A recent study by Bain & Company and eBay reveals a surprising fact: a fashion item that comes with a Digital Product Passport can double its resale value and generate up to 65% more profit for the consumer in the second-hand market.
But how is it possible that a simple digital label can have such an economic and strategic impact?
In today’s post, we find out, starting with the fashion industry, where traceability, authenticity and sustainability are changing the way companies compete in the market.
More trust, more value with the DPP
The explanation is simple: the Digital Product Passport increases transparency.
It provides easy access to traceable and verifiable information on the origin, materials, production processes and certifications of the product. And this makes all the difference, especially when it comes to resale, reuse or recycling.
In a market where consumers are increasingly concerned about sustainability, authenticity and environmental impact, the DPP becomes a tool for trust, giving concrete value to every stage of a product’s life.
Those who integrate the DPP today are not just responding to a regulatory requirement: they are building a new competitive advantage, where transparency rewards, builds loyalty and generates economic opportunities.
‘DPPs are not just a compliance check. They represent a radical change in the way value is created, acquired and maintained throughout a product’s life cycle.’
— Aaron Cheris, Bain & Company
But what exactly is the Digital Product Passport?
The Digital Product Passport (DPP) is a measure provided for by the European ESPR Regulation (2024/1781), designed to accelerate the transition to a circular economy.
From 2027, it will be mandatory for various products sold in the European Union, including:
- clothing and footwear
- industrial batteries
- furniture
- electronics
- construction materials and products.
The timing will differ from sector to sector, but the principle remains the same: to make every product traceable and transparent throughout its life cycle.
The DPP is, in practice, a passport for the product, accessible via QR code or RFID, which contains information such as:
- origin of raw materials (country, supplier, supply chain);
- composition and treatments applied;
- environmental and social certifications;
- estimated environmental impact (carbon footprint, use of water, energy, etc.);
- maintenance and end-of-life instructions (reuse, recycling, disposal);
- any repairs, reconditioning or modifications carried out on the product.
This data must be up to date, interoperable, in machine-readable format and recorded on an official European platform.
The passport will be accessible not only to the authorities, but to all actors in the supply chain, including consumers and commercial partners.
The Fashion & Luxury sector is already preparing itself
Although the battery sector will be the first to formally implement the DPP, according to the regulatory roadmap, from 2027 the DPP will also be mandatory for clothing, footwear and accessories.
The European Commission has identified textiles as a priority sector: complex supply chains and significant environmental impact.
For fashion companies, this means rethinking the way they collect, store and communicate supply chain data, working more closely with:
- third-party suppliers,
- tailoring workshops,
- small artisans,
- raw material producers.
It is not just a matter of complying with a legal obligation, but of taking advantage of a strategic opportunity.
Not just compliance: how brands are already taking action
Several brands are already experimenting with digital solutions that anticipate the requirements of the DPP.
They are not doing this only out of obligation, but to strengthen their relationship with customers.
Save The Duck and Rifò already integrate QR codes into their garments, linking to detailed information sheets on materials, origin and sustainability.
The DPP thus becomes an essential part of brand storytelling.
It allows a product to be described through its data, giving value to every detail: from the origin of the fibre to the environmental impact of transport.
It is a new way of building trust, authenticity and differentiation, which is increasingly rewarded by the market today.
DPP: which digital tools are truly necessary?
Implementing a Digital Product Passport goes far beyond simply adding a QR code.
It requires a fully-fledged digital infrastructure capable of managing the continuous, structured flow of information throughout the product’s entire life cycle.
Companies will need to equip themselves with:
- interoperable digital platforms capable of collecting, updating and transmitting the data required by law;
- shared standards to make data accessible and readable throughout the supply chain;
- advanced traceability tools based on technologies and standard such as EPCIS, RFID or NFC tags;
- protection and control systems to ensure data integrity and protect sensitive information and company know-how.
In this scenario, iChain, the Cloud/IoT platform developed by Wiseside, represents a concrete response.
iChain is already operational in complex contexts, designed to manage product data throughout its entire life cycle, from design to disposal.
Its architecture is scalable, interoperable and aligned with international standards, ready to support companies in building a transparent, secure and shared DPP.
A lever for business, not just for compliance
The Digital Product Passport is not just a deadline to be met.
It is a strategic lever for:
- communicate transparency,
- enhance product identity,
- build trust,
- stand out in an increasingly demanding market.
It is also a unique opportunity to rethink supply chain governance, integrate fragmented data, improve collaboration between different players and engage customers in a more authentic narrative.
Don’t wait until it becomes mandatory.
Competitive advantage is built today, with concrete choices and the right tools.
Discover how iChain can help you manage your Digital Product Passport in a structured, efficient and scalable way.
Contact us for a free demo.
CEO of Wiseside Srl, thanks to his solid experience in the IT sector and consulting for multinational companies, she has been contributing for over 10 years to the development of innovative and collaborative Supply Chain models, always respecting the principles of sustainability.
