Business Review

The cosmetics market is not going to win any beauty contests this year as far as profits go. 2010 proved to be an ugly time for manufacturers with the market decreasing for the first time in recent years. Nevertheless, local companies take pride in their renewed consumer popularity and what they call more than skin deep profits, announcing plans that should scrub off the effects of the crisis.

Simona Bazavan

Industries such as agriculture, energy and IT should be made priorities for the government, because of their potential to give Romania a competitive advantage, according to business representatives who attended the Business Review Foreign Investors’ Forum last week. 

The fields that attracted investments this year included energy, communication, retail and financial services. Yet mergers and acquisitions reached just 60 percent of the 2009 level. Specialists say that the M&A market will see a boost in 2011, but only if the gap between players’ expectations can be closed. With cash on the table – next year two funds worth EUR 25 million each financed by the European Investment Fund (EIF) will be created – it remains to be seen where investors will look for profits. Consultants are betting on energy, healthcare, food and beverages, financial services and the media.

Otilia Haraga, Dana Verdes

From shampoo to yogurt, the local FMCG market has staggered under the weight of promotions this year, with companies sacrificing profitability on the altar of sales volumes and market share. Shrinking purchasing power doesn’t leave much room for recovery hopes in 2011 but nevertheless, while waiting for better days, companies are continuing their aggressive marketing campaigns and announcing portfolio expansions.

Simona Bazavan

Romania’s intensive agriculture is still performing below capacity, but ironically enough it is exactly this weakness that makes it a good candidate for organic farming. Up until 2010 there was little financial aid from the state and no European subsidies but from 2011 the authorities have promised a change.

Simona Bazavan

While the public healthcare system is ailing, the market of private services is in robust health. The recession has not really stemmed the flow of people leaving the flawed public system for private care, and the private healthcare operator market is seeing takeovers and new openings. Insiders told Business Review about the challenges they face when dealing with state measures. 

Otilia Haraga

Financial and legal specialists discussed the main tax management issues during the Business Review Fiscal Litigations event on November 4. Conspicuous by their absence were the authorities from the National Fiscal Administration Agency (ANAF). Dan Dascalu, partner at D&B David & Baias, observed that they have not made any recent public appearances at such events.

Corina Dumitrescu

With some half a billion euro gambled online in Romania last year alone, the Romanian authorities are attempting to get the games industry regulated. But last week, the EC criticized Romania’s draft law, saying it discourages cross-border competition between providers of online gambling, and raises concerns that the Romanian Lottery could extend its monopoly over the online segment as well.

Dana Verdes

Putting aside preconceptions and unimpressive statistical data, there is plenty of room for an increase in Russian FDI to Romania, argued company representatives present at the first Russian Business Forum organized by Business Review last week. The reverse is also true, as Romanian companies should try to benefit more from the business opportunities offered by Russian markets.

Simona Bazavan

From acknowledged potential to international awards, Romania has all the required ingredients to brand itself and become globally known as a wine producer. But it has failed to do so, lacking a national promotional strategy and coherent support from the authorities. Against this backdrop, local produces are struggling to make a name for themselves and uncork international markets.

Simona Bazavan