Revealing the Hero of Transparent Consumer Choices
Not Just a Marketing Story
The Digital Product Passport (DPP) isn't your typical marketing tool, although many brands have treated it as such. Often represented by a QR code on a product or hangtag, the DPP is designed to narrate a product's past, present, and future – encouraging customers to consider the full story. While a cool product remains a priority, consumers are increasingly curious about a product's origin, materials, and potential second life.
Addressing Genuine Needs
Beyond meeting consumer curiosity, the DPP is responding to emerging regulations aimed at preventing disasters like Rana Plaza, deforestation, and plastic overconsumption.
Large brands, flush with cash, may weather fines, but damaging publicity can be costly. In contrast, smaller brands, financially vulnerable, must tread carefully.
What the Digital Product Passport Should Include
Mandatory in the EU latest by 2030, the DPP's specific requirements are yet to be defined (expected in 2024). France, with laws like AGEC, leads in identifying traceability rules. AGEC mandates declaring the factory and various contributors (material suppliers, cutting, stitching, assembling, finishing).
The ID Factory (a B-Corp traceability platform) is already piloting the DPP according to this regulation.
Credits: https://theidfactory.com/digital-product-passport/
Holistically, traceability is just one facet; other crucial factors include:
- Environmental impact
- Sustainability features
- Certification
- Care and repair
- Product lifespan
- Reselling platforms
- End-of-life disposal
Across the different service providers, EON is the one that was mostly in the news because they incorporate all those factors and are making several collaborations with brands.
The first visible collaboration was the one with Chloe and Vestiaire Collective, presented at the Global Fashion Summit 2023.
From: https://www.eon.xyz/clients/chloe
DPP as a Communication Tool
No need to wait until 2030; you can already start implementing your own DPP and use it as a communication/marketing tool to be closer to a customer who wants to be more aware of what is being bought.
With these 5 points, you can already build a strong foundation.
- Trace Your Supply Chain: Ensure traceability of products and materials going back to your supply chain.
- Share the Product Story: Disclose details like design origins, special features, and information about factories or material suppliers.
- Measure Environmental Impact: Look into the impact of the product starting from your materials. There are already some platforms like Sustainable Brand Platform, Ympact, and Spin 360 (especially for leather products) that are working on this.
- Specify Care and Repair: Clearly outline maintenance instructions for each product to guarantee the longest lifespan.
- Partner with Reselling Platforms: Collaborate with platforms that facilitate easy clothing swaps and give clear instructions to your clients on what they should do to resell their products.
Preparation For 2030
While 2030 might seem distant, preparation is key. To make sure you are not getting stressed because running behind new laws you can already do something with 3 smart actions:
- Monitor EU Regulations: Stay abreast of upcoming regulations to understand the DPP's exact requirements.
- Know Your Suppliers: Identify factories and material suppliers; establish a robust internal network.
- Plan for End-of-Life Management: Consider strategies for managing a product's end-of-life phase.
The Business Model Opportunity
While many brands are getting scared and don't know where to start, you can take this as a good opportunity to lead the way in finding a new business model that considers DPP in all its different forms, such as reselling, renting, recycling, etc.
There is no limit to creativity, and it may be the right moment to be the first to go beyond a new frontier.
