New head of kika willing to spend up to 3m euros to promote Bucharest store

Werner Grassmann, the Austrian that kika furniture and interior decorations retailer appointed three weeks ago at the helm of Romanian operations says one of his priorities is to adapt the Austrian model to the local market. "We can't replicate the Austrian model in Romania. We have to work with our customers here, be familiar with the market here, but we also have to adapt the kika model," says Grassmann in his first interview given to the press since coming to Romania. kika's retail model, which is based on products that cover all price segments, is specific mainly to Western European countries. Foreign retailers that entered the Romanian market, such as IKEA and Natuzzi, preferred to position themselves on one particular segment. Local furniture retailers also found their price segment, with the Austrians being the first to come with a different approach. Another priority for Grassmann in Romania is to make the kika brand known, with the company being willing to invest 1-3 million euros per year in it. As for competitors, he says their main rival is IKEA, with competition being less "tough" than in other countries. "We want IKEA's customers and Mobexpert's, as well. There are around 2.5 million people living in Bucharest, and a few large furniture stores. Vienna has 1.8 million inhabitants and over 20 large stores. The potential is there in Romania," says Grassmann.