Packaging isn’t just a container, it’s your brand’s first touchpoint. In a world craving connection, merging physical design with digital interaction can spark real-time engagement and create deeper emotional ties. This guide is for creative leaders and brand strategists ready to reimagine packaging as a storytelling canvas with measurable impact.
About the Author:
I’m Kimming Yap, Managing Director of Creativeans, a brand strategy and design consultancy dedicated to building brands that matter. For over 15 years, I’ve partnered with global businesses to bridge the gap between storytelling and strategy, building meaningful brands with clarity and purpose.More recently, I co-founded HOVARLAY to take that vision further, exploring the intersection of creativity and technology, developing immersive experiences that bring packaging to life and deepen customer engagement.
Introduction: The Rise of the Phygital Moment
I’ve always believed that good design speaks, but great design connects. As a Brand Consultant, I’ve been fascinated by how the space between the physical and digital can spark something deeply human. Today, we call it “phygital”, but for me, it has always been about creating real moments: moments that move, surprise, or stay with you.
Phygital design is not a trend. It’s a new baseline for engagement. It blends the immediacy of physical presence with the responsiveness of digital interaction, unlocking deeper emotional connections and lasting brand resonance.
In this piece, I’ll walk you through how brands can turn ordinary packaging into immersive experiences. We’ll explore how design thinking, emerging tech, and strategic creativity come together to spark real-time engagement, create emotional connections, and deliver measurable impact, beyond the shelf.
Why People Expect Physical–Digital Moments
The fusion of physical and digital isn’t optional anymore, it’s expected. Today’s consumers move fluidly between online and offline, and they expect brands to meet them wherever they are, in real time. This goes beyond good service, it’s a proven driver of engagement.
According to Salesforce, 70 percent of customers say connected processes, such as seamless handoffs or contextualized engagement based on earlier interactions, are very important to winning their business. And when brands deliver on that expectation, the impact is measurable. After Coach launched an AR mirror window display, about 50 percent more people entered the store (Zero10 via Vogue Business). In another retail activation, a Lenslist case study reported a 4.37× engagement uplift from AR mirrors. Deloitte also found that customers acquired through referrals have a 37 percent higher retention rate.
Even the product itself can be a driver of engagement and loyalty. Shorr reports that 90 percent of consumers are more likely to buy from brands that prioritize sustainable packaging. Taken together, these insights show that phygital strategies aren’t just creative extras, they’re a competitive advantage in retail, packaging, and brand storytelling.
Case Studies: Physical Moments That Unlock Digital Worlds
Real-world examples are often the clearest way to illustrate how phygital experiences can move the needle for both engagement and business outcomes. Across industries, brands are finding creative ways to merge physical touchpoints with digital layers, not as gimmicks, but as deliberate strategies to capture attention, build emotional connection, and influence purchasing behaviour. The following case studies show how different approaches, from fashion retail to beauty activations to everyday consumer goods, are delivering measurable results.
Case 1: Tommy Hilfiger AR Mirrors
During the Tommy X Shawn Classics Reborn campaign, Tommy Hilfiger enhanced in-store engagement by installing AR mirrors in flagship stores across London, Berlin, and Milan. These interactive displays allowed shoppers to virtually try on 10 different digital outfits, complete with animated effects, accessories, and even virtual wings, without entering a fitting room. While specific campaign conversion data is not public, broader research shows that 91.75% of Gen Z shoppers express strong interest in AR mirrors and AR-based visual experiences can drive up to a 40 percent increase in conversion rates (Threekit).
Beyond this successful campaign, the broader implementation of AR mirrors highlights their potential to revitalize brick-and-mortar retail by transforming the in-store experience. These “magic mirrors” address a key challenge in apparel shopping, allowing customers to experiment with numerous styles without the hassle of a physical fitting room. By overlaying digital garments on a customer’s real-time reflection, AR mirrors make the try-on process more engaging and efficient, delighting shoppers while helping retailers reduce fitting room congestion, optimize inventory, and ultimately boost sales.
Case 2: Maybelline Interactive AR Billboards
Maybelline New York made headlines with what’s been called the world’s largest AR mirror, a building-scale interactive display on the facade of Kyiv’s Gulliver Mall. Spanning 4,000 square meters, the activation transformed a traditional out-of-home (OOH) ad into an immersive experience where passersby could virtually try on the new Falsies Surreal mascara in real time via a kiosk, with their results appearing instantly on the massive screen above. According to FFFACE.ME, this bold “phygital” campaign captured over 3 million organic views and social mentions, proving the power of spectacle-driven engagement.
Beyond the spectacle, AR mirrors are delivering measurable results for beauty brands. In multiple retail trials, brands such as Clinique reported a 2.5 times conversion lift and a 30 percent higher basket size from virtual try-ons (Perfect Corp). By extending dwell time and enabling more confident purchase decisions, AR mirrors can drive higher-value sales while reducing return rates, delivering a measurable ROI.
Case 3: Ho Nuts AR Packaging Experience
In the award-winning Ho Nuts campaign, the aim was to reimagine everyday product packaging as an interactive, shareable moment. Using HOVARLAY’s no-code platform, QR codes were embedded directly onto the packaging, launching AR storytelling tailored to each user via their mobile browser, no app download required. This streamlined approach ensured immediate access, lowering barriers to participation and creating a smooth entry point for engagement.
The results unlocked a new level of interaction: user attention rose to a remarkable +23 seconds per scan, far exceeding the industry norm of 2–5 seconds. Even more compelling, 38.6 percent of users clicked through to the brand’s call-to-action, a conversion rate dramatically higher than the industry standard. These outcomes demonstrate how a strategic AR solution can transform a physical product into a dynamic marketing channel that captivates audiences and drives measurable business growth.
From fashion boutiques to beauty billboards to packaged snacks, these examples reveal the versatility of phygital design when applied with intention. The technology is adaptable across industries and scales, whether the goal is to elevate an in-store experience, amplify an outdoor activation, or turn a physical product into a digital touchpoint. What matters most is not the novelty of the medium, but how seamlessly it supports the brand’s story, delivers value to the customer, and produces measurable results for the business.
The Core Principles of Phygital Design
Phygital experiences may be powered by technology, but they are defined by human connection. The best designs respect our time, attention, and emotional presence, transforming everyday moments into meaningful encounters. These three principles serve as a compass for creating experiences that resonate:
Immediacy
In today’s fast-paced world, patience is a rare commodity. Phygital experiences must honor this by offering instant access, seamlessly launching in real time without the burden of downloads or waiting. Whether it’s the magic of a smart mirror or the simplicity of a quick scan, immediacy transforms curiosity into engagement without missing a beat.
Immersion
True immersion invites the senses to journey beyond the physical realm. By layering sight, sound, animation, and narrative, phygital design deepens connection and breathes life into packaging, posters, and surfaces. This digital enhancement is never a distraction, but a thoughtful amplification that transforms ordinary touchpoints into memorable sensory experiences.
Interaction
At the heart of every meaningful phygital moment lies a personal connection. When experiences speak directly to individuals, reflecting their culture, preferences, and emotions, they forge bonds that linger. As research shows, personalized interactions significantly increase customer loyalty, turning moments into lasting relationships.
Bridging Design and Delivery: Tools & Approach
Historically, crafting phygital experiences meant navigating complex development cycles, custom coding, and costly delays. Today, no-code platforms like HOVARLAY are transforming this landscape, empowering creative teams to design, test, and scale interactive content with speed and ease, all without a single line of code.
Key benefits of no-code tools include:
- Rapid deployment of interactive content
- Real-time analytics: track scans, view time, and share rates
- Localization & personalization: by region, language, or context
- No app required: everything launches via browser
By 2025, Gartner predicts that about 70% percent of new applications will be built using low-code or no-code technologies. This shift puts the power of phygital design into the hands of more creators than ever before, breaking down the cost and technical barriers that once limited these experiences to big-budget brands. With HOVARLAY, even a simple piece of packaging can become a rich, interactive moment: emotionally resonant, instantly accessible, and measurably impactful.
Final Reflection: Can This Moment Speak?
Ultimately, the goal of phygital design is not just to surprise customers, but to create a lasting connection. We’ve seen how integrating digital layers can increase engagement, loyalty, and even sales. The true success, however, lies in how we make the customer feel.
As a Brand Consultant, I believe that every physical object, a package, a billboard, a simple card, has the potential to speak. Through phygital design, we give it a voice, allowing it to respond, engage, and connect emotionally. So, when you see your brand’s packaging, ask yourself a simple question: In a world of infinite choices, can this moment truly speak to someone? Can it become a moment they remember? This is the core of modern brand building, and it’s here to stay.
A big thank you to Kimming Yap for offering such a thoughtful take on the future of packaging and brand engagement. As we move into a world where consumers expect more than just products, Kimming reminds us that creativity and connection often begin with the simplest of touchpoints. With the right tools, packaging can become a living part of the brand story, not just a vessel. His approach highlights how design, when combined with technology, can create moments that resonate, build loyalty, and truly set a brand apart.
Join Us Now!
Ready to elevate your marketing strategy? Be part of our Upcoming Events – where innovation, networking, and cutting-edge insights meet in vibrant cities around the world. We can’t wait to welcome you in person!
Can’t attend in person? No problem. Join BEETc On-Screen, our On-Demand Learning Platform, for exclusive access to 500+ sessions and over 300 hours of content from global summits. Upskill at your own pace, gain actionable insights, and stay ahead in a rapidly evolving business landscape.
Stay up to date with our In Person Summit, Session Information, and Agenda Updates by following us on:
See more MarTech Thoughts Content/ Interview pieces here!
Last updated: September 2025
