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PHYGITAL - Do You know What Is Phygital ? : The Definitive Guide

"The digital and physical worlds are starting to come together more seamlessly - it's only the tip of the iceberg in terms of what's coming." - Mark Parker

In today's world, where technology has advanced rapidly and changing the way people live and interact with each other, understanding the phygital concept is now more important than before. Everyone is wearing the Apple or Samsung Smart Watch which is the most ubiquitous example of Phygital.


“Phygital is the concept of using technology to bridge the digital world with the physical world with the purpose of providing a unique interactive experience for the user.”

Phygital - Smart Watch
Phygital - Smart Watch


At the core of the Phygital trend is a new consumer who expects companies to create seamless and consistent shopping experiences. They want to navigate smoothly from the company’s website to the physical store and vice-versa. These omnichannel consumers, who are more empowered than ever, want to decide when, where, and how to shop.

Conceived as an experience of the future that is already present, and seeing its enormous potential, more and more companies are developing all kinds of elements and applications to get the most out of the Phygital experience. Some of the most prominent are:

1. Virtual Reality & Augmented Reality

AR and VR can be crucial in creating immersive experiences while ensuring smooth omnichannel journeys. Innovative AR and VR applications effectively meet the consumer demand for phygital experiences on the various channels they use.

Apps use AR to enable shoppers to virtually place realistically rendered and true-to-scale furnishings into their real physical space.

Other AR and VR applications also elevate shopping experiences. These include in-store navigation, immersive product catalogs, and customization tools. They make phygital experiences more captivating while connecting consumers to brands on an immersive and emotional level.

2. Metaverse

Much has been said and written about the Metaverse, and like all grand visions, it holds many interpretations depending on whom you ask.

Here we are today, with hundreds of millions of users already on board. Many experts foresee the Metaverse becoming a Phygital world. A decentralized metaverse connected to the physical world, but with its unique characters — a Phygital world in a Web 3.0 landscape.

3. NFTs

Increasingly retailers will look to grow their brands within the Metaverse in 2023, emphasizing connecting physical products with digital assets. Your classic NFT concept.

Token-based engagement and digital product passports for luxury goods will be among the strategies used. Luxury companies like Tiffany’s have already brought NFTs to another level by innovating and figuring out a physical form of crypto.

As a result, NFTs will no longer be used as just a token but will provide the ability to purchase uniquely crafted (physical) pieces.

4. Blockchain

So are NFTs helping to bridge the gap between physical and digital? But how does it all work? And where are they all stored? This is where Blockchain Technology comes into play.

NFTs guarantee sole ownership of digital assets as a token on a blockchain network. From there, the value of the NFT can fluctuate gradually according to the supply and demand trends.

5. Beacons and QR Codes

Beacons are bluetooth devices that are installed in stores and send information to mobile devices. Likewise, QR codes are two-dimensional barcodes that store data encoded as links to download an app or access a web page. In both cases the objective is to complete the consumer’s purchase process with information.

6. Go supermarkets

a new type of establishment that is still under development and companies like Amazon are applying, consisting of acquiring the products you want by scanning them and paying with your mobile phone without having to go through a cash register.

7. Screens

the world of digital screens offers numerous options when it comes to establishing new possibilities for consumers, such as virtual clothing fitting rooms or touch screens where they can order food in restaurants.

“We are analog beings living in a digital world, facing a quantum future.” - Neil Turok


1. Retail

Retailers are combining their brick-and-mortar stores with their online presence to create a phygital experience for their customers. Examples of this include stores offering click-and-collect options, where customers can order online and pick up in-store, and using virtual reality (VR) technology to create immersive shopping experiences.

Phygital - Retail
Phygital - Retail

2. Healthcare

The healthcare industry is using phygital experiences to improve patient care. Examples include using telemedicine to allow patients to consult with doctors remotely and using wearables to monitor patients’ health remotely.

3. Automotive

The automotive industry is using phygital experiences to enhance the car-buying experience. For example, car manufacturers are using augmented reality (AR) technology to allow customers to see what a car would look like in different colors or with different options, and using digital displays in dealerships to showcase different features.

4. Hospitality

The hospitality industry uses phygital experiences to improve the guest experience. Examples include using mobile apps to check in and access hotel amenities, digital room keys, and VR to showcase hotel rooms and amenities.

5. Banking

The banking industry uses phygital experiences to improve customer convenience and access to services. Examples include using mobile apps for banking transactions and using chatbots to answer customer queries.


Phygital is omnichannel.

To be successful, view your organization as a single organism. Processes require cross-channel design, as do objectives, roles and responsibilities, and these should be passive; put each step in place to reduce friction and increase positive intervention. Competition between your channels isn't your friend here.

Phygital is psychology.

Consumer psychology is central to phygital. For example, individuals tend to “select (product) from the right.” Placement of browsing screens would follow a similar tendency of being better on the right. Train your staff to be symbiotic with technology, each drawing on their strengths and weaknesses.

Phygital is combined revenue recognition.

Forget about incentivization and reward on a channel-by-channel basis. Budgets should be set on a cross-channel basis. If you want to really test this strategy, broaden skill set and exposure by rotating channel responsibilities across each of your heads of channels.

Phygital is compromise.

The solution that's right for your organization is one that's optimal across your retail and digital channels. Put in place a set of design principles to help ensure the decisions you make aren't subjected to bias. Be prepared to compromise.

Phygital is a journey, not a destination.

An organization doesn't wake up one day and be phygital. It's a strategy that requires constant evaluation, improvement and response to the market. There's a time where digital will be as ubiquitous as electricity; until that day, this requires consistent investment.

“The digital revolution is far more significant than the invention of writing or even of printing.” - Douglas Engelbart


Phygital concept is a rapidly growing trend in the business world and is becoming increasingly important as technology continues to evolve. Implementing a phygital strategy requires careful planning and execution, as well as a deep understanding of customer needs and technology.

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