Genies and Digital Goods

The relationship between Genies and digital goods is growing stronger as we continue to expand our platform’s capabilities. Our software development kit (SDK) is extending avatar-creation technology to other companies’ digital platforms. Companies such as Gucci (with whom we have previously partnered) can operate a virtual fitting room for users to experiment with and purchase digital outfits that can be worn around the digital world at online events such as concerts. 

What is a Digital Good?

While it may sound novel, digital or virtual goods are almost as old as the Internet itself. Any online store that sells PDFs, ebooks, online courses, or any other kind of digital download, has been purveying digital goods. It is a lucrative market, the boundaries of which are still being explored. Free-to-play video games such as Fortnite and League of Legends have experimented with selling virtual clothing and other cosmetic modifications to their characters, also known as ‘skins’. These digital products have been exceptionally popular with their userbase: Epic apparently made $2.4 billion in 2018 from Fortnite, mainly in skins. Now, instead of making a global game phenomenon to lure people into spending money on virtual fashion, the fashion industry is hoping to cut out the middleman and trust to luxury brands to lure customers into dropping cash on virtual dresses so that they can show off their digital fashions online.

Fashion Brands and Virtual Goods

With more online marketplaces for digital-only goods showing up in clothing brands’ apps, customers will be able to express themselves more effectively than ever using their online avatars. With virtual reality and augmented reality platforms taking on increasing prominence, both avatar tech and customization are going to become more central to socialization and self-expression. Fashion brands also have the hope for cross-media opportunities, where customers experiment with dressing their avatars first, before making the same purchase for themselves through the same retailers. Amanda Cosco, founder of Electric Runway, believes that digital avatars are the future of fashion, with brands like Carlings and Robert Cavalli & Kim Kardashian as early adopters. Social distancing requirements have greased the wheels of the transition away from real or ‘meat’ spaces, towards virtual fashionistas expressing themselves in digital spaces.