Digital Product Passports: Emerging Expectations of Luxury Goods
Digital Product Passports (DPPs) have become an important feature of the fashion industry in recent years, especially in the EU, where they will soon become mandatory. These digital identifiers provide comprehensive information on product origins, materials, environmental footprint and more. A new survey conducted by Authentique, part of The Ordre Group, shows that luxury consumers not only welcome DPP but also crave more detailed and interactive features. This trend provides brands with an excellent opportunity to enhance customer loyalty and engagement.
What consumers want from the DPP
The survey, conducted in April, asked 330 luxury consumers about their preferences for DPP. The results show a clear need for more than just basic sustainability data. Consumers are hungry for richer connections with their purchases through additional features such as identity verification, repair and warranty information, and resale capabilities.
Key attributes required:
- Product Information: Detailed description and specifications.
- Certificate of Authenticity: Ensure product authenticity.
- Aftercare and maintenance instructions: Product maintenance and repair guide.
- Warranty information: Clear details about warranty coverage.
- Resale Information: Boost second-hand sales by verifying details.
Brand Opportunities
Brands that adopt DPP can gain a competitive advantage by enhancing customer experience. Daniela Ott, strategic advisor at Authentique, emphasizes that brands should not view DPP solely as regulatory compliance, but as a way to build stronger customer relationships.
Interest categories:
- high demand: Handbags, watches and jewelry (over 80% interest).
- Interested in: Small leather goods, clothing and outerwear (approximately 40% interest).
- Low interest: Shoes (29% interest).
The role of technology
Digital product passports are typically associated with items via NFC chips, QR codes or digital fingerprints. This integration allows consumers to access a wealth of information with a simple scan, making it easy to get product stories and care instructions.
Leading brands:
- Chanel: Top brands are expected to offer DPP (46%).
- others: Gucci, Hermès, Prada, Dior and Louis Vuitton (all above 30%).
Blockchain and DPP: a perfect match
The integration of blockchain technology into 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. The technology can enhance consumer trust by providing verifiable information about a product’s history from raw materials to final sale.
The decentralized nature of blockchain also ensures that data cannot be tampered with, providing an additional layer of security. By connecting DPP to blockchain, brands can provide consumers with a trustworthy source of information, making the entire product lifecycle transparent and accountable. This integration not only supports sustainability initiatives but also reinforces the luxury brand’s commitment to quality and authenticity.
Strengthen the resale market
DPP can revolutionize the resale market by providing accurate, verified and complete information for pre-owned items. Platforms like Eon are already able to integrate seamlessly with resale sites, which could lead to a more circular economy that extends the life cycle of luxury goods.
Consumer interest:
- Current second-hand buyers: 25%
- Potential buyers of DPP: 56%
- Belief in DPP promoting resale: 65%
Early adopters gain advantage
Brands that adopt DPP early can set industry standards and build consumer trust. By piloting small projects and scaling based on feedback, they can refine their approach and maximize the benefits of DPP.
Overcome challenges
Despite the obvious advantages, brands still face challenges when implementing DPP. Key barriers include supply chain traceability, instant data access and ensuring compliance in different markets. However, with strategic planning and the right technology partners, these obstacles can be overcome.
Notable implementations:
- coach: Digital ID card in the Coachtopia suite.
- Todd: Customize DPP in Di Bag.
- Breitling: Digital Warranty Plan.
- Balenciaga: NFC chip provides music access.
- boss: Digital ID card for ski lift access.
in conclusion
Digital product passports bring transformation opportunities for luxury brands. By providing detailed, interactive product information, brands can increase customer loyalty and engagement, ultimately driving sales and supporting sustainability initiatives. The integration of blockchain technology further solidifies the authenticity and traceability of these products, making them a perfect match for the luxury goods industry.
long story short
Luxury consumers have higher requirements for Digital Product Passports (DPPs), including detailed product information, certification, repair and warranty instructions, and resale capabilities. This trend provides brands with the opportunity to strengthen customer relationships and gain a competitive advantage. The integration of blockchain technology with DPP ensures authenticity and traceability, making it an ideal solution for the luxury market. Key challenges include supply chain traceability and compliance, but early adopters can set industry standards.
