Scaling Digital Fashion in the Metaverse by Reimagining Subscription-Based Models
The world of digital fashion is a pinnacle of the metaverse ecosystem. One of the biggest opportunities in digital fashion is the creation of a new category of commerce: the subscription-based model. This post will go over several aspects of how subscription-based models might be reimagined as the avant-garde fabric for growing digital fashion in the metaverse.
The digital fashion market in the Metaverse is an intersection of fashion, technology, and fantasy. (“How many outfits does one muggle need?”) With multiple virtual worlds, streetwear brands, and startups taking advantage of the breadth of the Metaverse and its growing community, there is a space for both established and start-up players.
The metaverse will provide an infinite number of digital fashion options for investments or avatar customization. A perfect example of this could be a virtual closet. You can have anything you want, whenever you want it. A virtual fashion journey, all accessible through a single digital identity across a decentralized blockchain network.
Subscription models have been around for years. From websites to apps, businesses have taken these models as a way to make recurring transactions with their customers. Why not digital fashion?
Subscription models are best used for products which have a few or one-time expenses, like software or services. For example, popular websites such as Netflix, Spotify, and Audible all use this model.
However…
Traditional subscription models may work, but it’s important to realize that the metaverse is decentralized, unlike the internet we’re used to today. Traditional approaches must be reimagined, reinvented and adapted to take advantage of blockchain and Web3. Because virtual fashion is theoretically a one-time expense, this new adaptive approach works well for it. Once an item is uploaded to a digital store or platform, it remains accessible indefinitely.
The major challenge is that, unlike traditional subscription-based services, digital fashion is interest-based, hence there is no fixed fee. When you offer someone to pay for a subscription, you’re giving them a set price that will make it easier for them to make regular purchases. When people buy virtual fashion, it’s because they’re fascinated by it, which is why pricing models and strategies are so important.
The current landscape of digital fashion has been largely ruled by a pay-to-play model. While a pay-to-play model can be an effective way of monetizing a digital fashion product, it can have a negative effect on wide-scale adoption. For a digital fashion product to be even more successful, it needs to focus on interoperability and target a wide audience of users (gamers, business professionals, etc.) and build long-lasting community relationships.
Subscription-based models in digital fashion should be more diverse, as they will aid in the discovery of brands and new aspiring designers, as well as increase brand exposure, customer acquisition, and community engagement. People would be more attached to their digital avatars and clothing because they would always be in control of how they presented themselves online.
Digital fashion should be regarded as a convenience service. Digital fashion is a way of life that everyone, especially Gen Z, wants to be a part of.
Let’s try to reimagine and reinvent three traditional subscription models using blockchain and smart contracts so that digital fashion can benefit:
1 – From Traditional Freemium to Freemium Model With Managed Interoperability:
The Freemium model encourages more people to try digital fashion. The freemium approach allows the digital fashion community to grow and removes any barriers to adoption. Users can try on an outfit for free in a single virtual environment (Horizon World), then upgrade to gain rights to use it in other virtual worlds or AR/VR/MR apps and platforms if they like it.
2 – From Traditional Subscription to Interest-Based Subscription Model:
Users pay a monthly charge to gain access to a limited design collection depending on their preferences and styles, as well as upgradable functionality, show-stopping effects, and special collections created in one-on-one collaborations with designers.
3 – From Pay-Per-Use to Pay-Per-Use with Right to Purchase Model:
This approach is appropriate for one-time events or pay-per-use scenarios, such as renting digital attire and accessories for a night out in Horizon World or for your Instagram filter. With this approach, users can rent with the right to purchase at a discounted rate.
Technology is advancing faster than ever
As the digital fashion e-commerce sector continues to flourish in the metaverse, designers and brands have a responsibility to harness technologies and platforms to prevent counterfeit designs and protect investors, buyers and sellers in the future. There is no doubt that the science of delivering digital fashion experiences in the metaverse will be a vital part of our future.
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