Despite the convenience of online shopping, many consumers are still drawn to shopping at a brick-and-mortar establishment. This has given rise to the “phygital” retail experience, a holistic model that provides a blend of in-person shopping with digital services. We’ve explored this phenomenon and provided examples of businesses that have adopted it successfully.
The versatile nature of phygital experiences
A phygital experience can take many forms. In the physical space, customers could be supplied with tablets or utilise smartphone technology to aid in their browsing and purchasing of products. In the digital space, customers could view a live stream of a person displaying and trying on clothing or accessories before purchasing it online.
The blending of both experiences has been successfully adopted in a range of different sectors, whether it be commerce or digital entertainment. For example, online casinos allow users to play roulette online with live dealers, with games featuring tactile roulette wheels that are spun by real-life croupiers, which are then live-streamed to players. These games have been popular due to their immersive qualities, proving the potential of phygital products.
In-person phygital experiences
An in-person phygital experience provides customers with technology to aid in their purchases or browsing. Often, customers can use tech such as iPads, touch-screen cashiers, QR codes, augmented reality, or wearables that are provided by companies to support their experience. One company that has excelled at this is the Convent Garden boutique retailer Reformation.
The company provides iPads in dressing rooms to create a “magic wardrobe”. All in-store items are loaded into the tablet, with customers able to select items to try. These will then be brought over by staff and placed in a two-way closet. If customers want to change the style or colour, swap requests can be made within the iPad.
The room’s lighting can also be customised to better test how an item will look in different conditions. Not only do these tech-powered features help the customer, but they provide Reformation with valuable insights into what customers want. This can help to identify localised trends and forecast inventory.
Online phygital experiences
After gaining popularity in China, the West has seen a rise in live-streamed shopping events, with analysts predicting the market to double in the next three years. These events see hosts present different products, whether trying them on, demonstrating their use, or pitching their benefits.
Viewers can then click on the integrated links to head straight to the e-commerce page and purchase the product. These streams often include social elements too, so viewers can interact with hosts, ask questions, or engage with other viewers. This year, e-commerce giant AliExpress launched its It Girls collective in the UK, which features popular personalities sharing curated collections and live-streaming them.
As more companies look to blend digital technology and physical, immersive real-time interaction, the phygital retail trend is entering a new era. By jumping on the trend, retailers can benefit by providing customers with products that are more engaging and convenient and uncover untapped areas of opportunity.
