Gen Z’s growing preference for virtual fashion bolsters Roblox’s value to brands

Gen Z-aged Roblox users are showing an outsized and increasing interest in virtual fashion, to the point that physical shopping is now secondary to much of the demographic. New data compiled by Roblox, which also reported third-quarter results this week, reveals how this trend is taking shape. Over half (56%) of Gen Z-aged Roblox users report styling their virtual avatars as more important than styling themselves in the physical world. The preference is up from 42% as reported last year. Not only does virtual fashion appear to be overtaking physical fashion for young Roblox users—Gen Z refers to those born between 1997 and 2012—but the interest is also influencing their style preferences in the real world. Roughly 84% of respondents agree that their physical style is at least somewhat inspired by their avatars’ style, and over half (54%) admit to being extremely inspired. The findings signal a promising verdict for brands that have sought to reach young audiences through virtual wearables. Fashion retailers and brands including Macy’s, Ralph Lauren, Gucci and American Eagle have offered avatar accessories through experiences in the metaverse, as have brands outside the category, such as Vitaminwater and The Metropolitan Museum of Art. For notable retailers, such efforts may be paying off in more ways than one. Exactly half of survey respondents said that after wearing a popular brand’s item virtually, they are extremely likely to do so in real life. And three-quarters of respondents said that wearing virtual fashion from a recognized brand is at least somewhat important to them. More from Ad Age: 20 brands catching Gen Z’s attention Of particular interest to Gen Zers are avatar fashion items with a physical counterpart (called “digital twinning”), which 43% of respondents said they want to see from fashion brands. Roughly 37% want to see fashion brands bring trending physical items into the metaverse, and 36% want rare, digital-only items that don’t yet exist in the physical world. Roblox commissioned the survey with tech company Qualtrics as part of its annual report on virtual fashion. The survey sampled over 1,500 Gen Z consumers in the U.S. and U.K. who play Roblox at least once a month. Importantly, the responses refer to preferences that users hold for a variety of metaverse platforms, not merely Roblox. Yet the data makes a particularly strong case for Roblox as a go-to destination for brands, given its preeminence in the virtual wearable economy. Nearly 1.6 billion virtual fashion items were purchased on Roblox in the first three quarters of 2023—a 15% increase from last year, according to internal data. New features for brands and creators could be helping this growth along. Limiteds are accessories with predetermined scarcity—effectively NFTs without the blockchain—that have raised hype for apparel drops, such as from Gucci, which gave away 60,000 Limited items in a matter of hours during an activation earlier this fall. In what is the highest initial sale of a Limited to date, electronic music label Monstercat sold its Ruby Pendant for 1,000,001 Robux—equivalent to roughly $10,000. For most Gen Z users, the price of wearables must be far lower. Over half (52%) of survey respondents say they are comfortable budgeting up to $10 a month on styling their avatar. The percentage steeply drops to 19% for those willing to budget up to $20. Roblox this week reported strong third-quarter results. Average daily active users climbed 20% year over year to 70.2 million, supported by the company’s launch on Meta’s Quest headsets in September, which had seen more than 2 million installs as of the end of October. Ad Age Gen Z Contributor Column We welcome Gen Zers to submit fresh takes exploring Gen Z within the ad industry Learn more here

Gen Z’s growing preference for virtual fashion bolsters Roblox’s value to brands

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