How Phygital became the new Standpoint of Marketing and Products in Web3

Nowadays, although many do not view it as such, we live in two different realities. In one, we live in the physical world, where we live and do countless activities, such as eating, sleeping, exercising, etc.

However, since the creation of the internet, the second reality increasingly takes more time out of the day, and invites us to be more immersed in it. This dual reality is virtual, and we spend a lot of time on social platforms like Instagram, Twitter, Snapchat, Tiktok, etc.

These social networks will also naturally evolve into something even more immersive, something we still have no notion of, and for which there is no globally accepted definition. We have dubbed this The Metaverse.

We now live between 2 different realities which leads to changes in our habits, something that in 2020 with the pandemic became much more acute. For example, a lot of us buy our clothes online or take virtual tours of apartments, as opposed to doing so in person. We can view an apartment digitally before arranging an appointment, and in doing so, use both realities to execute an action.

Apartment virtual tour

Marketers began to call these interactions between both realities “Phygital.” But even if it sounds like science fiction, today, we are about to enter the era of “Phygital” products. Read on and we will explain why.

How did Phygital get started?

This concept is relatively new, but as mentioned, it went viral during the pandemic when it became popular among marketers. This concept is the union between the virtual and the physical realities, which is why it is not a coincidence that it became so popular during the pandemic.

In the years during and post pandemic, consumer habits changed drastically. On the one hand, consumption in actual stores decreased a lot and, and on the other, consumption through marketplaces increased.

However, once the pandemic was over, consumption habits had already changed enough, and it was already customary to use both channels to produce a purchase. For example, many people search for a product in an online store and then buy it in an actual store.

So, according to experts, for an experience to be Phygital, it must be: Instantaneous, Connected, and Immersive.

  • Instantaneous snapshots — so that the products or services are offered to your potential customer at the right time (now).
  • Real time connection — so that the consumer receives and perceives the same quality both in the physical and online stores.
  • Immersive — so that the process in which the consumer will make a purchase is fun and keeps them entertained.

Phygital’s Vision

Although created in marketing jargon, this concept has been transforming and taken shape quickly. This is because gigantic companies like Nike are starting to create phygital products. In 2021 with the acquisition of RTFKT, a company that creates 3D clothes, Nike now connects those 3D clothes in the form of NFTs to real clothes through NFC chips or other ways.

RTFKT kicks taken from:

In many industries, such as antiques or art where objects with high historical and human value, something similar is happening. A 3D or virtual replica is created, containing information regarding each item’s historical moment, and thus preserving its value over time.

Usually, this is done by adding a chip or QR code to the article and creating a gap between the two worlds. Every time the phygitals market grows, virtual marketplaces such as Real Nifty begin to appear where only phygitals such as those mentioned are sold.

DAOFY and Phygital

At DAOFY, we love phygitals, so much so that at this time we are only incubating NFT projects that have a physical counterpart. Why? Because we believe that the market for PP NFT collections is ending, and it was just a fad.

DAOFY seeks to improve the commerce of articles and, simultaneously, the user experience by integrating these two realities. We have the vision of always satisfying the end user in our work. So, this is why we want to use technology as powerful as NFTs but also provide them with a real value of a physical counterpart.

Sounds interesting? Stay up to date and follow us on LinkedIn as we will soon be announcing our first incubation, of which we are excited to share with the world.

Closing comments on Phygital

AS touched on throughout, phygital is a concept derived from marketing and how consumer habits have evolved, especially in recent years. The consumer uses virtual and real channels to acquire a product or service.

But at the same time, we are on the eve of phygital products i.e natural products with a virtual counterpart that can generate more value and experiences for the user.

However, in saying that, how do you add value to such products? You achieve this by providing traceability, authenticity, or ownership to the user. Stay tuned. We are about to enter an exciting time.



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