Share This Article
From Big Tech boardrooms to podcasts and tweets, the metaverse hype is everywhere. However, as with many emerging technologies, the excitement around the expected future impact often outshines its actual readiness for mainstream adoption.
But even among all the hoopla, it’s foolish to dismiss Web3 and the metaverse completely. Within the next decade, emerging technologies might change life as we know it. In the same way, the television and the internet democratized access to information and entertainment, the blockchain and the metaverse will change the way we shop, game, and craft our digital identities.
Whether physical or digital, fashion is a core layer of our being. It serves as one of the purest forms of self-expression while acting as a direct extension of our emotions and beliefs. As humans, we care deeply about our appearance and as we spend more time in virtual environments, the same behavior is expected to continue. By 2030, Morgan Stanley estimates that the digital fashion market alone could be worth $50 billion.
While this prediction is ambitious, and far from a guarantee, industry leaders have recognized the potential and are already beginning to invest heavily in the trend:
- Nike acquired RTFKT and announced the launch of CryptoKicks, alongside their own virtual world in Roblox
- Rebecca Minkoff partnered with The Dematerialised to release a collection of NFT dresses, hoodies, and accessories.
- Bob Iger invested an undisclosed sum into Genies, a company that produces metaverse-ready digital avatars for stars like Jennifer Lopez, Rihanna and Lil Nas X.
With that in mind, there’s a compelling case that the winners of this emerging sector could be sound investments for years to come. But before we even think about investing, it’s important to cover the basics of digital fashion.
What is Digital Fashion?
Digital fashion is virtual 3D clothing designed with both humans and digital avatars in mind. Rather than using fabric and textiles, digital garments are created with special 3D computer programs like Blender and CLO3D.
Relative to traditional garment manufacturing, digital fashion is inexpensive and wildly sustainable. More importantly, it comes with zero creative constraints or production limitations. This is where the true beauty of digital fashion shines. The only limits are our imaginations. We don’t need to be the same people online as in real life. We can be whoever we want to be.
According to Jackson Bridges, NFT Project Advisor and Showcase Guide at Alterrage digital fashion allows for a new medium for individual expression.
“In the metaverse, we can decide our identities compared to the physical world in which we cannot choose our race, gender, or cultural background. Digital fashion builds upon this idea by enhancing self-expression outside of the constraints of the physical world and by leveraging technologies such as augmented and virtual reality. The ability to express themselves with limitless creative freedom unlocks doors for a true expression of one’s identity,” he shared in an interview with Kiplinger.
To date, digital fashion has been most prevalent in gaming, where gamers pay billions of dollars annually to outfit their digital avatars in the latest cosmetic skins. Epic Games, the company behind Fortnite, sold 3.3 million units of their NFL partnership skins, netting $50 million in only a few weeks.
How to Wear Digital Garments
Outside of gaming, digital dressing is the most practical way for shoppers to showcase their digital style. By altering photos and using advanced technologies like augmented reality and artificial intelligence, consumers can wear their digital garments.
For digitally-native apparel retailers like DRESSX, digital dressing is built into their business model. Customers who purchase digital garments from DressX can upload a photo to the platform to digitally dress in their new look. For social media influencers who often spend thousands of dollars on an outfit only to return it moments after a photo is taken, wearing digital fashion offers a much more efficient and cost-effective alternative.
Snapchat, a leader in augmented reality technology, has offered a variety of AR filters since its inception. Snap has also partnered with companies such as Prada and Ulta to offer customers virtual try-on experiences, resulting in substantial sales lifts. To encourage more retailers to adopt AR-powered ecommerce, Snapchat has made its proprietary technology free to use. Now retailers can seamlessly integrate Snap’s AR try-on technology and Camera Kit into their mobile apps and websites.
Platforms like VRChat, Decentraland, or Roblox allow users to create digital avatars and dress them in virtual clothing, enabling them to explore and interact within online worlds.
Benefits of Digital Fashion
Digital fashion offers several benefits that contribute to its growing popularity and impact on the fashion industry:
- Sustainability: As digital fashion eliminates the need for physical production, it helps reduce the fashion industry’s environmental impact, fostering a more sustainable future.
- Creative Freedom: Designers can experiment without the limitations of traditional materials, production methods, and costs, resulting in innovative and groundbreaking designs.
- Accessibility: Virtual garments can be more affordable and accessible than their physical counterparts, opening the fashion world to a wider audience.
- Interactivity: Digital fashion provides consumers engaging experiences through interactive mediums such as virtual fashion shows, augmented reality, and virtual try-on sessions.
Real-World Examples of Digital Fashion
Several fashion brands, designers, and tech companies are embracing digital fashion to create innovative and immersive consumer experiences. Some noteworthy examples include:
- The Fabricant: A digital fashion house that specializes in designing and selling virtual garments, leveraging blockchain technology to tokenize their creations as non-fungible tokens (NFTs).
- Gucci: The luxury fashion brand has entered the digital fashion realm by launching virtual sneakers and collaborating with gaming platforms to create exclusive in-game garments.
- Moschino x The Sims: The Italian fashion brand Moschino collaborated with the popular life simulation game, The Sims, to create a capsule collection of virtual garments that players could use to dress their in-game characters.
Why Is Digital Fashion Important?
To fully recognize the importance of digital fashion, you must first understand the desire for digital identity and ownership. Among digitally native generations, there is strong demand for digital ownership and the ability to express our identity the same way we do in real life.
Based on a report from BoF Insights, approximately 70% of US general consumers (Gen Z to Gen X) rate their digital identity as important. And they’re voting with their wallets, with 50% interested in purchasing a digital asset in the next 12 months (gaming skin, digital fashion, avatar, and/or NFT.)
While still incredibly early, digital fashion is positioned to be a significant revenue driver for apparel retailers. Over the last year, brands such as Gucci, Tommy Hilfiger, and have invested millions of dollars in opening virtual metaverse storefronts where they’ve sold a mix of digital fashion NFTs and NFTs redeemable for physical goods. The virtual stores also allow customers to shop through on-site ecommerce collections.
As explained by Nico Fara, a retail Web3 strategist and founder of Chief Metaverse Officer, virtual stores in the metaverse aren’t replacing traditional retail channels, but are instead serving as a much-needed complement.
“In the same way that retailers need a brick-and-mortar or ecommerce store (Web 1.0) and a social media page (Web 2.0), they should have a metaverse presence (Web 3.0). Virtual stores in the metaverse are more efficient, immersive, and accessible than any other retail experience.”
Digital fashion is set to reshape the fashion industry, offering sustainable, creative, and accessible solutions while allowing consumers to engage with clothing in a new and immersive way. As more designers, brands, and consumers embrace the digital fashion revolution, the industry will continue to evolve, providing unique experiences that challenge the traditional boundaries of fashion.
Like all new tech trends, there will be companies that invest in the hype for PR and quick cash. But there will be others that make digital fashion a core part of their future retail strategy. Whether the winners will be legacy fashion and tech companies, digitally native retailers, or a combination of both, only time will tell. But when industry players of this caliber all make a move, it’s generally one worth paying attention to.