Michael Kors is a high-end brand known for producing and designing luxury accessories and clothing. They are particularly distinguishable by their popular hand-bags. Recognize?

On Saturday, November 26 2011, Michael Kors launched a new Facebook campaign called Bag Alert! Established street-style bloggers are asked to photograph real women they see carrying Michael Kors bags. As mentioned in Wright’s blog, the campaign was driven by an effort to engage and interact with their Facebook community, as well as to increase digital presence.

This campaign was a huge step outside of Michael Kors’ typically limited marketing strategy; however I think it was a risk worth taking that will see large returns both financially and in terms of building long-term customer relationships.

Nevertheless, with every new venture, there are potential risks. It is plausible that some consumers may perceive this campaign as a negative in that it detracts from the company’s image of being high-end. Interacting with customers via social networking sites, however, has become such a norm that it is unlikely that it will do so.

If you think of Michael Kors’ and its main competitors – Burberry and Armani, even other high-priced brands like Louis Voutton – they all have traditional touch points consisting of print ads in fashion magazines, fashion shows, and designer ‘look-books,’ but rarely anything that allows for interactions with customers. Thus, with the launch of this campaign, Michael Kors is setting itself apart.

Coming across this campaign, I was really excited! I am a huge fan of MK and I love that they are trying to connect with consumers on a more personal level. It is incredible to see the influx of brands capitalizing on online direct marketing strategies to pull in their customers!

Michael Kors stated that “social media is now part of the brand’s DNA.”

Clothing retailer, ZARA is known for its fast-fashion; new styles, new designs, new colours – every week. As mentioned in Conrad Chan’s blog – this strategy is successful in that it keeps customers coming back! My question is: for how long? This is an innovative strategy, but I don’t think it is enough to capture and build long-term, profitable customer relationships.

The amount of clothing ZARA has is overwhelming and the store is often very untidy which makes it difficult to find what you’re looking for. In addition, the sales staff barely give you a minute of their time before they have to rush off to the next customer.

They offer value through variety and cheap prices. BCBG offers value through high prices and an ultimate shopping experience with exceptional service. Sacrifices have to be made in order to have a competitive advantage in a certain area. Especially, when it comes to shopping, there needs to be a balance. However, a large part of shopping is all about the experience and the service.

 At the end of the day, customers want products that are going to be reliable. Especially, at the end of a bad day – they want to shop at stores where they feel welcomed and noticed – somewhere that gives them value not only with their purchase but also with their experience. Isn’t that why we all want to go shopping when we feel down?

In the short run it may be profitable but in the long run if a new competitor enters the market with low prices along with a real, personalized shopping experience – ZARA would have a difficult time maintaining their market share. Providing good service is a way to add value for the long run, and should not be sacrificed for potentially higher short run profits through low prices.