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Let's talk Phygital - What is it and how is smart vending in the centre of it?

Updated: Jul 21, 2023

“Change is inevitable- except from a vending machine”

In the ever-changing world, Robert C. Gallagher called vending machines an exception, the one constant amidst all the disruptions. But, is it true? Vending machines, as we know them today, have evolved from the 18th-century coin-operated machine to the phygital and touchless vending machine in India and around the globe.

While previously retailers and kirana shop owners preferred an omnichannel marketing model, today, phygital technologies are actively driving the retail world. This shift in the retail world is driven vigorously by the vending industry.

Here is all you need to know about the phygital shifts and their impact on your retail business.

What is Phygital?

In the words of Rebecca Faulconer, the President of Retail Automation Consultants, phygital technologies aim “to create a better consumer experience, easier shopping for every person of every age, but not getting rid of your brick and mortar.”

It is the fusion of technologies and marketing knowledge that links the virtual and physical worlds, hence the word ‘Phygital’ comprises two terms: physical and digital. It uses digital services to deliver physical products or services quicker and easier. The word Phygital is used most in the retail industry concerning customer service. And when it comes to cashless vending solutions in India, more and more consumers are demanding phygital technologies in the retail market.

The concept of Phygital comprises three components:

  1. Immediacy: A real-time transaction that provides instant gratification to the consumer.

  2. Immersion: Participation of the consumers in the process.

  3. Interaction: Communication with the physical retail premises.

Both immediacy and immersion relate to the digital end of phygital technology, while the interaction part adds to the on-ground experience of the consumer.

Smart vending machines, mobile apps, cab services, food delivery, and Virtual Reality (VR), are just a few examples of the extent of phygital.

Consumers today want to engage in cashless and humanless transactions with the retail market. They also seek instant delivery of the products. This has opened a new horizon for the cashless and contactless vending machine in India, especially post-pandemic.

Let's take a look at how phygital is changing the consumer experience.

How is Phygital transforming the Customer Experience?

Being the integration of the digital and physical territories, phygital provides the finest elements from both fronts to the consumer, elevating the overall consumer experience. The consumer experiences a seamless and quick shopping experience on one side and gets a sense of control as they actively participate in the whole process.

Since phygital goes fully cashless, the payment process is cut short to just scan and go. For instance, by installing a cashless and contactless vending machine outside your store you the consumers need not wait in line. They can simply scan the code, select the product and proceed to pay online, before picking up their package and heading on.

The retail market in India is very different from those in the first world countries. With both smart stores and kirana shops existing side by side, each business needs a unique and customised phygital market strategy.

Vendekin Technologies not only aim to provide cashless vending solutions in India but to customised vending machines that best suit the needs of individual businesses. From Shaukeen Pan to Natural ice cream and from Haldiram namkeens to seafood so that you excel in the phygital retail market. Take a look at why you need to go phygital with Vendekin.

Best of both sides: Why go phygital?

Going phygital comes with a load of benefits over physical stores. From increasing consumer delight to ensuring amplified sales revenue phygital space ensures it all for your business.

Enhanced Consumer Experience

Going phygital is time-saving, ensures secure and quick transactions and brings the delight of digital shopping with physical interactions.

A study titled The Impact of Waiting Time Guarantees on Customers' Waiting Experiences shows that if the actual service time is less than expected, consumer satisfaction increases monotonically. With the introduction of cashless and contactless vending machines in India, the consumer need not wait in long billing lines increasing the consumer experience.

The modern-day consumer is most satisfied when they get seamless transactions while shopping. No one wants to go through the hassle of carrying physical change when the option of digital wallets and payment methods are available.

With phygital technology in place, these concerns are addressed foremost to enhance the consumer experience. And a happy consumer means a blooming business for you.

Safe & hygienic

One of the most prominent properties of phygital technology is that it is Contactless. After the pandemic, most of us fear coming in contact with the physical environment, especially if it has been touched by others. With Vendekin’s intelligent machine controller (VIC) you reduce contact by up to 95 per cent, making the whole process safe and more hygienic. Vendekin has gone one step beyond the touchless vending machine in India and brought in the concept of unmanned retail vending solutions. Apart from this, all economic transactions are made via secured digital wallets or payment methods.

Analytical advantage

Phygital marketing extracts and stores data about the consumer’s preferences, purchasing behaviours, likes and dislikes, consumer profiles, total sales collection and much more. In other words. Phygital technologies provide you with a 360-degree perspective of your consumer, their interactions in the whole shopping process and the products both online and offline. As a result, you get highly targeted and hyper-personalised consumer journey information to plan for future strategies.

Vendekin’s cashless vending solutions in India and abroad use a full-fledged ERP system called vNetra. This GDPR-compliant, AI/ML-driven back-office vending management software will track the inventory levels of all machines, calculate the total sales collection and how much discount is given. With this analytical information, you can plan carefully for future ventures.

Amplified Sales Revenue

Experts claim that during the pandemic, digital ordering and delivery were pushed up to 70%. This led to a spike in profit from 100% to 300%. With satisfied consumers and information that tells you the inside-out of your consumers’ behaviour, you can plan out the best marketing and sales strategy to increase sales revenue immensely.

Furthermore, when you know which particular product is bringing in more sales or which product gets the most interaction, you can sketch out a plan for digital marketing and advertising likewise.

Go Phygital, Go Vendekin Smart

The pandemic has affected every aspect of the retail industry, however, the most significant one is the paradigm shift in consumer buying habits. In the near future, the retail industry will survive on phygital technology and marketing. And amidst them, smart unmanned vending will evolve as the most cost, time and space-efficient option for both consumers and business owners.

Our plug-and-play device called the Retrobox turns your old vending machine into a modern cashless and contactless vending machine, helping you take your Vending Machine Business a level up.

Many international brands like Coca-cola, Nestle, Marshal, and now even national brands have already welcomed Vendekin’s touchless vending machine in India and around the globe. Only to strengthen the fact that vending machines are going to remain a constant in the upcoming future. If you want your brand to sustain in a phygital future call +91 9555712713 or drop us an email at


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