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“Open World Program”: How a US Congress body brings together future leaders from Eastern Europe to build knowledge-based democracy (Interview)

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Interview conducted by Robert Lupițu

During their working visit to Romania last week, Ms. Jane Sargus and Ms. Maura Shelden, the ladies who run the Congressional Office for International Leadership (COIL), an agency of the US Congress, sat down for an interview with CaleaEuropeană.ro, to discuss their Open World Program where they bring together current and future Eastern European leaders in America and build a network of professionals on knowledge-based democracy.

After almost 25 years of existence and more than 30.000 people from Eastern Europe and post-Soviet countries selected, out of which two thirds were Russians before the war in Ukraine started, the program is shifting with a more special focus in countries like Romania, Poland, Hungary, the Baltics, Republic Moldova and in the Western Balkans, while also tailoring its approach on helping Ukraine.

“Seeing the possibility of success for Romania is just thrilling, and I truly believe Romania is choosing that and we’re there to help. So we support Romania’s effort to achieve what is self determined to be success, and that is what our agency does. We also do it because Congress wants to see us achieve success in the same range for the same reasons”, said Jane Sargus, Executive Director of COIL, while also adding that they are present for Moldova’s needs as well.

When it comes to Ukraine, Maura Shelden, Deputy Executive Director of COIL, emphasised that their program as changed after Russia’s annexation of Crimea according to the Ukrainian needs, citing the creation of a Ministry for Veteran Affairs, a national cemetery or medical delegations like battlefield medics and rehabilitation doctors.

“We’ve only recently started in Romania, Poland and Hungary. These are brand new. For 23 years we were doing post-Soviet countries, but now we have programs in Serbia, Kosovo, North Macedonia, the Baltics. Now, Congress want us to be working in these border countries, not only just to support Ukraine, but to support the border countries of Ukraine”, Jane Sargus concluded.

CaleaEuropeană.ro: Good afternoon! We have together with us Ms. Jane Sargus, Executive Director of the Congressional Office for International Leadership within the US Congress, and Ms. Maura Shelden, Deputy Executive Director of the Congressional Office for International Leadership. You run a Congressional agency designed to bring talented and future leaders together to the United States for sharing experiences and building networks in a democratic fashion. Firstly, how would you describe your activity for those who read us and have not heard until now about the program?

Jane Sargus: I would say that we are a program that is destined to provide access and an opportunity for these emerging leaders from the countries we work in, to come to the United States and to share best practices, to be partners in future projects, to see America from the inside of a home, not a hotel room. And who will become part of a growing network of a young generation of leaders who are already started being leaders or are on that path to be leaders. These people are the future of the world and we really care about providing them with our brand of knowledge-based democracy, interaction with American professionals who do the work they do, and an opportunity to have best practices traded. It’s definitely two ways. Every delegation that comes to the United States will have opportunities to talk about their work and what they do and then how Americans can benefit from that. But definitely everybody benefits from the exchange of information. Because, as we tell Congress. we show America warts and all. It’s a program where we don’t try to hide anything. We try to share what we think are the best things we can do, but also the challenges that we have in the US that compare with challenges over here.

CaleaEuropeană.ro: Your program has almost 25 years of existence. You brought together more than 31,000 current and future leaders from Eastern Europe and from Eurasia. How does Open World Program work? From the candidacy, application, selection process until the end of the program and, of course, follow up and alumni community?

Jane Sargus: Good question. There are lots of pieces to that. So, the program is not an open application program. A person becomes a candidate for the program because they’re nominated by who we consider a trusted source. For example, we always work with our embassies in country, but we also work with American Councils in country. Together they become the source of our nominations. However, American Councils reaches out to NGOs and other government offices and says can you help us nominate? And so those people are part of a network of nominators. Nominators are really important because they are in the position to know who that emerging leader is. They work with them, they’ve seen them, they met them, they know who they are. The second part of your question had to do with becoming a nominated candidate. Well, those nominating organizations submit names. American Councils manages the whole nomination and then the vetting process. By the time it gets to the embassy for visa issuance, which is a J-1 Visa, all the candidates have been looked at and determined whether or not they’re eligible. We hardly ever get ineligible candidates because of the sources that we get our nominations from, but I suppose it could happen. After that, there is the beginning of the communication, so a delegation is five people from Romania with one facilitator. Facilitators, like Eliza (n.r. – Eliza Chirilă Pop, Country Director at American Councils for International Education – Romania), who know American culture has been there. Sometimes they are former flex students who end up becoming our facilitators, but people who can help bridge the distance between American culture and Romanian culture, because there are going to be vast differences.

That group of six people comes to Washington DC for two days. They meet with members of Congress, we have speakers on a variety of topics, but sometimes it could be just a leadership topic, or how American government is formed and what it looks like. They spend two days with that. Meeting with members of Congress is our way of engaging our bosses in the program. The program needs engagement with members who, in the end, decide whether or not we get funding for another year. So, this is an important process and it’s one of the things that makes it a congressional program. But truly, we also engage them because their constituents are the host families that keep our delegates in the host city.

Maura Shelden: I just wanted to mention that in between the nomination and the vetting, they do fill out an application where the nominator states why the person would benefit from the Open World Program and what they would manage to give back from that, back to Romania, and the applicants themselves have an opportunity to write a short essay about their motivation for being on the overall program. The vetting takes place either at the embassy or in Washington amongst ourselves and you’ll often see there’s too many great qualified people and so you make one group because some common themes emerge and then you save the other ones for maybe the next group. So it’s really not about calling people out, but rather sorting them into the right travel dates with like minded people.

Jane Sargus: We never have a shortage of wonderful candidates. We can also be reactive to the shifting political landscape when something changes like February 24, 2022. That day changed everything. Suspending our Russia program definitely created a gap of 1/3 of our capacity.

CaleaEuropeană.ro: And how does alumni community work, in order for future and current leaders to stay in touch?

Jane Sargus: There are a couple of different ways but primarily we have our own alumni program. Usually, working with the embassy and or American Councils we have access to the alumni and certainly American Councils knows where all our folks are. We can fund certain kinds of events in any of our countries, usually with the help of the US Embassy. So, we can do an agreement that they will host an alumni event on our behalf in country. And that is important for a couple of reasons. Number one, the alum can see each other again, the group that traveled together, will be seeing each other again, but they’re also going to be meeting people who traveled after them from Romania. That means the network has an opportunity to multiply immediately. That’s what our program does. We introduce these leaders to each other and it has worked. It has been successful. (…) A large portion of the 30,000 alums we have right now are sadly in Russia and they are Russians. We are not in contact with them. But we are very actively in touch with everyone else, if we can.

CaleaEuropeană.ro: By 2020, Open World Program had hosted its 20,000th Russian delegate. It is a program that tried to bridge the gap between the democratic societies and Russia. However, Russia continues to sink in a more autocratic regime with its brutal and aggressive and war against Ukraine. Why do you think it was not possible to have a more open and democratic Russia after the fall of the Soviet Union, from the point of view of having this experience with a lot of Russians delegates in the last 25 years? Do you see a future in reconnecting with these people, depending, of course, on how this unlawful war will end?

Jane Sargus: You’ve asked the $64,000 question. Two parts: part one and part two. Regards to part two, when  we will re-engage remains to be seen. We don’t know how this will play out. In the end, isn’t the question whether or not Russians are willing to engage in knowledge-based democracy and not if we decide to renew the program. It really depends on how Russia sees itself going forward. And if they’re not interested in knowledge-based democracy, which is basically all we’re doing, how we do engage is a tough ask.

On the first part of your question, I am not a Russia scholar. I would say that our impact in Russia, with the Russians that we have, might have been construed as being more an individual than a social impact. An individual impact is good. And it translates into a social impact. But at least initially, I would say we were very successful at the individual impact level. It’s a hard question, because I don’t know what our Russian alumni are thinking now. I have no idea. They’re not communicating with us. There’s probably a great deal of fear being in touch with the American government, it could be very dangerous for people, they support the war, they know the US does not. Who knows? It could be 100 reasons.

Maura Shelden: Whether the 20,000 delegates that came from Russia have changed their values because of the Open World Program or not, is moot at this point, because their president will not allow them the freedom to fully express themselves. There’s no free media. And now there’s even less and less contact with the outside world because of their president. Have you ever read Mikhail Bulgakov, the Ukrainian – Russian writer? He says that manuscripts don’t burn, meaning you can burn my books or censor my books, but the story is still out there and people know the story. To me, when it comes to Open World alumni from Russia, I think manuscripts don’t burn. They had this experience.

CaleaEuropeană.ro: And the story is still there. After more than two decades since launching this program, we have almost all Eastern and Central Europe countries in NATO and the EU. Others try to follow the same path, while they also struggle for survival, and I mean, of course, Ukraine and Moldova. What did we do well in building democracies and resilient societies in this amount of time and what do you think are the lessons learned and needs to do better, from the angle of your program, of course?

Jane Sargus: We look to each country’s attitude towards moving forward on the program. So the country that we work in is the decider of its future. Our program doesn’t change anyone’s future. Our program provides an opportunity. If you want change, if you are that emerging leader to meet, grow, develop and establish contacts, partnerships and a network that will help you get there.

CaleaEuropeană.ro: And countries like Ukraine and Moldova are countries that want to follow the path that they chose to. 

Janes Sargus: That they chose to. We’re not saying to Moldova you have to do this. We just provide opportunities, because once the program expanded beyond Russia, to all the post-Soviet states, it was still the same thing, an opportunity to provide you with what accountable governance governance looks like. That’s really it in a nutshell. You participate in our program and you see how laws work and how laws are made. We don’t decide that that country will be westward facing, they decide. They’re obviously on a path of self determination. But the success of our program could very well depend on that attitude. And the fact is, with very few exceptions, we are in countries that want change, that have a growing cohort of young leaders who want change, or a growing cohort of leaders who want to see a younger generation come up, move on and help lead in the future. Those are a country’s decision to do on a civic program.

Maura Shelden: That’s why we’re sitting in this room. We’re here listening. Right now you’re listening to us, but we spend our time listening to Romanians, Estonians, Lithuanians and Latvians. That’s why we came. And then, because of that nomination system, Romania and other countries have the opportunity to find their best and their brightest. It’s not for us to choose. It’s your country’s choice.

Janes Sargus: That’s the American version of democracy.

CaleaEuropeană.ro: The last question is a package one. Romania is both NATO and EU member, has a strategic partnership with United States and has chosen its path. A democratic one, very clearly. The Republic of Moldova and Ukraine also want to do that. These countries represent a very good field of your program and help build more leaders. What can you say about your plans towards Romania, firstly, and also towards Moldova, which is very important for Romania, and Ukraine, which is fighting for its liberty?

Jane Sargus: I’m hearing from a variety of sources that Romania seeks to shore up its ability to lead a country forward towards deeper into the EU. That’s what I’m hearing that the leaders here want. I hear that from the NGOs, I hear that from the government and I hear it at the embassy. This a country that has no problem recognizing what it needs, and doesn’t even mind sharing it, which I think is the first step to really achieving your goals. If you are not trying to hide your deficiencies, as a country, that means you’re trying to work out with them and create capacity or find success in some way. In Romania there are many sectors that we could be working in. If I had all the money in the world, it would be incredible, because there’s no shortage of things, delegations and young people that would benefit mightily. We’re going to do our best under all circumstances. But I can see that there’s a lot to do. For me, that’s a very exciting prospect because we all want success. Seeing the possibility of success for Romania is just thrilling, and I truly believe Romania is choosing that and we’re there to help. So we support Romania’s effort to achieve what is self determined to be success, and that is what our agency does. We also do it because Congress wants to see us achieve success in the same range for the same reasons.

Moldova has been one of our countries for a number of years. We’re very close to Moldova, we see a lot what our work has to do. Moldova suffers a lot. When we were there last May, there was a great deal of tension and nervousness and fear, obviously, because they’re so close and they probably think they’re next. We’ve talked, listened and said what does Moldova need, how can we help you? And it is not just little civil society programs or anything like that. It’s a much stronger program to help them with cybersecurity, help them with border issues. But we listen, like Maura said, we listen, you tell us what you think your country needs, we will support that.

Maura Shelden: With Ukraine, our program changed according to their needs in 2014, with the initial invasion of Ukraine and the annexation of Crimea. We found ourselves working very closely with the Ukrainians. They’ve established the Ministry of Veterans Affairs, they were establishing NGOs that could assist veterans returning into the community. There haven’t been that type of support for vets. Really, up until that point, it was just family by family dealing on their own with with some of the traumas that veterans bring back to their homes. We worked with the parliament, we worked with the ministries and civil society organizations to really tackle that issue. After February 24, 2022, we do a lot of medical delegations like battlefield medics and rehabilitation doctors, the treatment of burns and other wounds found in the battlefield. We do lots of parliamentary delegations and parliamentary staff so that they are writing the legislation they need to keep moving forward and to seal any cracks that there might be where Russia has previously sort of seeped into. The dedication to the Ukraine program is stronger than ever, and we still bring large amounts of Ukrainians, including men from Ukraine, despite the fact that they’re under martial law. We have alumni at the highest levels of government, and so their men are allowed permission to take part in these 10 day programs. And they always returned. Sometimes they return straight to the battlefield. We have a good reputation and that’s why we have the honor of creating programs for Ukrainians.

Jane Sargus: The programs that Maura talked about came from Ukrainians. They said we need our own Department of Veterans Affairs, we need our own national cemetery. They came to us and asked us to do certain things. (…) It is really our chance to support a program that helps Ukrainians and that’s what we do. We’re not trying to help ourselves in that sense. What has happened is that Congress likes the outcomes. Congress is our boss. They like what we’re doing. Therefore they keep us in business, and they weigh in very much on where we go. That’s why we’ve only recently started in Romania, Poland and Hungary. These are brand new. For 23 years we were doing post-Soviet countries, but now we have programs in Serbia, Kosovo, North Macedonia, the Baltics. Now, Congress want us to be working in these border countries, not only just to support Ukraine, but to support the border countries of Ukraine.

Maura Shelden: Because it’s both. Security right now relies on a safe and free Ukraine and until that, this whole region is unstable and we help in our civilian manner to support other initiatives. But what we can do is engage at the grassroots level on behalf of Congress.

Robert Lupițu este redactor-șef, specialist în relații internaționale, jurnalist în afaceri europene și NATO. Robert este laureat al concursului ”Reporter și Blogger European” la categoria Editorial și co-autor al volumelor ”România transatlantică” și ”100 de pași pentru o cetățenie europeană activă”. Face parte din Global Shapers Community, o inițiativă World Economic Forum, și este Young Strategic Leader în cadrul inițiativelor The Aspen Institute. Din 2019, Robert este membru al programului #TT27 Leadership Academy organizat de European Political Strategy Center, think tank-ul Comisiei Europene.

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Roxana Mînzatu, after being nominated European Commissioner: I will bring over 20 years of experience in European affairs to serve Romanian and European citizens

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Roxana Mînzatu, proposed by Prime Minister Marcel Ciolacu as Romania’s candidate for European Commissioner, stated that she would bring over 20 years of experience in European affairs to serve Romanian and European citizens.

Honored by the trust placed in her, she emphasized her commitment to representing Romania in the European Commission, focusing on cohesion policy and EU funds.

“I am honored by the confidence with which Prime Minister Marcel Ciolacu has entrusted me with the nomination as European Commissioner on behalf of Romania. It is a privilege and a responsibility to be able to represent my country in such an important decision-making structure of the European Union, the Commission being the driving force of European integration”, said Mînzatu.

“Cohesion policy and the management of European funds have given me an overview of how European policies are present in every industry, in every public service, in every community and in the life of every citizen. I have worked for Romania’s European journey for two decades, both in the private sector and in local and national public administration. I am prepared, both politically and technically, to represent Romania professionally, to contribute to a very good mandate for all Europeans and for all Romanians in the future Commission”, she added.

Mînzatu also noted that the process is just beginning, with upcoming candidate announcements and hearings in the European Parliament. Mînzatu has a solid background in managing European funds and public administration.

“This will be followed by the official announcement of the nominated candidates and their portfolios by President Ursula von der Leyen, followed by hearings in the European Parliament’s committees, which I will approach seriously and professionally”, concluded Mînzatu.

Who is Roxana Mînzatu?

Roxana Mînzatu is a Romanian MEP elected in the June 2024 elections on the Social Democratic Party list.

From January 2022 until July 2024, she was Secretary of State Coordinator of the Department for the Evaluation and Integrated Monitoring of Programs Financed from Public and European Funds.

She was a PSD MP from 2016 to 2020 and in 2019 she was Minister of European Funds.

In 2015 she was Secretary of State in the Ministry of European Funds, responsible for the reform of the public procurement system and from September 2015 she headed the National Agency for Public Procurement until January 2016.

In 2009 she was sub-prefect of Brasov County and between 2004 – 2008 and 2011 – 20212 she was PSD county councillor in Brasov County Council.

Roxana Mînzatu has 20 years of public and private professional experience in the field of management and implementation of European funds in Romania, a career that started as a Euroadviser (integration advisor) in the Ministry of European Integration in March 2004.

Priority areas supported include entrepreneurship and support to start-ups and SMEs, including involvement in the design of funding schemes such as Start Up Nation, promotion of women in both public life and entrepreneurship, integrated approach to public funding in the water and sanitation sector, water industry as a country project.

She has been a member of the Social Democratic Party since 2000.

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Floated as next European Commissioner from Romania, Victor Negrescu calls for economic integration to provide new opportunities, especially for SMEs and local and family businesses

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© European Union 2024 - Source : EP

Prime Minister Marcel Ciolacu pays an important visit to Brussels on Thursday, where he will discuss with European Commission President Ursula von der Leyen the state of implementation of the PNRR, the deficit target in the context of Romania’s excessive deficit procedure, Romania’s future European Commissioner and the portfolio allocated to our country. Accompanied by a delegation of ministers, Prime Minister Ciolacu is also joined by MEP Victor Negrescu, Vice-President of the European Parliament, honorary advisor to the Prime Minister for foreign policy and the person who, according to media reports, is to be nominated as Romania’s European Commissioner.

Prior to these important talks, Victor Negrescu gave an interview to CaleaEuropeană.ro in which he explained the state of the talks, the portfolio the Government is considering, the institutional coordination in Romania on this issue and what will follow the Ciolacu – von der Leyen meeting.

“Prime Minister Marcel Ciolacu has managed to build a very good relationship with the European Commission and in particular with President von der Leyen. It is no coincidence that Prime Minister Marcel Ciolacu is in Brussels to meet the President of the European Commission shortly after announcing his candidacy for the office of President of Romania. This is proof of Romania’s pro-European approach and attests to our role as a credible, serious European partner ready to take on more at EU level. The relationship built with the European Commission and President von der Leyen has translated into the amendment of the National Recovery and Resilience Plan, which has led to increased pensions for Romanians, more consistent support for Schengen accession which has led to air and sea entry, and some flexibility on the deficit target for last year”, Negrescu said.

Asked about his desire to be appointed as the next Romanian EU Commissioner and the portfolio Romania should get, Victor Negrescu pointed out the necessity to nominate “a Commissioner with a European profile, a person with strong support in the European Parliament, because too few of those nominated have experience in European politics, but also someone who has the ability to work in a team and to generate majorities”.

“I have personally dedicated my professional career to raising Romania’s profile at European level and I hope that I have succeeded in convincing through my work. I am honored that my career at European level is appreciated and I believe that the significant number of votes I obtained for the position of Vice-President of the European Parliament, the constancy with which I have promoted Romania’s greater role in the EU over the last 17 years, the influence I have had in amending European regulations on recovery and resilience plans or in managing the European Union budget, through my capacity as chief negotiator for the European Parliament, are arguments which were probably taken into account in the analysis which the Romanian Government made”, he emphasized, while Romania is keen to obtain a portfolio with economic ties like other countries such as Austria, France, Ireland, Netherland, Poland or Slovenia.

Speaking about EU developing a new economic model that ties the economic security strategy with the EU foreign policy and the single market, Victor Negrescu explained that we supports President von der Leyen’s proposal to have a mandate focused on investment, security and economic development, both in terms of the EU’s internal policy and external action.

“The European Single Market has been the engine of economic development and has been at the basis of the development of the European project, but it has not been completed so far. We need to increase the level of economic integration to provide new opportunities, especially for SMEs and local and family businesses, we need to have principles of competition and competition that are respected by everyone and do not create illegitimate advantages in the market, we need to attract additional investment globally“, he concluded.

MEP Victor Negrescu (38) is currently vice-president of the PSD Romania and of the Party of European Socialists. Re-elected member of EP for a third time, Negrescu has been elected Vice-President of the European legislature. In the last part of the previous legislature, Negrescu was Quaestor of the European Parliament, the highest position held by a Romanian in the hierarchy of the previous mandate.

Victor Negrescu is also the European Parliament’s chief negotiator for the 2025 EU budget.

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eMAG’s strategy to strengthen its position as a regional hub in South-Eastern Europe: 180 million euros investments in logistics, technology and entrepreneurship (Interview with Stejara Pircan, Senior VP)

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© eMAG

eMAG aims to offer customers in Southeast Europe access to a wide range of value-added products and services, targeting a population of over 35 million people and with investments of over 180 million euros, including in logistics and entrepreneurship, said Stejara Pircan, Senior VP eMAG Romania, Bulgaria and Hungary, in an interview with CaleaEuropeană.ro.

To support local entrepreneurs and boost cross-border sales, eMAG has invested in technology, logistics and financial services, and a key aspect has been the synchronization of the platforms in Romania, Bulgaria and Hungary, facilitating international sales without additional efforts from sellers, said Stejara Pircan, pointing out that there are 56.000 entrepreneurs doing business in the three countries through eMAG, while the number of merchants exporting through eMAG Marketplace from Romania to Hungary and Bulgaria or from the two countries to Romania has doubled in the last year.

In the interview, Stejara Pircan emphasized the advantages for eMAG Marketplace sellers in the context of regional expansion, the challenges on the South-East European markets and the development of the logistics infrastructure.

CaleaEuropeană.ro: What strategies does eMAG have to maintain and enhance cross-border sales growth in the future, given the growing market in Romania, Bulgaria and Hungary, and how do you see the impact of the expansion of eMAG Marketplace in Eastern and Southern Europe on the current ecosystem of sellers and consumers?

Stejara Pircan: Our long-term vision is to be able to offer customers across the SEE region tools to help them live a good life through value-added services and access to a very diverse range of products. We serve a population of over 35 million people and through our sustained investments in technology, logistics, entrepreneurship or financial services, we have created a strong community of entrepreneurs who we want to thrive alongside us. That’s 56.000 entrepreneurs doing business in Romania, Bulgaria and Hungary, growing year on year. The number of traders exporting through eMAG Marketplace from Romania to Hungary and Bulgaria or from Hungary and Bulgaria to Romania has doubled in the last year to more than 12.000.

We have invested in warehouses in Romania and Hungary which we have equipped with state-of-the-art technology and we have developed, together with Sameday, the network of delivery points in proximity in all three countries where we operate. In parallel, we have extended the Genius service with free delivery and exclusive offers in over 300 locations in Romania, Bulgaria and Hungary, opening the program also to retailers who have access to our base of hundreds of thousands of loyal customers.

One of the most important strategic decisions we have invested in, which has helped to increase the number of companies choosing to sell cross-border, was the synchronization of the three platforms in Romania, Bulgaria and Hungary. The impact of this investment was that sellers no longer had to list their products individually on the three platforms, but benefited from an automated process that saved them additional effort.

In parallel, we developed an automated solution for translating product descriptions, which meant that sellers no longer needed to hire Bulgarian or Hungarian speakers to handle this process. At the same time, the extension of the Fulfilment service, where we take over the entire logistics operations, as well as the customer relations area, has greatly simplified the international expansion process. In order to achieve these results, in the last three years alone we have invested more than RON 3.2 billion, and in the fiscal year that started on April 1, 2024, we plan to invest RON 900 million.

The expansion of eMAG’s offer, which now exceeds 22 million offers in Romania alone, more than double the previous year, is also due to sellers who are always looking for new products to satisfy their customers’ needs. More than 60% of the products ordered by eMAG customers are from the sellers’ offer, and the diversification of the product range has also changed buying habits: people now prefer to order several products in one order, covering the needs of the whole family.

CaleaEuropeană.ro: What are the main advantages for sellers who join eMAG Marketplace in the context of the regional expansion in Romania, Bulgaria and Hungary?

Stejara Pircan: Accessing additional sales channels is opportune for any retail business, as each additional channel increases the likelihood of having a stable additional revenue. Our partners benefit from the technology infrastructure that we have built with significant investment and have access to our customer base at no listing cost. They also benefit from the positive image transfer: more than 85% of the region’s population of more than 35 million people know what eMAG is and one in three product searches start on eMAG.  We register 120 million visits/month on the eMAG website and 6.7 million people have the eMAG app installed on their mobile phone. We have over 7 million active customers, of which 4.5 million in Romania, 1.9 million in Hungary and 900,000 in Bulgaria.

Entrepreneurs who have made the decision to move into other markets through eMAG Marketplace have seen the benefits in terms of sales: those who have expanded into Bulgaria and Hungary had 37% additional sales last year. And cross-border expansion is just one of five programs we make available to companies that join our community. Another is Genius, and sellers who have listed products in this program have seen a doubling of their conversion rate. We have more than 700.000 loyal customers who have a Genius subscription, and our recent expansion in the region is expected to generate even more sales. In Hungary, one month after we launched the service, we had already reached 50.000 users, and in Bulgaria, two months after launch, we had 100.000 users.

At the same time, sellers have the advantage that they can use this additional sales channel effortlessly if they choose the Fulfilment service. Another useful tool is eMAG Ads, a pay-per-click service that can give them more than 40% more visibility on the product pages of the products they order. All these programs are complemented by eMAG Campaigns, i.e. all the campaigns we develop month after month, which can generate three to four times more sales for entrepreneurs who consistently list products.

CaleaEuropeană.ro: What are the main differences and challenges specific to Eastern and Southern European markets compared to Romania, Bulgaria and Hungary?

Stejara Pircan: In the region in which we operate, online commerce is developing and we believe that eMAG has an important role to play in accelerating this field, both in terms of investments in value-added services and from the perspective of the business community gathered in the Marketplace. Our objective is to become a regional ecommerce hub and our strategy is to develop technology and services in Romania and scale them internationally once we see that they work and generate the results we are aiming for. The three markets we are present in have many common characteristics. In all three countries, online commerce has a penetration rate of somewhere between 8-10%, and if we look at more mature markets, there is still a lot of room for growth. Among the challenges we see is therefore the need to increase the level of digitalization, but also the development of road infrastructure would help, especially in Romania.

Looking at the behavior of our customers, we notice that in Bulgaria and Hungary the appetite for cash payment is higher than in Romania, where card payment is increasing year on year. At the moment, in Romania 35% of orders are still paid cash on delivery, while in Hungary the percentage rises to 55% and in Bulgaria to 70%.  What we are doing to contribute to the growth in card payments is to give people the flexibility to pay for products when it is the best time for them, which is why we have introduced payment methods that allow them to pay directly from their MyWallet account in four installments or 30 days or 12 installments with Hey Blu. We also offer other financing solutions through our partners in the banking industry.

CaleaEuropeană.ro: What measures have you taken to ensure a smooth integration of sellers from new markets into the eMAG Marketplace ecosystem?

Stejara Pircan: An important step for sellers in the region is the cross-border listing, which from our perspective is today as easy as it can be, as eMAG manages all the effort involved in listing in three countries. From listing or translating offers into languages other than the seller’s home language, to synchronizing offers and prices on the platform, all this effort is taken care of by us precisely to facilitate this experience for the sellers and support them to focus on their business.

CaleaEuropeană.ro: How does eMAG support retailers in understanding and adapting to local regulations and consumer preferences in Eastern and Southern European countries?

Stejara Pircan: All our processes and tools are compliant with European Union legislation, and technology helps us to comply. For example, in the case of discounted products, the discount has to be related to the lowest price in the last 30 days, and with the help of technology we can validate compliance before the start of a discount campaign. In addition, we have regular and very close communication with the sellers on the platform through newsletters that include articles on the legislation of each country in which we operate and the legislative news relevant to them, as well as advice on how to manage their cross-border business and how to comply with the legislation.

CaleaEuropeană.ro: What role do local partnerships play in eMAG Marketplace’s expansion strategy in these new regions and how do they help to improve the services offered?

Stejara Pircan: We have strong communities of local sellers in each of the countries where we operate, and this is extremely important because they come with a very good understanding of the local specifics, with products tailored to the consumer in that country and with the speed of delivery that customers expect.

Otherwise we make the best use of synergies at Group level, and a relevant example of this is the collaboration with Sameday, which this year is accelerating proximity delivery by expanding its delivery points and network of lockers. This also helps us because easybox delivery has seen very good customer adoption, and through it we have extended the reach for the Genius service with free delivery and exclusive offers. Genius is also an important program for sellers, as it gives them access to a loyal customer base that buys more online. The products that sellers sell through Genius thus achieve higher sales.

CaleaEuropeană.ro: What are eMAG’s expectations in terms of sales growth and customer base expansion as it expands into Eastern and Southern Europe?

Stejara Pircan: Our objective is to strengthen our presence in the region and to bring to these markets other services that we have tested in Romania and have proven their usefulness for our customers. We also aim to increase the range of products to cover every need and offer customers good prices, and if ten years ago, when we made the leap into international markets, we had 10.000 products on offer, now we have over 22 million, but there is room for growth if we look at more mature markets such as Poland, where over 200 million items can be ordered online. We are banking on the involvement of Marketplace entrepreneurs, and the volume of products they have sold through the platform has accounted for over 60% of the total, and the percentage is growing.

CaleaEuropeană.ro: What plans do you have for developing logistics infrastructure and delivery services in the new markets to ensure an optimal experience for both retailers and consumers?

Stejara Pircan: This fiscal year we plan to invest over 180 million euros, including in logistics and entrepreneurship.

We have already made significant investments in warehousing and robotization to be able to offer a better experience to our customers: we have been able to consolidate orders, i.e. group several products in the same parcel, and our productivity has increased four times. At the same time, we see that easybox delivery is preferred by the majority of customers in Romania and Hungary, where around 66% of orders are delivered by this method. In Bulgaria, delivery to nearby delivery points stands at 35%, rising steadily as the network expands. The network will reach 8.500 delivery points in Romania, Hungary and Bulgaria this year, up from 5.000 at the beginning of the year.

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