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Phygital Retail: Growth Opportunities for Brands in 2022

Today retailers rely on every tool in their arsenal to serve consumers’ ever-changing needs. They strive to combine the best components from e-commerce and brick-and-mortar business models to elevate customer experience. Merging physical and digital elements in shopping is what we call “phygital retail”. Let’s take a closer look at what phygital retail is, its benefits and growth opportunities for brands in 2022.

What is phygital retail?

The purpose of phygital retail is to bring the best parts of the physical customer experience into the digital realm and vice versa. The phygital strategy involves combining the three I’s: immersion, immediacy, and interaction. Immersion works to ensure consumers are completely involved throughout the buying experience. Immediacy implies being available for the customer regardless of the channel. Interaction means providing such an experience that ensures buyers feel connected with the brand even in the digital space. A truly phygital customer experience must include all these components, merging the immediacy and immersion of the virtual world with interactivity of physical reality.

In order to achieve immediacy and immersion in brick-and-mortar stores, brands use smart trial rooms and virtual try-on apps, or place self-service kiosks to help customers find the right product. When it comes to making online shopping more interactive, retailers get the most out of 3D content, Augmented Reality, and virtual try-on to favor the interaction between the online consumer and the brand.

What are the benefits of phygital retail?

Phygital has a strong appeal with millennial and Gen Z consumers, who are highly digitally connected, and allows brands to target and attract a broader audience. Besides bridging the gap between in-store and online, phygital retail simplifies the buyer’s journey, making it easier for them to engage with your brand across various channels. As a result, overall customer experience improves, leading to loyalty and trust among consumers and an increase in sales.

A great example of combining physical and digital in retail is Timberland Augmented Reality campaign. The brand set up an AR-powered mirror in its brick-and-mortar store that virtually dressed consumers in selected items from the latest collection. As a result, customers saw how they would look in specific outfits without lining up for a vacant fitting room. Likewise, makeup brand MAC Cosmetics installed virtual try-on mirrors to empower customers to try on products without any effort. Thanks to integration of digital technology in the in-store shopping, retailers shorten the “try and buy” time and bring convenience and comfort to customers.

How to create phygital customer experience with Cappasity

Considering 61% of consumers prefer to shop at stores that offer Augmented Reality, integrating AR technology into in-store shopping is a solid step to introduce phygital retail into your business. Cappasity allows brands to create interactive AR holograms of items within as little as 15 minutes. To provide customers with a true phygital experience, retailers can print QR codes redirecting shoppers to AR holograms and add them to item tags. The consumer simply needs to scan a QR code with their smartphone, and they can explore a whole outfit or separate items in the surrounding environment. Examining items in AR helps the consumer better understand how they look in real life, making in-store shopping more convenient and engaging. Please watch the video to see how it works:

On top of that, retailers can create phygital experiences by placing a kiosk with interactive 3D Views of products in a brick-and-mortar store. Cappasity 3D Views allow consumers to interact with items in many ways: change the angle of perception, zoom in, estimate the details and materials. If consumers can’t find what they are looking for in the store, they will be able to examine the product on the kiosk’s display, and then either make an order through the brand’s site or visit the location where the desired item is in stock. The additional interactivity of the 3D View format boosts customer engagement, leading to sales increase. Besides, it’s a great idea to demonstrate ‘coming soon’ items in 3D to encourage interest in the upcoming collection.

Other than interactive 3D Views, brands can offer a virtual try-on for items that are temporarily out of stock. For example, Cappasity virtual try-on for watches allows customers to virtually try on different watch models with a few taps. Our solution doesn’t require a wrist marker, which makes it easy to use. To imagine how the watch would fit them, the consumer simply chooses their wrist size and tries it on. If the consumer has a chance to try on items that will be in stock soon, they are less likely to turn to the brand’s competitors. Virtual try-on helps retailers retain customers even if they can’t find what they’re looking for and provides a luxurious shopping experience.

To create a truly phygital customer experience, contact our team via

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Bring an in-store browsing experience to online retail with Cappasity, the first complete 3D product imaging solution for your website, mobile app, VR and AR applications.

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