Digital fashion: Designing sustainable and mind-bending clothes

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  Quantumrun Foresight
• November 5, 2021

Digital or virtual fashion has disrupted the esports industry and attracted luxury brands, blurring the boundaries between digital and physical fashion. Blockchain technology and non-fungible tokens (NFTs) have enabled artists to monetize their digital creations, with high-value sales showcasing the growing demand for virtual fashion. The long-term implications include separate collections for physical and digital consumers, job opportunities, regulatory considerations, global communities forming around digital fashion, and more sustainable labor practices.

Digital fashion context

Virtual fashion has already made its mark in the world of esports, where players are willing to spend significant amounts of money on virtual skins for their avatars. These skins can cost up to USD $20 each, and it is estimated that the market for such virtual fashion items was worth USD $50 billion in 2022. This remarkable growth has not gone unnoticed by luxury brands like Louis Vuitton, who recognized the potential of virtual fashion and partnered with the popular multiplayer game League of Legends to create exclusive avatar skins. To take the concept even further, these virtual designs were translated into real-life clothing pieces, blurring the boundaries between the digital and physical worlds.

While virtual fashion initially started as an add-on for existing clothing lines, it has now evolved into a standalone trend with virtual-only collections. Carlings, a Scandinavian retailer, made headlines in 2018 by launching the first fully digital collection. The pieces were sold at affordable prices, ranging from about USD $12 to $40. Using advanced 3D technology, customers were able to "try on" these digital clothes by superimposing them onto their photos, creating a virtual fitting experience. 

From a societal perspective, the rise of virtual fashion represents a paradigm shift in how we perceive and consume fashion. Individuals can express their personal style without the need for physical garments, reducing the environmental impact associated with traditional fashion production. Additionally, virtual fashion opens up new avenues for creativity and self-expression, as designers are freed from the constraints of physical materials and can explore endless digital possibilities.

Disruptive impact

As more brands embrace digital fashion, we can expect to see a transformation in the way we perceive and consume clothing. The sale of a couture virtual dress by Amsterdam-based fashion house The Fabricant for USD $9,500 USD on the Ethereum blockchain demonstrates the potential value and exclusivity associated with virtual fashion. Artists and fashion studios are leveraging technologies like non-fungible tokens (NFTs) to trade their creations. 

These blockchain records, also known as social tokens, create a unique and verifiable ownership system for digital fashion items, enabling artists to monetize their work in new and innovative ways. In February 2021, a virtual sneaker collection sold for an astonishing USD $3.1 million within a mere five minutes, signaling the growing market demand for virtual fashion.  Fashion brands can partner with virtual influencers or celebrities to promote their virtual clothing lines, reaching a broader audience and driving sales. Companies can also explore collaborations with gaming platforms and virtual reality experiences to enhance the engagement and immersion of consumers with virtual fashion.

From a sustainability perspective, virtual fashion presents a compelling solution to the environmental impact of fast fashion. Virtual garments are estimated to be about 95 percent more sustainable compared to their physical counterparts due to the reduction in production and manufacturing processes. As governments strive to address climate change and promote sustainable practices, virtual fashion can play a crucial role in achieving these goals.

Implications of digital fashion

Wider implications of digital fashion may include:

• Designers creating two collections every season: one for actual runways and the other for digital-only consumers.
• Social media influencers featuring more digital fashion, which in turn, could persuade followers to try out these brands.
• Physical retailers installing self-serve kiosks that allow shoppers to browse and purchase branded virtual clothing.
• Textile and garments factories potentially downscaling if more consumers turn to sustainable virtual fashion options.
• A more inclusive and diverse representation of body types and identities, challenging traditional beauty standards and promoting body positivity.
• Job opportunities, such as virtual fashion designers and digital stylists, contributing to economic diversification.
• Policymakers developing regulations and intellectual property laws to protect the rights of digital fashion creators and consumers.
• Virtual fashion creating global communities where individuals can connect and express themselves through their digital fashion choices, fostering cultural exchange and understanding.
• Advances in augmented and virtual reality (AR/VR) driven by digital fashion having spillover effects in various industries, such as healthcare and education.
• More sustainable labor practices, such as digital tailoring and customization services, providing alternative employment options in the fashion industry.

Questions to consider

• Are you willing to pay for virtual clothes? Why or why not?
• How do you think this trend might affect retailers and brands in the next few years?