Hi! Clothing shops selling physical clothing coexist with those selling hologram clothing. Some people like the feeling of real clothes while others think holograms are neat. There are different shops that cater to different demands.

The Style Upgrade is actually not a hologram. Think of it a little bit like a magical girl transformation, only nanobots are coagulating together to form clothes (like a highly advanced 3D printing). It's advised to wear something lighter underneath so that your real clothes don't stick out. It's also possible to take these clothes off physically but they will disappear within minutes once off the body.

The nanobots can create wigs and hair accessories for the user. Best to wear your real hair up if it's long or it'll stick out.

Hope this answers your question.