What is Phygital and how it connects to Augmented Reality

What is Phygital and how it connects to Augmented Reality

The word Phygital is the marriage between two common words: “Physical” and “Digital”.

Due to this merger, the concept represents the integration between online and offline processes in various companies, especially when it comes to the retail market.

It is a branch of the Omnichannel strategy, the concept of unifying all company channels in a way the consumer considers all formats as parts of a whole: the trust created through shopping at physical stores and the convenience of online stores, all this available to the customers.

As a result, the relationship between companies and clients is optimized, simplifying the buying decision, and providing a more satisfactory experience.

Below we present how Augmented Reality strengthens Physical strategies.

How do we buy

Graphic representing a buyer among several channels like physical stores, social plataforms and e-commerce stores. In other words, an omnichannel experience of buying.

With the help of online tools that enable shopping, nowadays consumers can take different paths towards the actual moment of buying the product: they can search for information online, choose where to buy and make their way to the physical store, while another person visualizes the physical product and accesses the e-commerce address to complete the purchase, because this customer prefers price over delivery time, for instance.

E-commerce websites and apps, marketplaces, shopping through import apps, physical stores, multi-brands, catalogue sales… With the clients facing a world of possible options for purchasing, companies became more interested in technologies that can meet the customers’ expectations, no matter what channel they are accessing.

How to apply Phygital in practice

In order to adapt to this new context, these are some of the technologies that make it possible for companies to develop a more intimate contact with customers:

Enterprise Resource Planning (ERP)

ERP is a system developed to integrate processes and departments of the whole company in a single platform.

It is a very efficient software when used as a tool of the Phygital strategy, since it unites all operations in one place, creating the so-called unique source of information.

Omnichannel ERPs provide possibilities such as stock control through channels, integrated delivery logistics and a centered way of issuing invoices.

Self-service totem

This kind of equipment is found in physical stores, offering easiness and autonomy to the consumer who wishes to buy something or the one who needs assistance.

When used as an additional sale point, they avoid lines and make the buying process quicker, providing the customers with the information they look for and bringing the company closer to the client by studying their satisfaction with the physical store.


Wearables are electronic devices you can wear, in other words, objects people can use or carry on their bodies. They are becoming popular around the market, and they are also a good fit for those who want to invest in the Phygital.

By using a watch, a bracelet, or glasses, it will be possible to receive personalized sales based on the information gathered regarding each user, or even tracking the order as it makes its way to the customer’s house.

Augmented Reality

Augmented Reality, in turn, is a strategy that brings the consumer closer to the actual product, using digital to visualize how the product is going to look in their physical space.

Enabling the projection of 3D digital models on the real environment, Augmented Reality can help companies from sectors such as household appliances, furniture and decoration to increase their sales and reduce costs with reverse logistics, since it provides more information to the buyers.

A screenshot shows a 3D representation of a bench showed in an e-commerce store with a QR Code that allows customers to visualize it in their spaces using Augmented Reality. Available in: Mobly.com.br

It can be used on apps, such as the Leroy Merlin app, (in Brazilian Portuguese) or websites, with the technology known as Web AR, providing a perfect merge between online and offline resources to sell products.

Live Commerce

Another technology that can increase sales by bringing digital to physical is Live Commerce, a resource that uses video streaming, the popular Lives, to showcase projects live, making the selling process easier.

The multi-channel Augmented Reality

As shown before, Augmented Reality makes it possible to bring clients and products closer together through a 3D model visualization in the real world.

Now, from the storeowner’s point of view, we can think of the technology as a way to simplify sales in a transversal manner, acting upon all areas since informing customers at physical stores until the use of QR Codes in physical packages, going through the use in applications, company-owned or provided by other businesses, marketplace sales or technological partners like those who promote Live Commerces.

No matter which channel combination your company is using or what you intend to offer to your clients, it is necessary to keep in mind that the way we shop has changed.

Nowadays, as consumers, we are more connected and informed, using several resources to reach a higher level of assertiveness while buying. Are you ready to keep on selling?