The long-standing demand from end consumers for sustainable and environmentally friendly products in the fashion industry is rapidly increasing. More and more consumers are seeking concrete evidence of a product’s environmental sustainability, with the goal of reducing CO2 emissions and minimizing ecological footprints. However, consumers no longer just want claims; they are looking for verifiable information, such as resource origin, country of production, and recycling possibilities of the product.
In this context, the European Union has recognized the need for greater transparency and introduced the concept of the Digital Product Passport (DPP). This innovative idea enables the tracking and documentation of all critical information about products, from raw materials to final production and product lifecycle. The DPP provides answers to the key questions consumers ask, thereby increasing trust and allowing customers to make more informed decisions.
Thanks to the Cirpass 2 Directive and its provisions, the fashion industry is facing a turning point that will significantly impact how business is conducted. The DPP allows brands and manufacturers to provide real-time data on the sustainability of their products, enhancing accountability and encouraging innovation in the creation of more sustainable and eco-friendly collections.
The fashion industry is facing serious challenges in its supply chain, which will require careful planning and adaptation to meet new standards and expectations. In an industry where branding is critical and holds significant value, it is essential for companies to not only carefully choose their business partners but also maintain their brand reputation and transparency toward consumers.
By implementing the Digital Product Passport (DPP), the fashion industry can achieve the required transparency and provide consumers with clear information about product origins. This means brands will be able to prove where raw materials come from, how products are made, and where they can be recycled or disposed of. This new dimension of transparency will not only help preserve brand reputation but will also enable consumers to make better-informed, responsible purchasing decisions.
Implementing the DPP in the fashion industry presents significant challenges for both small and large businesses. While all sectors face some difficulties, specific issues depend on the size and resources of the company.
For small businesses, one of the greatest challenges is the initial cost of implementing the DPP. The expense of setting up QR codes and creating digital passports can be substantial, and the return on investment may be relatively low, which can deter them from implementation. Many small brands do not have sufficient financial resources to invest in technology that offers long-term benefits.
On the other hand, large companies do not face the same initial cost issues due to their higher revenues and resources. However, their biggest challenge is integrating the DPP into existing systems such as CRM, ERP, and other IT platforms. Connecting new technologies to existing infrastructure can be technically complex and requires significant adaptation and coordination within the organization.
The implementation of the Digital Product Passport represents an important step toward greater sustainability and transparency in the fashion industry. While there are challenges, the benefits that the DPP brings, such as improved accountability and increased consumer trust, make this change essential for the industry’s long-term success. Brands, regardless of size, should carefully plan their DPP implementation, secure necessary resources, and take advantage of innovation opportunities that will enable them to stand out in the market and meet increasingly stringent consumer demands.
