The Power of Authentic Digital Self-Expression As we are opening up creation opportunities to “Last year we embarked on a journey to better understand “Authentic self-expression is often described as a how communities—especially Gen Z, who are growing up in universal connector for people: when we share who we the digital world—are expressing themselves in immersive truly are, we make genuine connection possible. As we spaces. We had been observing the expanding interest in build our platform and products for immersive avatar customization and digital fashion on the platform communication and connection, ensuring sible. As we that people for over a decade, and we had our hypotheses on what have the broadest set of opportunities to authentically this form of self-expression meant for people. But we were express themselves via their digital identity is front only scratching the surface of understanding what drives and center for us. We want everyone to be whoever people when they create their digital look and frequently they want to be, and create ithentically avatars—and digital customize their avatar style, as well as how this impacts fashion—they love. is front the physical world’s trends and behaviors. whoever Every so often, there’s a generational shift guiding how Our 2022 report provided insights that researchers and people connect with one another, and one is the broader industry, both fashion and tech, found happening right now with immersive 3D simulation and valuable. We uncovered, for example, that many Gen Z communication.

nerational shift guiding how Our 2022 report provided insights that researchers and people connect with one another, and one is the broader industry, both fashion and tech, found happening right now with immersive 3D simulation and valuable. We uncovered, for example, that many Gen Z communication. Data from this report shows that users already feel their avatar style is more important to digital identity and avatar style are playing an them than their physical look, or that the majority often increasingly impactful role in people’s daily lives. wear physical clothes inspired by their decked out ulation and UTs avatars. Most importantly, our growing creator community (including the world’s top brands and influencers) is This year, we are looking deeper into the full spectrum of continuously expanding self-expression opportunities self-expression through digital identity, avatars, and for people by creating bodies, heads, clothes, and even fashion—from the psychology behind creating an avatar movements that represent a diverse range of global look and ‘beauty’ considerations, to the impact of consumer interests. No single company could come up authentic self-expression on the physical style trends, with this breadth of choices on its own. nunity purchasing decisions, and even mental well-being.

s that represent a diverse range of global look and ‘beauty’ considerations, to the impact of consumer interests. No single company could come up authentic self-expression on the physical style trends, with this breadth of choices on its own. nunity purchasing decisions, and even mental well-being. Now we are seeing in the data just how much authentic self- As we are opening up creation opportunities to expression in immersive spaces means to many people— millions, it is clearly changing the game for digital helping them build confidence and connections, in fashion and expression, and we are excited for these addition to their style.” opportunities to continue to grow.” of global Christina Wootton Manuel Bronstein Id come up Chief Partnerships Officer Chief Product Officer Roblox Roblox

year’s report on digital fashion trends that Parsons collaborated on with Roblox was groundbreaking, and this year’s research on broader self-expression trends in immersive spaces is no different. For Gen Z, we learn that there is a symbiotic relationship between digital and physical fashion. The report shows that users and designers don’t silo how they think about fashion, but inspiration from each space influences how they dress and create clothing in the other. We also learn how important digital fashion is for Gen Z users’ mental well-being and self-expression. Having the agency to select their avatar's body, hair color and texture, skin color, make-up, clothing style and mood to best represent them has a critical role. Whether it’s a safe space to play with fashion or carry over their style from the physical world, digital fashion is critical for Gen Z to explore, express and expand who they are.” Ben Barry PhD Dean, Associate Professor of Equity & Inclusion, School of Fashion, The New School’s Parsons School of Design School Of Fashion,

Key Insights* ~~E~~ Digital self-expression for Gen Z continues to grow in ~~E~~ importance. Over half (56%) of Gen Z now say styling their avatar is more important to them than styling themselves in the physical world (vs. 42% answering a similar question last year). The vast majority also say digital fashion is at least “somewhat important” for them (84%), and think the importance of digital fashion has grown at least “some” over the past year (85%). Over half (53%) think it’s grown a lot. ~~E~~ Expression, creation (and sales) on Roblox are growing alongside this trend. In 2023, total avatar updates grew 38% YoY to 165 billion, and people bought nearly 1.6 billion digital fashion items and accessories, up 15 % YoY.+ Gen Z consumers are more open to spending on digital fashion. Most Gen Z users are willing to spend on styling their avatar: 52% say they’re comfortable budgeting up to 10 each month, another 19% say they’d be willing to spend up to 20, while an additional 18% are open to buying up to 50-100 worth of items every month.+ ~~E~~ The more exclusive the better: The recent launch of community-created Limiteds on Roblox highlighted users’ immediate demand for more exclusive items that are limited in quantity. The majority of community-created Limiteds are resold for more than their original cost, and one such single-edition item— Monstercat’s Ruby Pendant—was acquired for the equivalent of approximately $10,000.+

highlighted users’ immediate demand for more exclusive items that are limited in quantity. The majority of community-created Limiteds are resold for more than their original cost, and one such single-edition item— Monstercat’s Ruby Pendant—was acquired for the equivalent of approximately $10,000.+ ~~E~~ Most Gen Z’s physical style is inspired by avatar style. ~~E~~ Authenticity drives self-expression in immersive 84% agree that their physical style is at least “somewhat” spaces and positively impacts well-being. When inspired by what their avatar and other avatars wear, and deciding on their avatar look, Gen Z strive to be unique, 54% say they are “very” or “extremely inspired.” Using this noting the metaverse feels “less judgemental” and inspiration, Gen Z are expanding their go-to fashion styles prioritizing that their avatar looks good to them (62% say ts) and the and wearing bolder fashions, playing with their hair color/ they care a lot about this) vs. others (37% say they care a elded style, getting more comfortable wearing gender-fluid lot that their avatar looks good to others). The vast ilar. The clothing, and even often trying to look just like their majority (88%) think expressing themselves in immersive or National avatars/ spaces has likely helped them comfortably express ata is themselves in the physical world, allowing for true self- ~~E~~ Brand recognition matters in the metaverse and it’s expression and to build connections with others, boosting ptember 30, 2023. likely to impact IRL purchase consideration. 3 in 4 Gen confidence, and bettering mental health in other ways.