Virtual fitting room with real-time clothing simulation and animation for in-store virtual mirror and digital signage solutions for retailers, brands, and shopping malls. The avatar-based system shown here displays a life-like animated and customizable avatar that the operator or users can control using Kinect-driven gestures or a touchscreen in real-time for virtual try-on. The avatar can be customized (gender, hair, skin, ethnicity, and facial features) as well as the body size, body shape, and measurements. The measurements can be taken from a 3D body scanner or Kinect body scan, or taken by a customer service representative or by the users themselves. Users' photos can be used to model the avatar face. The user selects the virtual clothes from the brand's catalogue, tries them on the avatar and selects one of the available pre-recorded animation sequences to display the clothes in motion. Users will then be able to save and share real-time videos and screenshots of the virtual model dressed in the brand's clothes on the web and to share to Facebook, YouTube, Twitter, and other social networks, and by email to friends.