This story is part of Glossy’s “Look Ahead” series breaking down what brand and retailer executives can expect from the fashion and beauty landscapes in 2024. Click here for more stories in this series.
Because people are increasingly buying physical versions of digital fashions found on Roblox, Roblox will soon allow users to buy both digital and physical items within the Roblox platform through integrated commerce. Fortnite has already trialed this concept with brands including Nike in June, but most gaming platforms do not yet effectively connect to brands’ e-commerce sites.
In the third quarter of 2023, Roblox earned $839 million in revenue. Now, with the company launching integrated commerce next year, it’s set to also provide a revenue stream to brands — brands will have the opportunity to connect their e-commerce and Roblox experiences.
“When a user engages with a brand on Roblox, they’re much more likely to purchase that brand in the physical world,” said Winnie Burke, head of fashion and beauty partnerships at Roblox. Brands including Forever 21 have gone on to sell physical versions of items originally created for Roblox, showing the fluidity between digital and physical fashion. “Twinning”, where physical items are reproduced digitally, or vice versa, helps build brand continuity on and off the platform.
The 2023 Roblox Digital Expression, Fashion & Beauty Trends report, published on November 9, included new data from over 1,500 Gen-Z Roblox users surveyed in the U.S. and the U.K. Behavioral data from Roblox was also incorporated. According to the report, 84% of users are somewhat likely to consider buying from a brand they have seen or worn in Roblox, showing the commerce potential of the immersive platform.
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Roblox users are keen to spend on digital fashion. Most Gen-Z users (52%) said they’re comfortable budgeting up to $10 each month to style their avatar, according to the report. For community-created limited-edition items, or Limiteds, prices can reach $10,000.
In addition, 84% of survey respondents said their physical style is at least “somewhat inspired” by what their avatar wears.
“Users are taking style cues from their avatars and applying them to their IRL selves,” said Burke. “What the fashion industry may not be thinking about is the fact that consumers are taking a bit more of a risk with their avatars and how they look in the digital world,” compared to what they wear IRL. That includes investing in accessories and “auras” to add unique elements to their digital outfits.
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Burke said this is translating to people taking more risks in their physical outfits.
“When I am talking to some of the brands we work with, I ask, ‘When you’re designing [digital fashion], are you thinking about how it [could translate] in the physical world?’” said Burke. “Also, ‘Are you thinking about the consumer who’s looking to take more risks?’ Especially when it comes to accessories [on Roblox], they’re more forward-looking.”
Some physical items from luxury brands are already being inspired by the pixelated styles of platforms like Roblox, including the Pixel collection Loewe debuted for spring 2023. And more niche designers are joining Roblox, fuelling the rise of unique fashion looks. Paolina Russo, the semi-finalist of this year’s LVMH prize who’s known for her colorful knitwear, joined in November by selling three digital recreations of her runway looks from her fall 2023 collection. Burke said she expects Roblox to increasingly become a go-to place for the discovery of fashion brands and a place for younger designers to attract Gen-Z shoppers.
“There are brands that have a really strong aspirational consumer who may like luxury fashion,” said Burke. “Being on a platform such as Roblox offers accessibility, [granting] the consumer a twinning opportunity.” Moving forward, luxury brands may offer more accessories and other small items on Roblox to eventually provide an entryway to the brand via IRL purchases of twins.
For some brands, 2024 will be the year to expand into new digital fashion categories or increasingly express their brand ethos on the platform, Burke said.
“Many fashion and beauty brands are expanding beyond their core businesses and taking it to the next level,” said Burke. For its part, H&M has made sustainability a central component of its branded Roblox experience. “They’re enabling the community to recycle clothes in their game,” Burke said.
Meanwhile, “E.l.f.’s Roblox experience lets users become entrepreneurs by building their own storefronts,” said Burke. “This communicates brand values, objectives and what the brand stands for in this environment.”
Many Roblox users are young and, therefore, limited to small purchases due to less spending power. The 17-24 age group has been the platform’s fastest-growing demo for over two years, according to Burke. As the company introduces integrated shopping, it is doing so with child safety protections, including purchase controls.
“We’re taking a close look at real-world commerce so that we can connect the dots and the attribution cycle for the consumer,” said Burke. “If this brand is resonating with a [Roblox] user, they can complete the purchase of a physical twin directly within the platform.”
Roblox is also testing brand ads allowing brands to have a presence on the platform without building an experience. As of November 15, brands can now buy in-game display ads. Starting next year, brands will also be able to buy in-game video placements. The integrated commerce opportunities are expected to launch by the end of 2024.
