Web3 and the Future of Luxury, Part I: Phygital Self-Care

Shanghai’s Jiyu Spa offers phygital serenity for both the mind and body.

For years, luxury goods have relied on the familiar formula of quality and exclusivity to command high prices and entice status seekers. But as our society and culture further embrace the digital world, many are wondering if this tried-and-true formula will need to change. How do you measure quality and craftsmanship when an item is virtual? How do you marry exclusivity with Web3 idealists who promise democratization through decentralized commerce? Some trends emerging through the use of phygital campaigns are showing us some of the possible answers to these questions. This series of posts will explore these trends in greater detail.

Part I: Phygital Self-Care

Traditionally, our society recognizes status through the purchase and display of physical goods—a Hermès scarf or black Lamborghini indicates you belong (or, at least, were trying to belong) to an elite tribe. While still the case for many, research shows Millennials and GenZs place less value on physical goods, valuing intangibles like experiences, wellness, and knowledge instead. Time and self-care have become aspirational goals with status seekers and influencers posting images that proclaim #YOLO, #LivingMyBestLife, and #TreatYourself. Like everything else, the pandemic has accelerated this trend. As reports of anxiety and depression skyrocket, so too does the movement toward “treat culture.” Luxury brands have responded by offering phygital experiences that reflect the desires of this changing demographic.

Despite articles proclaiming self-care as a necessity, not a luxury, such attitudes reflect what tech entrepreneur Marc Andreessen calls reality privilege. The concept, originally posited by technologist Beau Cronin in 2015, maintains that only a small percentage of people live in an environment that is rich with beauty and fulfilling substance. Instead, most people must work, pay bills, and deal with life’s everyday stresses. Further, a growing population struggles with providing even the most basic needs to survive. With this perspective, it is no wonder ideals like self-care, wellness, and emotional health have become so highly aspirational in today’s stress-laden world.

It also explains why Andreessen is espousing a philosophy that advocates an alternative reality for the unprivileged masses. Andreessen is, after all, an early investor of Facebook and now sits on Meta’s board of directors. Despite this, many forecasters and futurists are also embracing the concept. Futurist Jane McGonigal discussed such an idea as far back as 2011 in her book Reality is Broken, while forecasting agency WGSN describes the “digital awe” of the immersive landscapes of Web3.

Last year, BMW jumped on this trend with its Joytopia metaverse. Accessible through your web browser, the car company welcomed visitors to three different surreal worlds with the blissful names ReTHINK, ReIMAGINE, and ReBIRTH. Here one could walk through plush pastel landscapes where “you fall up instead of down, cars fly, and … BMW thinks out loud about the future.”

If digital awe is a goal of the metaverse, then phygital awe is its AR equivalent. More accessible than its headset-necessitated cousin, phygital awe can be created with or without AR glasses. In 2019, the Shanghai-based design studio Hip-pop created such a space at Jiyu Spa. Surrounding visitors in a 2,000 square meter interior filled with room-sized digital images of moving lights, colors, and sounds, the phygital spa aims to cleanse the mind as well as the body. The immersive experience separates visitors from outside distraction, creating a liminal space that the design team described as a “romantic, poetic, fantastic dream” that transforms the world into “a four-dimensional experience of time and space.” 

Other such experiences include the phygital awe-inspiring installation by Sou Fujimoto and Tin Drum at last year’s London Design Fest. Together, the architect and tech pioneer created Medusa, a mixed reality program inside the V&A’s Raphael Court. Medusa differs from the Jiyu Spa in that it was only visible while wearing special AR glasses. Once donned, the installation transformed the otherwise open space into a responsive phygital spectacle of rippling light.

Phygital awe is just starting to gain ground as experiences like these become de rigueur at design festivals and other live events. Successful luxury brands will find ways to include virtual wellness in all areas of their marketing.

Medusa London Design Festival 2021

Medusa by Sou Fujimoto and Tin Drum, V&A Museum, London Design Festival, 2021

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Web3 and The Future of Luxury, Part II: Phygital Exclusivity

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Getting Phygital: The Marketing Revolution is Here