What is Phygital retail ?

The "phygital" model of sales is a blend of physical and digital elements, merging the best of both worlds to enhance the overall customer experience. It involves integrating online and offline strategies to engage customers throughout their purchasing journey.

Here's an explanation with examples around phygital retail:

1. Omnichannel Retail: Phygitally-enabled retailers offer customers a seamless shopping experience across various channels. For instance, a customer might browse products online, place an order, and then choose to pick up the item from a physical store. Walmart and Target are great examples of brands that have successfully implemented omnichannel strategies. near home we have Lenskart, Croma, Mamaearth and various other online first models turning into phygital retails allowing customers to shop both online and in-store interchangeably.

2. Augmented Reality (AR) in Retail: Using AR technology in physical stores or through mobile apps allows customers to visualize products in real-time. For instance, IKEA's app enables users to see how furniture would look in their homes before making a purchase, combining the digital aspect of AR with the physical need to see how the item fits in their space.

3. Interactive Experiences in Brick-and-Mortar Stores: Retailers are creating interactive experiences in physical stores, leveraging digital technology. For example, cosmetic stores may have virtual makeup try-on stations or clothing stores might offer interactive mirrors that suggest complementary items or show different color variations.

4. Contactless Payments and Self-Service Kiosks: Offering digital payment options and self-service kiosks in physical stores provide convenience to customers who prefer quicker transactions. Amazon Go stores exemplify this by allowing customers to enter, pick items, and leave without needing to go through a traditional checkout process.

5. Personalized Marketing and Recommendations: Both online and offline, businesses use data to personalize customer experiences. An example is sending personalized recommendations via email based on a customer's past purchases, complemented by in-store displays that showcase items related to the customer's interests.

6. Interactive Digital Signage in Stores: Digital signage in physical stores can be dynamic and interactive, displaying product information, promotions, or even allowing customers to browse inventory that might not be physically present in the store.

7. Online-to-Offline (O2O) Commerce: Brands offer online incentives (discounts, coupons, etc.) that drive customers to physical stores. Conversely, physical stores may encourage customers to visit their online platforms through exclusive online offers.

The phygital sales model is all about creating a seamless, integrated experience for customers, blurring the lines between physical and digital commerce. By leveraging technology and data, businesses can engage customers at various touchpoints, providing convenience, personalization, and an enhanced overall shopping experience.