Not long ago, fashion's foray into the metaverse was all hype. NFT sneakers sold for millions and brands scrambled to drop digital wearables and runway shows. But fast-forward to today and the conversation has shifted.
The marketing value of virtual fashion is proven. The global fashion metaverse market (valued around $7 billion in 2023) is projected to soar to nearly $90 billion by 2032, suggesting this is more than a passing fad.
Yet, brands are now urged to separate the hype from long-term opportunities
In other words, there is a new phase for fashion's metaverse efforts, perhaps, more focused on strategy and tangible applications rather than superficial features.
For industry stakeholders, particularly those in sourcing, materials, and textile development, staying current with these digital innovations is becoming essential to remain competitive in an increasingly tech-driven industry.
Why? Because the convergence of virtual and physical worlds is also revolutionizing how materials are conceptualized, tested, and brought to market, creating new possibilites and opportunities.
This evolution is well-documented in a recent Business of Fashion report collaboration with The Metaverse Society, which distilled five key themes defining the fashion industry's future in virtual spaces.
In this article, we'll explore these insights and connect the dots between virtual innovations and the very real decisions being made about textiles, materials, and sourcing networks behind the scenes. Keep reading.
Key Trends Defining Fashion's Metaverse Future (BoF Highlights)
Phygital Products & Tokenization
Image sourced from: The Rise of Smart Clothing in the Apparel Industry: How Technology is Redefining Fashion and
The line between physical and digital products is blurred.
Brands are more and more creating phygital items: physical fashion pieces with digital twins authenticated via blockchain. Sportswear labels have led the charge in these hybrid products, tapping into fans' desire to collect both the real and the virtual.
Some examples are:
- Collectible Jerseys: Real jerseys can come with corresponding digital tokens, enabling owners to showcase and exchange both the tangible garment and its virtual counterpart in digital environments.
- Interactive AR Clothing: Picture a sports garment that uses augmented reality, when you point your smartphone at it, the clothing comes alive with motion effects and virtual designs that overlay the physical item, creating a blend of real and digital fashion.
- Smart Apparel: Smart sports clothing with chips or linked to devices (like Apple Watch) can keep tabs on how you work out, check your body stats, and hook up with apps that give you custom exercise routines, tips, and even turn fitness into fun games.
Web3 Loyalty & Communities
Beyond products, brands are exploring Web3 technologies to deepen customer loyalty and community engagement.
Loyalty programs are being reimagined with tokens and NFTs that give customers tradeable rewards and VIP access.
Blockchain-based loyalty initiatives could let shoppers truly own their rewards (for example, tokens that unlock discounts or exclusive drops), fostering a brand framework where the community itself has stake and input. Hand-in-hand with loyalty is the push for vibrant brand communities.
Digital collectibles and member-only content are also becoming tools to rally fans in online spaces. Luxury houseshas been experimenting this area for a while now: Prada's "PradaCrypted" initiative and Louis Vuitton's exclusive NFT-backed “Treasure Trunks” offer devoted customers special content or products that can't be accessed elsewhere.
In short, Web3 is helping fashion labels turn audiences into engaged communities, united by shared digital experiences and rewards.
Immersive Experiences
"Le Bal de Paris" - Chanel's multi-sensorial VR theatrical experience created by choreographer Blanca Li. (Image: Vogue)
Another pillar of fashion's metaverse strategy is building immersive experiences in virtual worlds.
Roughly 60% of gamers have already used metaverse platforms for non-gaming activities like shopping or socialising, and fashion brands see this as an opportunity. The industry's experiments range from virtual stores to fully interactive events.
Chanel, for example, designed digital couture for a VR fashion event where attendees wore VR headsets and body trackers to experience a virtual Parisian ball,. The famous ‘Le Bal de Paris’.
Gucci built a "Meta-Mansion" in Roblox, inviting fans to explore fantastical virtual spaces linked to its brand.
Inside Gucci and Roblox's new virtual world | Image: Vogue Business
These examples show how fashion brands are strategically entering digital pspaces where they know their audiences already spend time, creating immersive branded spaces that extend beyond real life.
The train-of-thought is: if our community spends time in gaming worlds, why not meet them there with campaigns that feel natural to that virtual reality?
At the core, it’s all about branding, strategy, and truly knowing the audience. And the immersive angle isn't just about wow-factor; it's a new form of storytelling as well.
By integrating AR/VR and even new devices like Apple's Vision Pro into their strategies, brands aim to offer highly personalized, blended experiences, where virtual try-ons, digital fashion shows, and real-life collections all connect.
The endgame is a seamless journey where you might discover a design in a game, experience it in AR, and then buy the physical version, all with a consistent brand narrative.
AI & Personalisation
Image sourced from: Beauty & Fashion Trends With Generative AI
Finally, tying all these metaverse trends together is the powerful influence of artificial intelligence in fashion. AI is today the connective tissue that makes the metaverse vision truly functional, enabling possibilities like personalization and streamlining design processes across digital and physical realms.
And consumer expectations are driving this integration. More than 70% of shoppers now expect personalized brand interactions and express disappointment when those expectations aren't met, making AI adoption not just innovative but necessary for brands wanting to stay relevant in the metaverse landscape.
But as we know, this widespread adoption of AI isn't todays news. BoF reported that, two years ago, in 2023, 92% of fashion companies were already using AI to personalize some part of the customer experience.
A prime example is Zegna's 2023 launch of Zegna X, an AI-powered personal stylist that suggests billions of outfit combinations for clients both in-store and online.
This innovation has since inspired countless imitators across the industry.
And what was innovative then has become industry standard today, with AI styling systems now deployed by brands across price points.
“AI could go anywhere with my design and come up with something new.”
Designer Norma Kamali recently stated this in a CNN article.
In the piece, she spoke about the influence of AI in her work today, saying that an AI program has even categorized her archive, using tagged descriptions based on silhouettes, necklines and other design elements.
Plus, she shares AI has helped her explore different and new ways for designing a piece, enhancing the creative process and thinking. "I still sketch, I still make patterns, I still use real-life models. All of that is part of the process. But I can't imagine not enjoying this new opportunity," she said.
Image: CNN | “NK X AI dresses are shown far left and second from right. Norma Kamali”
The big picture: Today's AI systems go beyond suggesting outfits, they predict trends, optimize production, and create hyper-personalized design processes and experiences.
This sophisticated personalization has transformed the metaverse from a marketing novelty into an indispensable extension of the modern design journey, with AI ensuring each consumer's digital fashion experience feels uniquely their own.
The Opportunities Unfolding for Textile Development and Sourcing
What do these metaverse trends mean for the very tangible world of fabrics, yarns, and sourcing?
While all this talk of digital fashion may sound abstract, it's sparking real changes in how materials are developed and chosen.
In fact, many of the same technologies enabling virtual garments are starting to appear in the supply chain for physical products.
Below are some emerging opportunities that could reshape textile development and sourcing for small and emerging brands:
Rapid Material Iteration
Designers and mills can now experiment digitally with textiles at an unprecedented speed.
Using 3D material simulation software, a designer can swap in different fabric weaves or fiber blends on a virtual garment with a few clicks, instantly seeing the results.
This shrinks the iteration cycle from what used to be weeks (waiting for mills to make sample yardage) to mere hours.
The ability to rapidly test ideas means a brand can try out ten fabric ideas in a day, then only physically sample the one or two that look most promising in digital form. For resource-strapped indie labels, this agility is game-changing.
Experimentation Without Waste
Virtual prototyping doesn't just save time. It saves real materials. Digital samples require no actual fabric, water, or chemicals, so every iteration you do on screen is one less physical sample potentially headed to the landfill.
According to Textile World, producing a digital garment can cut carbon emissions by 97% compared to a physical sample.
And consider that traditionally, about 40% of physical samples never even make it into final production (they end up as discarded waste).
Switching much of that trial-and-error to a digital environment could significantly reduce waste. In short, designers get to fail faster and more sustainably.
Trying bold new material ideas without the guilt of wasted inventory. Fewer packages of sample yardage and fewer rejected samples mean a lighter environmental footprint and lower costs.
Simulated Performance Testing:
New software tools can now show how digital versions of fabrics will behave in real-world situations.
Stretch, drape, stiffness, opacity…These can be modeled with surprising precision by inputting the fabric’s physical properties into a simulation.
Imagine being able to test if a new recycled polyester weave will breathe in hot weather, or how much strain a particular denim can take, all through software.
While not a perfect replacement for real lab testing, these virtual stress-tests give useful insights early in development.
A designer could discover that a 3D-rendered coat in a certain wool blend looks great but appears too stiff when simulated, prompting a tweak to the fiber mix before any yarn is spun.
As more mills and material labs share data, brands will gain a virtual testing ground to complement physical sampling. The result? Better-informed sourcing decisions and fewer surprises when the rolls of fabric arrive.
World Collective: Linking the Physical and Digital
As the above trends show, the future of fashion will blend the digital and physical like never before.
World Collective’s role is to bridge these worlds for the brands and suppliers. Our Ecosystem was built on the idea that sourcing can be smarter, more transparent, and yes, more immersive.
While the industry experiments with metaverse concepts, we’re focused on grounding those ideas into real tools for material sourcing and development.
From our 3D visualization tools (so you can virtually explore fabrics' textures, trims, and more) to our traceability and digital product passport (DPP) initiatives that marry physical materials with digital records, we are continuously developing ways to make the supply chain more connected.
We’re excited about a future where a designer at a small label can design in VR, sample in 3D, source materials from across the globe on one platform, and launch a collection that is both high-tech and deeply sustainable.
It’s not a distant fantasy anymore; it’s unfolding now in pilot projects and creative collaborations. And we’d love for more of you to be a part of it.
At World Collective, we invite our community of brands, suppliers, and innovators to reach out and explore these new frontiers with us.
Whether you’re curious how virtual sampling can trim your development cycles, or you have ideas about integrating blockchain for supply transparency, let’s talk.
The metaverse may feel “out there,” but together we can harness these digital advances to solve very real, down-to-earth challenges in sourcing and production.
After all, the most impactful innovations happen when we connect visionary tech back to the material world, exactly where fashion’s heart beats.
Interested in exploring these ideas further or implementing them in your sourcing process? Follow us on social media (Linkedin and Instagram) to stay up to date with our launches, solutions and activations.
Want to have a one-on-one conversation with us? Contact our team here.
