This study explores the impact of experiential dimensions—hedonic, utilitarian, social, and playful—on brand associations in luxury phygital retail, highlighting the mediating role of experiential value. This study uniquely contributes by examining the mediating role of experiential value in hybrid phygital contexts, an area underexplored in existing literature. Building upon the foundations of Experiential Marketing Theory (Schmitt, 1999), Aaker’s Brand Equity Model (1991), and Lazarus’s Cognitive Appraisal Framework (1991), this investigation seeks to illuminate the deficiencies in comprehension regarding the influence of synergistic physical and digital contexts on brand equity. Using a quantitative survey, data were collected from 351 participants in Chengdu, China, a rapidly growing luxury market with a tech-savvy consumer base. This inquiry seeks to clarify the interactions that have surfaced among the various elements through Structural Equation Modelling (SEM). The analysis reveals that even though experiential factors have a negligible immediate effect on brand connections, the worth of experiences acts as a vital intermediary, boosting the impact of enjoyable, functional, communal, and entertaining experiences. Hedonic and playful experiences, in particular, strengthen consumer engagement with the brand, while utilitarian and social experiences gain relevance when mediated through experiential value. This study highlights the importance for luxury retailers to integrate experiential value into their phygital strategies, leveraging technologies like AR and VR. The insights are not only applicable to Chengdu, China, but also offer a roadmap for global luxury brands seeking to adapt to evolving consumer expectations in phygital retail environments. It contributes to the theoretical expansion of Experiential Marketing Theory and Aaker’s Brand Equity Model in phygital contexts..