What is ‘phygital’ retailing?
Wednesday 26th July 2023
As the name suggests, phygital retailing is about creating both a physical and digital presence. This business strategy captures a customer’s attention whether they prefer an in-store experience or enjoy browsing online.
In collaboration with The Company of Master Jewellers (CMJ), we share how businesses can make the most of the ever-growing phygital landscape.
Getting to grips with phygital retailing
According to CMJ, phygital retail is ‘a concept that combines physical and digital elements in the retail shopping experience. The modern consumer uses a variety of channels to browse and shop, therefore your business should be accessible to the consumer in all scenarios whilst providing a seamless shopping experience.’
Embracing digital retailing is particularly important for the jewellery industry, a sector that has traditionally operated in a more physical environment. Jewellers may be used to customers predominantly shopping in store, but this is rapidly changing. The CMJ reported in their Spring 2022 Insights Report that the trajectory of online retailing across all categories was expected to reach 35% by 2030, with many CMJ members stating that they see online as an opportunity for their business.
Making phygital retailing work for your business
Customers are increasingly incorporating both digital and physical shopping into their overall purchasing decision. Google Insights data suggests 24% of customers go into a store most or every time they purchase online, with 30% of customers browsing online most or every time they make a purchase in store.
Many retailers capitalise on this by ensuring they have both a digital and physical presence, so they can be there for customers when and where they need them.
For example, offering ‘click and collect’ can be a great way of blending an in-store and online experience. It’s particularly beneficial for customers looking for a convenient, low-cost delivery option. Research suggests click and collect will account for almost 11% of UK online retail sales by 2025, demonstrating the importance of a physical store in the customer journey.
Augmented reality (AR) is also set to rise in prominence over the coming years. Recent reports suggest that AR-guided purchases lead to a 25% decrease in product returns, while Shopify’s data conversion rate of products with AR content is 94% higher than products without.
Popular uses of AR within the retail industry include virtual try-ons and interactive product catalogues that allow customers to customise certain items.
Take a look at our guide on ways jewellers can maximise their online presence for more top tips.
Work with a consumer finance partner who understands your business structure
We offer both in-store and online credit solutions to give customers the ultimate flexibility. Whether they choose to browse and pay at the online checkout or prefer to visit in-store to complete a finance application, we’re there when your customers need us.
Ready to work with a retail finance provider who understands the phygital landscape?
