Market Truths, a research firm that does reports on the Second Life economy, has an extensive study on the state of the Second Life fashion market, on who buys what, how much, and why. Research director Dr. Mary Ellen Gordon (PhD) shared a copy with me recently, and it's full of fascinating details. Her own three key takeaways from the study are just as interesting:
Second Life consumer behavior parallels real world consumer behavior:
"We see that often in our research in SL," Dr. Gordon tells me, "but when it comes to wearables, the differences are particularly tangible. For example: The more people browse for hair in SL, the more they spend on hair care in RL; the less they browse for underwear in SL, the less they spend on underwear in RL." This opens up the possibility of Second Life as a prototyping space, for as she puts it: "[F]or real world apparel marketers, the link between SL style and purchase behavior and RL purchases creates a lot of potential for using SL as a venue for testing and promoting RL clothing (and other personal appearance products and services.)"
There's still many under-served fashion markets in Second Life:
"From the perspective of content creators and even Residents in general," Dr. Gordon tells me, "I think it’s interesting that the set of unmet needs identified this year is identical to that identified in 2008 with a different sample. Given the large number of talented designers in SL and the fact that sales to existing users have stagnated somewhat and growth in new users is not that rapid at the moment, I would have thought that by now there would be more people creating niches within the SL wearables market targeting these different customer groups."
However, the problem may largely be a technical one: "[I]t’s likely that this and the search problem are inter-related," she speculates, "in that some of the things that people say they can’t find actually are available, but they’re just not finding them because of the limitations of the search functions both in world and in the marketplace."
Finally, a third takeaway of particular interest to Linden Lab, which purchased the online shopping site XStreetSL, and to content creators who sell their items there: