Proactively integrate Digital Product Passports (DPPs) to meet upcoming EU requirements, build consumer trust, and unlock new customer touchpoints.
Digital Product Passports (DPPs) are set to transform fashion retail, moving from a regulatory checkbox to strategic advantage. As the EU Ecodesign for Sustainable Products Regulation (ESPR) will make Digital Product Passports mandatory by 20272 for categories such as clothing, footwear and accessories, the countdown for businesses to prepare has begun. Early adopters of DPPs are poised to set industry standards, enhance transparency, and build lasting consumer trust.
Currently, only 1% of clothing is recycled3, and nearly 40% of Millennials and Gen Z say they are not given the information needed about where, by whom, and how their fashion items are made4. DPPs address this gap by offering verified, product-level data on provenance and sustainability. Notably, nearly half of consumers (49%) show a higher intent to purchase for fashion items when product origin and materials are verifiable through a Digital Product Passport, according to our survey of 2,000 consumers in Germany and Austria we conducted with Appinio5.
This also translates into monetization potential: 74% of consumers surveyed are willing to pay a price premium for fully traceable and sustainability-verified fashion items, including 26% willing to accept a premium of up to 20%. DPPs are no longer a concept of the future but are already being implemented at scale by leading brands, for example through initiatives like the Aura Blockchain Consortium. Led by LVMH, Prada, and Cartier, the consortium has already registered over 70 million fashion items with digital passports6. The perceived value of Digital Product Passports, however, extends beyond luxury: our survey respondents see the greatest relevance for everyday categories such as jeans/trousers (40%) and footwear (39%), rather than luxury items (27%)7.
Beyond transparency, Digital Product Passports offer additional opportunities for retailers by creating new touchpoints for engagement across the whole customer journey. While most retailers are not yet fully equipped for large-scale DPP implementation, the window to secure a first-mover advantage is rapidly closing.
To stay ahead of regulatory changes and rising customer expectations, fashion retailers should:
- Build digital infrastructure and data governance to manage product traceability information end-to-end and ensure interoperability with partners
- Collaborate with suppliers, recyclers, and tech providers to align data standards and streamline implementation
- Redesign customer touchpoints by integrating DPP access points (QR/NFC) into physical stores and online platforms
- Upskill staff on compliance, tech, and consumer communication to make DPPs part of the customer journeyLeverage DPP data to create value-added services (e.g., authenticated resale, repair, recycling) and to unlock related use cases (e.g., supply chain efficiency)
With regulatory requirements looming, DPP readiness is no longer optional – retailers must act now to be compliant by 2027 and build lasting consumer trust.
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