Phygital Retail: Blending In-Store Experiences With Digital Commerce
As online shopping has evolved and become more prominent within the retail industry, it’s often thought to be competing against physical store locations. Some discourse around the ‘death of the highstreet’ would suggest that as digital commerce rises, brick-and-mortar suffers. However, brands and retailers that are ahead of the curve know that the two aren’t mutually exclusive.
In-store shopping and digital commerce go hand-in-hand. Rather than thinking of them as being in competition with each other, it should be thought of as a partnership that provides an even better customer experience, working in harmony to drive more sales.
Luxury customers continue to place significant value on visiting physical stores and the in-person experiences they offer. Yet, they’re still researching products online before—and even during—making a purchase. Over 30% of luxury shoppers visit a physical store at least once a month, with 37% reporting feelings of happiness when shopping in-store.
However, these luxury customers are now expecting more from their in-store visits. Around 49% believe stores should be more than just a place to buy luxury products, demonstrating the need for creating even better experiences. Another 67% agree that stores should be more digitally integrated to improve experiences.
Providing the in-store experience that customers crave while meeting their increasing demand for digital is all about creating the phygital experience. Below, we explore in more detail what phygital retail is and examples of retailers doing it right.
What Is Phygital Retail?
Phygital retail is the innovation of traditional retail, blending physical and digital stores to enhance the customer experience. It takes the tangible experience of in-store shopping and combines it with the convenience and information accessibility of digital commerce. These elements complement each other to create a more well-rounded customer journey that’s better suited for modern-day consumers.
In a phygital retail environment, shoppers can interact with products in-store while simultaneously accessing digital resources, such as detailed product information, customer reviews, personalized recommendations, and more.
This convergence of the physical and digital realms creates an immersive and holistic shopping experience.
5 Examples of Phygital Retail Done Right
Phygital retail is a strategic approach used by leading luxury brands to meet the evolving expectations of their customers. To better understand this concept, let's explore five examples of Phygital retail in action:
1. BURBERRY'S PRODUCT QR CODES
In 2020, Burberry leaned into phygital retail with the launch of their first social retail store in China. This store featured scannable QR codes on its product swing tags that, when scanned, told customers more about the product—much like visiting a product page on a website. This showed them information such as product reviews, color availability, and so on.
Providing customers with the information they seek immediately can prevent them from leaving the store to carry out their online research at a later date, therefore driving up in-store sales.
2. REFORMATION'S PERSONALIZED FITTING ROOMS
Reformation has revamped their fitting rooms to create ‘magic wardrobes’ where customers can try on clothes. Inside, customers can use a tablet to choose the items they’d like to try on, which are then brought to the changing rooms.
This digital-physical fusion streamlines the fitting process, making it more efficient and tailored to the customer's preferences. It's a perfect example of how technology can enhance the in-store experience while maintaining a personal touch.
3. NORDSTROM'S LIVE SHOPPING
Nordstrom, a major department store, has launched its own live stream shopping channel on its website to enhance their online shopping experience and better engage customers. By tuning in, customers can watch live product presentations, see the products in action, ask questions, receive immediate feedback, and make purchases in real time.
This helps to give a more personable touch to the e-commerce experience, adding an element of interactivity. It also creates a sense of community, which can otherwise be lacking in the usually solitary nature of online shopping.
4. VALENTINO'S VIRTUAL TRY ON
If you were to imagine phygital retail in action, this is probably what you’d think of. To help bridge the gap between online and in-store shopping, Valentino is allowing its customers to virtually try on its products through Farfetch’s app Wanna.
Valentino is the first luxury brand to feature on the ready-to-wear virtual try-on (VTO) app. Through the app, customers can virtually try on outfits before making a purchase. This enables them to visualize themselves wearing Valentino products, without the need to be physically present within a store.
It eliminates the trial and error process of ordering clothes without truly knowing whether they will suit or fit, making it far more convenient for customers who can’t make the journey to stores. Not only does it improve the online customer experience, it also reduces buyer hesitation, which can be a key factor in losing out on e-commerce sales.
5. GLOSSIER'S IN-PERSON POP-UPS WITH ONLINE EFFICIENCY
In the summer of 2022, Glossier launched their first shop in London, but with a phygital retail twist.
The store prioritized the customer experience, with ‘instagrammable’ features that encouraged customers to share the experience on social media. Around the store, testable products were laid out, inviting customers to try them out. Once the customer knew which products they wanted to buy, they’d speak to a salesperson who would take their order via a tablet device.
The customer would then head to a collection point to pick up their order from an aesthetically-pleasing conveyor belt. To give it that extra personal touch, the customer’s first name would be handwritten on the bags containing the order.
This unique experience combined the tactile joy of in-person exploration with the convenience of online shopping, catering to the preferences of both types of customers.
Block & Tam knows what it takes for luxury brands and retailers to be disruptive. To get ahead of the curve with your own data-driven campaigns, reach out to one of our marketing specialists today.
