In a pivotal moment for the fashion industry, Michele Casucci, founder and general manager of Certilogo, hosted a groundbreaking knowledge luncheon at BoF VOICES 2024 in Oxfordshire. As leaders from notable brands like Versace, Tommy Hilfiger, Nike, and H&M came together, the focus was on digital product passport technology (DPPs) — an avenue that not only meets compliance requirements but also facilitates deeper connections with consumers.
DPPs serve as digital identities attached to each product, providing insight into its entire lifecycle. This includes vital information such as the materials’ origins, manufacturing processes, supply chain details, and environmental footprint, all accessible through smartphones via NFC tags or QR codes. As the European Commission’s regulations mandate the inclusion of unique DPPs in consumer goods by 2027, investment in this technology is becoming necessary.
Casucci emphasized that Certilogo began with a mission to bridge brands with customers. By integrating DPP technology, products can evolve into channels for brands to offer services and content directly to consumers. This innovation enables customers to make informed choices based on traceability, shaping a more sustainable consumption model.
The fashion leaders gathered to explore how to leverage DPPs not just for compliance but as a transformative tool for customer engagement. Here are three significant themes that emerged from their discussions.
1. Building Resale Opportunities Through Connected Products
One highlighted innovation was the integration of technology that allows consumers to view the resale value of their items at the point of purchase. Such a system directs users to a microsite to facilitate in-brand resale, ensuring that items remain within the brand ecosystem. A participant remarked, “We notice that the resale value is only 5 to 10 percent below the original price, indicating strong demand.” This potential illustrates connected products’ role in adapting to changing consumer preferences for sustainability.
Another executive mentioned the necessity of aligning resale processes with broader shopping trends. By incorporating rental and repair services, brands can create a cohesive shopping experience that encourages sustainability. However, challenges in communicating brand value and integrating new models remain.
2. Ensuring Authenticity and Protecting Brand Integrity
The risk of counterfeiting was a pressing issue, especially highlighted by a survey from the European Union Intellectual Property Office, revealing that over 50% of young consumers had unknowingly purchased counterfeit products. A prominent brand executive recounted the struggles of retaining consumer trust amid the rise of sophisticated imitations. “When we see flagship products sold at alarmingly low prices, we realize the threat of counterfeiting is a matter of survival for many brands.”
DPP technology can help brands maintain integrity. By providing clear verification of authenticity, these digital passports empower consumers to make informed choices, fostering a sense of trust in the products they purchase.
3. Enhancing CRM Strategies with Engaging Storytelling
Beyond compliance and traceability, brands are looking at how to leverage DPPs to enrich customer relationship management (CRM) strategies. Participants discussed the importance of operationalizing these technologies to initiate revenue-generating engagements that extend beyond the typical purchase path.
One speaker highlighted the need for brands to embrace storytelling as a marketing tool: “It’s imperative that we craft narratives that connect with consumers on a personal level.” By centering customer interactions around stories about the product journey and its creation, brands can nurture relationships that lead to loyalty and repeat business.
Ultimately, the path to integrating digital product passports represents an exciting evolution within the fashion industry, illustrating how brands can adapt and thrive in today’s marketplace. By prioritizing compliance, authenticity, and deepening consumer connections, brands are poised to not only meet regulatory demands but also create meaningful engagement with customers.
This approach is not merely about technology adoption but is integral to reshaping the future of consumer-brand relationships in a way that values authenticity, sustainability, and transparency.
