Well, you’ve probably guessed it. This is a portmanteau of physical + digital… and possesses all the clumsiness of ‘phablet’.

But what does it actually mean?

 

 

Phygital represents a new retail experience that matches online shopping with brick-and-mortar showrooms. As more and more of Australia’s discretionary spend moves online, there is a growing need to reconnect buyers with the ‘feel’ of the product.

Items like milk or wine, movies or books, and music or movies are all easy to buy online. You know what you are getting and there is little risk of confusion about what is being ordered.

Items such as clothing, bespoke perfumes and jewellery may actually benefit from being held, worn or inhaled, and shopfronts are a great way to get buyers to commit to a first purchase. After that, they can trust the fit, feel or flavour on subsequent sales.

 

 

If you’re retailing online, the sensible way to achieve a phygital presence may be to rent a small retail space that doubles as your office. That way, you can ensure value out of the lease, and treat potential customers to a retail experience not offered by online competitors.

Or, you could do something similar to Canberra’s On-the-Go sports, who have inserted kiosks into Westfield shopping centres stores to give an indication of the options available to buyers, before they submit a personalised order.

 

 

Some marketers are pushing the term even further – imagine looking in the mirror at a virtual dress that overlaps our figure and demonstrates the fit of the garment. There are some dangers – particularly that some consumers might find this experience too creepy and be worried that the machine ‘knows’ too much.

Where the line is drawn will, ultimately, remain at the discretion of the retailer and be judged through the engagement of the buyer.

 

 

And while there is no doubt that retailers are searching for new ways to engage potential customers, it will be the experience that lasts longer than this new term. Much like the word like ‘phablet’, this buzzword will almost never be heard, but is a really useful way of explaining the underlying idea.