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Bridging the Phygital Divide: Re-defining Retail & CPG with Experience-driven Commerce

Read | Oct 07, 2025

AUTHOR(s)

Paul Morrison

Corporate Vice President - Manufacturing, Retail and Consumer Goods (Europe)

Vineeta Sehgal

Senior Consultant, Retail & CPG

Key Points

  • Retail and CPG brands are rapidly advancing experience-driven, phygital commerce, where seamless, personalized journeys across physical and digital touchpoints define loyalty and competitive advantage.
  • Leveraging digital capabilities – such as AI-driven personalization, omni-channel data integration and optimized fulfilment – brands are creating connected, meaningful and scalable customer experiences.
  • Discover how experience-driven commerce is delivering measurable outcomes, from revenue growth to faster time-to-market and sustainable operations, and what it means for the future of retail and CPG companies.

Retail and Consumer Packaged Goods (CPG) brands stand at a pivotal moment. In today’s experience-first economy, a quality product alone no longer guarantees loyalty. Consumers expect phygital journeys – blending the best of physical and digital, responding in real-time and reflecting their identity and values.

This shift from product-centric to experience-led engagement is re-defining the industry. To remain competitive, companies must re-imagine the customer journey as a continuum of meaningful, connected interactions, not just a series of transactions.

The future of retail and CPG lies in experience-driven commerce – a model where digital innovation, physical presence and consumer insight converge to create lasting impact. Data underscores this shift: McKinsey finds that companies leading in Customer Experience (CX) grow revenues 5-10 percent faster than peers and enjoy significantly stronger loyalty. Experience has become the ultimate differentiator.

Key Trends Shaping the Experience Economy

Several forces are accelerating this transformation:

  • Omnichannel Behavior

    73 percent of consumers engage across multiple channels before making a purchase.

  • Demand for Personalization

    80 percent are more likely to buy from brands that offer tailored experiences.

  • Sustainability-Driven Choices

    66 percent factor in ethical and environmental considerations.

  • Data Trust and Transparency

    74 percent trust brands more when their data is handled responsibly.

  • Authenticity and Shared Values

    Younger consumers expect brands to embody cultural and social relevance.

  • Immersive Tech Adoption

    Augmented Reality (AR), Virtual Reality (VR) and digital try-ons are re-shaping product discovery and engagement.

For CPG brands, this means telling richer, lifestyle-centric stories. For retailers, it means unifying digital, in-store, and mobile touchpoints into frictionless journeys.

Leading Brands Living the Future

Pioneering organizations are already bringing this vision to life.

  • Nike’s House of Innovation

    fuses physical and digital with immersive displays, mobile checkout and personalized services.

  • Sephora’s Virtual Artist

    allows digital makeup try-ons, encouraging extensive and shareable product exploration while also bridging the gap between discovery and purchase decisions.

  • Grocery chain H-E-B

    uses a strategy of digital storytelling through its in-store Loop platform and consistent investments in community and sustainability programs. This approach has strengthened trust, and earned H-E-B the No.1 ranking in Forbes’ consumer survey on America’s Best Brands for Social Impact 2025.

Each example highlights how technology, data and human-centered design are re-defining brand-consumer relationships.

How Digital-led Domain Partners Power Experience-driven Commerce

As experience-driven commerce shifts from being a differentiator to a critical foundation for growth, retail and CPG leaders are turning to digital-led domain specialists to operationalize and scale experience-driven commerce with integrated, outcome-focused solutions. Combining industry expertise with advanced technologies, these strategic partners are delivering:

  1. Omni-channel Data Integration & Analytics

    Unifying data across channels – retail stores, e-commerce, apps and social media – to deliver a 360° customer view and seamless, hyperpersonalized engagement

  2. AI-powered Personalization

    Leveraging AI engines to dynamically tailor content, promotions and recommendations to increase conversions and lifetime value

  3. AI-powered Personalization

    Leveraging AI engines to dynamically tailor content, promotions and recommendations to increase conversions and lifetime value

  4. Supply Chain & Fulfilment Optimization

    Using predictive analytics on inventory and logistics to drive cost-efficient, on-time fulfilment across every channel

  5. CX Management Platforms

    Enabling proactive support and frictionless interactions with Artificial Intelligence (AI) chatbots, sentiment analysis and timely insights

  6. Sustainability & Compliance Enablement

    Embedding Environment, Social and Governance (ESG) principles into operations and reporting to ensure compliance and support long-term value creation

Realizing Tangible Business Outcomes

Our experience over multiple projects in this sector has demonstrated that strategic partnerships drive measurable, scalable results, including:

The Future of Commerce Is Here

Experience-led, phygital commerce is not a passing trend but a structural evolution re-shaping the rules of engagement. Success will depend on delivering connected, authentic, technology-enabled experiences that resonate deeply with modern consumers. Organizations that harness domain expertise combined with digital-first capabilities will be best positioned to drive tangible results and long-term growth.

With deep domain expertise, digital-first capabilities and commitment to measurable outcomes, WNS empowers brands to design smarter businesses - AI Powered. Human Led. Talk to our retail and CPG experts today to explore how your enterprise can accelerate experience-driven commerce and unlock sustainable competitive advantage.