Luxury Pushing the Phygital Model Further
As the world of e-commerce is evolving in the digital space for further convenience, speed and efficiency, the luxury industry had to reshape its landscape and luxury brands had to think outside the box. Bringing the exclusive aspects of the traditional shopping into the digital part sounds not as an easy task, and this is how we are going to explore the concept of “phygital”.
Phygital combines both physical and digital worlds together in order to create a richer customer experience. Blending the two realities is what’s important here: imagine trying on the latest collection of Dior ready-to-wear or wearing the latest trendy sneakers on your feet while sitting at home.
The concept of digital “flagship luxury experience” has been introduced by COO of multi-brand luxury retailer Otte New York in order to create a more exclusive customer’s experience.
Blending the Physical and Digital together for Luxury Brands
When it comes to luxury brands, the ultimate goal is to create a high-end shopping experience not only inside physical brick-and-mortars shops but also within the digital space — a goal that brands are actively working on to achieve. Fortune Business Insights shared in a recent publication this month that virtual fitting room market could reach USD 12.97 billion in 2028; with a rising usage from multiple international fashion brands including Levi’s, Burberry, Ralph Lauren, Gucci or Louis Vuitton. Another concrete example of AR integration is Tommy Hilfiger, providing virtual reality headsets for customers to watch the brand’s fashion shows in stores. Shopify shared a key insight and mentioned that the integration of AR is estimated to exhibit a conversion rate of 94%. This truly shows the importance of merging the digital with the physical world.
Involving all the customers’ senses is fundamental in enhancing customer experiences and improving the physical shopping scene. Using technology to bring something new while keeping intact the authentic and initial positive features is a strategy to plan ahead.
Can blockchain and NFT bring more into the Phygital space?
Imagine a complete shift into the metaverse and adopt a complete digital lifestyle. Are we that far from this reality? In today’s digitalised society, everyone has digital devices to interact with each other. If you are an owner of luxury products in the real world, you might be willing to also share it with your peers online. This might be one of the reasons behind the success of influencers and KOLs online.
Non-fungible tokens (NFTs), or unique tokens on a blockchain network, can provide this feeling of “ownership” online. In the end, it wouldn’t be false to say that sharing a picture of our product online with the online community is equivalent to displaying a legit digital representation of our physical ownership. What if NFTs could be the master link between physical ownership and digital ownership? NFTs can be used to represent digital or physical assets. On LuxFi NFT marketplace platform, when users buy or sell physical luxury assets, they are simultaneously trading the associated NFTs as a representation in the digital world. By launching the world’s first real-world luxury asset-backed NFT marketplace, LuxFi is pushing phygital luxury products forward and bringing revolutionary changes.
LuxFi is the world’s first asset-backed NFT marketplace for luxury assets, where people can buy, sell and invest in luxury assets using cryptocurrencies and traditional payments. We eliminate counterfeiting while minting an NFT on a multi-chain blockchain network, with a focus on luxury assets that hold value well and have a high resale value. Leveraging our big data intelligence system and unique algorithm for automated data collecting and data processing, the value of each NFT on our platform is backed by real-world data.
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