Phygital marketing: Top Examples, Working and Benefits

Phygital is the fusion of physical world with digital applications. See how brands are using it to create immersive user journeys in 2025.
In 2025, the line between physical and digital marketing continues to blur. Online and offline experiences are no longer seen as two separate entities. Customers today expect to have a seamless transition between digital and physical realms. This is where phygital marketing comes into play. Marketers and businesses can use phygital marketing to create immersive and engaging customer journeys. From augmented reality try-ons to interactive in-store displays, everything that combines real-world and digital experiences is part of phygital. Retailers can create engaging phygital marketing strategies to lure more customers and drive sales.

What is the meaning of phygital marketing?

Phygital marketing

                                                                   Source: ottpay

Phygital is a fusion of physical and digital worlds (and words). It blends digital techniques with physical face-to-face experiences full of immersion and interaction. Phygital marketing is done through advanced technologies like AR, QR codes, NFC, and AI. These next-gen techs enhance in-person interactions and bring digital experiences into the real world.

In digital marketing, phygital interactions are becoming a standard for customer engagement. Modern users expect both digital convenience and tangible interactions. This smooth transition is made possible by phygital marketing, which engages customers at multiple touch points in the retail journey.

What is the phygital marketing strategy, and how does it work? 

Phygital marketing

                                                           Source: infobip

A phygital marketing strategy is a user-centric approach to improve the buying and selling experience in retail. It creates integrated and highly immersive user journeys through interactive installations and showcases. AI magic mirrors and AR displays are one form of phygital marketing. Another includes integrating physical touch points in digital campaigns, such as linking QR codes.

Phygital marketing works by combining the best aspects of real and virtual worlds and changing them into some never-seen-before ventures. Customers are immersed in exciting interactions and explorations that make them forget the difference between real and computer-generated worlds. This way, phygital marketing creates stellar experiences that lead to impulse purchases.

How can brands use and implement phygital marketing?

Mixed reality experiences

Mixed reality experiences merge augmented and virtual reality elements with real-life scenes. This is where the real world and digital world come together. Customers can see and interact with digital versions of products in their actual surroundings. Mixed reality enhances product visualization by making it more immersive and interactive. 

Luxury watchmaker Ulysse Nardin partnered with Apple Vision Pro to create an immersive showdown at the iconic Sun Ke Villa in Shanghai on May 25th. The impromptu night event was hosted by Ellemen, a big men’s lifestyle platform in China.

The use of mixed reality headsets lets users explore high-end Freak watches of Ulysse Nardin in a 3D virtual space. Visitors could virtually explore the fine details and zoom in on craftsmanship before buying the timepieces. The incredible visualization attracted big foot traffic and made the visit unforgettable.

Augmented reality gamification

Brands are using augmented reality gamification to make in-store experiences more engaging and interactive. Adding elements of gamification lets customers interact with products in a playful and immersive manner. This turns their ordinary shopping experience into something more exciting and memorable. 

The boss created an exciting pop-up experience by blending fashion with The Little Prince story. Visitors could scan a QR code at the Shanghai pop-up store to enter a celestial world inspired by B-612. By using their smartphones, they could see the golden wheat, roses, and the book’s starry world come alive through AR. These immersive interactions made the digital fantasy feel touchably real and enjoyable.

Interactive displays and kiosks

Interactive displays are actually the super-smart versions of regular store displays. Customers can not only visualize products, but they can also interact with them, see extra details, and customize them by just touching a screen. This saves them from awkward interactions with salespersons and makes the exploration journey more immersive. 

America’s well-known diamond jewelry brand, Hearts On Fire, has launched AR-powered try-ons for its jewelry pieces. The immersive experience uses AR Magic Mirrors to let users see themselves wearing HOF’s necklaces and bracelets. Visitors could access the experience at pop-up events or through the WeChat Mini Program. This lets them check out the brilliance of HOF’s diamonds firsthand before investing in any expensive purchase.

QR codes and NFC technology

Brands can embed scannable codes or contactless chips in their products to make the user experience more digitized. Customers can scan those little square codes with their phones to get special deals and product details or make payments. With just one tap, they can experience the retail innovations at their fingertips. This cool technology makes their shopping and exploration super convenient and hassle-free.

Loyalty programs with digital integration

Digitally integrating loyalty rewards or prizes in your online and in-store marketing strategies makes them more phygital. Buyers can earn and redeem points or benefits across all shopping channels without any hassle. This allows people to stay connected with your brand and fosters loyalty, which can be useful in the long term.

Powerful examples of phygital marketing for brands

Livat’s Interactive Screens 

Livat Shanghai is making shopping way cooler and more interactive with its smart screens. Now, instead of wandering around confused, visitors can walk up to one of their interactive displays to make their visit immersive. By chatting with their friendly AI assistant, Livat AI, they can get instant updates on the mall’s latest events, store info, and product details.

Moreover, they can scan anything they like in front of the screen to get its specs and pricing details right away. This way, visitors can avoid the hassle of waiting in lines or finding help. These AI-powered smart screens make the visits more enjoyable, easier, and fun.

Huawei’s Future Home in Shanghai 

Huawei’s “Ten Days Later” Future Home in Shanghai is a perfect demonstration of how immersive AR tech can better our sense of home design and living. The experience lets users see innovative home design concepts with immersive and dynamic AR displays.

By opening the Future Home AR mini-program and pointing it at Huawei’s Smart Home authorized store, visitors can witness futuristic AR effects. They can see these effects changing into glowing simple lights with a simple tap. These mind-blowing interactions and displays make their visit worth it.

Yayoi Kusama’s AR art installations 

Kivisense has created an amazing AR exhibit to honor the ‘Polka Dot Queen’ using immersive tech. The experience is inspired by Yayoi Kusama’s iconic art, particularly her “Flowers” series. Visitors can bring his iconic art installations to life and play with endless digital flowers and patterns that bloom before their eyes through mobile phone screens.

The amazing spectacle of her signature polka dots and flowers swirls around the building, leaving everyone in awe of the moment. The AR demonstrations pay tribute to Kusama’s artistic genius in an interesting manner, like never before.

What are the benefits of phygital marketing?

Online and offline integrations

Phygital marketing connects the dots between digital and physical shopping to create a smooth transition. Customers can get the ease of online shopping with hands-on experience, which makes them super happy and satisfied. This helps brands boost their brand voice and awareness effectively.

Improved customer experience

Phygital marketing makes the customer experience more immersive than ever. This enables them to implement digital tools in their physical interactions. As a result, customers can interact with products and get every detail on their devices. Applying digital solutions makes user experiences more individualized and interactive.

More customer touchpoints

Phygital marketing strategies let brands interact with customers through more than one touchpoint. AS customers are constantly switching between physical and digital interactions, phygital marketing gives brands more chances to build relationships with customers. This leads to better brand recognition and higher sales.

Boost brand recognition and loyalty

Phygital experiences make customers feel part of something new and cool. When customers get special and personalized experiences, they get emotionally connected with the brand and keep coming back again and again.

Better engagement and ROIs

Phygital experiences, like virtual try-ons or interactive games, keep users hooked for long. More engagement leads to more product purchases, which ultimately benefits brands in the form of high ROIs and conversions.

How to implement phygital marketing into your strategy with Kivisense?

Every business has different marketing needs, and not everything works for everyone. While some traditional marketing methods are still useful, the integration of digital elements is inevitable. That’s where phygital comes into play. By combining physical retail strategies with digital techniques, phygital marketing ensures you are not left behind in any aspect.

If you want to make an impactful phygital marketing strategy for your business, Kivisense has your back. We use immersive technologies like augmented reality, virtual reality, and artificial intelligence to develop highly converting digital marketing strategies. Our innovative marketing solutions have helped many brands achieve their marketing goals effectively. Contact us now to start your journey of phygital marketing.

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