Phygital: Definition, Examples and Key Trends for 2025

Phygital blends the best of physical and digital experiences, bringing together the virtual and the real to enhance product visibility and elevate the customer journey. This innovative marketing approach touches every sector — including luxury, where the shopping experience is just as important as the product itself. Let’s take a closer look at how phygital is transforming luxury customer experiences online and offline.

WHAT IS PHYGITAL? 

The term phygital emerged in the early 2010s to describe the intersection between the physical and digital worlds. Originating in marketing, it refers to a strategy that merges the strengths of online and in-store experiences to deliver a smoother, richer customer journey. The idea behind phygital is to create immersive interactions in which digital tools reinforce the physical experience — and vice versa.

This approach quickly spread across industries, and luxury adopted it early. By combining innovative technologies with personalised services, phygital allows brands to reinvent customer relationships and meet the expectations of an increasingly connected audience. In the luxury sector, it enables the creation of an enriched customer experience, a true event-driven strategy blending the pleasure of discovering products “in real life” with the technological innovation of the digital world. 

Phygital also enables luxury maisons to engage new generations, particularly Gen Z and Millennials, who naturally navigate between physical and digital spaces. The challenge for brands is to preserve the exclusivity and craftsmanship inherent to luxury while integrating modern tools that elevate every interaction.

WHY ADOPT A PHYGITAL STRATEGY?

Phygital responds to a deep shift in consumer behaviour. Today’s customers no longer separate physical from digital; they constantly move between the two. A brand that successfully combines both worlds offers a seamless, coherent and highly engaging experience.

The first major advantage of phygital is its ability to elevate the customer experience. With digital tools integrated in-store — such as interactive screens, connected fitting rooms or augmented reality apps — shopping becomes more immersive, informative and personalised.

Another key benefit is data collection. Phygital enables brands to better understand their customers by analysing behaviour both online and in-store. This information fuels tailored recommendations, smarter loyalty programmes and optimised inventory management. In turn, customers benefit from a more bespoke service.

Finally, phygital strengthens emotional connection. In a world dominated by digital, physical experiences remain essential for touching, trying and feeling. Conversely, digital brings convenience and speed. By merging both, brands strike the right balance: emotional engagement meets practical efficiency.

KEY DIGITAL TOOLS IN PHYGITAL STRATEGIES

Phygital relies on a combination of technologies that bridge online experiences with physical touchpoints. These tools don’t replace human interaction — they enhance it by making the customer journey smoother and more personalised.

Interactive kiosks and tablets in-store allow access to the full catalogue, including items unavailable on-site, and enable direct ordering. They also streamline checkout and reduce waiting times.

Mobile apps play a major role as well. They connect the digital and physical worlds through features like product geolocation, virtual try-ons or targeted in-store promotions — becoming indispensable shopping companions.

Augmented reality (AR) is another essential tool. It allows customers to virtually try on products from home or even within the boutique, making the experience more immersive and boosting purchasing confidence.

Virtual reality (VR) is expanding rapidly, especially in luxury. It enables customers to tour a digital showroom or attend a fashion show from home, enhancing brand prestige and accessibility.

Finally, data and artificial intelligence form the backbone of phygital. Behaviour analysis, personalised recommendations and intelligent loyalty systems strengthen customer relationships by making each interaction more relevant.

KEY PHYSICAL COMPONENTS OF PHYGITAL

The first physical component is, naturally, the store itself. In a phygital strategy, the retail space becomes more than a point of sale — it transforms into an experiential environment. Layout, decor, music and product staging together create a world that embodies the brand’s identity.

Interactive corners and demonstration areas allow customers to test products while receiving complementary digital information.

Connected in-store devices — such as smart mirrors in fitting rooms or RFID chips integrated into items — create a direct link between the physical product and the brand’s digital ecosystem.

And of course, sales advisors remain central. In a successful phygital strategy, they embody the human and emotional dimension of the experience. Equipped with tablets or mobile tools, they can access stock information, personalise recommendations or finalise purchases without going through a traditional till.

SUCCESSFUL PHYGITAL STRATEGIES: KEY EXAMPLES

Sephora: A Seamless Customer Experience

As explained by Elisabeth Sehmer, Marketing Director France, “Sephora aims to create a seamless customer experience.” The brand is often cited as a benchmark in phygital retail. Its objective is to create fluidity between the in-store experience and the e-store, with interactive kiosks (Sephora Plus) enabling customers to order products unavailable on-site, while the mobile app offers virtual makeup try-ons that enhance both discovery and personalisation.

Decathlon: Digital Integration for Performance

Decathlon has turned phygital into a powerful performance driver. In-store kiosks offer access to the full catalogue — including items not stocked in the aisle — and customers can order on-site for home or pickup delivery. This reduces stockouts and creates a smooth, efficient shopping journey.

Ikea: Augmented Customer Experience

Ikea leverages augmented reality to strengthen its phygital model. Its mobile app allows customers to  ustomiza furniture in their home at true scale, while QR codes in-store provide immediate access to product details, reviews or  ustomization options.

Jennyfer: Pioneering Smart Phygital

Jennyfer is one of the pioneers of “smart phygital” in France. Interactive fitting rooms let customers request different sizes or colours without leaving the cabin. The La Défense store even features a TikTok booth with creative challenges. Its app connects directly to physical stores with features like reservations and product geolocation.

PHYGITAL TRENDS FOR 2025 AND BEYOND

The first major trend is hyper-personalisation. Thanks to AI and data analysis, brands will deliver increasingly tailored experiences — adapted not only to preferences and habits, but even to customer emotions.

The second trend is sustainability. Phygital tools help manage stock more efficiently, reduce returns and streamline logistics — essential in a context where consumers are increasingly attentive to environmental impact.

We also see the rise of mixed reality, combining AR and VR. Customers will be able to attend fashion shows from home, virtually try on products while touching them in-store, or experience fully immersive brand universes that blur the physical/digital boundary.

Finally, the future of phygital will rely on increasingly seamless channel integration. Customers may begin their journey online, continue in-store and complete their purchase on mobile — without ever feeling they’ve stepped into a different environment. This continuity will make all the difference, delivering a cohesive, immersive experience perfectly aligned with evolving consumer expectations.

PHYGITAL AND LUXURY CUSTOMER EXPERIENCE: TRAIN WITH SUP DE LUXE

In luxury, phygital takes on a distinctive meaning. It isn’t just about integrating digital tools into a boutique; it’s about creating a fluid, coherent and emotional experience that matches the expectations of a demanding clientele. Mastering this requires a deep understanding of the market, innovation and consumer behaviour.

The MBA Global Luxury Brand Management at Sup de Luxe delivers this expertise. This international programme trains future managers to design and lead innovative strategies that combine artisanal tradition with cutting-edge technology. Through specialised courses, real-world projects and encounters with key industry players, students acquire the skills needed to address the major challenges shaping luxury today — including the rise of phygital.

Sup de Luxe also offers additional programmes tailored to diverse career paths. The MBA Luxury Management provides a comprehensive understanding of the many métiers and specificities of this constantly evolving sector. For professionals seeking targeted expertise or upskilling, certified programs offer flexible, specialised learning adapted to industry needs.

By blending technological innovation with traditional savoir-faire, phygital opens the door to a reinvented luxury — one capable of engaging new generations while preserving its heritage. With vast unexplored possibilities ahead, from metaverse expansion to ultra-connected services, phygital is set to redefine how luxury brands captivate and retain their customers in the years to come.