Digital fashion, or ‘contactless cyber fashion,’ in other words, virtual digital fashion is 3-D clothing designed for humans and digital avatars. The clothing articles are created with 3-D computers without any fabrics or materials and do not exist in a three-dimensional format. Buying digital clothing online, the ease of purchase is as simple as any other online purchases of products and services.
One of the main platforms for digital fashion is online gaming. Nearly 3 billion people around the world play video games, and that figure just keeps growing. The average gamer is 33 years old and upper-middle class, which nicely aligns with many fashion and luxury brands’ target demographic. Players spend an average of seven hours a week on games and collectively spend an estimated €100 billion ($107 billion) on goods in the virtual arena.
Daphnée Prometheus, CEO of a luxury apparel company called Grass (a fictitious company and character), made it a habit to follow fashion trends on the internet. Grass, although founded in 1946 in Paris with a turnover of over €850 million ($855 million), had built its reputation on timeless and elegant pieces of clothing for those who could afford them and opened self-owned boutiques in 20 major cities. Daphnée was concerned about the staying power of the brand to keep it relevant and fresh for the younger generations of potential customers.
Moreover, she felt that the design process would be more creative and boundless, just the rejuvenation she had been looking for her company. In this context, Daphnée was considering whether digital/virtual/contactless fashion would be an opportunity. She was trying to analyze why customers would spend from 30€ ($32) to 1,000€ ($1,100) or much more on clothing that does not exist in the real world, only online.
Why this case
The case addresses questions such as:
• Why are customers paying real money for virtual clothes? What is the value proposition for these customers?
• Is it a good moment for luxury brands to enter the virtual fashion business?
• What are other positive spillover effects for fashion companies like Grass to enter the virtual fashion market?
