An important part of the digital identity market: digital fashion

Source:Cabin VC

The popularity of digital fashion (virtual fashion) is accelerating.

Web3 Studios, the Web3 research and analysis platform, has predicted the development scale of the entire digital identity market: by 2030, this field is expected to generate more than $600 billion in revenue.

Web3 Studios divides the digital identity market into five main segments:

  • Native world: store virtual land and goods 
  • Virtual avatar: can promote the realization of digital identity 
  • NFT: community symbol, giving identity a sense of belonging 
  • Infrastructure: address the trust gap of digital identity and ensure security and privacy 
  • Digital fashion: matching personalized environment and clothing selection

Looking back at the market situation opened in 2020, the encryption native real estate, NFT, virtual identity, digital identity infrastructure and other hot spots have emerged frequently. Web3 identity authentication has penetrated into games, brands, social networking and other aspects, of which digital fashion is a charming part.

RTFKT Studios, an early brand in the digital fashion field, is very representative. RTFKT was the first to break the circle of virtual clothing with digital sneakers.

RTFKT launched in January 2020, and then successively launched NFT based virtual wearable sports shoes. The selling point of this kind of virtual fashion products is "design", which provides users with virtual clothing on Snapchat, Instagram and other social platforms to show their individuality.

These virtual costumes are mostly displayed in game forms, photos, AR scenes and other ways to meet people's needs and preferences for their own "virtual image".

The main development and marketing means of RTFKT is to co create with leading designers, artists or IPs in various industries, maintain a certain frequency of cooperation, and provide some physical products supporting virtual fashion shoes.

In April 2021, RTFKT obtained a financing of $8 million led by a16z and was acquired by global sports brand giant Nike in December of the same year. 

The head of this virtual fashion brand has gone through the development process from behind the scenes design and brand building, to "virtual shoes online red", NFT builders, and then to Nike meta universe brand in two years.

RTFKT has grasped the growth period of NFT sector in 2021. The company's annual revenue will reach about 600000 dollars in 2020, and the revenue scale will exceed 10 million dollars in 2021. Its popularity continues to ferment both in the encryption field and in the real world.

Digital fashion, represented by sports shoes, advocates the Web3 personal economic concept, aiming to break the existing hierarchical concept in the field of fashion design, hoping to give creators more freedom and rights, and reflect the value and creativity of a new generation of digital art.

With the increase in the number of digital fashion brands, the influence of "RTFKTs" is expanding, and their popularity and audience are not limited to the pure encryption native field.

Another platform to pay attention to is the Little Red Book App, known as "China Instagram".

In April 2022, Xiaohongshu, a domestic social platform, launched the first two-week online fashion week, in which virtual fashion became one of the most brilliant sectors.

This kind of digital fashion products provide users with new concepts of virtual clothing that can be used for social display. The production links mainly include character modeling, clothing export, clothing upper body, optimization, post synthesis, etc. The production costs mainly lie in time and design costs.

Although the time point of the outbreak is not yet clear, according to the traffic outbreak trend of Little Red Book on the virtual fashion brand, the consumption atmosphere of virtual fashion is high. At present, Xiaohongshu has more than 7000 notes on virtual clothing and more than 100 pieces of goods on sale.

These clothing suppliers are mostly small studios and designers. Considering that fashion brands and luxury brands have not yet come to an end, the demand for landing scenes in the early virtual human market has increased, and the virtual fashion market of this platform still has a high expansion space.

According to public data, Little Red Book has more than 200 million daily active users, which may become an important driver for the adoption of digital fashion.

With the increasingly blurred boundary between digital identity and the "real world" and the growing demand for virtual social networking, the market potential of digital fashion cannot be underestimated. According to McKinsey data, the global expenditure on virtual fashion goods will exceed 30 billion dollars in 2021, accounting for 2% of the global fashion market.

The main participants of current digital fashion are: 

  • Digital fashion infrastructure (trading market, exhibition hall, creator tools, etc.) 
  • Web3 encryption native digital fashion brand 
  • Entity brand NFT digital fashion

In addition to RTFKT and other leading brands, the following brands can be focused on in this track: 


Tribute Brand


Tribute Brand, founded in April 2020, is a digital fashion brand directly facing consumers and a popular virtual fashion brand on Instagram. Its design philosophy is "no freight, no waste, no gender, no size". Tribute Brand has cooperated with Adidas, PUMA and other big brands.

In April 2022, TRIBUTE BRAND won a financing of 14 million dollars in the first round of financing.


DRAUP


Located on the digital fashion platform, DRAUP mainly creates three functional components: virtual fashion curation, virtual wardrobe, trading and resale.

In July 2022, DRAUP, a digital fashion platform, will complete a pre seed round of financing of $1.5 million, led by Variant Fund.


DressX


DressX is a digital fashion start-up platform, which cooperates with Coca Cola, Meta and other brands to launch virtual clothing. DressX's digital clothing can be purchased and worn on platforms including Messenger, Facebook, Instagram and VR device Quest.


Sknups


Sknups is a digital fashion collection platform headquartered in London.

In June 2022, Sknups completed a pre seed round of financing of 3.5 million US dollars and announced that it would cooperate with Dolce& Gabbana establishes a partnership.


MetaDrip


MetaDrip is a Japanese NFT digital fashion product, which provides users with try on through mobile smart applications and AR technology, including NFT generated by 3DCG (3D computer graphics).


IODF (Institute of Digital Fashion)


The Institute of Digital Fashion (IODF) provides digital fashion related services. The platform emphasizes the sustainability of digital design for the environment and the economic sustainability of digital fashion. The founder of IODF once launched NFT geometric print sculpture dress, which can be tried on by AR through Instagram.