e.l.f. Beauty's Metaverse Expansion: A Strategic Play in Gen Z's Digital Identity Economy

The metaverse is no longer a speculative concept but a burgeoning economic ecosystem, and e.l.f. Beauty has positioned itself at its vanguard. By leveraging Roblox-a platform with over 65 million monthly active users, predominantly Gen Z and Alpha-e.l.f. has launched two groundbreaking initiatives, e.l.f. UP! and Glow Up!, to tap into the digital identity economy. These ventures are not mere marketing stunts but calculated moves to align the brand with the values and behaviors of a generation that increasingly defines itself through virtual self-expression. With 21 million total visits to e.l.f. UP! and a 55% Gen Z preference for virtual avatars over physical selves, the company is redefining beauty brand engagement in the digital age according to case studies.

e.l.f. UP!: Entrepreneurship as a Gateway to Youth Engagement

e.l.f. UP! is a Roblox experience where users create and manage virtual startups, mirroring the brand's real-world ethos of empowerment and inclusivity. Launched in 2023, the platform has undergone 25 updates over 18 months, reflecting e.l.f.'s commitment to iterative innovation. The experience's success lies in its dual focus: teaching entrepreneurship while fostering brand loyalty. Players learn to navigate challenges such as product design, marketing, and financial management, all while earning in-game rewards redeemable for digital goods.

This strategy aligns with e.l.f.'s broader mission to democratize self-expression. For instance, the company partnered with Chime to develop Fortune Island: Earn. Learn. Flex., a financial literacy game that simulates real-world budgeting, saving, and investing according to press releases. By embedding educational value into gameplay, e.l.f. not only captures Gen Z's attention but also builds trust as a brand that prioritizes youth empowerment. According to a report by Cosmetics Business, such initiatives have enabled e.l.f. to expand its revenue streams through digital goods and avatar wearables, a first in its history according to case studies.

Glow Up!: Redefining Virtual Makeup and Community

While e.l.f. UP! targets entrepreneurial aspirations, Glow Up!-launched in 2025-addresses Gen Z's desire for creative self-expression. The game features a layered makeup system that allows players to create millions of unique looks with realistic textures and finishes. This level of customization mirrors the real-world application of makeup, bridging the gap between virtual and physical beauty.

A critical differentiator is Glow Up!'s "livestream" mode, which enables players to showcase their creations, interact with others, and compete based on creativity and theme adherence. This social component taps into Gen Z's preference for co-creation and community, as 55% of the demographic believe their virtual avatars better represent their identities than their physical selves. The game also introduces diverse characters-such as athletes, entrepreneurs, and musicians-each month, reinforcing e.l.f.'s commitment to inclusivity.

Strategic Implications: A Leader in the Digital Identity Economy

e.l.f. Beauty's metaverse initiatives are more than experiments; they are strategic investments in the future of consumer engagement. By creating persistent, interactive experiences, the company is capitalizing on a trend where brands on Roblox generate extended user interactions and valuable consumer insights. The success of e.l.f. UP! and Glow Up! demonstrates e.l.f.'s ability to blend education, entertainment, and commerce, a formula that resonates deeply with Gen Z.

Financially, these initiatives have already proven lucrative. The introduction of digital goods and wearables has opened new revenue channels, while the brand's metaverse presence has accelerated growth-e.l.f. now outpaces all other fashion and beauty brands on Roblox in user visits. Moreover, the company's partnerships with platforms like Chime and Exclusible highlight its agility in forming alliances that enhance both educational value and technological innovation according to press releases.

Conclusion: A Model for Future-Proof Branding

e.l.f. Beauty's metaverse expansion exemplifies how traditional brands can adapt to the digital identity economy. By prioritizing Gen Z's values-self-expression, inclusivity, and education-e.l.f. has not only captured a loyal audience but also redefined the role of a beauty brand in the virtual world. As the metaverse matures, companies that fail to engage with this demographic risk obsolescence. e.l.f., however, is ahead of the curve, turning virtual experiences into tangible value for both users and shareholders.