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Gen Z And The World Of Phygital Commerce
What it is: Social media and life in the digital space are second nature for Gen Z. Unlike millennials who have experienced life before Facebook, Instagram, and TikTok, Gen Z doesn’t know of a world without the internet. In today’s world, you can meet more than your basic needs from the comfort of your bed. For brands, this proves to be a challenge. How do they get Gen Z to show up in real life while meeting their need for the digital experiences they’re so used to? In comes, “phygital”, a term to describe brand experiences and products in virtual spaces and IRL ones. Brands like Forever21, Crocs, and Puma are creating digital experiences where they can sell real products. Other brands like Mattel are selling digital products and then making physical replicas. Other brands are using phygital e-commerce to strengthen and grow customer loyalty through virtual events and activations.
What brands can learn: 73% of young people prefer when brands interact with them in virtual spaces, while 61% of them are more likely to purchase from a brand that has shown up for them in the digital world. As the metaverse continues growing, phygital e-commerce is allowing consumers to bring their virtual worlds into a reality, whether it’s being able to purchase a beanie that their favorite gaming character wears or purchase an item that only existed before as an NFT. Phygital can be the answer for brands looking to create awareness and loyalty with Gen Z, as it meets the generation's expectation for the benefit of user-friendly digital experiences while connecting to them in the real world.
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