CODED IDENTITY

Digital customization fuels self-discovery and confidence

This article contains elements of our Fashion Industry Update, detailing what CODED IDENTITY encompasses, why the trend is relevant now, which brands are driving the movement, and of course, your key takeaway.

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How will you tap into virtual authenticity?

Free of IRL prejudice, virtual worlds allow gen Z to express their individuality (47%) and feel good about themselves (43%) through easy avatar customization and digital fashion tools. The internet has long enabled people to create their own identities, but new tools offer levels of customization and immersion – the only limit is the user's imagination.

Brands that support people to creatively explore their virtual identity in a way that connects seamlessly with the physical world, will thrive in 2024 and beyond.

Why now?

The metaverse hype cycle might have peaked in 2022, but virtual clothing remains a significant growth area. Roblox sold over one billion digital fashion items last year, with some estimating that fashion brands could generate more than 5% of revenues from virtual activities by 2024. With this in mind, various metaverse- focused companies are securing their investments.

In the metaverse, anyone can be a fashion designer or explore their identity free from constraints. From a business perspective, the possibilities are endless: brands like Forever21 and Impetus are already exploring them.

But this trend isn’t about creating the next must-have avatar clothing line – it’s about giving users the chance to experiment and create multiple (fashion) identities. Instead, connect with digital fashion startups, attend digital fashion events and join communities like NFT Paris or PI Apparel. The following innovations are guaranteed to spur you into action, whether you’re a virtual novice or bonafide expert.

Zero10

AR mirrors allow customers to try on outfits and add animated effects

In March 2023, the AR fashion platform Zero10 partnered with Tommy Hilfiger to bring digital fashion to the brand’s physical retail spaces. Using AR mirrors, customers could try on five digital outfits from the Tommy x Shawn Classics Reborn capsule collection, three of which featured animated AR effects. To coincide with the collection launch, the AR mirrors were deployed across three stores in London, Berlin and Milan, while online consumers could try on the collection through the ZERO10 app.

altr

Collaboration brings 10 diverse cultures to the digital realm

At the Metaverse Fashion Week in March 2023, altr, a UK-based digital fashion platform, presented its Digital Meets Culture collection on @decentraland_ foundation, @spatial_io, and @soil.voyage. The collection of 10 looks was made in collaboration with a culturally diverse selection of designers, digital fashion experts, and fashion academics. In April 2023, 2 of the 10 outfits, launched on Ready Player Me with interoperability across over 6,000 games and apps.

adidas

Dynamic NFTs evolve based on holder's decisions

ALTS by adidas is a web3 loyalty scheme launched in April 2023. To mint the ALTS token, consumers have to first own and ‘burn’ the brand’s earlier ‘Into The Metaverse’ token. An interactive virtual storyline then unravels with consumers answering questions about their personal taste and interests. The sports-centric experience culminates in a unique PFP (profile picture) which is accompanied by various utilities or perks – such as exclusive product releases or event tickets. Those with ALTS NFTs also have access to the brand’s web3 ecosystem. All 3,500 ALTS NFTs sold out shortly after the launch

Your key takeaways

Per Zero10, entertaining AR mirror technology increases the number of try-ons and foot traffic by up to 60%. Beyond delighting shoppers, virtual try-ons can also save unnecessary shipping. For brands, AR is a relatively inexpensive entrypoint to virtual fashion – a sensible way to test the digital waters and consumer interest.
Although digital avatars have seen some diversity upgrades, cultural representation in the metaverse is still lacking. Altr’s collection proves that digital creativity can build on cultural heritage. In a globalized world, many find it difficult to connect with their cultural heritage. This collection sees ancient heritage represented and preserved through digital technology. Can you help people from marginalized communities feel seen in virtual spaces?
With NFT sales dropping, adidas recognized that collectibles need something extra: creative and personalized storytelling. The ALTer egos don’t only reflect NFT holders’ identity – they’re linked to the brand’s heritage too. Tokenization is an efficient yet exclusive way to engage and connect loyal fans. Could your brand launch a tokenized loyalty program? And what utilities can you offer?

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