Digital product passports: an emerging expectation in luxury
In recent years, digital product passports (DPPs) have become an essential feature in the fashion industry, especially in the European Union where they will soon be mandatory. These digital identifiers provide comprehensive information about a product’s origins, materials, environmental footprint and more. A new survey from Authentique, part of The Ordre Group, shows that luxury consumers not only welcome DPPs, but even want more detailed and interactive features. This trend offers brands a golden opportunity to strengthen customer loyalty and engagement.
What consumers want from DPPs
The survey, conducted in April, asked 330 luxury consumers about their preferences regarding DPPs. The results show a clear demand for more than just basic sustainability data. Consumers want a richer connection to their purchases through additional features such as authentication, repair and warranty information, and resale options.
Main desired features:
- Product information: Detailed descriptions and specifications.
- Certificates of authenticity: Guaranteeing the authenticity of the product.
- Aftercare and repair instructions: Guidance in maintaining and repairing the product.
- Warranty information: Clear details about warranty coverage.
- Resale information: Facilitate second-hand sales with verified data.
Opportunities for brands
Brands that embrace DPPs can gain a competitive advantage by improving the customer experience. Daniela Ott, strategic advisor at Authentique, emphasizes that brands should view DPPs not just as regulatory compliance, but as a way to build stronger customer relationships.
Categories of interest:
- High demand: Handbags, watches and jewelry (over 80% interest).
- Moderate interest: Small leather goods, clothing and outerwear (approximately 40% interest).
- Little interest: Shoes (29% interest).
The role of technology
Digital product passports are often linked to items via NFC chips, QR codes or digital fingerprints. This integration allows consumers to access a wealth of information through a simple scan, making the product story and care instructions immediately available.
Leading brands:
- Chanel: Top brand expected to offer DPPs (46%).
- Others: Gucci, Hermès, Prada, Dior and Louis Vuitton (all above 30%).
Blockchain and DPPs: a perfect match
The integration of blockchain technology with DPPs is inevitable and represents a perfect use case for this innovative technology. Blockchain provides a secure, transparent and immutable ledger, ensuring the authenticity and traceability of luxury goods. This technology can increase consumer confidence by providing verifiable information about the product’s history, from raw materials to final sales.
The decentralized nature of Blockchain also ensures that data cannot be tampered with, providing an additional layer of security. By connecting DPPs to blockchain, brands can provide consumers with a trusted source of information, making the entire product lifecycle transparent and auditable. This integration not only supports sustainability initiatives, but also reinforces the luxury brand’s commitment to quality and authenticity.
Improving the resale market
DPPs can revolutionize the resale market by providing accurate, authentic and complete information about used goods. Platforms like Eon already enable seamless integration with resale sites, which could lead to a more circular economy where luxury items have a longer life cycle.
Consumer interest:
- Current second hand buyers: 25%
- Potential buyers with DPPs: 56%
- Belief in DPPs that facilitate resale: 65%
Early Adopters get a head start
Brands that adopt DPPs early can set industry standards and build consumer trust. By testing and scaling small projects based on feedback, they can refine their approach and maximize the benefits of DPPs.
Overcoming challenges
Despite the clear benefits, brands face challenges when implementing DPPs. Key barriers include supply chain traceability, access to live data, and ensuring compliance across markets. However, with strategic planning and the right technology partners, these hurdles can be overcome.
Notable implementations:
- Coach: Digital IDs in Coachtopia bags.
- Tod’s: DPPs in custom Di Bag.
- Breitling: Digital warranty program.
- Balenciaga: NFC chips that provide access to music.
- Boss: Digital IDs for ski lift access.
Conclusion
Digital product passports represent a transformative opportunity for luxury brands. By providing detailed and interactive product information, brands can increase customer loyalty and engagement, ultimately driving sales and supporting sustainability initiatives. The integration of blockchain technology further strengthens the authenticity and traceability of these products, making it a perfect fit for the luxury industry.
TL; DR
Luxury consumers are demanding more from digital product passports (DPPs), including detailed product information, authentication, repair and warranty instructions, and resale options. This trend presents an opportunity for brands to strengthen customer relationships and gain a competitive advantage. The integration of blockchain technology with DPPs ensures authenticity and traceability, making it an ideal solution for the luxury market. Key challenges include traceability and supply chain compliance, but early adopters can set industry standards.