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Metaverse Fashion Report 2023 - Unlocking the Future of Style


To stay relevant, businesses in the fashion industry must be aware of any potential changes affecting consumer habits and purchasing motivations. By explaining the fundamental market drivers and consumer motivations, this report intends to help foresee changes that will fundamentally change the market. We aim to provide innovative businesses with the required insights to take advantage of the Metaverse Fashion opportunity and build a lasting competitive advantage.

This report is for fashion brands, executives, marketers and innovators interested in understanding the metaverse fashion industry, the current ecosystem, market trends and predictions for the future.

Using real-world examples, we will showcase how companies leverage the latest tools to reach new markets and examine the ever-evolving relationship between fashion, technology, and culture. We explore how brands are adapting and thriving in the metaverse by leveraging creative partnerships between companies and artists, high-end NFT collections, phygital clothing with integrated NFC technology, augmented reality fashion as try-ons both in their own app and third-party filters, interactive experiences in virtual worlds, branded mini mobile games and competitions.

Be inspired by stories of innovation, learn how technology is growing rapidly, get actionable insights for your business and most of all, have fun with fashion as you experience the wonders of the digital age. So come with us on this journey, and let's unlock the potential of metaverse fashion.

Note: The report created does not claim to be complete and does not make you an experienced expert, but it is a first step to getting an overview of relevant information in order to start a conversation with your team and executives to make the best possible decisions and effective use of resources.

Introduction to Metaverse Fashion

Although still at an early stage of development, the metaverse presents fashion brands with the opportunity to experiment with new technologies and establish meaningful connections with their customers beyond the realms of current possibilities.

In this section, we will not only define Metaverse Fashion and showcases the business benefits of this exciting new market but also give an in-depth understanding of the drivers and motivations that cause a shift in consumer behavior towards buying virtual fashion.

A Definition of Metaverse Fashion

Metaverse Fashion describes the use of digital technologies in the fashion industry, such as computer-aided design, 3D software such as Blender and CLO3D, augmented reality, and virtual reality in an immersive experience, instead of relying on traditional textiles to create and market physical fashion products. Metaverse fashion is designed for humans and their avatars.

Metaverse fashion has been a growing part of the gaming industry and recently has expanded to include metaverse fashion shows, digital-only brands, and non-fungible tokens (NFTs).

With metaverse experiences becoming an increasingly popular opportunity, digital avatars and digital-only fashion brands are expanding, giving rise to exciting new possibilities in the world of fashion.

Why Your Business Should Care

Disruptive business opportunities arise when new technology crosses into mainstream awareness and changes customer behavior.

Metaverse fashion offers innovative businesses the opportunity to break into a rapidly growing market with a new and innovative way to promote new products and services while also providing customers with increased accessibility and convenience. With its continuously growing potential, in this part, we will examine the advantages of metaverse fashion, exploring how its features can create a convenient, sustainable, and revenue-generating opportunity.

Access to a new, growing community of different subcultures and demographics

The metaverse gives creatives unprecedented access to a growing community of different subcultures and demographics, enabling them to tailor their brands to target specific audiences that were previously inaccessible offline.

Engage, reach and inspire your customer base in new and innovative ways

The metaverse opens up a world of untapped opportunities for fashion brands, allowing them to engage, reach and inspire their customer base in new and innovative ways e.g. creating augmented reality fashion for unique customer experiences and connecting with them in a personal and more interactive way.

Unleash creativity

Businesses can provide a platform for creative expression beyond the constraints of the physical world when designing and when it comes to production limitations that are not impacting the business or creative process. Do you want to sell a crown of flames with a hovering gingerbread man? That is totally possible.

Take advantage of viral trends within the metaverse

By understanding and taking advantage of the latest and most popular trends in the metaverse, businesses can increase brand awareness and gain greater exposure.

Expand production and revenue channels

Metaverse fashion can provide new revenue streams with additional products and services.

More efficient marketing tactics

People can, for example, change the skin or clothes of their avatar within a metaverse experience without the need for traditional advertising methods such as product placement or advertisement by fashion brands for a more integrative approach.

Explore new business models

Like freemium models, metaverse fashion opens up the door for innovative business models. For example, companies can create an experience that is free to join. Charging a fee to tailor their avatar for $10 could generate a revenue stream over time without adding unit production costs.

Environmental friendly

Because no physical raw material is needed and instead, fashion is being created using a computer, there are fewer resources required to create fashion. Brands collaborating with influencers to promote and sell metaverse fashion can reach wider audiences without having to physically distribute physical products.

Fast time to market & iterations

Your brand can quickly create and iterate designs of garments based on the feedback of your community and serve customers worldwide without the need to manage a supply chain.

Accessibility for new market players

Metaverse fashion is a new opportunity for independent designers and people from minority backgrounds to make their mark in the fashion industry, which is often very difficult to get into.

While not all of these benefits apply to all companies, exploring metaverse fashion offers a wide range of benefits that make it worth considering Metaverse Fashion as a commercial opportunity.

Why People Buy Metaverse Fashion

It is impossible for businesses to successfully expand their footprint into the metaverse without a good understanding of what drives this new consumer behavior. In this section, we want to explain what motivates people to pay real money for virtual items.

Fashion has always been a way for people to express themselves and make a statement about who they are. In the metaverse, this is no different. Metaverse fashion has been an innovative and daring way for people to express themselves and make a statement about who they are. To understand this new behavior, we will explore the various motives behind why fashion in the metaverse has become so popular. People spend money on metaverse fashion because it:

Empowers self-expression

Metaverse fashion allows for self-expression in digital spaces, games, and profile pictures on social media to have the most accurate representation of themselves or the character they want to embody. Metaverse fashion enables users to differentiate themselves from or associate with others for a sense of belonging. By wearing a specific outfit or accessory, they can express their unique identity and showcase their individuality.

Grants ownership

Metaverse fashion also grants ownership to those who wish to collect unique, limited edition pieces. These items are sometimes neither for an avatar to be worn nor able to be superimposed on images of people. As memorabilia, collectibles or for everyday use, some people buy unique, metaverse fashion from specific designers they enjoy, sometimes with information stored on the blockchain as proof that they can collect or trade.

Provides utility/value add for the consumer

Metaverse fashion can offer utility/value add for the consumer. For example, wearing a particular item of metaverse fashion can unlock a unique capability that the user receives. This exclusive access to products and services of the fashion brand provides the user with a sense of status and belonging. Furthermore, sometimes users receive a limited, one-of-a-kind physical product they can claim when owning a digital product, often an NFT.

Sets trends

Like in the physical world, people want to look good, show off their digital clothes and brag about their (expensive or limited) virtual garments or accessory. Metaverse fashion is an excellent way to show off a unique sense of style and creativity. Users can set trends by wearing cutting-edge and futuristic digital clothes that would be impossible to create in the physical world.

Offers limitless designs

The metaverse offers limitless designs that can be created and worn by users. In contrast to the physical world, where fashion is limited by the earth's physical attributes and boundaries, every conceivable style, texture, and color can be created in the metaverse. The metaverse offers the ultimate in creative freedom, enabling users to experiment with new styles and designs without any limitations.

Can be more affordable

While some exclusive and limited-edition fashion NFT drops can be expensive, generally speaking, digital wearables, even from high-end designers, are more affordable compared to some physical clothes. This accessibility allows more people to participate in the world of metaverse fashion and express themselves in new and exciting ways.

Facilitates control and co-creation

Some fashion brands enable customers to create and customize their own items, giving them more control and autonomy over their fashion choices, allowing for ultimate customisation and participation in the creator economy.

Can be virtually tried on

Using AR technology and smart mirrors, users can try on a physical item digitally before committing to buy it. This gives them a realistic perspective on their pieces without having to leave the home. It also helps them visualise how an item will look on them, allowing them to make better-informed decisions when it comes to purchasing metaverse fashion.

Provides convenience

One of the major advantages of metaverse fashion is the convenience it offers. Customers can try on items and see how they look on them in augmented reality, which eliminates the need to go in-store. Additionally, shoppers can find what they are looking for at any given moment no matter where they are, doing away with the need for going in-store. Furthermore, digital products can be purchased directly from metaverse fashion stores, eliminating the need to wait for shipped items.

Once you understand the motivations of consumer behaviour, you and your business can decide how to create experiences that people enjoy and are willing to pay for.

Market Size & Stats

Apart from general business benefits and understanding purchasing behaviors, it is essential to contextualise the market in terms of size and growth. The following analysis and stats provide clear insights into the current market size, its key drivers and main challenges.

Market Size

The metaverse fashion industry has seen tremendous growth in recent years, especially with the increasing popularity of gaming. People have spent billions of dollars dressing their avatars in the most fashionable skins and accessories.

According to Technavio, the metaverse fashion market share is projected to reach USD 6.61 billion in 2026, with a CAGR of 36.47%, thus propelling the market's growth momentum significantly.

Metaverse fashion is still closely intertwined with the "gaming" sector and the market is driven by the increasing popularity of games such as Roblox and The Sandbox, as well as the rising popularity of virtual influencers such as Lil Miquela and Shudu. Moreover, the expansion of online fashion retailers such as Nike, Gucci and Bobby Hundreds into the metaverse space has further driven awareness and uptake.

Even though many current experiments in the metaverse are mainly promotional endeavours, in the coming years, as the metaverse grows in popularity, pioneering large fashion brands could expect to make up to 5% of their revenue from activities in the metaverse, according to a report by McKinsey & Company.

According to a survey by Obsess, over four in ten Gen Zers believe companies should sell their products and services in the metaverse as it provides a convenient way to purchase both digital items, like NFTs, and physical products.

According to a survey by Roblox, one in five Gen Z gamers are changing their avatar's clothes on a daily basis or even several times a day. Furthermore, for 2 out of 5 people, expressing themselves through clothing and accessories in the digital world has become more important than expressing themselves in the physical world. According to their survey, 31% of those who buy digital fashion usually spend up to $5 per month and an additional 30% spend up to $10-$20 per month. Around 12% spend $50-$100 monthly and over one-fourth have spent anywhere from $20 to over $100 on a single virtual item.

Market Drivers

The current numbers suggest a healthy market with significant upside potential. 59% of consumers McKinsey surveyed are excited about transitioning their everyday activities to the metaverse and 30% of consumers are excited about apparel, fashion, and luxury brands entering the metaverse.

This indicates a demand surplus and therefore high likelihood of rapid market expansion driven by several factors in the metaverse space.

The key factors driving the growth of the metaverse fashion market include:

  • Advances in technology. Novel technologies have enabled designers to create metaverse apparel more easily than ever, with 3D design software, augmented reality, blockchain, and other innovations offering them more flexibility and creativity.

  • Brand adoption. The increasing number of fashion brands entering the metaverse has a direct impact on the growth of the market. By offering metaverse clothes, accessories, and experiences, these brands reached a wider audience and help create a vibrant metaverse fashion ecosystem.

  • Quality of experiences. There has been a growing demand for 3D designs, online gaming and virtual spaces that offer immersive user experiences. High-quality experiences that attract a large number of users will create a social environment that fosters the need for self-expression.

  • Streaming and social media. The rising popularity of influencers and streaming platforms such as Twitch and YouTube have enabled fashion to become more accessible to the public. Streamers and content creators have been able to showcase their own styles, encourage others to experiment with fashion in the metaverse, and engage with fashion-focused communities. As their followers have grown, their influence in the metaverse fashion industry has increased.

Key Challenges

While metaverse technologies can open up myriad opportunities in the fashion industry, they also come with a range of potential challenges for market growth and risks for companies entering the space. Industry leaders must apply a customer-centric mindset and focus on careful planning and preparation to meet these challenges and successfully navigate the turbulent waters of today’s early-stage metaverse fashion industry.

  • Interoperability. The lack of interoperability of avatars or individual fashion items between different platforms hinders adoption. Allowing transitions from one experience to another requires immense manual effort until standard protocols are established.

  • Privacy and security concerns. Examples of these risks have already been seen in other existing technologies including unauthorized data acquisition such as body language, heart rate and facial expression to infringe upon users' right to privacy

  • User experience. The entry barriers posed to consumers by having to understand digital wallets to purchase NFT fashion for blockchain-based fashion are still high and require a high level of technical acumen. Once the user experience becomes more seamless and intuitive, accelerated market growth is expected.

  • Consumer awareness. While a sizeable market already exists, to deliver on the promise of exponential market growth, consumers need to be made aware of the metaverse. Based on the diffusion of innovations theory, with advancements in user experience and more robust use cases, the mass market will get access to this new space.

  • Business risks. Given that the industry is still in its infancy and that Metaverse Fashion is highly interlinked with blockchain technology, there is significant uncertainty about the impact on the business based on a lack of regulatory certainty and unchartered territory in terms of customer engagement.

  • Missing know-how and expertise. Talent with a deep understanding of the market and experience in the space through practical experience with planning or delivering Metaverse Fashion projects is scarce. However, with more companies entering the space and experimenting, the supply of talent will increase and become accessible to a more extensive range of fashion businesses.

Ecosystem Landscape

The concept of the metaverse continues to expand and evolve around a wide range of activities, from gaming and working to socializing and shopping.

This section will showcase the Metaverse Fashion Ecosystem Landscape and its components, including media, metaverse fashion use cases, creators, metaverse user interface, and technology. We will look at how these elements are essential for users to explore, shop, and express themselves in the metaverse.

The metaverse landscape is complex and ever-evolving. Therefore, we are not claiming completeness, and while we are aware that the metaverse landscape consists of many more segments, we have been focusing mainly on fashion-related components, knowing that some industry players are active in more than one segment.

Metaverse Identity

Thanks to their virtual nature, fashion items can carry additional information about interests and causes that a person cares about, which allows for an extra layer of self-expression to connect with like-minded people.

Avatars are creating opportunities for this new type of self-expression and community building, as users can tailor their avatars to reflect their personalities and preferences.


  • Metahuman is an AI-driven platform for creating digital human characters with lifelike facial animations and realistic body movement, allowing users to create high-quality 3D content quickly and efficiently.

  • Ready Player Me is a cross-game avatar platform for the Metaverse.

  • Genies is a tool to create avatars, fashion and collectibles.

  • Tafi is a solution for developers to create, monetize, and manage 3D avatars across a variety of platforms with access to an artistic community.

  • Union Avatars provides a platform to create lifelike avatars that can be used in marketing, product development, and customer engagement.

Metaverse Fashion Use Cases

Beyond simply customizing virtual avatars, fashion also has practical uses within the metaverse such as Metaverse fashion marketplaces, fashion events, virtual try-on, fashion showrooms, fashion NFT projects and many more. Fashion elements can create a sense of community within experiences, as well as provide a platform for users to explore and experience new things.

Through fashion that can elevate self-express beyond physical limitations, users can connect with one another and discover new communities within the metaverse. At the same time, these communities open up opportunities for businesses to be creative, reach new audiences and create brand loyalty.

Fashion Marketplaces

  • UNXD is a curated marketplace for high-end fashion.

  • DressX is a digital fashion start-up that offers garments from more than 100 designers and over 1,000 curated items.

  • Replicant is a digital fashion marketplace for designers to showcase their metaverse fashion

  • The Fabricant is a marketplace and fashion house that creates virtual luxury fashion clothing and accessories.

  • XR Couture is a digital wearables platform for web2 and web3.

NFT projects

  • 10KTF is an NFT community event platform and NFT shop, where owners of exclusive NFT collections can mint 1:1 digital gear featuring their avatar.

  • RTFKT designs exclusive sneakers and digital items using game engines, non-fungible tokens, blockchain verification, and augmented reality technologies.

  • Deadfellaz is a 10K PFP NFT project with a zombie and pop culture theme.

  • Cult & Rain creates phygital NFT collections focused on luxury.

  • World of Women works to promote and support the work of female-identifying artists, providing them with gallery spaces, marketing materials and interactive platforms.

Fashion Showrooms

  • Joor is connecting brands, retailers and showrooms to create seamless wholesale processes.

  • Brandlab360 offers a platform designed to render realistic and interactive virtual stores in web browsers.

  • Pixelpool creates high-quality 3D content for e-commerce, fashion and real-estate.

  • Obsess creates virtual stores that offer fast and interactive experiential e-commerce experiences for large retailers.

  • ByondXR creates immersive, interactive and personalised showrooms and ordering systems through augmented and virtual reality products.

  • iStaging allows users to create an interactive virtual showroom for businesses using templates and customisation features.

  • Emperia is a fashion-tech platform that offers virtual store software for buying and selling for retailers and brands.


  • The Sandbox (blockchain) is a community-driven platform where creators can monetize voxel assets and gaming experiences on the blockchain

  • Decentraland (blockchain) is a platform which allows users to create and explore 3D environments using blockchain-based technology.

  • (blockchain) is a world that is connecting brands and fans

  • Roblox (off-chain) is an online game platform and game creation system

  • Zepeto (off-chain) allows users to create and interact as 3D avatars in different public or private chat-based and game-based worlds.

  • Minecraft (off-chain) is a creative and adventurous game where players can build constructions, craft items, and create mechanical devices out of various blocks.

  • Fortnite (off-chain) is a collaborative survival game that allows players to fight to be the last one standing.

  • Second Life (off-chain) is a world for users to create avatars and engage in activities such as communication, exploration, and creation.

  • Spatial (hybrid) is a platform that enables users to create and experience their own virtual avatar and engaging spaces to host events and interact with others in the metaverse.

Virtual try-ons

  • Zero10 Ais an interactive platform that provides design tools to help creators turn their designs into augmented reality, while leveraging feedback from the community.

  • Wearfits utilises Augmented Reality to enable users to easily convert 3D objects into AR experiences on iOS and Android devices.

  • Instagram is a social media platform where users can share photos and videos with their followers and utilise AR functionalities

  • Snapchat Snapchat is a messaging app that allows users to send temporary photos, videos, and text messages as well as to use filters, lenses, and stories.

  • Zakeke offers customisable products in real-time 2D, 3D & AR with various options, such as texts, images, materials, and colours.

  • WANNA is an AR platform and iOS augmented reality application to virtually “try on” fashion.

  • Auglio is an online virtual try-on tool that offers integrations, a product database, and compatibility with major e-commerce platforms.

Virtual Fashion Influencers

Fashion Events

  • Metaverse Fashion Week is an annual virtual fashion show that features digital designs and avatars.

  • Paris Fashion Week is an event held twice yearly where the world's top designers showcase their latest creations.

  • New York Fashion Week is an event commonly regarded as the pinnacle of fashion, where the fashion industry descends to present its newest collections and trends.

  • Metaverse Fashion Summit is a virtual gathering focused on exploring innovation, technology and creativity within the fashion industry.

  • NFT NYC is a summit that celebrates the world of Non-Fungible Tokens (NFTs) and their potential to revolutionise the fashion industry.

Metaverse Technology

At the core of the metaverse ecosystem lies the powerful technology that it is built upon. From 3D modeling software to gaming engines and blockchains, the technology behind the metaverse is vast and complex. In addition, powerful hardware is needed to support the software and create an even more immersive virtual experience.

Gaming Engines</