As a result, traffic has gone up on these websites. Revenues, however, did not go up that much. Position: assistant manager. Type of offer: full time. Company name: confidential. Industry: advertising. Salary: n/a. Neither the position nor the few details that come with the ad published at the end of February would have attracted more than a few hundred applicants a year ago. Back then, the human resources market was still working in the employees’ favour, as they had enough better jobs that paid more to choose from.
The position would not necessarily seem attractive even now, when the advertising industry in particular is suffering from the difficult economic period, except that more than 12,000 people submitted their CVs for it. On the same website, an ad for a regional sales manager for a printing company had more than 2,500 people apply for it. ”Whereas major online job recruitment sites had 200 applicants for a position on the average until now, today their number exceeds 500, depending on the job offered, which shows there are more candidates available,” notes Iuliana Badea, sales manager of Lugera & Makler. Growth is generated, on the one hand, by the high number of people out of a job and on the other hand, by the employees who hope to find a better job in these unstable times.
Traducere de Loredana Fratila-Cristescu si Daniela Stoican
On more than ten years after they launched unit-linked policies (which also include an investment component, in addition to the insurance) on the Romanian market, the Dutch at ING Asigurari de Viata (ING Life Insurance) are preparing to radically simplify their offer. ”We are revising some of the products in view of reducing their price, which also entails a simplification,” Cornelia Coman, general manager of the insurer that holds around a third of the market, told BUSINESS Magazin.
The simplification occurs in terms of the product (the client can choose only from a few types of benefits, insured sums or duration of the contract) or in terms of the risk assessment process and sale, where the ”risk assessment questionnaire is simplified”. Coman has noticed, as have other players in the life insurance industry, that Romanians are increasingly hard to persuade to trust sophisticated financial products, such as life insurance linked to investment funds, but not only. A lack of confidence in financial institutions can be noticed, she says.
This trend and the clients being less and less willing to spend a lot on products that are not absolutely necessary have been quick to produce effects on the insurance market: ”Profitability of sophisticated products will be very low this year,” says Sanziana Maioreanu, general manager of Signal Iduna, one of the players which have recently entered the market. So, after several years of trying to persuade clients to buy increasingly complex insurance products, companies now find themselves having to adapt as they go along. It is not only their business plan that changes (strongly affected by the consequences of the economic crisis), but also the product structure and the sales structure.
”We have to focus on mass needs, which remain in the area of traditional products,” says Frans van der Ent, CEO of Eureko, leader of the life insurance market. According to beginning-ofthe- year plans, increasingly more companies will, this year at least, adopt the policy of simple, easy to understand, and, not least, cheaper products.
Traducere de Loredana Fratila-Cristescu si Daniela Stoican
Doru Bostina, the managing partner of Bostina and Asociatii is one of the few lawyers that have bet on the potential of the markets outside Bucharest. For most law firms, smaller cities did not seem attractive, either because the services needed there were too simple to be of any interest to them or because the financial effort territorial expansion would have entailed was too great. ”Those that stuck in the cliché that big deals are only closed in Bucharest were not paying enough attention,” Bostina said during a conversation with BUSINESS Magazin.
Of the ten biggest Romanian law firms, only three – Tuca Zbarcea & Asociatii (TZA), Nestor Nestor Diculescu Kingston Petersen (NNDKP) and Bostina si Asociatii operate offices outside Bucharest, too. With 15 local offices that cover all the important regions, Bostina si Asociatii is the leader in terms of territorial expansion that started a few years ago, when few lawyers would look beyond the Capital. ”They should have opened their eyes and seen how many big and mediumsized companies had been reborn after privatisation or after the recession between 1997-2002,” Bostina says. In his case, 10% of the turnover of the last two years was generated by the territorial offices; though it may seem a little at first glance, ”the current crisis may very well diversify and boost demand for business law advice in the rest of the country”.
The reasons why going beyond the borders of the Capital may turn out to be a winning bet for lawyers, even though it is not profitable on short term, start with the fact that in Bucharest, the centre of many businesses, the most profitable industries as far as lawyers are concerned are frozen for the time being. Law in the big cities, on the other hand, is mostly a ”courtroom” business, and very little of it is done in form of consultancy. ”Naturally, the absence of demand has created a gap in terms of development of consultancy skills and its specific techniques compared with Bucharest,” says Adriana Gaspar, senior partner of NNDKP and managing partner of the Timisoara office. That is why she believes that some clients prefer to receive advice in Bucharest about their businesses in the country.
Traducere de Loredana Fratila-Cristescu si Daniela Stoican
Theoreticians and analysts have Michael Porter or Robert Reich, politicians have party programmes, entrepreneurs have their own strategies and visions, while journalists take a little of everything. Many people keep repeating that the current economic crisis should be an opportunity for reflection, for catching up on those reforms not done in time and for plans for what to do after the crisis. Can we hope to get a feasible strategy for Romania’s development after the crisis from theories and programmes, from the expertise thus far and from articles in the press? What fields suit us, who should identify them and what should be done?
Almost all the businesspeople that BUSINESS Magazin has spoken with are talking about the necessity of a national development strategy, with consistency as the key word. The main development sectors are, as you can probably tell, agriculture, information technology and tourism, supported by a solid infrastructure and a quality education system.
How one should get to such a winning bet list would make for a long discussion. On one side of the fence, of those who support the role of the free market forces exclusively, sits Dinu Patriciu, chief executive of Rompetrol, a firm believer in liberal policies: ”Were we to free the economic environment from constraints, opportunities would be born naturally,” says Patriciu, a billionaire who is the only Romanian still on the Forbes list of richest people.
More businesspeople, however, believe in the necessity of the involvement of the state in setting economic directions to be followed, in partnership with the business environment, of course. ”The fate of Romania is in the courage with which the government, whatever colour it might be, undertakes the restructuring of public services and businesses from the ground up,” says Marius Stancescu, chairman of Riff Holding International, a business service company.
”There are countless models in developed states, we just need someone to do the research and apply the model,” he feels. Otherwise, unless a change of direction occurs, Romania’s economic future will show its ”incurable impotence” in the next ten years. Even pushed forward by EU’s integration mechanisms, if no government takes the risk of fundamental changes and is able to induce the effective use of public resources, we will always be ”the poor relative on a visit to the city,” Stancescu concludes.
A cooperation between politics and economy would be ideal, Florin Talpes, chief executive of the BitDefender software developer, believes, as well. Ideal not because it is desirable, but because it has not happened until now. ”Romania’s governments have been showing a great neutrality towards the fields of the future until now. As for the political environment, I don’t think it favours medium to long-term strategy building and consistent application of such strategies,” Talpes says.
The creator of BitDefender, the antivirus thought to be the best-known Romanian software application, says that a solid economy is a project that takes eight to twelve years and requires vision to begin it. ”However, political changes happen at intervals of less than four years and lead to replacement of all public servants down to school principals.” This means lack of continuity in strategies and renders Romania unable to show consistency in policies other than those imposed the structures we are part of, EU or NATO.
Traducere de Loredana Fratila-Cristescu si Daniela Stoican
Lately, especially for consumers of foie gras or of luxury chocolate, the operators of a few of these stores have also entered the food & beverage market, by opening restaurants or bars, where the delicacies can be tasted in a purpose-built area, accompanied by the wines that go with them. The openings occur on a market where delicacies were first turned into a business in 2005, when Delicateria Traiteur was launched, following a 100,000-euro investment by Gusto- Elysée Receptions.
The store, which was based on a concept ”imported” from France, was the first to sell products such as smoked salmon, salmon terrine, Delicateria Traiteur ham, deer, pheasant and selected wines. Delicateria now shares the market with other experienced players such as Le Manoir, French Bakery, Croissant de Paris and Leonidas. In all, there are just over 10 brands that sell luxury food, and they address a maximum of 10% of the population. But delicacies appear to be crisis-resistant, given the large number of shops opened at the end of last year and in 2009. The French bakery and patisserie brand Paul (with over 120 years of tradition) entered the Romanian market at the end of 2008 with two stores (in the Dorobanti area and in Baneasa Shopping City).
Around 1,000 customers step into the bakery shops daily for croissants, pain au chocolat, macarons or French baguettes. And for 2009, Romanian representatives of the brand expect a 2 million-euro turnover. The beginning of 2009 also saw the opening of Gourmandise Traiteur in the Rosetti area, which sells spices, smoked goose breast, foie gras d’oie, mousse de foie de canard, prosciutto San Daniele, kefir, wines and chocolate. Targeting a segment of the population that does not seem very much affected by the crisis, delicacy stores have also developed the food & beverage area, a strategy which appears to bring customers even closer to the delicacies.
Chocolat, which has gained its position on the market thanks to its confectionery products and to the bread specialties, has this year expanded by two shops. ”We basically thought up three Chocolat concepts – a 40 square meters store in Dorobanti, another one on 100 square meters in Calea Mosilor, and the 200 square meters flagship store in the old town. Based on how each store fares, we will crystallise a development strategy,” says Tudor Constantinescu, owner and manager of Chocolat Créateur de Goût, who has allocated 250,000 euros for investments in 2009.
Traducere de Loredana Fratila-Cristescu si Daniela Stoican
Aflati in continuare cat costa sa trimiti unul sau doi avocati de cateva ori pe saptamana pana la Cluj, Suceava sau Timisoara.
Alexandru Costin, Adobe Romania: "Romania este bine pozitionata pentru a deveni furnizorul de masini de buget redus in Europa"
Andreea Vass, consilier al primului- ministru: "Agricultura necesita cel putin doi-trei ani de restructurari masive pentru a deveni exportator net"
Adrian Stanciu, Human Synergistics: "Din pacate, statul nostru e complet incoerent si incapabil sa urmeze orice fel de strategie pe termen lung"
Dinu Patriciu, Rompetrol: “Politicile economice ale decidentilor politici nu mai sunt importante, o tara trebuie sa devina prietenoasa cu mediul de afaceri"
Catalin Baiculescu, Musat & Asociatii: “Trebuie sa ajungem in stare ca, in ciuda perioadei de criza, sa dam un anume confort unor oameni care mai vor sa investeasca"