Digital Product Passport: when obligation becomes opportunity

From 2027, a real digital revolution will enter the scene in the fashion industry, and not only: the Digital Product Passport (DPP). This is not simply a new bureaucratic requirement imposed by the European Union, but rather an unmissable opportunity for companies wishing to radically rethink their production chain and their relationship with the consumer. Indeed, this regulatory challenge represents a unique opportunity to profoundly transform supply chains and corporate strategies, bringing transparency, sustainability and technological innovation to the heart of business.

These are the concepts that emerged from the meeting and discussion organised by Fashion magazine in collaboration with Netcomm and GS1 Italy. A digital excellence roundtable entitled “Digital Product Passport. Between regulatory obligations and new horizons”. We report on some of the themes that emerged from the intense day of work to highlight the various facets of the issue, stimulate reflection and, above all, underline how it is time and urgent to structure ourselves for the changes that are now just around the corner.

Imagine for a moment that you open your wardrobe and know precisely the history of every single garment, every bag and every shoe. From the material used to the craftsman who produced it. This is not science fiction: it is the future that awaits us thanks to the Digital Product Passport. But beware, this is not just a technological trend, it is a mandatory revolution that will profoundly change the production and commercial landscape.

DPP: BETWEEN OBLIGATION AND OPPORTUNITY

The DPP was born within the ESPR Regulation, a central element of the European Green Deal, and obliges companies to provide detailed and traceable information for each product. Paolo Cibien of GS1 Italy calls this novelty a real “cultural and technological revolution”. On the other hand, Marco Ruffa of Data Life adds an even broader vision: “DPP should not be seen only as regulatory compliance, but as a strategic lever capable of radically redefining the relationship between those who produce, those who sell and those who buy”.

STANDARDISATION AND INTEROPERABILITY: A COMMON LANGUAGE

For this transition to take place truly and effectively, it is crucial to adopt a shared and interoperable standard across the entire supply chain. Bruno Aceto, CEO of GS1 Italy, insists on the crucial importance of creating a common language that allows the massive and secure exchange of information, avoiding inefficiencies and waste. “To think of tackling DPP without standards would simply be impossible”, Aceto points out. A shared system avoids fragmentation, reduces errors and waste, and enables a massive and secure flow of information.

BLOCKCHAIN, TRUST AND DATA SECURITY

A key role in this transition is played by blockchain technology, which guarantees longevity, privacy and authenticity of data. Davide Di Stefano of Aura Blockchain Consortium highlights its centrality: “Blockchain allows consumers to really trust the products they buy”. Some big brands, such as Tod’s and Loro Piana, are already using this technology, allowing customers to verify the authenticity and origin of products in real time through simple QR codes or NFC tags directly embedded in products and providing an enriched customer experience.

DATA COLLECTION: STARTING WITH PROTOTYPING

However, to obtain reliable and complete information, Marina Raicevic of Surge emphasises that data collection cannot be limited to the finished product but must start already at the prototype stage. An attitude that ensures greater accuracy and reliability of data throughout the production cycle. “It is necessary to standardise the intra-factory language in order to make the collaboration between the actors really effective”, Raicevic argues. Back to the topic of standardisation, then!

DIGITAL SUSTAINABILITY: A NEW COMPETITIVE PARADIGM

A further key aspect of DPP is digital sustainability, which is now an indispensable competitive paradigm. Carolina Lonetti of Simest highlights how dedicated funding can be decisive in helping Italian SMEs in the digital and sustainable transition, enabling the adoption of advanced technologies to track and certify products. An emblematic example is the case of the Swedish brand Filippa K, which has adopted DPP to ensure complete traceability of the wool used in its collections, from the pasture to the shop.

FROM PRODUCT TO CUSTOMER: A NEW CUSTOMER JOURNEY

But DPP does not only revolutionise production chains: it also redefines the direct relationship between product and end consumer. Eleonora Migliori of Dondup tells how, thanks to DPP, the consumer feels more involved: “Customers who can access the information contained in DPP spend more time on our website and show a greater propensity to purchase”. The tool, in fact, if integrated effectively with CRM strategies, becomes a powerful lever for building consumer loyalty and making the customer an active part of the brand.

TURNING COSTS INTO INVESTMENTS

Obviously, this digital transformation also entails significant and strategic investments. Roberto Liscia of Netcomm emphasises the need for Italian companies to overcome their current systemic shortcomings by creating platforms capable of aggregating the entire supply chain. “Only in this way will it be possible to truly transform DPP costs into sustainable strategic investments”, Liscia says.

INTELLECTUAL PROPERTY PROTECTION AND TRANSPARENCY

Another crucial issue is the protection of intellectual property and the protection of corporate know-how. Silvia Elia, also from Netcomm, points out that DPP makes it possible to effectively communicate the distinctive value of Made in Italy while keeping the most sensitive information confidential, thanks to the possibility of differentiating the levels of access to data.

EDUCATING THE CONSUMER, BUILDING TRUST

Finally, one of the biggest challenges remains educating the consumer. Marco Ruffa makes it clear that “only a truly aware customer can make the most of the DPP. We need to go beyond simple code scanning, building an engaging narrative that allows the product itself to tell its own story, generating a real dialogue with the buyer.

TAKE AWAY

“DPP is not an invention to make marketing directors happy, nor is it a gadget for an evolved boutique. It is a norm. But also, a great opportunity. On this double table – obligation and opportunity – the most important game for the fashion and luxury industry is being played”, Marco Ruffa continued in closing the meeting. He thus summarises the key points concerning the DPP:

Mindshift. No digital revolution happens without a mindshift. The consumer of the future – and partly already the consumer of the present – demands provenance, verification, consistency. He is no longer willing to accept fictitious storytelling. He wants data. He wants truth. Those who wait for the market to oblige them have already missed the train.

Compliance. No more time for excuses. From 2027, the DPP obligation will be triggered for several product categories. But those who move now have an advantage. Compliance is no longer just a grid to be adhered to. It is the new common language between brands, institutions, suppliers and the financial system. DPP makes ESG value visible and allows banks to reward those who invest in traceability. It is the bridge between regulation and reputation.

Collaboration. DPP cannot be built alone: collaboration between brands – even competitors – is today the only way to achieve shared standards and interoperable solutions. The concept of ‘competitive advantage’ must be rewritten: the winner will be those who know how to activate networks, not just protect patents.

Start small, scale big. Everyone wants to start. But they are afraid. Afraid of costs, of complexity, of the domino effect. So, they park their projects in pilots, like quarantine areas. But the pilot is not a car park. It is a trampoline. You need the courage to start, even in a small way.

To believe in it. No project can work if those who run it first concentrate their thoughts on the obstacles to be faced and hope for a delay. Or worse still, that they eventually decide to backtrack.

Storytelling. DPP gives products a voice and, if designed well, this voice can be powerful. It is no longer just marketing that speaks to the customer: it is the product itself that tells its origin, its supply chain, its values.

Standardisation. It is the least sexy word, but the most urgent. Without common standards, every company in the production chain will have to replicate the same processes dozens of times for different customers (brands). The result? Costs, inefficiencies, errors. There are various institutions and consortia, not least the European Community: all are working to define common identifiers, shared structures. This is where true interoperability is at stake.

Export. Italian SMEs can use the digital passport to tell the Made in Italy brand in foreign markets. It is a flywheel of trust and value.

Digital twin. The digital passport can become a true digital extension of the physical product, eventually developing into a dynamic twin that evolves, updates, communicates. An entity that grows with the product and with the customers interacting with it, extending the standard information cycle – which today stops at sale – and coming to cover market phenomena such as second hand and rental, up to the disposal and recycling of the components that make it up.

Ultimately, the Digital Product Passport does not simply represent a new regulatory obligation, but rather an extraordinary opportunity to completely redefine corporate culture, production and the relationship with the market. The test, now, is to take up the challenge to become true fashion pioneers of the future.