Can Gen Z Save the Metaverse?
Gen Z is the fastest-growing demographic on Roblox spending money on digital fashion. Does this signal an opportunity for fashion brands to monetize in the metaverse?
Photo Source: Roblox via Vogue Business
Although there is plenty of skepticism surrounding the metaverse, there’s one realm where virtual reality is succeeding: fashion. Gen Z is increasingly using the metaverse to develop and experiment with their personal styles, which sends a message that fashion brands shouldn’t be too quick to sign off the metaverse.
According to Vogue Business, people between the ages of 17 and 24 are the fastest-growing demographic on Roblox, and within the first nine months of 2023, Roblox saw 165 billion avatar updates and $1.65 billion spent on digital fashion items.
Why is Gen Z so fixated on updating their avatars in the metaverse?
Let’s take a look at the stats released by Roblox based on a survey of 1,000 Gen Z consumers active on the platform.
Gen Z believes that dressing their avatars helps them feel more connected to others, both in the physical and digital worlds, with 47 percent dressing to express their individuality and 43 percent dressing to feel good about themselves.
About 50 percent of survey respondents are changing their avatar’s outfit weekly, and about two in five respondents believe self-expression in the metaverse is more important than in the physical world.
Looking back at 2022, over 11.5 million users designed more than 62 million clothing and accessory items on Roblox. Additionally, 70 percent of Gen Z dress their avatar similar to their in-real-life self and 75 percent plan to spend money on digital fashion. This leaves plenty of room for creativity and a window of opportunity for fashion brands to market themselves to Gen Z consumers in the metaverse.
How can fashion brands serve a Gen Z market in the metaverse?
The fashion industry within the metaverse has rapidly evolved into a monetized space, driven by Gen Z consumers utilizing the platform to experiment with their digital appearances and actively investing money into dressing their avatars. As the number of Gen Z users active in the metaverse increases, their likelihood to socialize and express themselves on the platform will increase as well.
The next step for fashion brands entails the development of digital merchandise, such as clothing and accessories, tailored to appeal to Gen Z and other consumer demographics. This initiative will not only drive sales in from the virtual world, as consumers are willing to spend real money on digital products, but it can translate sales to the physical world. According to the Roblox report, 84 percent of Gen Z consumers say they are likely to try a brand in the physical world after wearing or trying on a brand’s item virtually.
Source: Vogue Business
Roblox's latest discoveries are shedding light on the possibilities for fashion in the metaverse, and yes, it transcends metaverse fashion week. It's clear that Gen Z is shaping the future, and their enthusiasm for metaverse fashion is a sign that brands shouldn't ignore. Do we think the metaverse as a whole is on the rise? No, but we're excited to see how specific industries, like fashion, can carve out ways to thrive and monetize in the digital realm.
Best,
Ariana for the Don’t Count Us Out Yet Team