Fashion phygital brandsFebruary 13th, 2023
Fashion Phygital Brands: the rise of QR codes, NFC technology and NFTs to bridge the Physical and Digital Worlds
The fashion industry is constantly evolving and brands must move ahead with time in order to maintain competitiveness in the market and not be disrupted by new entrants in the market. One of the latest trends in fashion e-commerce is “phygital”, an approach that combines physical and digital elements, which is increasingly becoming widely adopted in the fashion industry. This latter allows fashion brands to provide their customers with a unique shopping experience and exclusive products.
What is Fashion Phygital?
Fashion Phygital is the combination of physical and digital elements. It is a trend that is gaining popularity in the fashion industry, as it allows brands to bridge the applications of both the digital and the real worlds. On the one hand, the physical aspect of phygital provides customers with an immersive shopping experience. On the other hand, the digital aspect allows customers to verify product information and purchasing options. QR codes and NFC technology allows customers to easily scan the code, tap their NFC-enabled device, connect with a digital version of the product, such as an NFT, and verify additional features, such as the property or even being token-gated access to in-person events.
Phygital is a combination of physical retail stores and digital shopping experiences, creating a new way for fashion firms to engage with their customers. This article explores the concept of phygital fashion, its benefits for ANIMA Ecosystem and some of the existing strategies of the most successful fashion phygital brands.
Benefits of Phygital for brands in the ANIMA Ecosystem
Phygital can provide numerous benefits for fashion brands in ANIMA Ecosystem. Firstly, ANIMA can help your brands to create a more immersive customer experience through gaming and loyalty programs. By combining physical and digital elements, brands in the ANIMA network can create unique experiences for their customers and provide them with a more comprehensive understanding of the product, allowing also to make more informed decisions and stay ahead of the competition. For example, fashion brands can integrate QR codes and Near-Field Communication (NFC) into their phygital sales of Non-Fungible Tokens (NFTs). Customers can easily scan the code or tap their NFC-enabled device to connect with a digital version of the product, thus also reducing the costs of production. Last but not least, ANIMA can provide phygital brands with valuable data for future decision making and predict changes in customer’s preferences.
Strategies for New Entrants willing to leverage Phygital
ANIMA offers a wide variety of case studies, which are useful tools to explore Blockchain technology and to evaluate the strategies of the most successful players generating revenues. In order to capture these trends, we offer several suggestion of trends that new entrant firms may be willing to take into account when approaching the market and enforcing more immersive phygital experiences for customers:
- Hyperpersonalization. Personalization is intertwined with a successful phygital experience and ANIMA takes care of it. Firms and, particularly, those Small and Medium Enterprises (which are the engine of the European Economy), should aim to provide customers with a hyper personalized shopping experience that is tailored to their individual needs and understand their customers’ preferences and tastes. This data can then be used to improve the customer experience and create more personalized offerings.
- Technology. The layer is vital to create a successful phygital experience. Brands in the ANIMA Ecosystem can cooperate with experts of the sector and leverage cutting-edge technologies, such as Augmented Reality (AR), Virtual Reality (VR) and Artificial intelligence (AI), thus creating more immersive experiences. In order to improve the standards of living of workers and citizens, the benefits of these technologies must be widely shared.
- Content. Content is a great way to engage customers in phygital experiences. ANIMA supports your brand in creating compelling content, such as videos, blog and social media posts, to engage with customers and provide them with quality and transparent information about the products. In ANIMA, exclusive experiences are a source of added value for our Partners, such as early access and fringe benefits or limited-edition products for the end customers.
- Community. Last but not least, community is an important part of phygital. Brands in ANIMA network can join a strong community around their products, both online and offline. Exclusive events and experiences for customers may be enhanced, such as go to market initiatives and influencer collaborations. Additionally, in ANIMA Diversity, Equity and Inclusion are core values and we promote discussion groups to help customers engage with each other and provide feedback on the product responding to their needs.
USE CASES IN FASHION
Several fashion brands are already exploring the possibilities of web3 applications with augmented reality (AR). However, a brand penetrating the market for the first time may be careful whether to adopt an already existing strategy or to implement a new one. The market teaches that already-established brands can fail in such an unconventional market as Web3. Alternatively, the brands experiencing the best results from Web3 strategies have been exploring for years the applications of this technology and have been adapting their strategies.
One example is NIKE x RTFKT, which is a phygital brand acquired by Nike in 2021, which has positioned itself as the first mover phygital brand. They have released a phygital collection, the NIKE Dunk Genesis Cryptokicks, the first NFT sneakers based on Nike’s iconic Dunk shoes. Recently, they have launched also the first NIKE AR Hoodie of its kind; thanks to the Scan of an AR Code in the hoodie, you can take a picture with the photo effect of two robotic wings embedded with the hoodie.
Additionally, Prada has launched a line of AR-enabled sunglasses that can be customized with NFTs, which can be redeemed if you owe the digital NFT.
Finally, luxury perfume brand Byredo has connected a NFC with a limited edition physical perfume with a wearable digital in the RTFKT’s Clone-X ecosystem.
To conclude, brands like Gucci, Balenciaga and LVMH are creating virtual fashion collectibles that can be traded by customers and digital “skins” that can personify their avatar.
These examples show how fashion brands can take advantage of phygital to create a more engaging and immersive customer experience, stay ahead of the competition and gain valuable data. By integrating QR codes and NFC technology into their phygital sales of NFTs, fashion brands can create a unique experience for their customers.
ANIMA allows your brand to create and trade phygital products in its marketplaces. NFTs can be also used in order to create virtual fashion collections, digital art and a gamified experience for the users.
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What is a Phygital product?December 19th, 2022
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