According to Deloitte, the metaverse fashion industry could be worth as much as $55 billion by 2030. This rapid growth will be led by new technologies that aim to push the boundaries of what we currently know about fashion.
The current fashion landscape is evolving, and it is poised to completely change how, when, and why we shop, thanks to innovations like digital fitting rooms, in-store virtual assistants, and the ever-growing popularity of the metaverse.
1. Virtual try-on
In the same way that brands like IKEA and Amazon have introduced augmented reality "try-ons" for home items. Brands are now turning to AI to offer customers virtual try-on services. This not only makes the at-home shopping process easier for the customer, but it also promotes mindful consumption and sustainability, too.
In 2022, 26% of all online clothing purchases in the U.S. were returned due to reasons like wrong size, color, or fit. Not only does this cost retailers roughly 66% of the original item price, but this amount of product returns also generates nearly 4.7 million metric tons of CO2 annually-a huge, and unfortunately negative, environmental impact.
Brands are using AI to generate custom 3D avatars based on 2D photos, which can then be used to generate custom fit and sizing recommendations. The algorithm calculates over 86 measurement points when creating the avatar, helping brands like 1822 denim reduce returns by 30% and Burlington Medical accurately measure its customers 7.5 times faster.
2. "Phygital" blockchain tracking
The blending of physical and digital (dubbed "phygital") is in its early stages now, but it will likely be a vital component of the fashion landscape in the near future. In the reality of the metaverse, brands can design, manufacture and sell fashion in brand-new ways, which means that consumers can explore style and fashion in ways they never have before, including having a “phygital” wardrobe that consists of both a physical item and its digital twin within the virtual worlds.
Phygital innovations include everything from using 3D body scans of real people to authentic metaverse humans to utilizing the blockchain to track the journey of an article of clothing by embedding an encrypted physical NFC tag, allowing buyers to see the item’s entire history with just their smartphone.
One example of phygital fashion is the use of NFC tags to track the transparency of sourcing materials, and creation of garments via the blockchain. Fashion designers like Martina Spetlova do this not only to tell the story behind each piece but also to create a conversation around sustainability and ethics in fashion.
Phygital tags are also a valuable asset for verification of the authenticity of designer or luxury fashion pieces. Counterfeiting has become a major problem in the fashion industry. According to various sources, anywhere from 10 to 20 percent of fashion products on the market today are likely to be fakes.
On top of that, the global counterfeit goods market is estimated to be worth $600 billion annually, which hurts consumers and retailers around the world. Allowing consumers to track an item's "life" through the blockchain helps curb counterfeiting and assures authenticity.
3. Fashionable tech wearables
Tech wearables aren't new, but fashionable ones that consumers want to wear every day are a relatively new idea. New fashion-tech hybrid collaborations are becoming more popular than ever and expanding beyond the well-known fitness trackers.
For example, Levi's and Google teamed up to create a stylish, highly functional jacket, dubbed "Project Jacquard," for urban cyclists. The conductive technology needed to sync with a cyclist's smart device is undetectably woven into the fabric of the jacket, allowing users to control music, incoming calls, and navigation seamlessly while riding.
Other companies like NADI X have created yoga pants with built-in digital sensors to help wearers correct their form and posture as they move through yoga poses. The sensors vibrate gently to help users perfect their poses while also offering step-by-step guidance and audio via a connected app.
4. Circular fashion
The digital revolution has become a platform for champions of a circular economy to create new, innovative ways to help fashion lovers enjoy shopping more sustainably.
Marketplaces like The Real Real allow users to buy and sell "pre-loved" luxury items like clothing, shoes, makeup, accessories, and more, while extensions like Faircado aggregate secondhand alternatives to items users are searching for online, helping lower consumption and spending. Additionally, some brands are opting to establish resale markets on their own, such as Oscar de la Renta’s Encore or H&M’s Rewear.
Other apps like Storey help users "shop their stash." Storey claims that people don't wear at least half of their wardrobe, so the app aims to alleviate this by allowing users to create a "digital wardrobe" of their clothing for more visibility. It also has an "outfit recommender" that uses AI to create inspiration based on what's in your closet.
The Fashion Landscape is Shifting, and Digital Trends are Taking Over
The fashion industry has always been a creative, cutting-edge market full of free thinkers and innovators, so it's no surprise that it is embracing the digital revolution. From NFT wardrobes in the metaverse and blockchain tracking to augmented reality shopping experiences and digitally enhanced physical clothing, we are sure to see an even more significant and more exciting transformation happen in fashion over the next few years.