Cofounder at zblocks and at Mergeflo. Globally recognized business builder, thought leader and entrepreneur.
As the fashion industry continues to evolve, the emergence of Web3 and its integration with Web 2.0 technologies is creating a paradigm shift for digital fashion business models. According to a report from Allied Analytics, the global market for digital fashion is expected to grow from $498.7 million in 2021 to $4.8 billion by 2031 at a CAGR of 26.4%. Blockchain and Web3 comprised 33% of this market size and are expected to lead through 2031. Digital fashion is catalyzed by several technologies like 3-D printing, artificial intelligence and augmented and virtual reality, as well as blockchains.
The convergence of these technologies and demographic shifts have laid the foundation for several new business models and opportunities within a large and growing market. Let us examine a few.
The most talked about part of the digital fashion value chain involves the creation of virtual clothing and sales to customers. These clothes are worn in virtual environments, such as online games, social media or augmented reality apps. Customers can create their own avatars or use virtual models to try on clothes and buy digital outfits from online marketplaces. They have been an integral part of virtual events, gaming appearances and crowdsourced designs today.
Digital Fashion Rental
People in the physical world often rent outfits like tuxedos, and the NFT rental standards have created opportunities for renting digital clothing. Consumers can rent and use these for a limited time, and smart contract automation returns them to the owner after use.
Digital Styling And Hyper-Personalization
Artificial intelligence has created hyper-personalization in the design of digital clothing that goes beyond the generic sizes of “medium,” “large” and so on. Consumers have a desire for the