The fashion industry has continuously evolved alongside technological innovation, from mechanized textile production to the rise of global e-commerce platforms. In the contemporary era, rapid digitalization has introduced transformative shifts that extend beyond efficiency and accessibility, fundamentally redefining how fashion is designed, produced, distributed, and consumed [1], [2]. Among the most influential of these shifts is the convergence of fashion with immersive digital environments, blockchain technologies, and virtual economies[3], [4].

The emergence of the metaverse has provided fashion brands with unprecedented opportunities to transcend physical limitations and engage consumers within persistent, interactive virtual spaces. Digital garments, virtual fashion shows, and avatar-based identity expression have become central to how younger, digitally native audiences interact with fashion. At the same time, blockchain technologies (particularly Non-Fungible Tokens (NFTs)) have introduced new frameworks for digital ownership, authenticity, and value creation within these environments [5].

Despite increasing industry adoption, academic research on digital fashion remains relatively fragmented. Existing literature often examines technological developments, marketing strategies, or consumer behavior in isolation. There is a notable lack of integrative studies that analyze how the metaverse, NFTs, and digital fashion collectively reshape the fashion industry’s value chain while also addressing sustainability, cultural meaning, and economic transformation. This gap highlights the need for interdisciplinary research that bridges fashion studies, digital media, and innovation economics.

The objective of this study is to critically examine the role of digital fashion within the metaverse, with particular emphasis on NFTs as instruments of ownership, branding, and exchange. Specifically, the paper aims to: 1) analyze the technological foundations that enable digital fashion ecosystems, 2) explore emerging metaverse-based business models adopted by fashion brands, and 3) evaluate the social, economic, and environmental implications of virtual garments and NFT-driven fashion markets. By addressing these objectives, this research contributes to a deeper understanding of digital fashion as a long-term structural transformation rather than a temporary trend.

Recent scholarly research has increasingly examined the intersection of digital technologies and the fashion industry, particularly in relation to the metaverse, NFTs, and digital fashion systems. Existing studies largely agree that these technologies represent a fundamental shift away from traditional fashion production and consumption models; however, they are often analyzed separately rather than as an interconnected ecosystem. A growing body of literature conceptualizes the metaverse as an extension of digital culture and virtual economies, emphasizing its capacity to support immersive experiences, persistent identities, and participatory value creation. Researchers argue that the metaverse transforms conventional retail logic by prioritizing experience, interaction, and community over physical transactions [6]. Within this environment, fashion plays a central cultural role, as digital garments enable identity construction, social signaling, and symbolic consumption in avatar-based spaces.

Research on NFTs has primarily focused on blockchain-enabled ownership, authenticity, and scarcity in digital markets. Scholars note that NFTs redefine value creation by decoupling exclusivity from material production and embedding it within cryptographic certification systems [7]. In luxury fashion studies, NFTs are discussed as strategic tools for enhancing brand equity, enabling secondary markets, and fostering consumer engagement through digital collectibles [8]. Nevertheless, much of this literature treats NFTs as financial or promotional instruments, with limited examination of their role across the broader fashion value chain.

Digital fashion research has emerged across fashion theory, sustainability studies, and design innovation literature. Prior studies highlight the environmental potential of virtual garments, particularly in reducing physical sampling, overproduction, and carbon emissions associated with traditional fashion cycles [9], [10]. Other scholars emphasize the cultural significance of digital fashion, arguing that virtual clothing functions as a medium of self-expression and identity performance in online and gaming environments [11]. Despite these contributions, the economic and infrastructural dependencies of digital fashion on blockchain and metaverse platforms are often underexplored.

NFTs have emerged as one of the most influential blockchain-based innovations within the fashion industry. NFTs function as unique digital certificates of ownership recorded on decentralized ledgers, enabling authentication, traceability, and scarcity in virtual environments. Unlike traditional digital files, NFT-based fashion assets cannot be replicated or exchanged on a like-for-like basis, which introduces exclusivity and value similar to luxury physical goods.

In the fashion context, NFTs are utilized in multiple formats, including purely virtual garments, digital twins of physical products, and collectible fashion assets [17]. Luxury brands such as Gucci, Louis Vuitton, Dolce & Gabbana, and Burberry have adopted NFTs to enhance brand storytelling, engage digital-native consumers, and create new revenue streams. These initiatives often combine artistic expression with technological innovation, positioning fashion NFTs at the intersection of design, art, and finance.

From a consumer perspective, NFTs facilitate new forms of participation and identity construction in digital spaces. Ownership of NFT fashion items allows users to display status, personalize avatars, and interact socially within metaverse platforms. Furthermore, NFTs enable resale and secondary markets, empowering consumers with economic agency while reinforcing brand ecosystems.

Academically, NFTs challenge traditional notions of value creation and consumption in fashion. They redefine concepts of authenticity, durability, and ownership by shifting emphasis from materiality to digital presence. As such, NFTs represent not merely a technological trend but a structural evolution in how fashion is produced, distributed, and experienced in virtual economies.

Digital fashion, NFTs, and the metaverse: A new paradigm for the global fashion industry 244

The metaverse has enabled the emergence of innovative business models that extend beyond conventional retail frameworks. Fashion brands increasingly leverage immersive virtual environments to create interactive, experiential, and community-driven forms of commerce. These metaverse-based business models emphasize engagement, personalization, and digital ownership rather than physical product sales alone.

One prominent model involves the sale of virtual-only fashion items designed exclusively for avatars within platforms such as the Sandbox and Decentraland [18]. These digital garments often function as NFTs, allowing brands to generate scarcity and exclusivity while minimizing production costs. Another model focuses on "phygital" products, which combine physical fashion items with corresponding NFTs, offering consumers both tangible ownership and digital utility.

Additionally, brands are developing virtual flagship stores and showrooms in the metaverse, enabling users to explore collections, attend fashion shows, and interact with brand narratives in real time. This approach transforms marketing into an immersive experience and strengthens emotional connections between brands and consumers.

From a strategic perspective, metaverse business models allow fashion companies to access global markets, attract younger digital-native audiences, and experiment with data-driven design and customization. As virtual economies continue to expand, these models are expected to play a central role in redefining fashion commerce and brand value creation.

High-tech fabrics represent a significant advancement in textile innovation, combining material science with digital technology to enhance performance and comfort [20]. These fabrics are engineered to provide properties such as moisture regulation, thermal control, durability, and lightweight structure. Many high-tech textiles are designed to respond dynamically to environmental conditions or user activity.

Smart fabrics may incorporate conductive fibers, sensors, or nanotechnology, enabling functions such as health monitoring, temperature adaptation, and data transmission. In the fashion industry, high-tech fabrics contribute to the development of intelligent garments that balance aesthetics with advanced functionality. From a production perspective, high-tech textiles support efficiency and sustainability by improving fabric longevity and reducing resource consumption. As research in material innovation progresses, high-tech fabrics are expected to play a central role in the future of fashion design and wearable technology.

This study examined how digital fashion, NFTs, and metaverse technologies reshaped the contemporary fashion industry. The findings demonstrated that digital fashion evolved from experimental practice into an integrated system influencing design processes, branding strategies, and consumer engagement. NFTs enabled new forms of digital ownership and value creation, while metaverse platforms facilitated immersive interaction, identity expression, and innovative business models.

The analysis further indicated that digital fashion contributed to sustainability by reducing dependence on physical production, transportation, and material waste, despite ongoing challenges related to regulation, accessibility, and technological literacy. Overall, the results confirmed that digital fashion represents a structural transformation rather than a temporary trend within the global fashion ecosystem.

Future research should explore consumer trust, regulatory frameworks, and long-term economic sustainability of NFT-based fashion markets across different cultural and technological contexts.

This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors.

All data are included in the text.

The authors declare no conflict of interest.