Digital fashion is a great solution to the problems of sustainability and diversity in fashion. The beauty of digital assets is that they hold endless possibilities in the hands of both creative people and audiences. Initially, we were all excited about this because it seemed like a direct answer to the pain points of physical fashion. We had a vision of the technology taking a leap forward.
But what's happened post-COVID is that everyone is so happy to not be locked down, and the idea of the metaverse space has triggered a knee-jerk reaction: everyone is moving away from it.
But digital fashion isn't a trend, it's a tool. It allows you to add layers. If you're just making a twin of a physical thing, you've already failed. No one will feel the same. It has nothing to do with the lingo of physical fashion, which is deeply steeped in craft and artistry. Being a twin, it doesn't allow you to express or play with the true potential of digital.
Everyone is saying, “Digital fashion is dead.” But if you look at the amazing statistics of Roblox or Fortnite, in 2023, Fortnite will pay out $204 million to developers, up 300 percent from the previous year. This is a very interesting point in the trajectory of digital fashion. Digital fashion has always been in games, but now physical luxury fashion is stepping into that realm.
And that's another opportunity for us to make a change. How do we pay creators more? Historically in the fashion industry, we've had a very top-heavy compensation structure, where you work for kudos or internships. Meanwhile, UGC (user-generated content) is a big part of the gaming industry, and people are getting real wages for creating. Gen Z and Gen Alpha understand creativity in a very nuanced way, and it's about co-creation. I think big brands and luxury fashion houses are so afraid of co-creation that they risk missing out on the opportunity.
Matt Powell, retail analyst at BCE Consulting
