facial recognition technology. The firms have
expertise, I think like
the annual aver-
attracted both government and private fund-
in many other tech
age contribution to
ing. SenseTime has received USD 1.63 billion
ecosystems around
productivity growth
worth of equity funding, while Face++ got
the region, expertise
stands at 1.2 percent
USD 608 million, according to data provided
is still limited and
between now and
by cbinsights.com.
companies are ‘learn-
2030, notes Irving
ing by doing’,” Marius
Wladawsky-Berger,
Ghenea, partner at 3TS Capital, the private equity and venture capital firm, told BR. Ghenea suggested that AI could be a
research affiliate at MIT’s Sloan School of Management, in a blog post. Most of the contributions to GDP
The third biggest recipient of funding is California-based Zymergen, which uses machine learning to find alternatives to plastics and petroleum-based products. The startup has secured USD 574 million in funding up to now.
big help for many startups, but also for more
growth would come from the automation
developed businesses, particularly those
of labor and innovations in products and
ing have filed over 600 patent applications in
with large or increasing customer bases in
services. However, there will be serious
the US. One early-stage firm, Hover, is work-
Saas, e-commerce, media and publishing or
challenges generated with labor-market
ing on technology that allows users to take
Startups heavy on AI and machine learn-
pictures of their home using a smartphone camera, and uses image processing techniques based on machine learning to create a 3D model of the property. Meanwhile, Butterfly Network has developed a portable ultrasound priced at less than USD 2,000. The device will have integrated computer vision that can help interpret the images.
www.business-review.eu Business Review | September 2019
26 FINTECH
Banks and fintechs facing cooperation challenge on local market European deals and funding activity in the fintech sector reached USD 3.3 billion in the first half of 2019, with some of the most dynamic startups in the field moving to launch in Romania. Meanwhile, regulatory challenges and growing competition for conventional banks, which are investing heavily in their digital operations, might see fintechs and lenders focus on cooperation going forward. By Ovidiu Posirca
Romania does not have dedicated legislation for fintech
F
intechs have been growing rapidly
lenges to traditional banking products, says
from products,” Butucaru told BR. Some of
across the globe, providing niche
Ana Maria Butucaru, partner at professional
the largest banks operating in Romania have
services ranging from digital banking
services firm PwC Romania.
this year launched new apps designed to
to share trading, money transfers, mortgage lending, and insurance.
“The current competition is especially
boost payment by smart phone or other smart
on the rapidity and cost of services. In the
devices in a bid to become “cooler” in the
last two years, the conventional banks in
eyes of consumers that are also interested in
COMPETITION TO PARTNERSHIP REMAINS UNCLEAR
Romania have taken important steps into
the products and services of nimble fintechs.
By offering quick and convenient single
customer-friendly digital platforms, focusing
their small lending operations online so that
services, fintechs started off by posing chal-
on customer experience and moving away
customers can apply directly for loans, with-
digital banking by re-bundling services via
The banks are already moving some of
www.business-review.eu Business Review | September May 2016 2019
out going into a branch.
COVER FINTECH STORY 27 14 companies, but they still lack the banks’ dry
In the US, fintech funding rounds climbed
powder in terms of probably one of the most
to USD 5.1 billion in the second quarter of
Paysera was launched on the Romanian mar-
interesting financial products, loans and
2019, which was a fresh record, according to
ket, providing business account and money
similar products. Ideally, a strategic coopera-
CB Insights.
transfer services at lower fees. Representa-
tion between a fintech and a traditional bank
tives of the company say that the future will
could bring the best of both worlds to the
startups valued at more than USD 1 billion,
bring closer cooperation with the banking
customers, thus taking on market,” Ghenea
stood at 48. These companies have reached
system.
told BR.
a combined valuation of USD 187 billion,
This summer, Lithuania-based fintech
The number of fintech unicorns, meaning
according to CB Insights data. Europe has
“Nowadays, both fintech companies and banks are embracing innovation in order
nine fintech unicorns which together hold a
to be competitive and attractive to their
valuation of USD 26.1 billion.
customers. As fintech companies are small and flexible, at the moment, they seem to be
MISSING FINTECH LEGISLATION IN ROMANIA
more successful in implementing this. This results in their ability to offer more conve-
The European Commission, the execu-
nient, cheaper, faster and modern services.
tive arm of the European Union, is looking to
Inevitably, in order to be successful on the
maintain Europe’s competitive edge in the
long term, fintech companies need to work
fintech sector and has proposed sandboxes
with banks,” Paysera representatives told BR.
that can act as test areas for the regulation of
The cost of services, transparency and
emerging business models.
safety are some of the key drivers of the
There is also a proposal for a regulation on
adoption of fintech platforms for Romanian
European Crowdfunding Service Providers
consumers, suggested the PwC Romania
(ECSP) for Business, which is going through
partner.
the legislative process, according to Alina
Meanwhile, the head of the Romanian Banking Association (ARB), Sergiu Oprescu,
Radu, partner and head of the banking and While fintechs might struggle to scale up
finance practice at law firm NNDKP. There are
says that he is not “concerned” about the re-
their operations, banks have big customer
also other initiatives such as EU FinTech Lab,
lations between banks and fintechs because
databases, opening the path for collabora-
EU Blockchain and European Cloud which
these have already evolved into a partner-
tion, adds the PwC Romania representative.
aim to provide a clear regulatory framework
ship. What he is actually worried about is the
Lenders might create their own fintech com-
that protects consumers and investors, while
relations between TechFin players and banks.
panies or take over existing players.
also leaving room for startups to grow.
“TechFins are those large institutions such as Amazon, Google,
On the local market, implementing
The fintech sector in Europe
fintech businesses in the finan-
has recorded a flurry
and Alibaba that get into the
of funding for
cial sector is a challenge due
financial area by disrupting
emerging
to the uncertainty stem-
that segment, providing financial services for
ming from the regulatory
start-
framework.
ups.
a particular segment,
For
which go to the customer
in-
have dedicated legisla-
with a solution that might
stance,
tion for fintech. Gener-
not necessarily be a banking one,” Oprescu said in an interview for Wall-Street.ro. The ARB head suggested that the strong
“Romania does not
ally applicable legislation
Oaknorth
needs to be assessed to
raised EUR
determine how it applies to
783 million, N26
companies using fintech and the big
got EUR 612 million and Atom
regulation in the banking field might repre-
bank secured EUR 486m, according to data
question is whether or not a company using
sent a big entry barrier for TechFins.
from Dealroom, quoted by Sifted.eu.
technology-enabled innovation in financial
While local banks have invested in phone
“We are three/four years more advanced
services, depending on its business model,
payments and other digital instruments, they
than US companies in terms of product,
falls under the scope of regulated entities
are still lagging “significantly behind” disrup-
regulation, and size. US companies should
supervised by the National Bank of Romania
tive fintechs on more social-related features
learn from Europe,” said Nikolay Storonsky,
(BNR) or the Authority for Financial Supervi-
such as peer-to-peer functions, suggested
founder of neo-bank Revolut, which plans
sion (ASF),” says Radu. She adds that the law
Marius Ghenea, partner at 3TS Capital, the
to launch in the US. The startup already has
firm has started to receive more requests for
private equity and venture capital firm.
6 million users, out of whom more than
legal, regulatory and tax advice in the fintech
250,000 are in Romania.
field.
“This is a huge advantage for the fintech
www.business-review.eu Business Review | September 2019
30 INTERVIEW
‘An artist’s responsibility is to show people things they haven’t seen before’ Acclaimed British sculptor Alex Chinneck came to Romania with the exhibition “Unzip your mind”, exclusively for Qreator by IQOS. The symbolism of the zipper represents the distinctive characteristic of the project, as an object through which the artist highlights the surrealist cracks through which light enters, flooding the space and inviting the visitor to take part in an immersive and unexpected experience. He spoke to BR about the project, and how brands and artists balance their increasing collaborations. By Romanita Oprea
ABOUT ALEX CHINNECK Born in Bedford, and living and working in the UK, Alex Chinneck graduated from the Chelsea College of Art and is a member of the Royal Society of Sculptors Council. In his creative process, the international artist has as a starting point real-life experiences. He transforms materials and perceptions of them, seeking to change the world around us and test people’s perception of apparently familiar objects and materials.
busy mind and when I used to paint, everything calmed down, I suppose, and I just became lost in the work and in the process. I probably wasn’t the greatest painter, nor a particularly good craftsman, but I fell in love with the process. It wasn’t so much that I loved what I was creating, but that I loved the process of creating it. It wasn’t about a career path, I was just following my instincts. I began to be very interested in the idea of making contemporary art and making a genuinely contemporary contribution to art. And I was conscious of the fact that everything that I painted had been painted before, or something incredibly similar had. So, I ran Alex Chinneck -unzipping minds and changing structures and facades from Milan to Bucharest
out of this this energy that I had something that would distinguish me in the art world, so it began to evolve into sculpture. I’ve always loved making things and crafts-
What does creativity represent for you?
get a little moment of magic. I think that is
For me, it’s presenting the world around us
one of the elements of creativity: a wonderful
manship and materials, particularly wood,
in a new way. Or re-imagining the world in
opportunity for us and for the people who see
and it just evolved into a kind of sculpture
which we exist. In my work, we are trying to
it. And it’s a positive thing.
practice where I would have ideas that were not so easy to create and I couldn’t necessar-
make the familiar, the everyday world, ex-
ily create them. So, from a very young age,
taking familiar materials and surfaces, dif-
When did you first realize you wanted to be an artist?
ferent structures and trying to intertwine an
There wasn’t a clear moment when I said:
create work. And I found it very liberating:
element and to see. And in doing so I myself
I want to be an artist! I just, kind of, slowly,
that I would conceive an idea and through
often kind of escape from the everyday world,
fell in love with the process. And I think that
collaboration and partnerships with others we
but those who visit it and see it ideally enjoy
every artist begins to paint with a brush and
would collectively produce it. It just allowed
a momentary escape from everyday life and
a pencil, this is how you begin. I have quite a
the work to evolve in directions and territo-
traordinary. That’s what surrealism is, I think,
19, I started working with other people to
TURNING OVER A NEW LEAF: MIXED REAL ESTATE PROJECTS GET GARDENS
WHERE ROMANIA TALKS BUSINESS September, 2019 / Volume 23, Issue 9
www.business-review.eu
8
CRISIS COMING: EXPERTS WARN OF CRUNCH IN 2020-2021
22
BANKS AND FINTECHS FACING COOPERATION CHALLENGE IN ROMANIA
26
5G: LOCAL OPERATORS GEARING UP FOR COMMERCIAL LAUNCH IN 2020
34
IT TAKES TWO: GLOBAL GIANTS JOIN FORCES
www.business-review.eu May 2016 2019 Business Review | September
COVER INTERVIEW STORY 31 14
So how did it work? Did you receive a brief or was it the other way around? It was more than a brief. It was a philosophy: to do something that would change perspectives. And that is beautifully aligned with what we want to create, to try to present the world we know in a new way and familiar materials and structures in a different light. We went into brand integration nervously, doing it in a way that wasn’t sensitive to my work, and it worked brilliantly. Very, very good partnership and commissioning. And we continue to work with them.
The Zipper - the central piece in Bucharest’s exhibition
And afterwards did they ask you to do projects for them in other countries? Following that project, which was a real
ries that I believed people gained something
was allowed to evolve in multi-disciplinary
success – it had 220,000 visitors in six days
from being part of, and then it just evolved in
directions, rather than just art. And it was
and was well received and shared around the
ambition and scale and we now have a prac-
allowed to be more about the idea than me
world – we generated the photographic series
tice that is quite hard to replicate. Because of
being the one executing it. Now it’s impos-
and a series of sculptures, objects, artifacts
the ambition and the magnitude of the work
sible, because of the size and the multitude
from it, and different Qreator Embassies
and the huge teams involved. I kind of enjoy
of projects that we work on around the world,
around the world wanted to share them.
where it’s got to in that respect.
but, even then, I don’t want an idea not to happen just because I didn’t have the techni-
What about Romania?
But when you started collaborative projects, wasn’t it hard to work with all those people? Wasn’t it a competition from time to time or did you meet people that had a completely different opinion or vision than you? How could you turn it into something cohesive?
cal capacity to produce it. But, even if there
When we came here, I thought it would be
are hundreds of people involved, I am deeply
nice to create something that would speak
involved in any decision.
specifically to this place and location. And
It’s difficult when you are collaborating
even if it’s not a huge architectural façade,
and producing work and it’s not just you. You
that is where the stone Unzip It block in the
can easily lose control and not make deci-
entrance comes in. Because that entrance is
sions or let decisions be made for you, so it’s
lovely, it has this kind of curving stone and it
I have always been the art director, so it was
an art form in itself. It takes practice, but I
felt nice to continue that language and pur-
always my idea, vision and projects, and I was
think I am getting better at it.
pose, but, obviously, make something that is
managing them. So it was not about working
Collaboration is an art form. Commission-
with other artists, because I find that kind of
ing is an art form. I don’t live by myself, I am
collaboration difficult (not because I don’t
surrounded by people and I want to collabo-
Unzip It floor, where we unzip the floor and
love other artists and other artists’ work,
rate with people. This relationship and collab-
the light came out of it and every time that
because I do), but it was just the two creative
oration continues here and in other countries
happened the color changed and a different
territories were too close. I found that my
around the world, which is very exciting. I
sound came out. We composed music espe-
work had flourished into new territories and
have fantastic partners.
cially for the piece. So, we did the same here:
an extension of the Unzip It family. One piece that we created in Milan was the
we created a low light and the color would
directions and I became more ambitious and,
Your first collaboration with IQos was at Milan Design Week?
change and the light in the stone and the
but collaborating with people from outside the art world. From that perspective, there
Yes. We were invited by IQos to create a piece
environment, hopefully.
was never real tension, it just became about:
for Milan, which was a phenomenal interna-
this is the vision, how do we deliver it and
tional platform, but it was new territory for
how do we work together to do that? And that
us – working with a brand. We were under-
is what I enjoyed.
standably anxious, as they were about us as
But this is what you do everywhere, isn’t it (incorporating the piece in the place and its specifics)?
naturally, started to develop a unique voice,
For instance, at art school, I would go to
sound would change as well and create a nice
well, because the partnership has to be right.
Yes, mainly the big pieces, like the one in
the local universities in London that special-
But we were immediately reassured by the
the entrance here. Because we are creating
ized in science and robotics or computer cod-
creative freedom we would get for our show.
these illusions and they have to speak the
ing and programming. So, already, the work
It was something genuine, nothing forced.
same language as the location, otherwise
www.business-review.eu Business Review | September 2019
32 INTERVIEW
they are not believable. In Milan it was based on a Milanese façade, we basically copied a couple of buildings in Milan, we built them, the whole façade is artificial. Everything has to be contextually responsive. Public art has to do that. Gallery-based artists don’t need to do that, because they have a blank canvas to work with, perfect for doing any artwork. But this is not the way we work. Our work has to have a good communication with the surroundings and the people. And I think all public art should do that. Because if it doesn’t belong there it feels like an intruder. And, ultimately, it will not succeed. We are doing a project in Mumbai at the moment. It is very
Putting everything into context, at Qreator
important to us that it’s made by the people of Mumbai, not for the people of Mumbai. We
ing artists and the art that they produce. If
I can imagine a lot of artists not being able to
have done that quite often around the world.
they weren’t right in the first place, the brand
do it or not wanting to do it.
It has to be born and belong to the location
shouldn’t have invited them. It’s about giving
rather than kind of added to it. We try to do
a platform and sharing the philosophy. And if
that as much as possible.
those two are right and aligned, trusting the artist and trying not to shake the outcome,
Are brands more interested in collaborating with artists and entering the art world? Is it a trend or not?
What is your goal for the exhibition in Bucharest and what do you expect from the people?
it’s the way to do it. Because the approach is
Yes. Not necessarily entering the art world,
not this way; they should have created their
more remaining in the real world. Because
own work in the first place. I think it’s about
that is the place where they exist. I think that
It’s a nice opportunity to broaden the impact
having confidence. It’s about the artist feeling
brands increasingly seek ways of reaching
of the Milan project in the region. We’re also
confident and comfortable in the relation-
more people and creating unique experiences,
showing photographs of previous work.
ship. But the brand needs to have confidence
messages and distinguishing themselves from
We’ve produced a lot of work in the past five
that the art and the message attached to it
others. And, in many ways, I think this is art
years and is very nice to share that and I hope
is enough and will enjoy the kind of reach,
in a nutshell. An artist’s responsibility is to
that even if we don’t have a huge architec-
awareness, fruitfulness and excitement
create new things, in new ways, and show
tural work outside, collectively it would be
that allow the project to communicate and
people things they haven’t seen before. And I
experienced in the esthetics and the visu-
resonate with multiple people. I think that
think that neatly aligns with how brands want
als that we share here. The entrance, in the
sometimes there is a lack of confidence
to operate today. We live in a very digital, fast-
interior space, I hope is quite beautiful and
where brands choose particular locations or
paced world, in an incredibly visual world. It’s
calming. The changing sound, light and colors
kind of force the infiltration of product and
about immediate impact and esthetics and I
are pieces of the process – in contrast with the
brand into the work. And I think that the
think an artist can offer that.
very brutal stone, the materiality of that.
public is wary of that, conscious of the over-
There are huge benefits for brands, and
integration of brand and product. And they
for artists too. It’s easy for very success-
Have you worked with other brands besides IQos?
are conscious of advertising and brands need
ful, celebrated artists to be critical of brand
to be more confident and say that it is not
partnerships, but that is because they don’t
Not on this scale.
about forcing those messages on potential
need them, they have more opportunities
consumers, it’s about offering a very exciting
that they can ever manage. The reality is that
How do you see the perfect collaboration between an artist and a brand? When does the brand have to get involved in the process, or doesn’t it?
and stimulating experience to people who
there are far more artists, far more creative
want to share and talk about it. And, in that
practitioners that there are opportunities and
process, people will discover the project and
platforms. So, I think that that these ever-
the brand rather than it being a kind of force
increasing brand partnerships really allow
I think it’s a two-way dialogue. The artist has
feeding. Because that will ultimately fail. It’s
and encourage artists to create work that
to understand that there is a partnership and
a delicate combination. The artist has to be
otherwise wouldn’t exist, and represent very
that they potentially have to tune the work or
very confident and strong, be able to say no
exciting and ambitious extensions to their
tune the way they communicate the work, to
to the brand. And the brand needs to be able
portfolio and body of work. Providing that it is
align with the partner’s messaging. I think the
to hear no and understand that. It’s about
not a compromise, something forced. And it is
partner has to give the artist as much creative
working together, not ignoring important
the brand’s responsibility not to force them in
freedom as possible. I think it is about trust-
facts. It’s a difficult relationship to manage.
that direction. I think it’s a win-win.
www.business-review.eu Business Review | September 2019
34 TECH
5G: Local operators gearing up for commercial launch in 2020 5G is just around the corner. In Romania, the super-fast broadband technology has already been launched by some mobile communication operators on frequencies in use today, but the auction for new frequency spectrum, which will support 5G connections, will take place in the coming months. In the run-up to that, BR surveys the latest developments in 5G, including phones with 5G capabilities. By Aurel Dragan The first 5G in Switzerland was launched in April by Swisscom, while the second-largest operator Sunrise has already reached over 200 cities. Sunrise ran an ultrafast connection test in late 2017, at 3.28 Gbps and launched the first standardized 5G network at a ski resort in 2018. Vodafone Spain was the first operator to launch 5G in the country on June 15, and it is now available in several cities. The connection speed at launch was up to 1 Gbps, which can be reached on a 4.5+ connection, but it will increase to 2 Gbps by the end of this year. Finland claimed to have the first 5G commercial network in the world after operator Samsung Galaxy S10 5G, the first 5G phone from the Koreean producer
5
Elisa Oyi launched it in June 2018. Telia, another Finnish mobile operator, launched 5G in December, 2018, while DNA followed
G networks are in use today, on all
operator O2 is expected to launch 5G cover-
suit at the beginning of this year. However, as
continents. The commercial launch
age, and CityFibre and Arqiva are holding
DNA officials said, even with the introduction
will take place in 2020 in most coun-
trials in London.
of 5G, the 4G network will remain the primary
tries, but some are ahead of the game. In
UK users have official access to many 5G
network used by most people.
phones. Apart from the Samsung Galaxy S10
All over the world 5G is being launched,
tion in May, 2019, in five cities at first and
5G, EE was the first in the world to offer the
mostly in tests, but the real start will come in
more and more places since. The first 5G was
OnePlus 7 Pro5G. British consumers can also
2020. Ericsson predicts that 5G subscriptions
launched by the largest mobile operator in
use the OPPO Reno 5g, LG V50 ThinQ 5G, HTC
will reach 1.9 billion in 2024, when cover-
the country, EE, and Vodafone UK was not far
5g Hub, Huawei Mate 20 X 5G and Xiaomi Mi
age should extend to 65 percent of world’s
behind, joining the party in July. This year,
MIX 3 5G.
population.
Germany, trial installations began in 2018 and while commercial launch is expected in 2020, with rollout until 2025, Deutsche Telekom has already launched 5G in more than five major cities. According to the mobile operator’s plans, by 2020 over 20 cities will have 5G coverage. Vodafone Germany opened 20 base stations in July and expects to have 50 by autumn. The UK saw the first 5G connec-
www.business-review.eu Business Review | September May 2016 2019
COVER STORY TECH 35 14
The phone models available officially in
COMMERCIAL LAUNCH IN ROMANIA
who will have access to mobile data services
All three local operators – Vodafone, Digi and
at 5G speeds and low latency through first
Romania are the Samsung Galaxy S10 5G,
Orange – have launched 5G connections in one
base stations. This is another important step
Huawei Mate 20 X 5G and Xiaomi Mi MIX 3
form or another. Vodafone turned on the first
by our company towards the convergent
5G. Samsung recently launched Galaxy Note
5G connection in its Supernet 5G network and
future of communications, following the test
10, but neither of the two models has 5G ca-
later expanded the coverage to Cluj-Napoca
of the 5G prototype platform a year ago. The
pabilities. Apple will launch its latest models
and Mamaia, when it also launched the first
project materialized after mixed teams of
in September, but there is no info about a 5G
5G subscriptions in the country. Red Infinity
specialists and partners worked on it – all of
handset. However, 2020 will bring a much
17 and Red Infinity 25 are the first 5G-ready
it in order to provide customers with the best
bigger offer of 5G phones, while prices (which
subscriptions providing unlimited data traffic
mobile communications services as soon as
now are around EUR 1,000 per handset) should decrease.
within Supernet
possible at the
5G, the first
most affordable
5G network in
market prices,”
5G TENDER EXPECTED IMMINENTLY
Romania.
said Valentin
The tender for the new frequency spectrum,
Popoviciu, vice-
meant for 5G use, will be held in the coming
proud to be
president of the
months and the winners should be known
amongst a hand-
DIGI adminis-
by December, 2019. The Romanian authori-
ful of operators
tration board |
ties expect to raise EUR 580 million from 5G
globally and the
RCS & RDS.
licensing, a much lower sum than the first
“We are very
first in Roma-
Orange
nia that have
tested 5G con-
launched 5G
nections in
COM, the communications authority, rights to
services and a
real use at the
use the frequency spectrum in the 700 MHz
commercial of-
Untold festival,
and 1500 MHz bands, which has no allocation
fer. This speaks
and conducted
so far, will run for 15 years, from 1 January
to our commit-
several trans-
2021 for the 700 MHz band and 1 January
ment to being at
missions in VR
2020 for the 1500 MHz band.
the forefront of
360 with the
innovation not
Samsung Galaxy
spectrum to be auctioned in the 800 MHz
only locally, but
S10 5G. “Our
and 2600 MHz bands for 10 years, with op-
also globally,
priorities are
tions to be considered for aligning the expiry
and making sure
closely linked
date with the rights existing in these bands
that Romanian
to the needs
valid till April 5, 2029. In the 800 MHz band,
users get the op-
of custom-
Telekom Romania Mobile Communications,
portunity to ex-
ers, especially
Orange and Vodafone have usage rights valid
perience leading
their desire to
until April 5, 2029. Also in the 2600 MHz
technologies.
benefit from
band, Telekom Romania Mobile Communica-
We are commit-
uninterrupted
tions, Orange, Vodafone and RCS & RDS have
ted to continu-
connectivity,
the rights to use the frequencies until April
ing our mission
but also with
5, 2029.
and long-term
the best net-
investments in
work services.
memorandum signed by the USA and Roma-
state-of-the-art technologies in order to sup-
All this is supported by annual investments
nia in Washington that should include “anti-
port and develop the digital Romanian society
of over EUR 100 million in the development
Huawei” filters in the tender. The memoran-
in the era of speed,” said Mostafa El Beltagy,
of the network. Now, together with technol-
dum states that three major filters should be
director customer business unit, Vodafone
ogy partners such as Samsung, but especially
applied at its 5G auction: the supplier should
Romania.
with customers, we aim to demonstrate the
not be under another government’s control,
performance of the 5G network. 5G repre-
and should have transparency in the share-
first 5G broadcasting stations in June and
sents an important technological leap, which
holders structure and transparent corporate
started the development of the future Digi
promises a new level of communications, and
practices. If applied, it may rule out the use
Mobile 5G Smart. “Romania is now on the
is about to change the world of services of-
of Huawei equipment for 5G networks since
world map of state-of-the-art 5G technology.
fered today,” said Emmanuel Chautard, chief
the company is not considered transparent
This is good news for Digi Mobil customers,
technology officer, Orange Romania.
regarding its shareholder structure.
Digi Communications also launched its
estimates of EUR 1 billion. According to the latest papers from AN-
ANCOM intends to grant licenses for the
The tender may be changed by the latest
www.business-review.eu Business Review | September 2019
36 PARTNER CONTENT
The Online Is Too Noisy – Show Consumers the Way to Your Brand How is Product Lead helping brands open a meaningful dialogue with a consumer that suffers from digital attention deficit disorder? In short, we help the brand to level up their game in building customer journeys. Our take on a healthy consumer-company dialogue is an authentic interaction where brands speak consumers’ language. We found that this is possible by working with the content users create for social media. We bring our clients up to speed with the use of reports that analyze their online presence to understand their place in the industry. Next, Product Lead tracks down content that clients post online also known as UGC (user-generated content). It has been proven that UGC has a much higher conversion rate Alexander Stoica-Marcu, Chief Exponential Officer at Product Lead
than professional content can achieve. With one of our clients, Product Lead increased the
Tell our Business Review readers a little bit
completely the moment social media entered
conversion rates by 2.5 soon after the brand
about your startup, Product Lead.
the picture. It rewired the defaults of how brands
introduced UGC into their online marketing
We’ve built a marketing technology eco-
connect with people.
plan. Once the brand understands what is
system at the intersection of two major
Now companies have the opportunity to
the best content, it uses our technology to
trends: influencer marketing and automa-
display their brand in front of target audiences
automate and scale the creative process. This
tion. We upgrade marketing strategies with
every second of every day through organic posts,
way, our clients improve UGC and upgrade
influencer- and user-generated content, use
sponsored posts, ads, direct messages, videos,
it with conversion abilities. We do that with
artificial intelligence to read people’s senti-
and others. However, the question is - are they
an in-house image processor that mixes UGC,
ments online, automate creative processes,
going to remember your content in the following
texts, and templates and produces personal-
and enable distribution in upper and lower
5 seconds?
ized content for ads, stories or other forms of
funnel. We want to give marketing teams
There’s a phenomenon I’m sure every market-
snackable content in a matter of seconds.
the power to bring more value for both the
ing team has dealt with so far. We refer to it as
brand and their consumers.
“Consumer Attention Disorder.” The modern
their fingertips, brands can then enhance
digital consumer suffers heavily from an exces-
their upper and lower funnels, distributing
sive amount of information.
those assets in key points where consumers
In short, we help brands scale a meaningful digital dialogue with an always connected consumer that gets more sophisticated every day. In a span of two years, our vision of
People open their smartphones in the morning and they read the news which can take up
Having a plethora of creative assets at
have a chance to connect with the company in a more meaningful way.
hundreds of headlines and hundreds of brand
building meaningful customer journeys
fight over your screen time. And that’s just the
How do you see Product Lead improving the
convinced industry juggernauts like Orange,
morning routine.
online environment for both businesses and
Samsung, Philip Morris, Untold, Douglas and
This is precisely why brands need to find new
the public?
ways to capture people’s attention. All compa-
I believe the purpose of Product Lead is to
nies produce content for online channels one
humanize brands. Consumers no longer buy
What do you think is the number one issue
way or the other. The trick is to find a way to
products without liking the brand first. By
companies are experiencing with today’s
single your brand out. We truly believe that our
analyzing consumers’ behavior online and
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talking their language, brands can easily con-
The way I see it, the Internet has changed
memory shortage.
nect with their audiences.
many others to make us their partners.
38 GEORGE ENESCU FESTIVAL
www.business-review.eu Business Review | September 2019
New notes: Music of the XXI century Under the tagline “the world in harmony,” an important strand of this year’s Enescu Festival is Music of the XXI century, which presents contemporary artists who continue to create classical music. Who’s who and what’s worth mentioning? Business Review talked tunes with Mihai Constantinescu, the festival director.
Photo: Alex Damian
By Oana Vasiliu
Composer Sabina Ulubeanu’s #justacomposer performance at George Enescu Festival
NEW SOUNDS OF THE MODERN WORLD What’s the deal with contemporary classical music? Some say it’s only noise. Some say it’s devoid of melody and appeal. Some say it’s a squeaky gate, as Tom Service from The Guardian’s Contemporary Classical Music series notes. But in reality, it’s about not being afraid to explore a whole new world of sounds. “A Festival like Enescu may be subtitled ‘all about classical music’ as we aim to reach as many music lovers as possible. In this context the picture is not complete without today’s compositions. (…) To see and connect with today’s trends in music means to try to understand the today’s world.” So says
“THE ENESCU FESTIVAL PRESENTS 84 CLASSICAL MUSIC CONCERTS, FOUR OR FIVE PER DAY OVER 23 DAYS, FEATURING TOP GLOBAL ARTISTS. THE CONTENT IS DIVIDED INTO FOUR MAIN SECTIONS, COMBINING DIFFERENT EPOCHS AND COMPOSITION STYLES, FROM OLD PRE-CLASSICAL MUSIC, EVEN PLAYED ON OLD INSTRUMENTS, TO THE MOST RECENT CREATIONS OF THE MOST REMARKABLE COMPOSERS,” MIHAI CONSTANTINESCU, ENESCU FESTIVAL DIRECTOR
www.business-review.eu Business Review | September 2019
GEORGE ENESCU FESTIVAL 39
maestro Vladimir Jurowski, artistic director
so interesting to see on the time scale how
of the festival, which was founded with this
different composition styles developed one
purpose of encouraging connection with the
from another. Today we see somehow more
latest trends and also forging dialogue, adds
styles coexisting and this makes the discov-
Constantinescu.
ery of composers more interesting,” says the
Moreover, the International Forum of
director.
Composers event, part of the festival, helps chart today’s creative musical environment. But can we define contemporary classical
CLICHÉS AND MYTHS Contemporary music has been described as
music? According to Constantinescu, ideas
everything from special and interesting to
about this are a bit mixed up. The contem-
arid and too experimental.
porary period is generally defined as starting
“We will see in Bucharest 40 composers
from the third decade of the 20th century.
who take such different approaches to com-
This makes Stravinsky and Shostakovich
positions – from harmonic dreams, to elec-
contemporary although they now seem more
tronic music, from experiments with sounds
post-modernist. That is why Music of the XXI
to stories told by instruments. That is actu-
century is perhaps better at explaining what
ally the idea – to have in 23 days a glimpse of
is contemporary. “The question however trig-
how music is today and how musicians are
gers another response – as we usually define
depicting the times,” adds Constantinescu.
musical styles according to time. And it is
We have a new #classicisfantastic PENDERECKI VIOLIN CONCERTO NO. 2, METAMORPHOSEN (SEPT 22, 13.00, RADIO HALL) VOCALCONSORT BERLIN WITH SVEN HELBIG (SEPT 22, 11.00, AUDITORIUM HALL, NATIONAL MUSEUM OF ARTS) Ralf Sochaczewsky (conductor), Sven Helbig (composer, electronics, video), Carlo Grippa (sound engineer), Radio Romania Chamber Orchestra Sven Helbig “I Eat the Sun and Drink the Rain” – 10 pieces for choir and live electronics
NICOLA PIOVANI (20 SEPT, 15.00, RADIO HALL) Francesco Tristano with Sibiu Philharmonic Orchestra (Sept 15, 13.00, Radio Hall) Cristian Lupes (conductor), Dan Dediu - “Elegia minacciosa” for orchestra, Francesco Tristano - Island Nation Free Piano Concerto, Jorg Widmann (Violin Concerto), Michael Barenboim (Violin), Constantin Basica (Concerto for conductor and orchestra, premiere)
FRED POPOVICI STRING QUARTET (SEPT 12, 15.00, GEORGE ENESCU HALL, NATIONAL UNIVERSITY OF MUSIC) – world premiere SABINA ULUBEANU (1 SEPT, 13.00, AUDITORIUM HALL, NATIONAL MUSEUM OF ARTS) #justacomposer” 2019 – premiere
The World in Harmony 84 performances 23 days 3,000 international artists 1,000 Romanian artists 11 host cities nationwide: Ploiesti, Targoviste, Barlad, Bacau, Sibiu, Targu Mures, Piatra Neamt, Iasi, Cluj, Satu Mare, Timisoara. 6 host cities worldwide: Berlin, Florence, Liege, Chisinau, Montreal, Toronto Festival first-timers: Royal Philharmonic Orchestra of Liege, National Orchestra of Lille, La Cetra d ‘Orfeo, Polish National Orchestra, Pelleas Orchestra, New Europe Ensemble, Cameristi della Scala, Ensemble Linea, La Grand Chapelle de Madrid, La Barocca and Les Talens Lyriques. A musical “tournament”: Third S ymphony performed by two different orchestras: the Maggio Musicale Fiorentino Orchestra and the Berlin Broadcasting Orchestra. Opera in concert: 14 operatic performances, some accompanied by new multimedia creations Mozart Week in Residence The presence of over 40 contemporary composers in the 21st Century Music Section Around 260 tons of equipment and instruments, transported by 13 trucks, from all over Europe Over 8,500 accommodation nights, with over 3,600 people staying in 10 hotels in the central area 4,000 international flights Over 40 aircraft 20 charters – 3 orchestras fly back on the same day 13 limousines for soloists and conductors 12 orchestras with over 100 people 15,000 hospitality packages An estimated 30,000 km traveled within the festival to collect and accompany artists, transport etc. 1,380 m of fresh flowers during the whole festival
www.business-review.eu Business Review | September 2019
40 GEORGE ENESCU FESTIVAL
The wonder of Wolfgang: Mozart Week in Residence
In harmony with the city via phone
A premiere for this year’s Enescu festival is Mozart Week in Residence,
An application, available for free on Google Play and AppStore,
a program brought from Salzburg and curated by acclaimed Mexican
outlines the nearest festival events on a map of Bucharest, but also
tenor Rolando Villazón. Since 2017 he has been artistic director of the
the unique ways music fans can enjoy the experience offered by the
Salzburg Mozart Week Festival, a yearly event taking place around the
festival.
composer’s birthday, 27 January. Mozart Week in Residence @ Festivalul George Enescu will include opera events (including unconventional mime and recitals) and an exhibition of items related to Mozart’s life (such as his violin and letters
The Enescu Experience app includes both the over one hundred concerts that are part of the festival, as well as several hundred other events in unconventional spaces, outdoors, museums and so on. By enabling phone location, each user will receive notifications
to his father), which will aim to cast a fresh light on both the music
about nearby events and can find routes to different points on the
and the personality of one of the greatest classical figures.
map.
“The more you enter Mozart’s musical world, the more you get
The map uses Google Maps, and by using the festival calendar in
surprised every single time, even with pieces that you already know.
the app, fans can choose to view the day’s events on the map. Filters
As a singer, coming back to Mozart’s arias at different stages in your
can also enable the user to see only the events in the festival itself or
life, you are in awe of the purity of the musical line, the dramatic
the side happenings throughout Bucharest.
ingredients that every single role has. And the more you continue to
“The festival belongs to us all, thanks to Enescu’s genius. Even if
explore his entire repertoire, the symphonic pieces, the sacred music,
the rooms have a physical limitation, the joy of music is unassuming.
the chamber music, etc, new doors open in your own interpretation
Our partners developed this idea. I was especially pleased to see what
of this music. On another level, the more you read about his life (par-
the map of Bucharest looks like in the colors of the festival, with vari-
ticularly from that great source of information which are his letters),
ous events through which, together with our partners, we have tried
the more you fall for him… It’s like a kaleidoscope, the more you get
to bring this joy to the widest audience. This year’s edition is the most
into it, the more colors and shapes you will see,” said Villazon in an
extensive so far, but only after you see the map in the application will
interview for the official Enescu Festival website.
you realize what this means,” said Mihai Constantinescu, executive
The curatorial concept of the festival’s Mozart Week is detailed by the Mexican tenor as follows: “The hope that people will experience
director of the George Enescu International Festival. Festival concerts, live broadcasts and recordings in public spaces,
all these wonderful things that I mentioned about him, not just some
alternative concerts, guided tours throughout the city and Romanian
of his wonderful compositions but also something of his spirit, the
artists’ workshops, film screenings, exhibitions, after parties, tastings
joyous, dancing, serious, enlightened man he was. We’ll go through
and book launches are all marked on a map of possible experiences
some of the letters that he wrote to his father and I think they high-
and through proximity notifications, music lovers and other curious
light quite accurately the special relationship they had. To sum up,
people will be able to see which events are the closest and available.
what we’ll bring to the Enescu Festival is a bit of what we do in Mozart
The application includes brief details about each event and links for
Week in Salzburg,” concludes the artist.
booking or for more detailed info.
www.business-review.eu Business Review | September 2019
Oedipe
GEORGE ENESCU FESTIVAL 41
Guided tours of Enescu’s world
Guided tours will take place following the artist’s footsteps through the capital. They will run from September 6 to 22, at the end of the week, free of charge. “The whole history of Bucharest is intimately linked to music, and the traces of Enescu through the city are still noticeable in stories, in places where he stayed, composed, dreamed, loved. There are stories that we can recover and whose joy we can share with the help of these guided tours, both with the audience of the festival, as well as with tourists and those curious to know more about the culture of the place. We were pleased to be able to include this initiative in the series of programs associated with the Enescu Festival, in line with the objective we have this year, to expand the connection between As author Noel Malcolm describes it, Oedipe is one of the least performed masterpieces of the 20th century. Despite George Enescu’s
the festival and the city,” said Constantinescu. There will be two tours: In the footsteps of Enescu, featuring
self-imposed rules for composing opera (it should not drag on; the
buildings and places frequented in the past by the composer and
public should not become bored; the listener should understand the
other Romanian musicians; and Bucharest’s Hidden Gems, which will
text) and the initially warm reception of musicians and critics, the
present lesser known musical venues. Tours are free of charge, with
opera (which does not feature any love duets) was not a hit with the
Romanian and English guides, sponsored by Raiffeisen Bank.
general public when it debuted in Paris in March 1936. The National
“We designed these routes to reveal the city with the thought of
Opera Bucharest has managed to again stage Enescu’s only opera, this
music and the desire to let curious people discover the subtle vibra-
year’s performance being directed by Valentina Carrasco under the
tion of Bucharest, with its dose of the beautiful, unique, eclectic,
wand of Tiberiu Soare.
always subtle allied with music. We will guide our guests on tours
The story follows Edmond Fleg’s richly textured libretto, draw-
that will bring to the surface stories about the music halls of the time,
ing on Sophocles’ Oedipus at Colonus as well as Oedipus Tyrannus.
about Enescu’s love for Princess Cantacuzino, about his relationship
It presents the whole life of the tragic hero, from the celebration of
with the Royal House, about the architects with whom he collabo-
his birth in Thebes to his death in a grove near Athens, where he was
rated closely, but also about being a gourmet. We will discover the
led by his daughter Antigone. In their redemptive final act, Fleg and
importance of church music, but also the music of mahogany, we
Enescu present a modern version of the myth in which this archetypal
will discover the discreet charm and nonsense that elude the casual
representative of humanity rails against the injustice of fate, protest-
glance in Gradina Icoanei, Batistei, Armeneasca. These routes are, in
ing his innocence of parricide and incest on the grounds that he never
fact, a unique form of celebrating music during the wonderful event
intended to commit either crime.
that is the Enescu Festival!” added Anita Sterea, president of the New
Saturday September 21, 19.00 at The National Opera Bucharest.
Cooltural Association Cares! and project coordinator.
www.business-review.eu Business Review | September 2019
42 PARTNER CONTENT
București Mall - Vitan: 20 years of reinvention remodeled and offered to Romanian fashion creators. The first one to benefit from this initiative was also the first local designer to be featured in the Paris Fashion Week: Venera Arapu. Since then, in almost one year and a half since it was opened, more than 25 Romanian designers displayed and sold their creations in this original pop-up store, among which were Kinga Varga, Izabela Măndoiu, Framboise, Anna Fellini, Papucei, Bon Bijou, Pineberry, Laura Olaru, Anamaria Pop, Muna, AnTanTe, Happy Friday, Larisa Dragna and THAÏS & STRÖE, Dana Rogoz, Lisa & Co, Sweet Paprika, Maison Mimino, NAIV Clothing, Noire Swimwear, Miss Mary a little, and MOOGU. Designers Boutique @ București Mall THIS FALL, THE FIRST MODERN SHOPPING
and Board Member of Anchor Grup. Nowadays,
Vitan also provided consultancy to fashion
CENTER IN ROMANIA CELEBRATES TWO
București Mall - Vitan has a gross leasable area
creators who, for instance, only had an online
DECADES OF ACTIVITY. BUCUREȘTI MALL
of 40,000 square meters and an occupancy rate
presence, and had not met before the chal-
- VITAN IS NOW MORE THAN A COMMER-
of 99%. Among the distinctive tenants of the
lenges of a brick and mortar store. The project
CIAL DESTINATION - IT HAS ACHIEVED THE
shopping center is MANGO anchor store (with a
was so successful that it brought a new exclu-
STATUS OF AN URBAN LANDMARK THAT IS
surface of 1350 square meters), one of the few
sive brand to the portfolio: after being part of
ALL ABOUT FASHION, EXCLUSIVE BRANDS,
stores in Romania where you can find collections
Designers Boutique @ București Mall - Vitan,
AND INNOVATION.
for women, men, and kids, from new-born to 14
the family business Pineberry opened its
Twenty years ago, București Mall - Vitan
years old. Moreover, the Douglas store opened in
first offline store in the shopping center.
greeted its first visitors and began to change
București Mall - Vitan offers over 10.000 products,
their urban experience for the better. It
including premieres on the Romanian market in
brands is Resto Aperto, which distinguishes
offered them a wide array of international
terms of makeup and perfumes.
by its innovative approach of Italian cuisine.
brands in a very modern location, different
One of the latest additions to the tenant mix
Among București Mall - Vitan’s exclusive
The restaurant, located on the ground floor
from everything they have seen before. It
is TOPSHOP l TOPMAN (which opened its first
of the mall and endowed with a cozy terrace,
was a success story that attracted the inhab-
Romanian store here). The British retailer, famous
stands out because of its diverse menu, which
itants of Bucharest, as well as customers
for selling a pair of jeans every 10 seconds, chose
includes a wide variety of pasta, pizza, fish,
from the entire country.
București Mall - Vitan as the starting point for
steaks, desserts, gelato, to which are added
its expansion in Romania. The first TOPSHOP l
the delicious house cocktails. Five cooking ar-
Romania made us into pioneers on the local
TOPMAN inaugurated locally occupies a surface
eas, each with its own specific inside the res-
market. That status came with responsibil-
of 1000 square meters. Fans of this brand can
taurant allow the food enthusiasts to enjoy a
ity. One of our strategies was the continu-
find in the shopping center comprehensive
complete dining experience because they can
ous optimization of the tenant mix, so we
collections in terms of fashion and accessories
see how each dish is prepared by professional
can meet the more and more sophisticated
from Mainline, Boutique, and Denim, as well as
chefs specialized in the respective field. The
demands and tastes of our customers. We
TOPMAN Mainline, Denim, and Formal. The store
restaurant occupies a 900 square meter area,
also focused on sustainable growth and
also offers a free Personal Shopping and Styling
has a capacity of 270 seats, and a growing
constant reinvention - București Mall - Vitan
service. Clients benefit from the advice of a per-
number of customers. With such an exclusive
was the first shopping center in Romania
sonal fashion consultant and exclusive access to
portfolio, original CSR projects that were
to be refurbished while staying functional.
the latest articles of clothing.
rewarded with international awards, and a
“Having developed the first mall in
Two decades since its inauguration, we
Another distinctive feature of București Mall
focus on innovation, București Mall - Vitan
add another premiere to our track record:
- Vitan is its unique initiative in retail: Designers
is committed to continuing to surprise its
București Mall - Vitan is the first in retail
Boutique, which was available to the custom-
customers in the long run.
to award a lucky customer an electric car”,
ers of the shopping center beginning with April
stated Affan Yildirim, General Manager
2018. A retail unit located at the ground floor was
20 years of București Mall – Vitan. The first 20 years.
www.business-review.eu Business Review | September 2019
44 EXPAT EYE
Don’t turn around: brave new Romania mustn’t backslide With her home country mired in self-inflicted chaos, BR’s resident British expat reflects on the progress being made in Romania and worries about recent reversals. By Debbie Stowe of grass. Bucharest’s lively – and constantly busy – civil society has naturally risen up, to protect the century-old gardens. A little further up the river, Glendale Cinema – a charming, independently-run movie theater open for more than two decades – closed its doors in May, the premises having effectively been seized by the authorities of Sector 1 under a new law, despite almost 2,500 fans signing a petition against the closure. Describing itself as a cinema and art café, your ticket included tea, and viewers were given an empty paper bag which could
W
be filled and refilled from the popcorn machine in a little room off the main cinema hall.
hile I was packing for my move
institutions, more functional infrastructure,
It was wonderfully quirky and great value – a
to Romania in 2002, my mum
more diverse retail, gastronomic and cultural
change from the identikit, comfortable-but-
brought me two cans of Heinz
scenes, more developed public services and
soulless multiplexes that now proliferate.
soup – in case I couldn’t “find anything to eat
so on. But unlike the UK, whose “glory days”
there”. Although I was touched by the con-
were long gone (again, even before Brexit),
der in Caracal, the Colectiv nightclub fire,
cerned maternal gesture, I declined the offer,
Romania seemed to be looking forward to its
watered-down disinfectant in hospitals – the
on the basis that as Romania had a population
best times.
slight disfigurement of a park and closure of a
Amid Romania’s recent scandals – mur-
of about 20 million, presumably those people
Of course, with my Parliament prorogued,
must be eating something and therefore food
a scoundrel as my PM and my country on the
die. But they are examples of how authori-
was available.
brink, I’m more grateful than ever to have
ties can abusively, and for arbitrary reasons,
found a home in Bucharest. But even here,
make our lives a little duller, a little poorer, a
Europe in the 1970s, and seen various condi-
there is evidence of backsliding amid all the
little less colorful and interesting. Since I first
tions. They’d been followed in Russia, passed
recent encouraging steps forward.
stepped off a plane in Bucharest, soupless,
My parents had travelled a lot in Eastern
through police states, been offered cash for
The civil unrest in Turkey in 2013 erupted
cinema are not the most serious. Nobody will
17 years ago, I would say 90 percent of the
their clothes, as such items were not available
over the urban development plan for Istan-
changes I’ve seen have been positive. More
locally – but always been fortunate enough to
bul’s Taksim Gezi Park. I understand it: parks,
varied gastronomic options, better service,
return to the liberty, prosperity and plenty of
the places where we play with our children,
greater efficiency, the smoking ban, EU
the UK. Oppressive political regimes, threats
stroll with our lovers, walk our dogs, catch
integration, stronger anti-corruption efforts,
to democracy, shortages of basic goods, dif-
up with friends over a drink, jog, cycle, play
faster internet – all have made life here easier
ficulty in going about one’s daily business;
football, breathe fresh air, are vital for our
and more enjoyable. True, prices have shot
it reads like a list of bygone predicaments,
psyches, especially in places where few have
up – an inevitable consequence of opening
or afflictions facing countries deep in the
their own gardens, like Bucharest.
up Western labor markets. And some of the
developing world – not a characterization of
I’m glad that couldn’t happen to my local
quirkiness has been lost – I can no longer
today’s United Kingdom. Or rather, Disunited
park, I remember thinking, confident that
laugh about my local shop being called
Kingdom. But here we are. Even before the
Cismigiu was too historical, too central, too
“Angst” or a wedding dress boutique being
Brexit humiliation, the main thing I loved
close to City Hall to fall under the developer’s
called “Mistake”. But, overall, Romania is on
about Romania was that the country was
bulldozer. Wrong. Now EUR 10 million of
the up. I hope it doesn’t reverse course back
moving in the right direction. Yes, the UK was
“improvements” are planned, which appar-
to the bad old days, like my home country is
objectively the “better” society – stronger
ently include concreting over large swathes
inexplicably trying to do.
www.business-review.eu Business Review | September 2019
RESTAURANT REVIEW 45
Great food, zero ambience >>> Hotel Cismigiu, 36 Regina Elisabeta <<<
F
or 20 years, I watched in dismay as
ditional starter. She correctly anticipated
irony, this House is opposite the temple of
the Hotel decayed and crumbled
that the foie gras would be mean razor thin
doom, trash, fat slug, obesity, namely the
before my eyes due to a title dis-
slices of terrine which would not spoil her
McDonald’s on Elisabeta St. where you will
pute with the Sector I mayor and private
appetite, and she was correct. So was the
risk your life and your expanding waist-
interests. Thankfully, the latter won a few
dish, which was plated traditionally with
band with their vile hamburger. It’s a no-
years ago, and the hotel was transformed
sweet jam and a mean slice of fig - a slice, not
brainer to go to this House and order the
into something wonderful. So let’s go and
the whole fig. Yet she loved it.
same. And now to my main. I ordered the
check out their flagship restaurant on the 6th floor. The décor is terrible.
For my starter, I ordered a comedy circus of errors described as
seafood plateau at 70 lei. Oh, it was good. I was angry at the cheap trick of including crayfish,
‘five French
crawfish or what-
It is all pink: the
ever you want
walls, the ceil-
to call it. In
ing, and the
Australia it
furniture. All pink! Dam-
is a giant,
mit, it is so
and it’s
gay that I
deemed
expected
to be a
the poofy
small lob-
male fairy
ster, but in Europe it is
from the
an American
top of the
invader of our
Christmas tree
waterways, and
to come dancing by my table resplendent in his tutu. But Blondie drained off my
chees-
a pain in the ass.
es’ with 50
Chefs love it because
grams at 10 lei. Not so. You
it fills your plate with utterly
surplus testosterone and calmed me down,
could select ONE of five cheeses. So I was
useless, inedible long stony claws, hiding
hence away to the menu. I cannot find a
offered Gorgonzola. But the waiter then
the fact that the only thing you can eat
single fault with each choice of dish offered
asked me ‘which Gorgonzola?’ The poor chap
is the tiny ‘ass’ which is the size of your
on the menu, but the reality was not as
labored under the traditional Romanian illu-
fingernail. Thank God It was accompanied
described.
sion that Gorgonzola was the generic name
by three giant king prawns. But the lazy
for all blue cheese. After I held him down
House left the whole thing on the plate.
asparagus’ at 27 lei. What the menu did not
and tortured him with hot irons he confessed
That means legs, head, shell - all of which
disclose was that the risotto was laced with
that the Gorgonzola was actually Roquefort,
I had to peel off myself. Yes, the food was
beetroot, and there was no discernable
which came to me plated with a sprinkling
delightful, but my fingers were dripping in
taste of truffle whatsoever. The Chef should
of pomegranate seeds, olives and grapes. It
garlic oil and were only relieved at the END
have shaved it in to complete the dish, but
could not get better!
of the meal by a most welcome fingerbowl.
She ordered a ‘risotto with truffles and
there was nothing. Perhaps he cheated by
So away to mains. Blondie chose a simple
Go there. It is really acceptable. Check
using imitation truffle oil. Nonetheless,
hamburger at 40 lei, which was anything
their menu online. They deserve a big bite
Blondie loved it.
but simple. The beef was superb, ground
at this marketplace.
Her greedy eyes settled on a foie gras with cinnamon bread at 44 lei as an ad-
by the Chef from the best cuts they had not sold that day at premium price. To add to the
Michael Barclay Mab.media@dnt.r0
www.business-review.eu Business Review | September 2019
46 CITY
Cultural calendar
Película Film Festival September 11-15, Cinema Elvire Popesco, Cervantes Institute, Cinema Muzeul Taranului Roman
By Oana Vasiliu
Oscar for Best Actress in a Lead-
nightclub, Studio 54 (directed
ing Role and Best Foreign Film
by Matt Tyrnauer, 2018), the
and received the Golden Globe
history of French electronic
Artist category, and Yes for Best
for Best Foreign Film in 1999.
music, in French Waves (Julian
Hard Rock Performance. Tickets
Starke, 2018) and an explora-
start from 259 RON.
DokStation Music Documentary Film Festival September 12-15, Control Club, Expirat, Apollo 111, Fabrica Gastropub, Plaza Romania
Focusing on the culture of South
tion of the past and future of Italian disco music, in Italo Disco Legacy (2018). Artists speak in New Order: Decades, PJ Harvey:
iMapp Bucharest September 21, Piata Constitutiei
A Dog Called Money, Suede: The Insatiable Ones, Mystify: Michael
This year iMapp Bucharest is
Hutchence, Swans: Where Does
hosting the International Video
A Body End? and Pure Love –
Mapping Competition – Winners
The Voice of Ella Fitzgerald,
League, gathering the winners
while documentaries I Want
of seven major video mapping
My MTV, Our Hobby Is Depeche
festivals worldwide. The façade
Mode and The World According
of the Palace of Parliament will
to Radiohead offer unique per-
become the canvass of the video
spectives on musical and social
mapping world, with each final-
phenomena. Tickets start from
ist team revealing its own way
RON 15.
of exploring the world and the international video mapping
America, the festival combines film screenings with dance,
Evanescence concert September 15, Arenele Romane
food, music, exhibitions, and stories of those connected with
scene. 2019 also marks 30 years of the World Wide Web (WWW), which the event organizers will reference through the themes of
this famously passionate region.
The fourth edition of DokSta-
Brazil is the focus of the fourth
tion will feature movies about
Evanescence, a popular US rock
universal connectivity, border-
run of the festival and iconic
the evolution of disco music,
band featuring vocalist Amy Lee,
less communication, travelling
film, Central Do Brazil will open
documentaries on Radiohead,
will perform in Bucharest. The
and exploring different cultures
the event. The movie, which
INXS, David Bowie, Suede,
group has sold tens of millions
and regions online and offline.
depicts the emotional journey of
Elvis and PJ Harvey, alongside
of albums worldwide, while its
Organizers say the visual content
a former teacher and a nine-year-
local productions. This year’s
international nominations and
can be conceptual or figura-
old boy, earned over 30 awards
selection includes 21 musical
awards include two Grammys
tive, realistic or symbolic, fit an
and nominations in international
documentaries, such as the story
received in 2004 for the songs
abstract approach or be a part of
festivals, was nominated for an
of the legendary Manhattan
Bring Me To Life, in the Best New
a narrative puzzle/story.