Getting Phygital: The Marketing Revolution is Here
While the word “phygital” may have you humming a certain ‘80s classic in your head, in truth it has nothing to do with exercise. A combination of the words “physical” and “digital,” phygital describes the blending of digital technology in retail stores to create new shopping experiences. Phygital takes the concept of online shopping to the next level by pairing its speed and convenience with physical, in-store experiences to create instant gratification.
But what exactly is phygital shopping? And how does it relate to home décor and interiors? I’ll be exploring these questions in a series of posts and on my Instagram. But first, some background.
Convenience a Go-Go
While phygital experiences sound futuristic, many have already become part of our daily lives. If you have ever scanned a QR code at a restaurant to open a menu, order, and/or pay, you have experienced the magic phygital technology can offer. These pandemic-driven models initially enabled businesses to decrease touchpoints, ease wait times, and allow for physical distancing when fear of infection was at its highest. They have largely remained because of the convenience they offer.
One of the earliest examples of phygital stores is Amazon Go. Initially conceived in 2015, Amazon Go first opened to Seattle employees a year later before being launched to the public in 2018. Fast-forward a few years and the strategy has now been extended to 24 stores nationwide with plans to open more.
The ease of simple walk-in, walk-out shopping is so attractive, Paris start-up Boxy is now adopting the concept to launch its own network of autonomous convenience stores across France. Founders David Gabai and Tom Hayat recently raised €25 million in Series A funding allowing it to plan to open approximately a store a week throughout 2022 and up to 1,000 stores by 2025. Like Amazon Go, Boxy is centered around convenience, offering cashless access to a selection of 250 grocery essentials in a small footprint.
QR So Beautiful
If convenience drove the start of the phygital revolution, the QR code made it possible. Originally invented in 1994, Quick Response codes were first accessible to the public in 2010 as scanners and readers became available on smartphones. For a while, the square bitmap barcode seemed to be gaining mainstream traction. Then, poof. QR codes suddenly seemed to fade away.
The reason for the QR’s demise and recent resurrection comes down to need. In the early 2010s, the codes didn’t seem to offer anything of value. More importantly, they required a special scanner app to read them. The pandemic changed all that. Suddenly, the codes offered solutions to many Covid-related problems—solutions that remained outside the capabilities of regular barcodes. QR codes can hold an impressive amount of data in a small space—over 100x more than a regular barcode—making them the ideal for phygital experiences.
Living in a Phygital World
Scan the code above to download the AR app, then use your phone to watch the poster come alive.
Since its conception and acceleration, phygital examples have exploded beyond offering simple convenience. Today, marketers are finding ways to use QR codes to drive digital experiences in the physical environment. Furniture store BoConcept, for example, uses QR codes to link to an AR experience that allows customers to see products in their own homes. The codes can also be added to the physical products themselves, providing a new way for brands to connect with their consumers, as well as internally track their inventory and supply chain. Entire marketing campaigns are now centered in the phygital realm, as demonstrated by Salone del Mobile release of six commemorative posters celebrating the fair’s 60th anniversary. No longer stuck in a static world, the posters, designed by Emiliano Ponzi, come to life when viewed on your phone through an AR platform.
For businesses that lack tech expertise, several new start-ups help make the implementation of experiences like these easy. BoConcepts, for example, worked with Stockholm-based Ombori who makes their Grid technology available via a SaaS platform. Salone, on the other hand, partnered with Milan-based motion design studio Alkanoids to bring activate their new posters in the digital world.
The phygital revolution makes one thing very clear: no matter what your size, ignoring technology is not an option. In 2021 report by Raydiant, 54% of consumers preferred to shop online versus in-store, an increase of 9% over the previous year. Though Covid likely accounts for much of this increase, as consumers become more tech-dependent, creating a seamless bridge between virtual and physical stores is imperative. Next, we’ll look at specific effects the phygital world is having on design.
