Impact of the Digital Product Passport on the fashion and retail industry in the EU

The Digital Product Passport (DPP) is a new regulation introduced by the EU aimed at promoting sustainability throughout the product lifecycle. The DPP provides detailed information about a product's composition, origin, environmental impact, and other relevant data. This information helps create a more sustainable and transparent supply chain across various industries, including the fashion and retail sector.

 

What does this mean for the fashion and design industry?

In the fashion and design industry, the DPP will require producers and suppliers to publish more data about their products. This includes information about the origins of materials, production methods, and environmental impact. The goal is to enhance traceability in the supply chain and increase transparency, thereby strengthening consumer trust by enabling them to make better-informed purchasing decisions.

Data management and technological solutions
The implementation of the DPP places high demands on companies' ability to collect, manage, and share data. This can be challenging, especially for smaller players with limited resources. Investment in new systems and processes will be necessary to ensure compliance with the new regulations. Product Information Management (PIM) systems can assist in meeting these requirements by ensuring that data is always up-to-date and easily accessible. This will also benefit other internal processes within companies, such as inventory management.

Sustainability and competitive advantages
For companies that successfully adapt to the new requirements, the DPP provides an opportunity to position themselves as sustainable and responsible actors. This can enhance the brand's image and increase its competitiveness. All of this is beneficial for marketing strategies, enabling a strong focus on sustainability and opening new market opportunities by attracting customers who prioritize sustainability.

The practical aspects
An effective PIM system is crucial for complying with DPP requirements in the fashion and retail industry. PIM systems help gather data from various sources, including ERP systems and third-party data, ensuring that the information is always current and easily accessible.

The Digital Product Passport represents both a challenge and an opportunity for the fashion and retail industry in the EU. While the transition requires significant investments and changes to existing processes, it will contribute to a more sustainable and transparent industry in the long run. This can strengthen companies' positions in the market and enhance consumer trust in their products.

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The Digital Product Passport
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Company Registration Number: 25524365

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