The rise of Digital Fashion
As we move towards a more digital world, one’s identity online is becoming increasingly important. Avatars and other forms of virtual representations of our physical selves are being perceived as equal. In fact, 60% of Gen Z and 62% of Millennials believe that how they present themselves online is even more important than how they present in person. As our avatars become an extension of our self-expression, Digital Fashion is emerging as a key driver in enhancing our appearance and digital identity.
We expect Gen Z and Gen Alpha to be a major driving force behind the growth of the Digital Fashion industry. With an estimated 75% of Gen Z having already purchased a digital product within a video game, and representing 30% of the world’s population, they are expected to make up about 27% of the workforce by 2025. As Gen Z continues to earn more money and make up a larger portion of the workforce, we can expect to see even more growth in the digital fashion space.
The fashion industry is taking notice, with projections that the Digital Fashion market could reach $50B by 2030 according to Morgan Stanley. And while Digital Fashion is still in its infancy, we’re already seeing promising signs and strong indicators of its potential within existing web2 virtual words. For instance Roblox, with over 50M daily active users, offers a glimpse into what the future of fashion in the metaverse could look like. In 2022, on the demand side, 157M users acquired both free and paid garments, while on the supply side, over 11.5M creators designed over 62M virtual clothing and accessory items on the platform. To put that in context, that’s at least 200 times as many creators designing clothing and accessories on Roblox as the estimated number of fashion designers creating physical collections in the United States.
As virtual worlds continue to grow and evolve, so too will the opportunities for Digital Fashion. Meta, with two billion daily active users, is already bringing 3D avatars to its platforms and partnering with high-end fashion brands like Balenciaga and Prada as well as DressX, which is the first digital-only fashion brand to sell in Meta’s new avatar fashion marketplace. Meanwhile, Snapchat, with 363M daily active users and the first to integrate avatars into user experience with Bitmojis, now even allows users to outfit their avatars with clothing and accessories from brands like Nike, Converse, and Ralph Lauren.
We expect more and more traditional brands to follow the footsteps of these early movers into Digital Fashion. They will try to add revenue streams by entering the Metaverse with their own digital lines. As brands and platforms continue to invest in Digital Fashion, we will see more innovative offerings that empower individuals to express themselves in new and exciting ways.
See also our recent extensive research posts on this field:
– Fashion in the Metaverse,
– Digital Fashion Interoperability
– Avatars in the Creator Economy