Creating Value Beyond Regulations

Since the EU Green Deal was announced, Digital Product Passports (DPPs) have been a hot topic. DPPs are designed to simplify digital access and democratize product-specific information related to sustainability, circularity, and legal compliance. The initiative builds on existing best practices while also allowing for the integration of innovative approaches through new technologies.

Currently, many companies view DPPs as a mere legal requirement that will cost them time, money, and resources. Have we perhaps stopped looking for opportunities in the chaos of newness? Or has the seriousness of legislation overwhelmed us? DPPs can be a powerful tool for companies to create value beyond regulatory requirements, and we will highlight some of these opportunities in this article.

After-Sales Services

Digital Product Passports provide a way to communicate with end-customers after the point of sale, offering an opportunity to implement after-sales services for feedback and create a loyalty loop.

• Marketing: DPPs can provide information about your company and product and suggest similar products. Use the moment you have of the customer's attention to build brand awareness through content marketing and promotion. Include the story behind your company, images from the newest campaign, or a link to your website and social media.
• Feedback: Allow customers to collaborate on the DPP by adding their feedback, images, or stories. This can engage customers to interact with your brand, and the input will follow the garment until it is recycled. The valuable feedback can be used to improve products or allow the next owner to learn about the product's history.
• Loyalty: Fostering loyalty is tough in today's market. Utilize the DPP as a tool for keeping in touch with your customers after the sale by promoting rewards and deals or adding a link to sign up for your newsletter.

Origin

Digital Product Passports can support sustainability claims, document authenticity, and connect products to their owners. Including documentation is important to avoid negative financial implications and to foster trust with customers.

• Supply Chain Information: DPPs can include documentation, certifications, and contracts. This can be used as evidence to support sustainability claims and provide information about the factory or the originality of materials. You can use this to share your sustainability efforts with proof to the end customer.
• Price Transparency: Price is one of the most important factors for customers when purchasing something new. To justify your pricing strategy and compare your margins to competitors, you can include a cost breakdown of the specific product in the DPP.
• Authenticity: Companies are seeking new ways to control profit margins and brand image. Counterfeit products and the grey market are out of the company's control and can taint their image. By including authentication in the DPP, you can provide customers with the serial number, production date, and stamp of authenticity.
• Ownership: As the sharing economy continues to rise, more and more people will swap and lend out their products to peers. Connecting an owner to a product will ensure the safe return of your customer's products and allow them to digitize their wardrobe.

Circular Services

Circularity is an important part of the EU Green Deal, and Digital Product Passports can be used to encourage end-consumers to take care of their garments or dispose of them responsibly. By including circular services in the DPP, you can partner with companies that offer these services to create new revenue streams.

• Repair: Including information about local tailors or companies that do repairs can nudge the customer to take care of their product. You can also create a repair guide with easy step-by-step instructions with videos and images so your customers can easily do it themselves.
• Resell: Several companies have identified opportunities with re-commerce, curated vintage, or second-hand shops. Selling a new product with a DPP will allow for value retention when reselling, either for your customer or for you as a brand.

Conclusion

In conclusion, Digital Product Passports can create new opportunities for your company, whether for marketing purposes, authentication, or revenue streams. You can seamlessly integrate identity, authenticity, and circularity throughout the product journey, and easily share the story with your customers. Collaborating with local partners for circular services will also support the idea of sustainability, balancing environmental, social, and economic aspects.