It’s not just gamers and crypto dudes buying digital fashion

To become a Vogue Business Member and receive the Technology Edit newsletter, click here. Metaverse style is taking shape. On Roblox, people want digital casualwear alongside their rainbow flames, and Fortnite fans are three times more likely to be Supreme fans compared to other gamers; The Sims community, meanwhile, is far more interested in Converse and Aeropostale. On top of that, people who buy digital fashion aren’t all gamers or young male crypto enthusiasts; many are women, and many are interested in shopping virtual stores. New research in the Screenwear Paper, released today by Vice creative agency Virtue Worldwide, working with digital fashion marketplace The Dematerialised, sheds light on how people engage with personal style in the virtual realm. With the broader fashion industry looking for opportunities in the metaverse, new data shows not only what people want to wear in other worlds, but also how much they are willing to pay, including data from virtual store creator Obsess, and gaming platform analysis from Geeiq. Digital fashion is a key component to how people shape virtual identities, and while moving from niche to hotly hyped, experts say real uptake by brands depends on separating fact from fantasy, especially as brands evaluate if digital apparel can manifest into a potential revenue stream. The results show a picture of an emerging consumer group that includes women who aren’t necessarily fashion crypto collectors. Research also indicates that they expect that half their wardrobe could be digital in five years. “We have a lot of predictions and ideas around where things are heading, and now we have the data to back it up,” says Morten Grubak, global executive creative director of innovation at Virtue Worldwide, who created the sellout digital fashion collection for Norwegian fashion retailer Carlings in 2018. The project is regarded as one of the most influential early digital fashion collections, and in 2019, won the highest prize at Cannes Lions. Who is digital fashion for? The survey of 3,000 people across eight global markets (US, UK, Germany, Mexico, Korea, Saudi Arabia, Egypt and UAE) is notable for reaching people who didn’t all identify as tech enthusiasts or early adopters. Half are millennials and the others are Gen Z or Gen X, evenly split between men and women (with 1 per cent non-binary). Of those surveyed, 82 per cent have already purchased some kind of virtual item and one-third had already purchased digital fashion. One surprise outtake: those interested in digital fashion are not just crypto enthusiasts; 47 per cent are not crypto users. “We deliberately surveyed people who are interested in a range of industries, including media, fashion, tech, gaming, and art and culture, and identified themselves as non-rejectors of new trends,” says Karinna Grant, co-CEO of The Dematerialised. Young men are dominating Web 3.0 purchases, according to recent research from e-commerce tech provider Scalefast, who found 61 per cent of virtual goods or NFT purchasers in the US (not limited to digital fashion) are male. More than half are between 18 and 34 years. That’s not the case for all platforms. Charles Hambro, CEO of Geeiq, which analyses games and metaverse platforms based on social media followers, says Zepeto’s social media audience is two-thirds female and 70 per cent are younger than 24. Based on accounts Zepeto’s followers follow, they’re also interested in luxury fashion brands. Geeiq research found that followers are 13 times more likely to follow brands including Prada, Gucci, Fendi and Balenciaga. Fortnite’s audience is 88 per cent male, and the majority is older than 24. (Each has recently partnered with fashion brands to showcase and sell digital fashion.) And, within Roblox’s various spaces, the audience can vary though 70 per cent are 24 or younger, and the majority (70 per cent) are male. Aeropostale, Gap and Forever21 are among the brands with the most affinity. Limited edition items have resonated on Roblox. Take both the Gucci Garden experience and Ralph Lauren’s Winter Escape, where digital fashion was only purchasable for a short period, but worn after the experience closed, and for longer than their other accessories, says Christina Wootton, VP of brand partnerships at Roblox. Identity is the primary reason for buying digital fashion, Virtue’s survey suggests: 70 per cent of people said they bought something to create or enhance a digital identity, to express themself or to own something unique. Just like in the physical world, the manifestation varies widely. Many believe digital fashion can create more equitable spaces and experiences for plus-size shoppers, those living with disabilities, and the LGBTQI+ community; in addition to enabling people to explore new modes of identity unrestrained by traditional roles, expectations and limits, according to the researchers. One-third of respondents would purchase full outfits. Avatars: a replica, or very different identity Two different trends also emerge in digital fashion choices: people either work hard to recreate an exact replica of their in-person identity, or they participate in what Grubak calls “deep exploration,” a part of Gen Z’s multidimensional identities. Sixty-four per cent of people said the ability to personalise an item would influence a purchase decision. “They don’t have to be the same person on Instagram as they are in real life. With the metaverse and digital fashion, it’s not about age but a point of view and a perspective,” he says. Top-selling Roblox digital fashion items in 2021 were casualwear, like T-shirts and medical masks. “Some people choose to reflect their everyday appearance and real-life wardrobe, while others want to experiment with bold looks and styles they wouldn’t go for in the real world,” says Whooton. Fantastical items, like a Rainbow Flame Aura Top, were also among the top 10 most sold 3D items last year. Playing with their avatars was popular: one in five daily active Roblox users updated their avatars on any given day, including the body, face and accessories. People who are established in the metaverse, meaning they own cryptocurrency and have an avatar, are three times more likely to have purchased more than 30 virtual goods, Virtue found. “This level of engagement and interest in digital fashion and identity represents a massive opportunity for brands that want to extend their presence into the metaverse,” Wootton says. Fashion brands should test new product ideas and or consider launching entire fashion lines to meet them, such as Tommy Hilfiger partnering with Roblox creators to make new designs, Wootton says. Virtual real estate audience preferences differ widely, too. Decentraland and The Sandbox are quite disparate: Decentraland attracts Hypebeast, Dazed Fashion and YSL fans, Geeiq data suggests, while competitor The Sandbox is big among those who like Boohoo, Burberry and H&M. Differences in brand affinities are likely due to a combination of gameplay, aesthetics and brands being present in the platform itself, Hambro says. How much does digital fashion cost? Online video games are still a key digital fashion shopping environment. Sixty-two per cent of US consumers surveyed have purchased a digital item, such as an accessory, skin or garment, for their avatar in a video game, according to Obsess’s data. More than half said they would pay up to $49.99 for a virtual product for their avatar to use within a video game. Sixty-six per cent of those surveyed by Virtue would be prepared to pay the same or more for a virtual fashion item. Digital fashion and virtual spaces are expanding beyond games; Roblox doesn’t even identify as a gaming platform. At the upcoming Metaverse Fashion Week, many brands will be selling both digital and physical versions of designs, while Gucci and Adidas are developing virtual real estate in The Sandbox with plans to sell. “These shoppers have grown up with online videogames, esports and social media and many of them see the emerging metaverse as a modern-day mall — a connected virtual world where they can hang out, shop and socialise,” says Neha Singh, Obsess CEO and founder. Interested in branded metaverse worlds is high. Forty-one per cent of Gen Z and 38 per cent of millennials said they would be interested in exploring them, the survey shows. Digital fashion will become mainstream within five years, according to two-thirds of those Virtue studied. It’s a big claim, but respondents expect nearly half of their overall wardrobe to be digital in five years. There are still some headwinds, including confusion or distrust, despite the metaverse hype. More than half of respondents to Obsess’s survey said they are familiar with the term “metaverse”, though 27 per cent mistakenly think it refers to a technology owned by Meta. For those who haven’t purchased a virtual good, 73 per cent are open to it but haven’t needed one or they don’t know enough about them, Virtue found. And, while for many, the concept of digital fashion is still quite niche, the data shows that people are buying into it, Grubak says. “Sometimes the disbelievers take more space than the people actually using it or buying it.” Comments, questions or feedback? Email us at feedback@voguebusiness.com. More on this topic: Designers explore the future of digital clothing Race, gender and representation: The grey area of the metaverse Shaping online avatars: Why our digital identities differ

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