What is phygital and how to apply it?

Article for @institutoriomoda blog | Original version in portuguese here

The concept of phygital consists of the integration of physical channels with digital ones. Increasingly present in our lives, the term was created by Kevin McKenzie, vice president of an Australian shopping mall chain and the innovation agency Westfield Labs, which offers technological solutions to reinvent the consumer experience.

At this time of social distancing and isolation due to COVID-19, this concept is more than necessary for brands to maintain their relevance in the market. It is important to understand that digital strengthens and enhances a brand, attracting customers to the physical store, not competing with it.

Phygital experiences quickly spread around the world, through actions such as the use of QR Codes, interactive screens, augmented reality applications, virtual fitting rooms, live streaming, and live shopping (real-time sales, which are already practiced in China and are be mediated by famous influencers).

Augmented reality is very useful for decoration, fashion and cosmetics companies. You can simulate through applications how a shade of paint would look on your wall, a piece of furniture in your living room, an outfit on your body or a makeup on your face.

In Brazil, interesting examples of the phygital experience are Amaro's guide shops, physical stores where you can checkout virtually, and Lojix, Farm's new digital and interactive store, where the brand's team presents the collection live, brings tips styling and launches exclusive promotions for viewers.

The Italian brand Sunnei innovated on the technological side. The “Canvas” collection, which at first is entirely digital, was composed of blank virtual modeling pieces. It was launched together with an online platform, where the brand's resellers can customize the pieces, choosing between different colors and prints. In this way, production will be done on demand and each dealer will receive an exclusive and personalized collection. The arrival of physical pieces in stores is scheduled for December 2020 and the brand also aims to reach end customers on this customization platform. Initiatives like this are necessary and sustainable, as they avoid heavy inventories and allow the customer to feel part of the brand, when co-creating and customizing their products.

Therefore, we can conclude that companies that invest in the union of on and offline channels only tend to generate value and engagement. Phygital is very close to omnichannel, which is already more widespread, since there is no way to think of isolated marketing strategies for each medium. It is necessary to articulate actions that integrate physical and digital channels.
 
Photo: Sunnei Spring Summer 2021 Collection