Phygital: Fusion of Physical and Digital Worlds

The word 'phygital' results from mashing together of the words 'physical' and 'digital'. It is often used to described the seamless integration of the physical and digital worlds in a way that enhances both. It’s a term that has been gaining traction in recent years as more brands, businesses, and experiences are blending both realms to offer users more interactive, immersive, and personalised encounters.

 

What Does "Phygital" Mean

In essence, a phygital experience takes the strengths of both the physical and digital worlds and creates something greater than either could be on its own. This hybrid experience usually involves some kind of digital technology—such as augmented reality (AR), virtual reality (VR), or digital interfaces—that complements the physical environment or product.

A great example of this would be shopping. In a traditional store, customers interact physically with products, while online shopping allows customers to browse a vast selection digitally. Phygital experiences take the best of both worlds, like when in-store shoppers use augmented reality apps to see how furniture will look in their homes or try on virtual clothing in a digital fitting room.

 

When Was the Concept of Phygital Invented?

While the term 'phygital' is relatively new, its origins date back to the early 2010s, as digital technology began to rapidly evolve and infiltrate everyday life. The increased adoption of smartphones, QR codes, and interactive screens gave rise to this new hybrid experience. The term started being used more widely in marketing and retail spaces around 2013, as businesses began to recognise the potential of merging digital convenience with tangible, real-world engagement.

As technology has continued to advance—particularly with the rise of the Internet of Things (IoT) and augmented/virtual reality—the phygital world has evolved, offering users increasingly dynamic and innovative ways to interact with products, services, and environments.

Phygital experiences are also highly adaptable and can already be seen in many industries. They can enhance retail shopping, but they can also be applied to fields like entertainment, education, healthcare, and more. These hybrid experiences make processes smoother, more engaging, and more memorable.

 

Examples of Phygital Products and Experiences

1. Smart Retail Experiences

One of the most common uses of phygital experiences today can be found in retail. Brands like Nike and IKEA are pioneers in integrating digital technology into physical stores. Nike’s flagship stores use interactive screens, AR, and personalised digital services to improve in-store experiences, while IKEA’s AR app allows users to visualise how furniture will look in their own space before making a purchase.

2. QR Codes and Mobile Payments

A simpler phygital example is the use of QR codes for scanning products, ordering food, or making payments. Starbucks and McDonald’s use mobile apps to combine digital ordering with physical pickup or delivery, allowing customers to easily access services from their phones while enjoying the benefits of the physical product.

3. Interactive Events and Exhibitions

The world of entertainment and exhibitions has embraced phygital as well. Art exhibitions have started incorporating interactive digital components that allow visitors to scan QR codes or use VR headsets to experience deeper levels of storytelling. In sporting events, stadiums are now using phygital elements like augmented reality displays, allowing fans to access real-time stats or replays through their mobile devices while enjoying the game live.

4. Fitness Technology

The fitness industry has seen a rise in phygital experiences with products like Peloton. While the Peloton bike exists as a physical product, it is connected to a digital platform that offers live and on-demand classes, fostering a community and interactive workout experience that blends the physical and digital aspects of fitness seamlessly.

5. Healthcare Innovations

Healthcare is also embracing phygital experiences, particularly with the rise of telemedicine. For example, connected devices like heart monitors can capture physical health data in real time and transmit it to healthcare providers through digital platforms, allowing for remote diagnosis, monitoring, and personalized care.

6. Squarecrows! NFTs x Real Land

Squarecrows NFTs fit the definition of 'phygital' perfectly.  Your NFT comes with a personal right of ownership to a real souvenir plot of Scottish land, and you get access to online and offline communities.