The key use cases for Digital Product Passports
Without traceability, there can be no sustainability.
In order to understand and reduce the impact of their products, as well as maintain the trust of the consumer, brands must be able to document the sustainability profile of their own materials and processes, as well as that of every supplier, raw material, and process that has been involved in creating the final product.
Traceability does not stop at the production of the product but includes an understanding of where, how, and to whom products are being sold, and what happens to the product at the end of its useful life.
Better traceability data will provide businesses with valuable insights to improve their business performance, enabling the optimization of product planning and distribution, to deliver increased sell-through conversion rates, resulting in less unsold stock. Brands will reduce their environmental impact while improving their business performance.
Products can be marketed with trustworthy and quantifiable sustainability claims that are easily accessible to the end consumer, enabling them to make more informed purchasing decisions - by providing them with information on the total impact of their buying behaviors.
Connecting the eco-system of actors involved across the product lifecycle and providing them access to this data, will present significant opportunities to innovate, compete and accelerate the sustainability transition of the supply chain.
- Protection against counterfeits
Counterfeit products damage a brand's value, causing lost revenue from stolen sales, and eroded trust among consumers, but will also be more harmful to the environment than authentic products, which meet new design and production standards. Consumers will want to ensure their investment in a sustainable product is not in vain.
The Digital Product Passport is a tool that enables consumers to authenticate and identify fakes pre-purchase while helping brands to easily identify illegal retailers and make it increasingly difficult for them to operate. With up to 30% of fashion purchases being fake products, brands will be expected to take responsibility for reducing the impact of their own products, and that caused by fakes.
- Circularity Business Models
Thanks to the improved access to data with digital product passports, more businesses will be able to create new value through circular business models, such as rental and repair-based services.
It will be easier for consumers to re-sell certified authentic garments, extending a product’s useful life, and reducing the costs to brands of collecting and sorting products for recycling and reuse. As business models become more circular, this can also diversify material sourcing options and strengthen supply chain security within businesses.
- Connection to digital experiences
Brands can integrate their products into the omnichannel consumer journey, throughout the entire lifecycle of the product, and create highly engaging experiences, by taking advantage of the ability to personalize content right down to the individual product level. Delivering rich storytelling, compelling recommendations, and access to premium services that differentiate, convert consideration into sales and allow brands to build stronger relationships with their consumers.