The Competitive Edge: Why Brands Need Digital Product Passports Before 2027

In the world of fashion, where styles shift as quickly as seasons, there's a new trend that’s redefining the industry: Digital Product Passports (DPPs).

Digital Product Passports are a tool for collecting and sharing a product's data throughout its entire lifecycle, illustrating sustainability, environmental, and recyclability attributes. The product is linked to its data with a QR code that a consumer may scan. In addition, the consumer can access circular services, such as repair, resale, and recycling.

The European Union has been at the forefront of this movement, introducing regulations like ESPR (Ecodesign for Sustainable Products Regulation) which requires brands selling products in the EU to implement Digital Product Passports. This mandate is part of a larger effort to promote a circular economy, where products are designed for reuse, repair, and recycling.

Why the Digital Product Passport?

Digital Product Passports will become mandatory as a result of the overarching regulatory requirements, being that product sustainability information must be: accessible, detailed, and standardized.

Traditional care labels and user manuals can’t accommodate what’s needed. They’re small, easily lost, and often discarded. Plus, the transition from barcodes to GS1 Digital universal standards necessitates a more comprehensive and accessible solution.

The DPP offers a solution by creating a detailed record of every product, that’s accessible anytime and anywhere, through the simple scan of a QR code. This means consumers can learn more about their purchases, make informed choices, and even participate in the circular economy by reselling or recycling their garments directly on their phone.

While compliance with EU regulations is a significant driver for adopting DPPs, the benefits extend far beyond that. Early adopters of DPPgain a competitive edge by uniquely positioning themselves to meet the rising consumer demands of transparency, sustainability, and experiences in the digital era.

Make Sustainability Visible

Despite the surge of consumer interest in sustainability, the prevalence of greenwashing has continued to create a climate of skepticism, making it difficult for brands to demonstrate their authenticity.

DPPs act as a powerful tool for both transparency and accountability. By embedding information about a product's materials, manufacturing processes, and end-of-life options, brands can demonstrate their dedication to sustainability in a practical and verifiable way.

For example, Dutch fashion brand Studio Anneloes has implemented DPPs into their clothing so that it includes access to essential information on origin, materials, environmental impact, maintenance advice, and even a Lost & Found service.

Add a Personalized Touch

With the market flooded by mass production, personalization offers a unique opportunity to stand out. DPPs make it possible to tailor content to singular products, collections, and individual preferences. Features like product-specific content, brand storytelling, and after-sales support create an even more engaging and memorable experience.

Nordisk, a Danish outdoor brand, is a prime example of the power of personalization. Using Tappr as their DPP solution, they created unique Digital Product Passports for each tent, offering customers quick access to product details, FAQs, and setup instructions. As a result of their innovative approach, Nordisk won the prestigious 2023 ISPO Award for Digital Customer Experience.

Build a Stronger Connection

Perhaps, most importantly, DPPs connect brands directly with customers regardless of when or where they purchased a product.

Thanks to the rise of e-commerce and third-party marketplaces, brands are finding themselves even further disconnected from the customers. DPPs bridge this gap with valuable insights and first-party data made readily available from the customers themselves; customers are often willing to exchange their data for something of value, like a warranty extension or an exclusive sale.

This data gives a more focused direction for product development, marketing strategies and customer service initiatives — you’ll know exactly what your customers like and don’t like — and can meet their expectations accordingly.

We’ve seen this firsthand with clients of Tappr, with some brands connecting with up to 73% of customers via their DPP. It's a win-win situation: consumers get more value and brands get more engagement.

Tips for selecting the right Digital Product Passport solution

Of course, implementing a DPP requires a significant investment of time and resources. It can seem like a daunting process, but the long-term benefits make it worthwhile. Those who prepare in advance will find the transition smoother when compliance regulations come into effect.

As you start to evaluate DPP solutions, it's essential to consider how they integrate with your existing systems and workflows. This includes collecting, storing, and communicating the data for your DPP — as well as physically adding the QR code to your product.

Key steps when implementing a DPP solution include:

• Collecting the right data: Understanding your product's journey is key. This means collecting detailed information about its entire lifespan, from raw materials to disposal. Internal PLM systems and supply chain assessment tools are crucial for gathering upstream data like components, materials, and manufacturing processes.

• Storing the data appropriately: Think of your DPP as a secure, digital filing cabinet. It should support industry standards like Global Trade Item Numbers (GTINs) to ensure data interoperability across different platforms. This allows everyone involved in your supply chain, from suppliers to manufacturers, to access and embed the correct information (GS1 Digital Link) into your product.

• Communicating the data effectively: Your DPP should provide clear, accurate data accessible to all stakeholders, from consumers to regulators. Certain regulations have strict guidelines for labels, values, and their presentation. To prevent regulatory issues, the DPP architecture should fully adhere to these guidelines.

This is then integrated into your product via your existing trim and label supplier.

DPP solution Tappr has partnered with global trim suppliers like Charming to create a more efficient DPP implementation. This collaboration — announced as Charming.Digi — incorporates the ability to create Digital Product Passports into Charming's existing business operations and data handling capabilities, simplifying the integration of digital IDs into garments.

Getting ahead of compliance

While regulations don’t come into effect until 2027, the digitization of labels has already begun, specifically in luxury fashion and experience-driven products.

Brands that fail to adapt to this new reality risk being left behind. But the brands that proactively embrace this technology will not only meet regulatory requirements, they’ll also gain a competitive edge and be well-positioned to thrive in the digital age.

Join us on a webinar about Digital Product Passports

On the 17th of September at 14:00 (CEST), Charming and Tappr are hosting a webinar on Digital Product Passports. Whether you’re a product designer, compliance manager, or sustainability officer, this webinar will equip you with the knowledge and tools to excel in the era of digital product passports.