Virtual Things: 5 Reasons to Pay Real Money

Contents:

• From gaming skins to digital trends: how fashion is adapting to new realities
• Where can digital fashion be used?
• Digital fashion: a threat to fast fashion
• The future of digital fashion: when will virtual aesthetics overtake reality?

From Gaming Skins to Digital Trends: How Fashion Adapts to New Realities

Since the advent of the first computer games, virtual clothing has become increasingly popular. Players have begun to invest real money in the digital images of their characters. A prime example is the 2007 game "The Sims 2: H&M Style," which allowed players to dress their Sims in the Swedish fashion brand's latest collections. This trend continues to grow, offering increasingly diverse and stylish virtual clothing options each year, highlighting the growing interest in fashion in the digital space. Investments in virtual items are becoming increasingly common, opening up new horizons for developers and players. Digital fashion is rapidly growing in the gaming industry, becoming a key element of the skins market—visual upgrades for in-game characters. Paid skins are one of the most popular monetization methods in games like Fortnite, where monthly sales reach £220 million and the total user base exceeds 250 million. According to Statista forecasts, the global skins market could reach £36 billion by 2022, equivalent to approximately 3.66 trillion rubles. This growth underscores the importance of digital fashion in gaming culture and its impact on user behavior and the financial performance of game developers.

With the onset of the pandemic in 2020, digital clothing ceased to be exclusively a part of gaming culture. Global lockdowns forced people to seek new ways to express themselves through fashion. Clothing traditionally worn for work and social events lost its significance, and users began actively using augmented reality elements, such as masks and filters on social media. This change opened new horizons for digital fashion, which has become an important tool for creating unique looks and conveying individuality in the virtual space.

In response to modern challenges, many retailers are actively implementing augmented reality technologies. Brands such as L'Oreal introduced services that allow users to "try on" cosmetics online back in 2018. Burberry integrated AR technology into the mobile version of Google, giving customers the opportunity to visualize products in real space. These innovations not only improve the user experience but also increase customer engagement, which drives sales and strengthens brands' market positions.

Digital fashion continues to gain popularity, becoming a familiar element of modern society. In 2021, the idea of ​​wearing digital clothing over real images is already accepted without surprise. Today, not only gamers but also social media users are willing to invest in virtual outfits, opening up new market opportunities and attracting the interest of clothing manufacturers. This trend demonstrates the growing interest in virtual products and their significance in users' lives, which is fueling the development of the fashion industry in the digital space.

According to McKinsey's State of Fashion 2021 report, 2020 proved to be an extremely challenging year for the fashion industry, with an expected decline in economic profits of 90%. However, despite these challenges, many fashion executives are discovering new opportunities in digital fashion. They emphasize that digital fashion can become a significant driver of sustainable business development in the future. The implementation of digital technologies and innovative solutions in production processes and marketing can not only help overcome current challenges but also open up new horizons for growth and audience expansion.

Modern brands such as Prada, Moschino, Gucci, and Nike are actively developing digital fashion, offering virtual versions of their collections. In Russia, designers such as Alexander Terekhov and Alena Akhmadullina stand out in this market, successfully implementing innovations and creating unique digital images. These changes highlight the growing interest in digital fashion and its importance in the modern industry.

Where can digital fashion be used?

Modern video games occupy a key position in the digital clothing market, attracting the attention of both players and renowned luxury brands. In recent years, many have begun actively creating unique virtual accessories. For example, during an auction on the Roblox platform, a virtual Gucci bag sold for $4,115, significantly exceeding its physical value of $2,450. Louis Vuitton also entered the world of video games by releasing special skins for League of Legends. Additionally, Martin Margiela presented a new collection that is available both in the real world and in Nintendo's Animal Crossing simulator. These examples highlight the growing interest in digital fashion and its potential impact on the video game industry.

Photoshoots for likes have become commonplace, and many social media users are turning to digital fashion. In 2021, simply purchasing a digital outfit on a specialized platform was enough to impress followers. Virtual clothing can be easily superimposed on photos and adjusted to the user's figure in just one day. This allows for the creation of unique looks without leaving home and the ability to quickly adapt to trends. Digital fashion opens up new opportunities for self-expression and creativity in the world of social media.

DressX, a platform specializing in digital clothing, is becoming increasingly popular among bloggers using Instagram to promote their content. Digital fashion significantly simplifies the process of creating visual content for influencers. Travelers can easily "change" their photos into virtual outfits, saving luggage space and creating unique content even after their trip. Digital fashion opens up new horizons for creativity and self-expression, making it an indispensable tool for modern bloggers.

Glossy magazines have noted the benefits of digital fashion, especially during the pandemic, when photo shoots with virtual looks have become significantly easier. Now, the model, stylist, and photographer can work effectively remotely, coordinating their actions online. Digital outfits have already been featured in renowned publications such as Vogue and GQ, highlighting the growing popularity and acceptance of digital fashion in the industry. This trend not only simplifies the content creation process but also opens up new horizons for creativity and self-expression in the fashion world.

The most highly valued categories of digital products are those that attract attention due to their visual appeal in photographs. These categories include:

• Clothes made from materials that cannot be created in real life, such as liquid silver or dragon skin.
• High-quality digital copies of real things from famous designers that look as realistic as possible in the photo.

Digital wardrobe items can be collected just like real-life items from famous brands. Exclusive limited-edition collections are already available in the digital space, and they can significantly increase in value over time. However, it's important to keep in mind that digital items can't be stored in a closet for years: skins only exist in the games for which they were created. In the event of a server crash or the discontinuation of game support, owners may lose their digital assets. Therefore, it is important to carefully select and purchase digital items, considering their potential value and the risks associated with their storage.

The most effective way to protect the rights to digital assets is to purchase a non-fungible token (NFT). Tokenization of digital assets benefits both buyers and brands, as it prevents copying and, therefore, reduces the risk of depreciation. "Tokenized product marketplaces represent the future of the fashion economy," says Megan Kaspar, co-founder of Magnetic, a blockchain investment firm. NFTs not only enhance property rights security but also open up new opportunities for monetizing digital content.

Digital Fashion: A Threat to Fast Fashion

Digital clothing is gaining popularity, offering consumers the ability to instantly create stylish looks without a significant financial outlay. This trend addresses the same need as traditional fast fashion, making it easy to update your wardrobe at an affordable price and share new outfits on social media. Digital fashion not only saves money but also promotes sustainable consumption by reducing the need for physical clothing production. All this makes digital clothing an attractive choice for those who want to look stylish and be environmentally friendly.

For 4,000 rubles, the amount typically spent on clothes from H&M and Zara, you can "dress" in virtual outfits from luxury brands like Alexander Terekhov. This is not only a way to save money, but also an opportunity to wear unique designer pieces without the need for physical production. Virtual fashion opens up new horizons, allowing you to stand out with original looks created by talented designers while simultaneously caring for the environment. Using virtual outfits is a step towards sustainable consumption and the fashion of the future.

The benefits of digital fashion extend beyond the simple availability of luxury brands. The traditional production cycle in the fashion industry takes about six months, including all stages – from the idea to the finished collection. However, companies like Inditex have successfully reduced this time to two weeks, allowing customers to receive new products almost immediately after the catwalk shows. This change not only accelerates the process but also responds to the needs of a rapidly changing market, offering current trends and innovations in the fashion world. Thus, digital fashion is significantly transforming traditional approaches to clothing production and customer interaction.

Digital fashion opens up new possibilities for creating collections, allowing designers to develop them in just a few days or even hours. Daria Shapovalova, co-founder of the DressX platform, argues that digital fashion represents the future of fast fashion production. For the fashion industry to remain dynamic and relevant, it must adapt to digital technologies. This not only speeds up the creation process but also provides new creative opportunities for designers and improves the sustainability of the fashion industry.

The Future of Digital Fashion: When Will Virtual Aesthetics Overtake Reality?

Despite significant advances, virtual fashion cannot yet completely replace physical fashion. Regina Turbina, founder of the digital clothing marketplace replicant.fashion, notes that there are currently only four significant platforms for purchasing digital goods: Croatian Tribute Brand, Kyiv-based DressX, which is active in the US market, India's XR Couture, and replicant.fashion. All of these companies have entered the market in just the past year. During this time, replicant.fashion has successfully delivered approximately 700 digital looks, while DressX has served over a thousand clients. The development of virtual fashion opens up new opportunities for designers and buyers, and this market segment continues to grow and attract attention. Regina Turbina emphasizes that modern digital fashion requires a major transformation. In her words, "Digital fashion must evolve into something fundamentally new. We are looking for ways to achieve this, and projects offering interaction with digital outfits are only just beginning to accumulate the necessary knowledge to create an innovative product." This underscores the importance of further research and experimentation in digital fashion, which could lead to the development of unique and sought-after solutions. Experts and investors are confident in the vast potential of digital fashion, despite its currently modest sales volumes. Daria Shapovalova of DressX predicts that the digital clothing market will grow to $13 billion within ten years. This development will ensure sustainable growth in fashion without harming the environment. With the increasing popularity of digital solutions, Shapovalova believes that within 30 years, 70% of clothing will exist online, allowing users to easily try on and change looks at any time, while only 30% will remain in physical production. Boris Agatov, an expert in retail innovation, emphasizes that achieving this requires two key conditions: active user engagement in digital channels and the development of technologies capable of naturally displaying virtual clothing not only in static images but also in motion. Thus, the digital-enabled future of fashion promises not only sustainability but also new opportunities for consumers.