IN BRIEF

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• 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 style in new and exciting ways.
• The gaming industry continues to thrive, becoming a multi-billion dollar market. In 2023, gaming revenue will reach a staggering $384.90 billion. 

The Rise of Digital Identity

In 2021, the digital fashion market was estimated to be valued at USD 119.52 million. However, it is forecasted to 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 style in new and exciting ways.

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

Roblox’s recent survey shows that 66% of GenZ respondents are excited about wearing brand names on virtual items. This finding indicates that GenZs are looking for ways to showcase their favorite brands on digital platforms.

The survey also revealed that 48% of GenZs are interested in experimenting with new and different clothes in the digital space that they would not try in real life, allowing digital designers and brands to be more creative and innovative in digital fashion. Brands that offer unique and experimental digital fashion items are likely to attract the attention of GenZs; 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 in digital outfit design.

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 a new outfit in augmented reality (AR) try-on functionalities, enhancing the shopping experience and mitigating the need for crypto transactions. By integrating AR try-ons, 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. In 2023, gaming revenue will reach a staggering $384.90 billion. The immersive nature of games and technological advancements have captivated a massive global audience. Fashion brands recognize gaming platforms’ potential 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 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 had the opportunity to 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” as 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 passionate about 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 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.

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