It doesn't happen all at once. You become. It takes a long time.

Real isn't how you are made... It's a thing that happens to you.

Real isn't how you are made," said the Skin Horse. "It's a thing that happens to you. When a child loves you for a long, long time, not just to play with, but REALLY loves you, then you become Real." "Does it hurt?" asked the Rabbit. "Sometimes," said the Skin Horse, for he was always truthful. "When you are Real you don't mind being hurt.

[O]nce you are Real you can't be ugly, except to people who don't understand." - The Skin Horse from The Velveteen Rabbit

When you are Real, shabbiness doesn't matter.

Generally, by the time you are Real, most of your hair has been loved off, and your eyes drop out and you get loose in the joints and very shabby. But these things don't matter at all, because once you are Real you can't be ugly, except to people who don't understand.

Weeks passed, and the little Rabbit grew very old and shabby, but the Boy loved him just as much. He loved him so hard that he loved all his whiskers off, and the pink lining to his ears turned grey, and his brown spots faded. He even began to lose his shape, and he scarcely looked like a rabbit any more, except to the Boy. To him he was always beautiful, and that was all that the little Rabbit cared about. He didn't mind how he looked to other people, because the nursery magic had made him Real, and when you are Real shabbiness doesn't matter.