Instagram-фільтри Digital одяг FFFACE.ME
17 Грудень, 2024

Phygital Retail in Action: Real-World Examples and Insights

від Дмитра Корнілова, генерального директора, співзасновника студії FFFACE.ME

Imagine trying on clothes virtually or seeing how furniture would look in your home-all from the store. Welcome to phygital retail, where in-store charm meets digital innovation in the most unforgettable shopping experiences.

Today's consumers want more than just products, and phygital retail delivers with shopping as an interactive adventure. Ready to discover how this fusion is reshaping commerce? Let's dive in.

What is Phygital Retail?

Phygital retail combines the tangible appeal of physical stores with the comfort of digital technologies. This is such a strong combination that makes shopping seamless, immersive, and memorable. In phygital retail, in-store atmosphere and online efficiency blend into a format that adjusts to evolving consumer expectations.

Key Components of Phygital Retail:

The three ingredients that make a phygital strategy successful in business are Instant, Connected, and Engaging-I.C.E.

  • Instant: Phydigital retail provides instant service and gratification. It is all about speed and responsiveness, since 57% of customers will switch brands if their needs aren’t anticipated.
  • Connected means linking the physical and digital worlds of shopping through virtual reality, video shopping with brand representatives, and frictionless online-to-store journeys. Since 63% of shopping journeys start online, ensuring quality is consistent across all touchpoints is paramount.
  • Engaging: Phygital experiences should be engaging through interaction, ease, and fun. A combination of immersive digital with riveting in-store features creates a rich customer experience.

Phygital retail is not a fad; it is a core transformation in how businesses and customers meet in an age that needs innovation and a personal touch.

@ffface.me

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Phygital Commerce: Statistics and Future Outlook

Despite the rise of e-commerce, consumers are heading back to the store in droves. According to the EY Future Consumer Index, 32% value personal service in store, while 57% want to see and feel products before buying, and 68% consult experts before making high-value purchases. Physical retail also holds a certain allure for digital natives such as Gen Z, where 52% use stores for discovery, versus 46% online and 24.3% through social media. Indeed, this revival of retail shopping is a perfect soil in which phygital experiences-that is, perfectly blended physical and digital elements-may finally occur.

In the post-pandemic landscape, shoppers are embracing in-store experiences with a modern twist. Retailers now leverage physical locations not merely as shopping destinations but as catalysts for online growth. Studies indicate that a physical presence can boost nearby online sales by 10-20% (Reuters). Brick-and-mortar stores aren’t just surviving—they’re thriving as essential components of the phygital ecosystem.

At the forefront of this retail revolution stands augmented reality (AR). The AR market is projected to reach $83.65 billion by 2024, with an impressive 37.9% CAGR through 2030 (Grand View Research). Through virtual try-ons, interactive demos, and immersive experiences, AR is transforming customer engagement across all retail sectors.

The future of retailing is undeniably phygital. Through the creation of seamless links from physical stores to digital platforms, retailers create contactless, immersive, frictionless journeys for shopping. This is not only a matter of meeting modern consumers’ expectations but actually pioneering experiences in ways that will truly connect the dots between physical and digital worlds and resonate with shoppers.

Benefits of Implementing Phygital Strategies

When businesses blend physical and digital retail experiences, they unlock several key advantages:

Elevated Customer Engagement

With augmented reality and virtual reality technologies, for example, retailers build engaging shopping experiences. Using AR tools as an example, customers can try out products virtually, thereby connecting the hands-on feel of in-store shopping with the conveniences of online.

Increased Sales Potential

Phygital strategies like buy online, pick up in-store (BOPIS) accommodate various shopping preferences and drive revenue growth. Research shows that 83% of BOPIS customers make additional purchases during pickup, demonstrating the financial benefits of this integrated approach. (Dyrect)

Operational Streamlining

Digital technologies in retail space improve efficiency in operations: self-checkout kiosks, mobile payments reduce wait time, enhancing customer experience. Additionally, using stores as fulfillment centers for online orders expedites delivery, reducing shipping costs.

Data-Driven Decision Making

Phygital retail allows collection of data from every customer touch-point. This enables a company to understand consumer behavior and preference once the data is analyzed. These insights help companies in optimizing marketing strategies and inventory management while making smarter business decisions.

Competitive Edge

By adopting phygital strategies, they are very much at the leading edge of retail innovation, preparing for and delivering to the demands of today’s technology-savvy shoppers. The seamless and engaging experiences will make the brand different from others, thereby driving more customers toward loyalty.

Catering to Gen Z: The Phygital Generation

Generation Z is giving a new face to retail because this generation grew up with the Internet and switched seamlessly between online and offline shopping, thus making it a really good target for the phygital strategy. They crave a personalized interactive experience-from virtual fitting by AR mirror displays to a gamified shopping experience where innovation merges with entertainment. Soon, they will spend over $143 billion annually and have better brand connect through phygital strategies for business organizations. Companies meet the sophisticated expectations of Gen Z by marrying digital convenience with the sensory pleasure of in-store shopping, building brand loyalty that will last.

Real-world Examples of Phygital Retail

Let’s explore some compelling examples that demonstrate its revolutionary potential:

Mugler’s Phygital AR Mirror Experience for Angel Elixir

Mugler partnered with FFFACE.ME to create the pioneering AR Mirror experience for Angel Elixir, an immersive mix of physical and digital shopping placed at Charles de Gaulle Airport, and premium malls in Berlin and Munich. The Meta-powered AR Mirrors allowed visitors to interact with the fragrance through real-time augmented reality, delivering very valuable user content to use for brand promotion and showing game-changing potential for phygital retail.

Phygital Beauty: AR Try-On with Makeup by Mario

In May 2024, Makeup by Mario unveiled a new way of shopping at Sephora Times Square with its AR Mirror installation. Customers virtually try on bronzer shades while following tutorials from celebrity makeup artist Mario Dedivanovic. The system’s virtual hand tool emulates real-world makeup application, creating a seamless blend of digital and physical beauty experiences.

The shade selection process transformed into an engaging interactive journey, with product testing stations and a photo booth to enhance the experience. A phygital approach to shopping, making it both more precise and convenient, deepened customer connections and brand loyalty.

Virtual Try-Ons for FWEE with Exclusive TikTok AR Filter

We’ve partnered with FWEE to create an engaging experience featuring their signature Pudding Pots through an exclusive TikTok AR filter: “Choose Your Pudding Pot!”

This intuitive AR filter lets users virtually try on each shade of Fwee’s iconic Pudding Pots. Each color is precisely calibrated to ensure what you see on screen matches the product in real life.

The AR filter transforms shade selection into an immersive experience. Users can experiment with different colors, discover their ideal match, and instantly share their looks on TikTok. This phygital solution seamlessly combines the tactile appeal of makeup with digital innovation, bridging the gap between virtual exploration and real-world confidence.

@ffface.me

We’ve teamed up with @fwee to bring you digital try-ons of their iconic Pudding Pots in an exclusive TikTok effect “Choose your Pudding Pot”! Each shade is perfectly matched for a true-to-life experience. Which Pudding Pot shade is calling your name? Let us know your fave in the comments💋 #tiktokeffect #effecthouse #filter #arfilter

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Phygital Fashion: Bershka’s Semi-Digital AR Clothing

Bershka revolutionized phygital retail through its partnership with AR creator FFFACE.ME, launching an innovative semi-digital AR clothing collection. The concept merges physical garments with digital elements, creating unique interactive experiences. Using an Instagram AR filter, customers can add dynamic 3D animations to their actual outfits, transforming them into engaging, shareable content.

This creative fusion enhances the traditional shopping experience while seamlessly connecting fashion with technology, giving customers a personalized, immersive way to engage with the brand.

@ffface.me

😎✨Semi-digital tee ‘Varsity floral’ from new summer collection “Wearable art” FFFACE.ME x Bershka Check out super cute selfie mode via the Bershka IG filter tab or get your tee and bloom with us! #Bershkastyle #sparAR #IGfilter #semidigitalclothing

♬ original sound - FFFACE - AR FILTERS

Become Phygital with FFFACE

Transform your retail experience with FFFACE—pioneers in innovative phygital solutions. We seamlessly blend physical and digital elements to create unforgettable customer journeys. Our AR mirrors enhance in-store engagement while interactive filters connect your products to the digital world. FFFACE empowers your business to lead in today’s evolving retail landscape. Let us help you elevate your brand, captivate your audience, and shape the future of commerce. Together, we’ll redefine what’s possible.

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