When you think about paper dolls, you probably think about children from past generations painstakingly attaching little outfits onto a cut-out female figure. Paper dolls have come a long way since then.
Teen and tween girls these days spend hours dressing up dolls—only these are online, in the form of avatars, or virtual representations. Consider Mattel's (MAT) Barbie, who was also a favorite paper doll. She now has a virtual world called Barbie Girls where girls can create their own avatars and try on clothes at a virtual mall with gaiaonline gold. And Barbie isn't alone. A whole wave of avatar sites is hoping to capitalize on this age-old desire.
Part of the fun of virtual worlds for teens is experimenting with identity. Boys do this all the time in video games where they assume fantastic identities very different from whom they are in real life. For tween and teen girls, fashion has always been a big part of self-expression. How else to explain the popularity of Teen Vogue, which stands tall even in a ravaged teen-magazine market, where many publications are going online or folding altogether.
It's also why traditional brands such as Mattel, Disney (DIS), and Trollz maker DIC Entertainment have entered the space. Each site—Barbie Girls, Disney Fairies, and Trollz.com—offers the user the ability to create her own character, play games, chat with other avatars, and decorate her own "room," or page. Startups Stardoll and GirlSense are also kid-friendly and compliant with the Children's Online Privacy Protection Act (COPPA). Gaia Online, Wee World, Meez, and IAC Interactive's (IACI) new Zwinktopia all cater to teens (and adults) 13 and up.
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