The Advent of Digital Fashion

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by Anastasia Drinevskaya

Published: June 05, 2023 at 7:24 am Updated: June 05, 2023 at 7:25 am

by William Savage

Edited and fact-checked: June 05, 2023 at 7:24 am

To improve your local-language experience, sometimes we employ an auto-translation plugin. Please note auto-translation may not be accurate, so read original article for precise information.

In a world of billions, personalization is how consumers claim things for their own. This personalization has funded markets across industries, enriching those who posses a keen eye for fashion and business. And now it’s sweeping the digital realm.

In 2021, the digital fashion market was estimated to be valued at USD 119.52 million. However, experts forecast that the digital fashion market will reach an astounding USD 67,635 million by 2028, exhibiting a remarkable compound annual growth rate (CAGR) of 187.6%. This meteoric rise reflects the increasing demand for virtual clothing and accessories, driven by the integration of fashion with technology and the rise of virtual environments. As consumers seek to express their individuality and style in the digital realm, fashion brands are capitalizing on this trend, offering exclusive digital designs and experiences.

With the increasing popularity of gaming and virtual worlds, fashion brands and designers have begun to create digital clothing and accessories for avatars. These digital items can be purchased and worn exclusively in virtual environments, allowing users to express their personal style in new and exciting ways.

Digital fashion has solid foundations in a traditional and established industry with centuries of history. Currently, it is primarily the global fashion brands that are venturing into the realm of digital fashion, with some of them embracing it as a testing approach. This behavior follows a logical pattern commonly observed with any technology in its early stages. As the digital fashion market continues to consolidate and show its potential, other players, such as mid-size brands, are expected to join in and explore the opportunities it presents.

According to Roblox’s recent survey, 66% of Gen Z respondents are excited about wearing brand names on virtual items. This finding is a clear indication that Gen Z’s are looking for ways to showcase their favorite brands on digital platforms.

The survey also revealed that 48% of Gen Z is interested in experimenting with exciting and different clothes in the digital space they would not try in real life, giving digital designers and brands the opportunity to be more creative with digital fashion. Brands that offer unique and experimental digital fashion items are likely to attract the attention of Gen Z; the garments don’t have to adhere to the laws of physics or use real fabrics, either. For digital designers, the sky’s the limit with digital outfits. 

Most digital fashion buyers are not necessarily crypto users, either, meaning this is a more inclusive and approachable investment than cryptocurrencies. A regular Joe may want to try out new outfit in augmented reality (AR) try-on functionalities, enhancing shopping experience and mitigating the need for crypto transactions. By integrating AR try-on, digital fashion platforms can cater to a broader audience and effectively engage users who may not be familiar with cryptocurrency usage.

Gaming: A Revenue Powerhouse

The gaming industry continues to thrive, becoming a multi-billion dollar market. By 2023, gaming revenue is projected to reach a staggering US$384.90 billion. The immersive nature of games, combined with advancements in technology, has captivated a massive global audience. Fashion brands are recognizing the potential of gaming platforms as a space to showcase and monetize digital fashion.

Here are a few examples:

1. Louis Vuitton x League of Legends: Louis Vuitton partnered with the popular online game League of Legends to create exclusive in-game character outfits and a limited-edition capsule collection. This collaboration brought together the worlds of high fashion and gaming, attracting both fashion enthusiasts and gamers.
2. Balenciaga x Fortnite: Balenciaga collaborated with the popular game Fortnite to introduce virtual versions of their fashion items within the game. Players could dress their avatars in Balenciaga’s digital clothing, showcasing the brand’s designs to a vast gaming community.
3. The North Face x Pokémon Go: The North Face collaborated with Pokémon Go to create real-world fashion experiences tied to the game. They launched special in-game challenges and integrated their physical stores as PokéStops, attracting players to visit their locations and engage with their brand.
4. Gucci’s Dive into Reality: Gucci created a unique interactive experience called “Gucci Dive into Reality” in the form of an augmented reality (AR) game. Players could explore a surreal underwater world and collect virtual Gucci items, blurring the boundaries between fashion and gaming.

These examples highlight how fashion brands are tapping into gaming platforms to reach a wider audience, connect with gamers who have a passion for fashion, and create innovative brand experiences that bridge the virtual and physical realms.

Collaborations between gaming and fashion entities are becoming increasingly prevalent, allowing players to enhance their in-game avatars with virtual clothing, creating a new realm for fashion expression.

Roblox, a popular online gaming platform, has become a thriving hub for digital fashion enthusiasts. Let’s have a closer look at digital fashion in Roblox and why users want to dress their avatars and the impact of this self-expression on their overall well-being. We’ll have a look at how important identity is in purchase choices users make and look into the role of digital fashion in empowering users to express their identity within the virtual world of Roblox.

Avatars: Expanding Applications

Avatars, digital representations of individuals, are finding their way into applications beyond gaming, extending into industries such as healthcare, fashion, and modern art. The avatar market is expected to grow significantly, with a forecasted growth of $544.87 million by 2028, showing the increasing adoption and versatility of avatars. In healthcare, avatars enable remote patient monitoring and personalized treatments. In fashion, they allow customers to try on outfits and accessories virtually, revolutionizing the e-commerce experience. Avatars are also used in modern art, pushing the boundaries of creativity and interactivity.

Within the Roblox community, dressing avatars serves as a powerful means of self-expression. According to a survey conducted among Roblox users, 47% of respondents stated that dressing their avatars allows them to express their individuality, showcasing their unique personalities and preferences. Additionally, 43% mentioned that dressing their avatars makes them feel good, indicating the positive impact of avatar customization on users’ emotional well-being. The ability to craft a virtual representation that reflects their desired image and style empowers users to assert their identity in the digital realm.

Identity and the Purchase of Digital Goods

Blockchain research has shed light on the motivations behind the purchase of digital goods, revealing the significance of identity as a driving factor. In a survey of 3,000 respondents, 57% stated that identity was the primary reason for purchasing digital goods. This finding underscores the importance of digital fashion as a tool for users to construct and communicate their identities within the virtual world of Roblox. By curating their avatars’ appearance through digital fashion, users can shape their online personas and establish a sense of belonging and authenticity.

Empowerment through Digital Fashion

The findings from Virtue, a virtual goods marketplace, further support the notion that expressing identity is a significant driver for the purchase of digital fashion goods. A study conducted by Virtue revealed that 70% of respondents cited expressing their identity as the main reason for acquiring digital fashion items. This highlights the transformative power of digital fashion, allowing users to transcend the constraints of the physical world and freely explore and communicate their unique identities. Through digital fashion, users gain agency and empowerment, actively shaping their virtual experiences and fostering a sense of self-actualization.

Recent data highlights a 25% increase in the number of creators making digital goods, clearly indicating the growing interest and participation in this innovative field. The rise of digital fashion is evident as platforms like Roblox boast at least 200 times more virtual fashion creators than there are physical fashion designers in the United States. This democratization of fashion design is further enhanced by the accessibility of technology and the internet, allowing aspiring designers to compete with established brands. The launch of digital fashion design courses, such as the one offered by the University of the Creative Arts, demonstrates the demand and recognition of this emerging field within the educational sector. Financially, the creator community on Roblox has flourished, with earnings reaching $539 million in 2021 and a substantial increase of $147.1 million in Q1 2022 alone, highlighting the lucrative opportunities available for digital fashion creators. 

Conclusion

In conclusion, the intersection of fashion, gaming, and technology is transforming the way we express ourselves, with digital fashion becoming a powerful tool for self-expression, creativity, and identity construction within virtual environments. As the market continues to develop, fashion brands are embracing this new frontier, offering unique and innovative digital designs and experiences that cater to the growing demand for virtual expression. With such promising growth and creativity, the digital fashion industry is poised to shape the future of fashion design and redefine the boundaries of the fashion world.

The fashion industry is a well-established industry that doesn’t shy away from innovation. Fashion brands have been quick to embrace the potential of digital fashion such as Prada Timecapsules, phygital clothing, and digital textile printing. Fashion consumers are driven by emotional factors, such as self-expression, loyalty to brands, and the pleasure of collecting fashion assets, which drives the demand for digital fashion. 

People aren’t simply looking for new investments and don’t have to be into crypto to enjoy digital fashion solutions. In fact, many, for instance, AR, do not even require cryptocurrencies, so they’re much more accessible to a wider audience. AR is becoming increasingly popular in the fashion industry, as it allows consumers to see what clothes and accessories would look like on them without actually trying them on. AR users do not need to use crypto to experience digital fashion, and this helps to insulate the digital fashion market from crypto fluctuations.

Independent digital fashion designers can thrive thanks to the popularity of digital fashion, as it is more accessible than the physical fashion market and does not require significant investment in physical infrastructure. This has allowed independent designers to enter the market and create innovative digital fashion pieces. This increase in the number of creators making digital goods has contributed to the growth of the digital fashion market.

Despite the recent crypto crash, brands remain optimistic about the potential of digital fashion. They are focusing on nurturing their web3 community in the long run carefully. Brands are developing action plans for loyalty programs, phygital commerce, data monetization, and a game-centric approach. Web3 cases will be designed around long-term value creation for brands, and initiatives will move from lighthouse experiments to more mature campaigns tied to real strategic brand and company goals.

The growth of digital fashion is evident in the increasing number of creators designing clothing and accessories on platforms such as Roblox. According to recent data, there are at least 200 times as many creators designing clothing and accessories on Roblox as there are fashion designers creating physical collections in the United States. The creator community on Roblox earned $539 million in 2021, bringing in $147.1 million in Q1 2022 alone, up 24% year-on-year. Institutions like the University of the Creative Arts also reflected this growth in the launch of digital fashion design courses.

The digital fashion market has not been as affected by the crypto winter as other sectors due to the emotional factors that drive fashion consumers, the popularity of AR, and the increase in the number of independent digital fashion designers. Brands remain optimistic about the potential of digital fashion and are focusing on nurturing their web3 community in the long run. The growth of the digital fashion market is evident in the increasing number of creators designing digital fashion pieces on platforms such as Roblox. The future of digital fashion looks bright, and it will be exciting to see how this movement continues to transform the fashion industry in the years to come.

About the Author:

Anastasia Drinevskaya, a prominent figure in the blockchain industry, has made significant contributions during her tenure as the head of Cointelegraph Communications for four years. With her expertise in blockchain technology, she has become a highly sought-after consultant and speaker, renowned for her deep understanding of the field.

Anastasia spearheaded the creation of NFT campaigns for renowned brands and played a pivotal role in the expansion of major Crypto/NFT/Blockchain media companies. Leveraging her extensive network within the crypto/blockchain industry, she has established herself as a prominent ambassador, successfully executing large-scale creative campaigns that have garnered widespread recognition.

Currently serving as the Chief Marketing Officer at Seamm.io project, Anastasia brings her wealth of expertise to enhance the digital fashion landscape.

With a decade-long immersion in the media industry, Anastasia’s innovative strategies and boundless creativity position her as a natural fit for the Web3 universe, where she is poised to lead the industry towards an exciting future.

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About The Author

Anastasia Drinevskaya had been at the helm of Cointelegraph Communications for four years. With an expertise in all things blockchain, she is a highly sought-after consultant and speaker in the industry. Under Anastasia's leadership, Cointelegraph has created NFT campaigns for leading brands and helped scale some of the largest Crypto/NFT/Blockchain media companies in the field. She has been instrumental in developing startups, overseeing the entire life cycle from ideation to team growth to mission execution.

More articles

Anastasia Drinevskaya

• 

Anastasia Drinevskaya

Anastasia Drinevskaya had been at the helm of Cointelegraph Communications for four years. With an expertise in all things blockchain, she is a highly sought-after consultant and speaker in the industry. Under Anastasia's leadership, Cointelegraph has created NFT campaigns for leading brands and helped scale some of the largest Crypto/NFT/Blockchain media companies in the field. She has been instrumental in developing startups, overseeing the entire life cycle from ideation to team growth to mission execution.

More articles