Systems and methods are provided for conducting the entire development process of new products, such as clothing or fashion designs, from conception through production in a virtual world. The virtual world is a multi-user three-dimensional persistent interactive graphical environment in which a plurality of avatars can interact as if interacting in the physical world to develop a new product. The avatars represent actual individuals that are contributors to the product development process. Each avatar can communicate with other avatars, can interact with and modify the graphical environment and can manipulate three-dimensional objects within the graphical environment for purposes of demonstration, explanation or review. Databases containing the necessary elements for product design are provided and are accessible by the avatars within the graphical environment.