The merging of the physical and the digital world is becoming increasingly evident in the fashion industry. Brands are harnessing the phygital to appeal more to the younger generation.
Boson Protocol is a pioneer in the field and has established itself as a decentralized blockchain network that enables the sale of physical and digital items in the fashion industry. Additionally, its subsidiary Boson Portal, a customizable e-commerce marketplace platform in the Metaverse, played a major role in the recently launched Metaverse Fashion Week, helping brands and ad agencies create digital spaces to sell their products during the event.
The company has also been involved in the rise of phygital online and offline events that allow clientele to connect with a brand in both worlds through showcasing collections, interactive worlds and immersive experiences.
“Last year we saw the rise of non-fungible tokens (NFTs) and digital fashion, and what we’re seeing this year is the merging of digital and physical fashion,” said Justin Banon, co-founder and CEO of Boson Protocol. Speaking to FashionUnited, Banon explained why the phygital trend is something to watch out for in summer 2022 and where it will take the industry.
What is Phygital?
The word ‘phygital’ is also a combination of ‘physical’ and ‘digital’ and denotes the merging of the two worlds. The term is often used in the context of brands going hand in hand with physical and digital strategies, but can also be used to describe wearable objects that exist both in the physical world and in an identical digital form, allowing people to experience the product to be used in real life and in an online space.
The emergence of the term is part of the increasing Metaverse initiatives by retailers looking to capitalize on open-world platforms by digitizing their real-world products. Many of these items exist as NFTs that can be purchased and worn by avatars while also acquiring a physical version of the garment. Commenting on this emerging trend, Banon said: “While last year could be described as the summer of NFTs, we are now seeing this growing trend among fashion and luxury brands that remain core to physical items but are also embracing digital and combine both.”
The reason behind the growth of this space is likely due to the rise in popularity of gaming and virtual reality in the fashion industry among Gen Z. Banon added, “Everyone understands the real world, everyone understands why people buy luxury items to build their own personal brand to strengthen. I think a big reason NFTs and digital wearables have popped up in the Metaverse is that they can’t be erased in a couple of years. If you have a designer’s first handbag that’s an NFT, in 50 years that’s a piece of fashion history – it’s not going away.”
Why should brands care?
The biggest benefit brands can get from such a strategy is relevancy, says Banon. Much like how social media has transformed the industry, he believes the Metaverse will have a similar impact. “I’ve never seen a technology embraced like this,” he added. “Of all the technologies, the Metaverse is perhaps the greatest of all. We now have this immersive digital experience that is fun and social, where people can be together.”
The introduction of the Metaverse in fashion began with hesitant brands wondering what the Metverse actually is. This quickly became clearer as they implemented digital strategies, either through trials or an initial campaign, to gain a foothold in this fast-moving space. Commenting on this rapid adoption, Banon said, “Unless you jump in and learn and develop the skills early, these areas evolve so quickly that it’s very easy to get left behind and within 12 months have a brand that’s old school. “
A particularly attractive part of this digital integration is the potential to connect with the growing target group of Generation Z, young, digitally savvy people who are specifically looking for such new experiences. “Gen Z didn’t grow up watching TV and passive media consumption,” Banon said, adding that gaming has always been a big part of their lives, so these types of experiences are extremely important to appeal to them. “That’s what appeals to this demographic and many brands are realizing that and giving themselves an edge in terms of market share and relevancy.”
How are brands already implementing phygital strategies?
An important part of implementing a phygital strategy is recognizing the need to create differentiation that also matters in the real world. “Every human starts with a blank avatar, and as we spend more and more time in the Metaverse, people want to paint on that blank canvas,” Banon says. “It’s the same drive that makes people point out that they’re going to For example, wear a pair of Balenciaga sneakers that they can own in both the physical and digital worlds.”
“This merging of physical and digital objects is happening, and in a playful, rewarding way. Not just for the technology’s sake. Things are fun and engaging. That is what drives us.”
Banon said Boson Portal will continue with this over the summer. In cooperation with brands and advertising agencies, various events and campaigns are launched that combine the digital with the physical. The company, which is currently redesigning its digital space on open-world platform Decentraland, is preparing a series of online experiences, including treasure hunts, where players can compete to gain access to rare digital items. Campaigns like this will provide opportunities to connect with the brand both in real life and in game.
Boson Protocol has previously worked with a number of brands on phygital launches, including Hogan, which has released a number of physical products as redeemable NFTs through its Decentraland-based retail division. The campaign took place during the platform’s Metaverse Fashion Week, hosted earlier this year in partnership with Boson Portal. The company had previously worked with brands such as Cider, Ikks and Anrealage on similar launches. The company recently launched an exclusive phygital NFT collection in collaboration with curator-run NFT platform Artpool. The collection consists of nine phygital objects presented in Decentraland alongside an immersive exhibition by renowned multimedia artist Gianni Lee.
What will happen to Phygital in the near future?
The Metaverse is something that is constantly evolving, and it’s very difficult to predict where it will go in the near future. Still, Banon had some ideas on how to proceed. He hinted that buying an NFT and receiving the physical product with it could soon be normal. “Since many of these NFTs come at a significant price, why not get the physical product as well? You can then wear both,” says the expert.
“It’s likely that a year from now all of these high-end luxury items will be complemented by some kind of digital or phygital shadow,” Banon continued, stressing that this could become the norm due to the increasing need for relevancy among younger audiences. To help brands adapt to these changes, Boson Portal created the Summer of Phygitals platform to support those interested in breaking into retail in the Metaverse.
“Now is the time to get involved and experiment, have fun and learn about these worlds that you can share with your customers. There’s nothing to be afraid of, but plenty of people to take your hand on,” Banon concluded.
This article was previously published on FashionUnited.uk. Translation and editing: Barbara Russ