What: Vogue Business provides examples of different approaches to web3 phygital spaces by digital native brands.

Why it is important: Mixing physical and digital products and experiences together helps engage and attract consumers by bringing retail closer to a true metaverse.

One example of this blending can be seen in the London event created by Cult & Rain, which sells 3D products as NFTs connected to physical luxury goods. Within the space, VR headsets were available for guests to double their presence through avatars and visit with guests attending virtually from California. As well, luxury sneaker prototypes were available to try on via augmented reality and wristbands with QR codes that granted POAPs (proof of attendance protocols, which act as commemorative digital badges). Huge format LED screens also helped with the immersion of visitors in the physical space.

A different approach to bridging digital and physical experiences can be seen through Superplastic's recent opening of its first physical retail space in New York. The digital native brand creates "synthetic celebrities" having successfully collaborated with brands like Gucci. In the retail space, toys, collectables, NFTs, and token-gated experiences are available to shoppers. The company has goals to bring its ethos across different industries with plans for fashion week appearances, a hip-hop band and a streaming film series in which the brand's virtual characters will appear.

Both companies cite the importance of experiential spaces and customer rewards as paramount to building loyalty. Offering enticing rewards and access to special products in token-gated spaces can appeal to existing and prospective consumers.

How digital natives are approaching physical Web3 experiences