3 things brands need to know about Digital Product Passports
What are the game-changing considerations brands should be making to evaluate the EU DPP legislation as more than a compliance headache?
The fashion and luxury industry is navigating through uncharted territory with the impending EU Digital Product Passport (DPP) legislation. This new directive is a confluence of technological innovation, data traceability, and sustainability transparency, presenting formidable challenges for brands.
As the industry grapples with these changes, it is critical for brands to understand the key considerations in mapping out a robust DPP strategy. This strategy is essential not only to comply with regulations but also to unlock the full potential value of DPPs.
Building an Ecosystem
To effectively implement a DPP, brands should adopt a strategic rather than a purely tactical approach. The creation of a DPP should be seen as building an ecosystem that encompasses the entire product lifecycle, from design and manufacture to end-of-life.
Creating an ecosystem requires a collaborative blueprint that involves all stakeholders, including suppliers, manufacturers, and consumers. At Certilogo, we recently developed a framework to conceptualize a strategic Digital Product Passport integration with our partners The ID Factory and Sopra Steria, which has been of great help to fashion and luxury brands currently planning their DPP strategy.
Security is key
Security is a departure point, or the bedrock element upon which brands can build long term value.When it comes to digital systems, security cannot be an afterthought. The DPP must be Secure by Design™, incorporating measures that protect against counterfeits and unauthorized access.
Unfortunately, just as counterfeiters have cloned digital IDs in the past, they will clone and fake DPPs as brands begin to integrate them. It is therefore crucial to ensure that a DPP strategy considers the security of their IDs and the data included in the DPP from day 1 to maintain the integrity of the data and the trust of consumers. With fake DPPs customers could also be directed to fake customer experiences, which represents a lost opportunity for brands.
This loss of contact means that brands are unable to manage and curate the customer experience as they intended. To prevent the loss of customer connection, it's crucial for brands to provide an intuitive and user-friendly authentication process that is managed by a trusted 3rd party provider. They must intercept these fake connections and effectively guide customers back to the correct, official channels websites to ensure a secure and authentic brand experience.
The DPP can serve as a certificate of authenticity, reassuring customers of the product's origin, materials, and sustainability credentials, in this way providing customers with the ability to securely authenticate products is crucial. This transparency is vital in an age where counterfeit goods are prevalent. While authenticity serves as a fundamental hygiene factor, the real value of the DPP is encouraging customers to interact digitally with physical products and generating a new point of contact and channel for brands.
Making it Future-Proof
A DPP strategy should be designed with the future in mind. As technology evolves and consumer behaviors shift, the DPP must be adaptable to support emerging trends, and business opportunities such as circularity, including resell, repair, and recycling capabilities.
By facilitating the extension of a product's life, brands can contribute to a more sustainable future and meet consumer demands for responsible consumption.
With consumers demonstrating growing interest in second-hand marketplaces, it is in a brands interest to ensure their DPPs can be a tool or channel for continuous contact. One recent survey indicated a shift in consumer behavior, with approximately 56%* of consumers stating they would be more inclined to buy second-hand products if they were accompanied by a digital product passport.
Beyond legislative compliance
The EU Digital Product Passport legislation is more than a regulatory requirement; it is an opportunity for brands to enhance their sustainability efforts, improve customer engagement, and generate value through circular models. By addressing these major challenges and building a strategic, secure, and collaborative ecosystem, brands can not only comply with the new legislation but also drive innovation and growth in the fashion and luxury industry.
Interested in seeing an actual Digital Product Passport implementation currently in the market?
Certilogo launched a DPP solution with embedded circularity services for Italian B-Corp Save The Duck in spring 2024, learn more!
*Study conducted by The Ordre Group and Me, the Consumer and I
