Fashion Industry: The Metaverse May Be Dead, But Virtual Fashion Is More Alive Than Ever

At the end of April, the tech giant Meta decided to celebrate the creation of its first billion avatars by partnering with Puma, which created a special clothing collection for virtual twins and offered it in the digital store Meta Avatars Store. In addition to expanding the clothing offerings, Zuckerberg’s team decided to refine the avatars to resemble their ‘owners’ as closely as possible. For example, they improved the texture of virtual hair, facial features, and listened to feedback by introducing more body shapes. Meta promised to continue improving its avatars because ‘users have requested it’, but let’s be realistic, they are, especially in combination with fashion brands, quite a lucrative business.

Recently, the Metaverse Post reported that the value of the digital fashion industry was estimated at $119 million in 2021. However, in the next five years, it will increase to an incredible $67 billion, representing an annual growth rate (CAGR) of approximately 187 percent! Although the concept of the metaverse is not developing as predicted by major players, virtual fashion remains a potent playground for tech and fashion brands. They owe this fact to consumers who, immersed in the digital world, seek ways to express their individuality and style, and brands satisfy this need by selling beautiful designs and experiences. According to a recent study by the gaming platform Roblox, 66 percent of Generation Z representatives are excited because their avatars can wear branded clothing, and 48 percent are interested in experimenting with fashion styles, specifically clothing they would not wear in real life. This realization motivates fashion brands to unleash their creative juices and offer something that would be too risky (and expensive) in the real world.

Breakthrough in Gaming

The most potent niche for them is the gaming industry, whose value is expected to reach as much as $384 billion by the end of this year. Given that gaming is no longer reserved for geeks but has transformed into an inclusive market welcoming everyone, regardless of age, gender, and social status, brands have rushed to grab a piece of the pie, and interestingly, many luxury fashion players, whose marketing activities have been defined as conservative, have joined the trend. For example, Louis Vuitton surprised everyone by partnering with the popular online game ‘League of Legends’. The French luxury brand, together with the game’s creators, launched exclusive clothing for characters in the game and a limited minimalist (capsule) collection. The Balenciaga house teamed up with ‘Fortnite’ and introduced virtual versions of its products in the game. Players could dress their characters/avatars in its branded clothing, thus introducing it to the broader gaming community. The sports fashion brand The North Face decided to collaborate with ‘Pokémon Go’, successfully linking ‘real’ experiences with the virtual game. The duo designed special challenges in the game that were then connected to physical PokéStops stores, thus ‘forcing’ players to get off the couch, visit a physical store, and have fun with the brands.

The Italian luxury brand Gucci was among the first to recognize the potential of the virtual world, launching its own game ‘Gucci Dive Into Reality’. The game was developed using augmented reality technology. Players explore a supernatural underwater world and search for virtual Gucci pieces. The aforementioned examples, highlights the Metaverse Post, show the most common forms of collaboration between fashion brands and platforms, which successfully reach a fairly broad target audience, especially young people passionate about fashion. The popular online gaming platform Roblox has become a breeding ground for such enthusiasts who spend quite respectable amounts on their virtual twins.

Branded Avatars

According to research, dressing avatars is a way for 47 percent of Roblox users to express their individuality, unique personality, and preferences. Additionally, 43 percent feel very good while dressing their virtual twins, positively affecting their overall state. They project their desired image onto avatars, which helps and encourages them to live that way in the real world. A study conducted among three thousand users showed that the need to build their identity in the virtual world motivates them to purchase, and since fashion has long been a known tool for expressing personality, values, and opinions, it is clear why it has such a good reception in worlds like Roblox.

In addition to attracting major fashion brands, it is a key tool for democratizing fashion. In America alone, there are two hundred times more virtual clothing designers than ‘real’ fashion designers. Digital platforms like the aforementioned Roblox allow no-name designers to compete with well-known players; their competition includes everyone, not just equal, large brands from the physical world. The potential of the digital fashion industry, as the Metaverse Post continues, is also evidenced by the fact that universities offer courses in digital fashion, and for future designers, dressing avatars not only helps promote their work in the virtual world but also provides an opportunity for serious earnings.

Serious Earnings

The creator community on Roblox, specifically, earned $539 million in 2021, and in the first quarter of 2022 alone, $147.1 million. Last year, a billion fashion items were sold on Roblox, and it is estimated that five percent of revenue for fashion brands will come from virtual sales of this type. Therefore, digital fashion in virtual worlds should be viewed separately from the concept of the metaverse. The excitement surrounding the idea of building virtual worlds where users will practically live peaked last year, but it is still difficult to assess when and whether these worlds will ever realize their full potential. Fashion and avatars are a dream pair, whether they are avatars from social platforms or games, and the collaboration between fashion and tech brands/platforms will continue to flourish in the coming years. The focus will not only be on creating a new line of exciting virtual clothing but also on giving users the opportunity to experiment and create different (fashion) identities. If we are to judge by the predictions of the team behind the Trendwatching platform, in the near future, fashion companies and designers will experiment even more with their brands/collections in the virtual world, and there will be more who will play the card of cultural diversity, as this is lacking in the metamodern world.

A great example of this is the project ‘Digital Meets Culture‘, presented at ‘Metaverse Fashion Week’ in March this year. At several virtual locations, a collection of ten combinations inspired by various cultural heritages and traditions was presented, created by a group of designers, digital fashion experts, and fashion historians. Projects of this kind, along with, of course, inclusivity, should provide a sense of belonging to marginalized communities and an opportunity for users to express their authenticity. The business of digital fashion can be reduced to just that – the opportunity to express authenticity and gain a sense of belonging in the virtual world. And that is always worthwhile.