• A challenge the fashion retail industry is facing are returns. Costing businesses billions of pounds a year, analysts estimate. But they present a sustainability problem as well as a financial one.

• "The British Fashion Council’s Institute of Positive Fashion Solving Fashion’s Product Returns report, published in March 2023, found that 3% of UK returns are not resold. Of this, 50% are sent to landfill, 25% to incineration and 25% are recycled."

• Around 336,000 tonnes of clothing are thrown away in household waste in the UK every year, according to sustainability campaign group WRAP.

• WRAP’s Textiles Market Situation Report 2019 showed that, of the used textiles collected in the UK, 60% are exported for reuse in other markets. In Ghana, 15 million used garments arrive every week.

Brands are increasingly experimenting with innovative technologies and new platforms to connect with the next generations.

Key areas of focus include:

• Leveraging gaming platforms to engage with fashion consumers.

• Creating and promoting 3D virtual garments that can be worn in digital environments.

• Utilising virtual avatars and models to represent brands and influence fashion trends.

  
  

“Digital fashion is part of a cross-section of disciplines in the digital world, which includes gaming and crypto art. Our digital-only couture creations will never physically exist, waste nothing but data and exploit nothing but imagination." By the Fabricant

Insights reveal that video games offer fashion brands a new way to keep shoppers engaged. Digital allows fashion to “return to the heart of what it was always meant to be: a playful way to explore and express identity and individuality.”

• In December 2020, Balenciaga Afterworld launched its fall/winter 2021 collection in the form of a bespoke video game. In the launch of the video game in 48 hours the searches on Last increased to 41%. Month-on-month searches spiked to 76%.

• Burberry B Surf Monogram collection generated 12% more searches on Lyst and received 16k mentions across social media. While Google searches increased.

  
  

The future of fashion shoppers are primarily Gen Z and Millennial consumers, having grown up in the digital era.

The consumers:

The environmentalist:

• On Lyst, there was an 84% rise in searches with sustainability-related keywords since January 2021, indicating a growing consumer focus on eco-friendly fashion. Younger generations are drawn to virtual goods partly due to their sustainability benefits. Digital fashion lacks the traditional physical processes like manufacturing, packaging, and delivery, thus minimizing environmental impact.

Digital fashion allows the industry to innovate in ways that align with the eco-conscious values of modern consumers, suggesting a future where the sector can operate sustainably and meet consumer demands for ethical practices.

With a projected value of $1.55 billion by 2020, digital clothing is clearly going to fundamentally change the world of fashion. The pandemic has slowed down the traditional fashion industry, which has aided in the development of virtual models and digital clothing. A great number of experts believe that the fashion business will go towards digital clothing in the future.

• Fashion experts predict that 15% of our wardrobe will be in digital form in the future.

• Global AR and VR market to reach 30 Billion US dollars by 2027.

  
  

Beginnings of virtual fashion:

The Scandinavian retailer Carlings created the first virtual apparel line in 2018. The designers updated the 19 virtual clothing pieces on the customers' images, and they quickly sold out. Later, the company produced the first AR graphic T-shirt. This fashion quickly gained popularity, inspiring several manufacturers to create digital apparel.

Advantages of digital clothing:

Improved shopping experience, eco-friendly production, versatile apparel, and efficiency.

Notes:

• Launched mid-pandemic. They identified many pain points in the industry and built solutions based on sustainability, diversity and inclusion. "looking at how digital fashion can be more than a quick fix".

• "People are kind of scared of tech in that way because they feel that it's replacing the physical but what we believe in weaving the two together and the importance of the narratives."

• "These digital solutions mean that for a designer you don't have to sample shoot on the models you you literally can have it all a kind of a touch point."

• "The point is none of these samples have to be physically made and then you're looking at a much more sustainable production. You can have all of these solutions without having to create any production which means zero waste."

• "Feeding more transparency and educating the consumer."

Objective 2: To identify the environmental impact of digital fashion.

Objective 3: Exploring the role of digital fashion in promoting sustainability.

Forbes: 5 Ways Consumer Behaviour Is Changing With Gen-Zs (Bouet, 2024)

This demographic is the first generation to be immersed in digital environments. Gen Z’s shopping behaviour is influenced by social media platforms. With 60% of Gen Z consumers engaging on Instagram to explore more brands and products.

Social media is an essential platform for brands to retain customers and build loyalty to create authentic connections.

With an increased demand for brands to align with their values and commitment to sustainability. More Gen Z consumers are seeking personalised experiences and tailored recommendations that cater to their interests.

Website article: Gen Z & Social Media: Exploring the Digital Landscape of Generation Z (Appinio, 2023)

Social media has grown in popularity amongst the Gen Z consumer and has become an integral part. YouTube, Instagram and TikTok and amongst the most popular social media platforms Gen Z consumers communicate and interact with content. Offering them with informative and inspirational content.

Influencers have a profound effect on consumers. 62% have been influenced to try out a product that has been influenced by an influencer.

Trends and predictions:

Increased demand for authenticity and transparency within content. Shift in preferences to align with Gen Z’s evolving needs.

DressX believes that the use of technology within fashion can be a solution to producing less clothing and solves many problems that the industry is facing towards the fashion environmental impacts over the years. Digital fashion opens up possibilities to make it more accessible and affordable for people of a diverse background and opens up opportunities for self-expression. The creation of digital fashion is quicker to produce than traditional clothing. (DRESSX, 2023)

Academic Paper: Exploring Virtual Fashion Consumption through the Emotional Three-Level Theory: Reflections on Sustainable and Consumer Behavior (Deng, Shen and Ji, 2024)

The academic paper discusses consumer behaviour in digital fashion and emphasises the potential of virtual clothes in promoting sustainable development in the fashion industry. (Deng, Shen and Ji, 2024) The paper also analyses the emotional three-level theory as a conceptual framework to analyse consumer’s emotional responses to products. Virtual fashion clothes offer advantages over traditional garments regarding the rapid manufacturing within the supply chain. Therefore the use of AR and virtual reality allows designers to customise products to meet the demands of consumers without the implications of the environmental impacts. (Deng, Shen and Ji, 2024)

The paper discusses that the fashion industry will be moving towards a sustainable route with the progression of digitalisation and the social and environmental concerns around the current fashion market. Focusing on the primary issues and how the metaverse technology is tackling sustainability. By 2026, the global fashion industry is anticipated to reach 2 trillion dollars. (Smith 2022) 85% of textiles are estimated to be discarded in landfills annually.(Algayerova 2018). As reported by a study, there is a global overproduction rate of 27% in the fashion industry. (Rauturier 2022). Within fashion, the combination of AR, virtual reality and the metaverse has the potential to foster innovation towards sustainability. The concept of digital fashion has implemented traceability within the supply chain and it reduces the waste of overproduction of raw materials. Also, reducing the reductions of transportation costs and dismissing the guilt-free shopping of purchasing a product. (Sadamali Jayawardena et al. 2023) The pandemic prompted a shift in fashion designer’s attitudes and practices who now value the Gen Z target audience which is at the forefront of the digitalisation era.

Book: Step into the Metaverse: How the Immersive Internet Will Unlock a Trillion-Dollar Social Economy. Mark Van Rijmenam (2022).

The section highlights the adoption of VR and AR technologies by fashion retailers to enhance customer experiences through virtual runway shows, virtual product displays, and virtual try-on capabilities that allow customers to change colours and sizes of garments without physically trying them on. Luxury brands like Gucci and Balenciaga are embracing these technologies, recognising their sustainability benefits due to a smaller pollution footprint and reduced use of physical resources. In the metaverse, digital fashion designers face fewer barriers than traditional designers, as they are not limited by physical fabric availability.

• A McKinsey & Co analysis shows that AI and digital solutions have cut fashion industry time to market by 50% and reduced manufacturing costs by 20%.

• “On average, traditional sampling can take several weeks, especially if buyers expect to see a sample in the right fabric with an accurately colour-coded trim pack,” he says. By contrast, 3D sampling can be turned around within 24 hours".

• Web3 and AI are being leveraged to create one-off garments, reducing waste by allowing consumers to try digital versions before production.

Secondly, after researching the topic I found that the role of digital fashion can potentially address issues of overconsumption and environmental impacts the fashion industry faces. Gaining an understanding of how digital fashion can notably reduce emissions and minimise waste. Digital Fashion is not only a trend in the industry but can solve a solution to the fashion industry's challenges.

Lastly, another aspect I learned about is the influence of Gen Z behaviour on digital fashion. There is a strong demand for sustainability, self-expression, and innovative technology that is driving the growth of virtual garments.

Overall, this project has broadened my knowledge and understanding of digital fashion and technology.

• Fashion brands are increasingly embracing digital assets and responding to consumer needs.

• Digital identity is an important aspect of the global virtual fashion world. 54% of consumers in the US said that the concept of digital identity is very important. Through the use of digital fashion, it will help consumers create and communicate their digital identities.

• From Burberry to Jimmy Choo creating NFT products. Luxury brands are staying relevant in the digital fashion landscape.

• Nearly half of Gen Z members have purchased digital clothing or accessories for their avatars in virtual spaces like Roblox. This demonstrates a significant shift in how fashion is consumed, with digital wardrobes becoming as important as physical ones for self-expression​.

• 50% of Gen-Z consumers look for digital fashion brands and designers to offer new and different clothes they can experiment with, which they wouldn’t otherwise try in real life.

• The article suggests that digital fashion in the metaverse is reshaping consumer behaviour and brand engagement, offering new ways for brands to connect with younger audiences who are increasingly embracing digital experiences.

Grant highlights how digital fashion enables people to express themselves freely and authentically in virtual environments, disrupting traditional ideas about garment ownership and consumption. She thinks that digital fashion is a more environmentally friendly alternative to physical garment manufacture and waste.

• Digital versions of physical products are making their way into our lives through gaming, social media and shopping. It's a new concept in the virtual goods industry, but in the last 5 years, it has explored digital-first brands like the fabricant creating digital clothes.

• Luxury brands like Louis Vuitton, Gucci and Balenciaga have leveraged this market. bringing together gaming and luxury together.

• "Digital fashion is characterised by infinite creativity."

• "Digital fashion could also make us more sustainable. 150 billion garments are manufactured every year, with many of them unsold."

• E-commerce return rates in fashion are high contributing to 40 - 60%. Brands like John Lewis have utilised AI and they have been adopting the " try-before-you-buy " concept and found that over 80 consumers have been trying on items every time they shop.