Archive for the 'Business' Category

Finally, Загорка!

Tuesday, June 19th, 2007

Occasionally, I’ve been an outspoken critic of Romania’s apparent lack of interest in participating in neighboring economies. Those synaptic flares generally boil down to the distasteful observation of Romania drinking in too much of the outerworld in comparison to seemingly non-existant projection of itself.

Some moments it seems Romania could have a long-term economic disadvantage when I read about Austrians buying the banks, Dutch buying the breweries, Czechs buying energy concerns, British buying the property, French buying the car manufacturers, Swiss buying the ice cream makers, Germans buying the insurance conglomerates, and so forth and so on.

Rather than build lasting commercial empires, I worry about a future where Romanians have already sold everything like an international rummage sale when the economic games have only just begun.

Will the macro point of view be one where Romania only exists to be drained of its’ wealth potential? It’s a vampiric scenario to think of so many Romanian companies having their profits siphoned outside the borders.

From there I get to ranting about how various foreigners are taking possession of historical treasures, the radical absorption of massive amounts American culture through the entertainment and food/beverage industries, the rapid influx of retail brands from Hungary, the loss of seaside tourism to other parts of the Black Sea, and more.

When I rarely, if ever, hear about Romanian-owned companies exporting Romanian brands to the outside world, those are the times when I wonder what is happening to Romanian culture? It is really disappearing before our very eyes?

I hope I am overlooking some obvious and substantial enclave of Romanians who take pride in ownership, build some great businesses, brave the economic wars of entering new markets, and bring some of those profits back home.

A new generation of Romanian business leaders who don’t salivate over the exit strategy of quickly selling out to the nearest stranger with sacks of cash and then blowing it all on some wildly lavish escapism.

A bumper crop of serious entrepreneurs yearning to construct stable empires to hold.

Romania needs such iconic figures who breed successful outreach strategies enabling the nation to compete in the European Union and internationally without simply becoming a wilted plop of resources to be leeched.

Hungary, Bulgaria, Serbia, and Ukraine all represent logical markets for exporting Romanian-made products and Romanian-performed services sold under Romanian brands of Romanian-owned companies. There’s a ready audience right across the border just ripe for the taking. Do it.

While I clearly do not subscribe to the completely xenophobic or isolationist philosophies of Romania’s more, er, colorful political figures, I am unequivocal in my observation of a huge imbalance between foreign ownership and Romanian ownership.

The long and painful history of the Romanian peoples should not end with indentured servitude. Ba nu.

To lighten the mood, I’m hypocritically quite overjoyed to report on my latest findings in international commerce happenings here in the central economic hub of Bucureşti, colloquially known as the hot buzzing zona Rahova.

After much longing and despondent searching since prior excursions to the wilds of Sofia, my intrepid scouring of the busy Sector 5 streets has revealed someone finally imported the unbelievably fantastic Zagorka lager of Bulgaria into Romania.

Time to get on the clue train, you hip kiddies. Be the first one on your block to be super marfa. Ask about it at your local store (just like I incessantly badgered mine). Amaze your friends with your new-found sophistication by tipping back a glass of deliciousness.

Noroc!

Zagorka beer sold in Romania

New apartment construction in Romania

Tuesday, February 27th, 2007

If you’re looking to hole up in a swank new joint or just feel curious about housing development in your burg, then you’ll probably want to bookmark a project that Andu‘s been working on because it’s pretty spiffy.

New apartment construction in Romania

Without being forced to register for anything, you can get both your hands dirty right away searching for properties that meet your interest. There are an impressively robust number of parameters you can access to refine your search to deliver some fairly specific results.

For example, I was curious to find new apartment construction in Braşov which featured air conditioning (an amazingly rare thing). To do that, I access the filters in the right hand column.

Clicking on Braşov, the site indicated my choice with a green checkmark and then filtered out the other cities. For other filters, you just rinse, lather, repeat.

search filters

For some of areas outside Bucureşti, the number of results to be found are a little anemic. I gather this is largely due to the realities that most of this sort of development is happening the capital with a slower pace of growth in other major cities.

But what I was most impressed by was the fact that Rez.ro makes the effort to identify and present the construction initiatives across the country. A less-visionary group would have clung to the folly of myopic focus on Bucureşti exclusively. Instead, they’ve made a smart move to be inclusive.

So, once I’d been given a list of search results matching my criteria, it was time to take a look at the respectable number of details provided by Rez.ro’s online database. If the construction company makes the general property information available, then Rez.ro shares that with you.

Property details

For some properties there is more information than others. In my case, I could read some of the marketing information about the apartment having spacious design, energy-efficient storm windows, a phone jack in the bedroom, and other little data niceties.

One of the first things I wanted to do was click the thumbnail images for the property. Instead of popping up a new window (because we all use browsers like Firefox to block annoying popups, don’t we?) which might result in new tabs for some of us with 90 tabs open, the website developers made a very intelligent decision to simply overlay a layer right on top of the existing page.

Image overlays

Although Google does not have quality satellite photos of Romania (except decent quality in Bucureşti), people like Martin have implemented a system to overlay the location of the apartments on top of Google Maps in order to give you a good approximation as to where precisely the development is going on in your town.

New apartment construction location mapping

As you see, Google’s images aren’t so hot for Braşov. But, if you know your own city, then you’ll recognize the location and immediately know where it’s located. Of course, Rez.ro will benefit in the future when Google updates their satellite photos to the “quite okay” level of detail available for Bucureşti.

For registered users, you can start/join a public bulletin board discussion about the property or even save it in your own list of ‘favorites’ which is basically a watch list you can use to keep track of apartment complexes you are interested in (or to keep up-to-date on the competition, if you’re in the real estate game).

Unfortunately, if you aren’t registered you get a rather unfriendly message.

Error message

Hopefully, Rez.ro will review little annoyances like that in the future. In this case, instead of a penalty message, the user should have been invited to sign up along with a short bullet list of reasons why (“what have you done for me lately?”).

From the details page, even unregistered people can email property details to someone, contact the property developers with your sales inquiry, or click for a list of the individual apartments inside the particular property in order to find a particular one.

Let’s say I want to be on the 3rd floor (not too high in case the elevator breaks, as the Romanian ones invariably do) but not on the lowest levels where you get lots of noise from passing cars and foot traffic.

Remember, my American friends, in Romania, the first floor is not called the first floor. It’s called the parter. And “etaj 1″ is the second floor…

Ah, here we go. Etaj 2, with three rooms, and rather sizable 108 square meters (approx.1162 sq ft).

Lists of Romanian apartments

Clicking for more details shows me the building has four floors, which means someone will be living above me. One and a half baths means I can direct guests to the toilet that isn’t cluttered with bathroom malarkey.

Oh, look, a floorplan layout! Say, that looks relatively swanky in my book.

Romanian apartment floorplan layout

I hope Rez.ro has someone tasked with getting higher resolution images, because I’d like to see that floorplan a bit larger. Sometimes getting timely cooperation from property developers can be like pulling teeth, so I’m happy to see they have anything at all.

Since I haven’t won the Romanian lottery, how would I go about paying for this comfortable living space? Well, Rez.ro has the pertinent information broken down for you with a nice financial review of what the terms are for your particular apartment.

Romanian apartment financing

And that’s what’s ultimately motivating this website. I’m sure you’ve been wondering what kindly soul dreamt up such a great system for researching new apartment construction in Romania. Quite simply, they’re hoping to make a buck by helping you finance your purchase.

CreditLink is the driver behind the wheel here. From what I gather, they’re essentially playing the role of mortgage broker. They’ll help you get organized for a loan application, then work with several major lenders in order to get you approved. For their blood, sweat, and tears necessary to make sure you get that beautiful apartment, they pick up a fat commission.

Everybody wins!

I think CreditLink has a real winner on it’s hands with Rez.ro. The work being done by folks like Andu and Martin should have a big pay-off down the line. This is one of those great projects that borrows good ideas from other countries, then localizes them for the Romanian market.

Someone’s gotta do it. And these people have done a fine job indeed. I think it’s absolutely great that someone put together a solid plan based on a vision of what can be done here in Romania. Combine that with some quality execution and you get Rez.ro, a website you can easily recommend to friends in the market for new apartments.

Martin indicates an English version will be arriving in March.

In my mysterious past, I’ve had direct experience with exactly what it takes to create and market a complex, profitable, online real estate system which had previously never been seen before in the United States. Therefore, I am quite certain a large amount of work has been poured into Rez.ro and what its’ potential for long-term valuation might be.

There are a number of ways in which CreditLink can further monetize the value of this web application, but they’ll have to keep a steady hand on the wheel to determine which opportunities should be passed over, for fear of driving away users, and which revenue streams should absolutely not be overlooked.

I hope they continue to refine the system, add new features, and invest in the human resources necessary to dramatically improve the quality and amount of content. Content development and cooperative partnerships will improve the user experience, provide alternate revenue streams, and drive the core mortgage brokering business.

They’ll also need to keep a very close eye on scalability, because any poor performance of the site will become part of the brand. It was running very fast when I first tried it a couple weeks ago, but today it was noticeably slower.

You can easily forgive that because they’re the only game in town as far as I know. However, when the competition arrives trumpeting some shiny new website, you don’t want to be known as that old slow site.

In the meantime, congratulations to whole team behind Rez.ro for their efforts to develop a truly innovative player in the Romanian real estate market. I’d rate CreditLink’s Rez.ro as a strong example for other companies to follow the lead of and for other industries to view as a role model.

The Romanian real estate industry has begun evolving.

Suspense of the Pastry

Friday, February 23rd, 2007

Travel Tip: Always, but always, support your rustic street vendors on the backalley ribbons of non-tourist zones. If a kiosk can survive selling wares to nearby residents, then it must be “quite okay” and non-lethal.

Stand proud in recognition that such venues remain sufficiently mysterious enough to give you that rush of adrenaline that comes from taking great risks to eat like the native.

Valid for the purist seeking authentic experiences in any city, town, and village. Braşov is no exception to your guiding principle of avoiding chains, franchises, and other tainted commodity establishments while visiting strange, far-flung lands at the outer realms of the known world.

Leave the guidebook at home and go get lost.

You may find the very purpose of your life was to set out as the intrepid explorer who would unwittingly discover the thrills of being the first alien to unearth a quaint little pastry shop and to shed the light of publicity upon it.

SC Vlady Prod SRL cofetarie si patiserie in Brasov, Romania

Most often, you’ll find it conveniently buried down a quiet, dusty street surrounded by bloc apartments filled with suspicious residents who peer out from behind protective curtains anytime their sixth sense signals the alarm that a foreigner has breeched the cartier perimeter.

For example, you just might stumble upon such a hidden gem while larking about the Florilor neighborhood of Braşov, Romania, in which case you’d be ruffling the feathers of the cloistered neurotics busily spying on your radically unfamiliar walking style in the vicinity of Str. Branduşelor, Nr. 50 A.

Harta map near cartier Florilor in Brasov, Romania

Like a sweet-toothed moth drawn toward the bakery’s light, your subconscious detects the cheerful colors of handcut vinyl stickers spelling out words you don’t understand as they slowly lose contact with the glass and find their edges peeling.

As your ciliary muscle relaxes, shelves upon shelves of pasteries reveal themselves to you. Language is no longer a barrier to comprehension. Step closer, stranger, and witness the menagerie of flavors unknown.

Pastry shop window in in Brasov, Romania

Sweet bread, the length of a forearm, smothered in chocolate may beckon. Perhaps the siren song of pastry shaped like polish pretzels will dance in the air. Then again, the sugar-dusted puffs stuffed with Turkish Delight may prove irresistible.

Of course, any red blooded American will recognize the unmistakable patriotism of apple strudel which has the honorable distinction of service as Official Pastry of Texas initiated just days after former Texas governor George W. Bush declared “Mission Accomplished” in Iraq four years ago.

Strudel mere, corn cu ciocolata, flanc cu cascaval, covrigi polonezi, si cornulete rahat in Brasov, Romania

Thoughtful photographers will survey all the various options on display before meditating deeply over the consequences of any given choice. Chaos theory clearly states that in such extreme circumstances space and time will crumble in the vortex of singularity, thus provoking bliss (academically referred to in Latinish flanc cu caşcaval).

Whatever the outcome of your particular adventure into the vibrant lives of kiosk food salesmanship, you can look forward to bragging to your friends and family about your predilection for cavalier approaches to comestible consumption.

A giant among mere men, you know no fear.

Never, but never, devolve into self-defeatist second guessing about why the woman behind the counter got upset by your taking pictures of the little shop. Or how it was absurd she would not divulge the name of the company despite it being painted on the outside of the building.

Don’t worry yourself trying to make sense of what her motivation could have possibly been for insisting you speak to the owner (whom she had no idea when or if he would ever come next) in order to verify the street address so you could publicize the yummy goodies on the dark and scary internet.

Instead, focus on the positive speculation about whether the merchants likely kept the money local by hiring their neighbor Mihai to defend them once you belatedly find out the company was suspended by national authorities concerned about the dramatically unsanitary conditions used to prepare the very pastry you ate.

Robbing Romania

Saturday, February 17th, 2007

Isn’t Romania that poor country where the people eat dirt to survive? Isn’t America that land of fat cats with gold bullion just falling out of their pockets? Apparently, Steve Jobs doesn’t get out much.

I think Apple is making a strategic mistake with respect to their pricing in Romania. Granted, I understand revenue models vary and, often times, one of the more profitable routes is to sell fewer units at higher margins.

But these are temporary times of new opportunity for Apple to gain marketshare while Microsoft’s horrid Vista product reveals itself to be the flop that it is. A moment in time where people, in larger numbers than previously, say to themselves, “you know, I should dump this Windows junk, but what is my alternative?”

Apple knows they must strike while the iron is hot which is why they’ve launched a barrage of mildly humorous adverts (and hilarious ones in the UK). The bigwigs in Cupertino are hip to the crack in Redmond’s armor. Bill Gates’ team has really blown it this time around.

It’s a full-court press and the Apple war chest is being put to very good use as the company bobs and weaves in the ring, jabbing away at chair-throwing opponents.

In the United States, Apple has worked very hard to tighten its’ belt and compete on price. There’s been an outdated cliche about Macs being expensive, but that old wives’ tale hasn’t been true for years.

The fact is plain: feature for feature, Apple products are highly competitive on hardware and simply blow the doors off when talking about software.

It’s a better machine, a better experience, and a better bargain.

Surely, thought I, Apple must be sensitive to the economic realities of Romania’s significantly lower income levels and make their best effort to offer their products as far down as they dare, during this momentous opportunity.

Heck, with the typical income having skyrocketed to a mindboggling $544 per month, I thought the Apple prices in Romania must be, at least, roughly the same.

Bzzzt!

Not only is Romania in the Middle East actively subsidizing the American invasion of Iraq and the looming British (by proxy) invasion of Iran, but it would seem they’re being asked to compensate for low computer prices in the US as well.

Let’s take a look at how blatantly obvious the situation is, shall we?

Starting at the entry-level, Apple offers the Mac Mini which is designed for people who want to use their existing PC monitors, keyboard, and mouse. Just upgrade the box to this little doozy.

Apple Mac Mini in Romania

It’s a stylish piece which makes considerably less noise than your typical PC and takes up dramatically less space in your home or office. It’s dual-core platform packs a punch strong to enough to handle most people’s requirements for a computer such as email, web, video chat, watching movies, editing photos, composing music, home-networking, et cetera.

For many PC users looking to convert, this might be the right package for them. It’s priced quite nicely in America even after taxes for, say, Houston. How about Germany or Romania? Not so pretty.

US DE RO
Price $648 $813 (€619) $878 (2.259 RON)
Premium - $165 $230

Wow! Romanians are asked to pay an extra 33% than their American counterparts, even though they make substantially less income on average. No doubt this will curb popular adoption of an otherwise great product which should perfectly fit many Romanian pocketbooks, if not for the gross oversight.

What if you’re just buying your first computer? Or what if you’re sick of your nasty old monitor and the rollerball mouse that hardly works? Well, Apple has a solution for you: the iMac.

Apple 20-inch iMac in Romania

It’s a highly stylish feat of engineering where Apple designers have essentially placed a very powerful computer on the back of an LCD flat-panel monitor which takes up very little room without any need for a big clunky PC box.

There’s a gorgeous 20″ monitor available with a built-in, high quality webcam already included. It does everything you want like creating your own movies, burning DVDs, video games, and pretty much anything else with nearly effortless ease.

This marvel of machinery is very well priced in the US market, even after Seattle tax rates. Do the myriad of zillionaires in Romania get the short end of the stick, again? You bet they do.

US DE RO
Price $1,631 $1,969 (€1.499) $2,182 (5.613 RON)
Premium - $338 $551

The financially-burdened peasants from the west can get the same computer for only 75% of the price charged to wealthy Romanians living in their lavish castles in the sky.

It’d be better to take a train to Germany and come back home to Romania. One might have expected the opposite to be true, but apparently Apple isn’t interested in Romanian marketshare and has ill-advisedly given up on a nation fiscally forced to pirate Windows 98.

Naturally, one becomes a little more nervous when taking a look at something higher-end like the drool-worthy 17″ MacBook Pro laptop.

Apple MacBook Pro in Romania

This is no mere lil’ notebook computer, but a high-powered, mobile unix workstation dripping with OS X ease-of-use glory. It has all the extras you might expect in a top-of-the-line laptop: illuminated keyboard, Firewire, DVD burner, Bluetooth, Wifi, built-in video camera, dual-core processors, and much more. It’s thin, weighs nothing, looks gorgeous and is totally silent.

This is serious professional grade gear and yet the price still beats comparable machines from Sony, Dell, Toshiba, and whomever.

Well, it’s a good price in Los Angeles. But not in Romania.

US DE RO
Price $3,030 $3,676 (€2.799) $4,153 (10.679 RON)
Premium - $646 $1,123

It’s the same behavior all over again. Romanians are asked to pay a 33% premium over the American price. Think about it in raw dollars… it’s a bonus of US$1,123. Well over a grand? There is no reasonable explanation for that.

Folks, for that kind of money, I can take a flight all the way from Bucureşti to the far west coast city of Seattle with only 2 weeks advance notice. The flight stops over in Schiphol airport and you’ve got some flexibility to keep your itinerary efficient or to maximize your layover so you can stretch your legs for many hours and enjoy the town.

KLM flight from Bucuresti, Romania to Amsterdam, Nederlands to Seattle, Washington

Are the executives responsible for European sales ignorant and incompetent? Could it be some matter of disrespect for the potential of the Romanian market? Or is it just possible that Apple enjoys robbing Romania?

You tell me. With the chance to spend two half-days (or longer!) in Amsterdam plus visit Seattle, America’s best city, why on earth would I bother to buy higher end products at the Romanian Apple Store?

Cue the sound of crickets.

Romanian car design wins

Friday, February 16th, 2007

Peugeot Flux concept car designed by Mihai Pan1itescu from Romania

Romanian Mihai Panaitescu wins automobile design contest

Mihai Panaitescu, a Romanian designer from Focşani who is attending school in Italy, developed this winning concept car design for French automaker Peugeot. In his design notes, he believes the car, Flux, will serve to bind the human with his natural surroundings rather then insulate. He goes on to imagine the car would be powered by hydrogen fuel cells and be constructed with very light-weight materials such as plastic and aluminum (aluminium).

Peugeot is actually going to construct the automobile as a prototype to show off at the prestigious Internationale Automobil-Ausstellungen auto show this September. They also plan an award ceremony in Geneva to honor Mihai and others in October. And they’re cutting him a check for nearly eight grand, according to C|Net.

Not too shabby.

French toymaker Norev plans to profit from the sale of scale-model diecast collectibles of the design. Even Microsoft gets a cut of the action as they announce their intention to incorporate the car into one of their video games for the Xbox. A whole list of other contest partners stand to benefit in various ways from Mihai’s creation.

Mihai Panaitescu’s Flux concept was chosen as the grand winner from some 4,000 submissions. Check out the second and third place winners. From there, you can explore some of the other interesting designs on your own. Or take a gander at Mihai’s graphic design using Star chips and other Romanian brands.