Fashion and retail have always been integral to Roblox, and now they are set to drive the next stage of the gaming platform’s development.
Since its launch in 2006, Roblox has offered users various ways to style their game characters, or avatars. Over the years, it has expanded these digital style options through new features, projects, and partnerships with some of the most renowned names in fashion.
While some brands may be reconsidering their virtual endeavors due to the decline in metaverse hype, Roblox remains fully committed. For Winnie Burke, global group director of fashion and retail at Roblox, the trend is moving in the opposite direction.
“We’re having a very hard time keeping up with the volume,” Burke told WWD, referring to partnerships. “The volume is increasing, and the relationships are getting deeper. They’re becoming multiyear relationships.”
Fashion’s latest push on Roblox saw a digital necklace from a creator collaboration with Adidas sell for 2 million Robux, roughly $20,000.
This necklace set a new record for the highest-priced limited virtual item ever sold on Roblox, surpassing Lamborghini, which sold three virtual mask-like hats inspired by its golden bull logo for 1.5 million Robux, or about $15,000.
Limited-edition items — or “limiteds” in Roblox terminology — only became available directly from brands last year. Before April 2023, only developers could publish these items.
This growth is part of the dynamic environment of Roblox, which boasted 77.7 million daily active users in the first quarter, a number greater than the entire population of England.
Maintaining such a large and engaged user base for 18 years is no small feat. Roblox’s success is built on a constantly evolving technical infrastructure and user experience, a highly engaged creator community, and longstanding relationships with top-tier brands.
Over the past year alone, Roblox has attracted major names like Walmart, L’Oréal, Hilton Hotels via Paris Hilton, Versace, Hugo Boss, LoveShackFancy, Givenchy, and Adidas.
However, despite the platform’s bustling activity, there is a need for even more hustle.
Roblox reported that more than 1.6 million digital products were sold on the platform between January and September 2023, a 15 percent year-over-year increase.
Nonetheless, its latest first-quarter earnings report indicated a slowdown in user spending. Although revenue for the quarter rose 22 percent to $801 million, the lower bookings guidance for the second quarter caused concern among investors.
In response, Roblox is seeking new revenue streams. In April, the Roblox Marketplace removed its application process, allowing digital items to be sold by anyone who meets the eligibility criteria. Last month, the company introduced video advertising through virtual billboards.
Next on the agenda is retail — extending beyond avatar fashion and accessories.
The pilot with Walmart, which tested both physical and virtual commerce on the platform, has proven insightful. As a result, Roblox is now poised to venture into real-world retail.
