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Phygital Commerce for Fashion Retail

Phygital Commerce is the concept of blending physical and digital stores. It combines the offline shopping experience with digital components to create a more integrated experience. Phygital Commerce allows customers multichannel interaction and flexibility, from online product search to pick-up and payment in physical stores.

Phygital Commerce provides benefits which include:

Increased Customer Engagement

Customer visits to physical and online stores also create opportunities to sell additional fashion products, offer promotions, or provide a complete shopping experience that can increase customer loyalty.

Brand Personality

This strategy creates opportunities to showcase the personality of the fashion business through the interior design of the physical store, customer experience, and services provided.

Online Reservations and Orders

Customers can reserve fashion products online and can choose the physical store location they want to visit to pick up the order.

Improved Customer Experience

Access AR/VR features to view desired products, colors and styles before deciding to pick them up.

Data and Analytics

Phygital Commerce makes it easy for companies to obtain data based on consumer behavior and decision-making, and then analyze it to improve fashion business strategies and plan what fashion trends can be done.

One of the elements in the Phygital Commerce concept is the Click Online and Collect Offline (CO&CO) system. This system allows customers to select and purchase fashion products online through E-Commerce and then pick up the products at a physical store.

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Although full of advantages, Phygital Commerce still has disadvantages for fashion businesses including the following:

High Implementation Costs, systems used to support Phygital Commerce such as POS (Point of Sale) systems and other supporting infrastructure will certainly require expensive costs.

Complex Regulations, managing physical and digital operations in fashion retail businesses must comply with complex regulations related to online sales, consumer protection, privacy rights and data ownership.

Security and Privacy Challenges, using a digital system is a challenge to safeguard consumer data as well. Some customers will be concerned about the data collected on Phygital Commerce.

Logistics and Delivery Challenges, coordination between product stock fulfillment, order fulfillment and delivery is one of the main challenges that fashion retail businesses must face

Risk of System Errors, the risk of using the system such as interruptions can disrupt operations and create inconvenience for customers.

The use of E-Commerce in the Phygital Commerce business model can help overcome some of the shortcomings that may exist. Here is an overview of how E-Commerce helps overcome the shortcomings that will occur in Phygital Commerce

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By using e-commerce as a key component in the Phygital Commerce strategy for fashion retail, companies can create an integrated shopping experience, leverage online and offline advantages, and cater to a wide range of customer preferences. It also allows the company to adapt to changes in customer shopping behavior that are increasingly digital-focused.

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