Fashion Futures # How Digital Product Passports Could Reshape the Industry
A Decade in the Making: Digital Product Passports Are Set to Transform Fashion
I’ve been thinking about digital product passports—what I once called digital twins—since 2015. Now, nearly a decade later, the European Commission has formalized a mandate that brings this vision to life. What began as a forward-thinking tech innovation is now on the verge of becoming a regulatory requirement poised to reshape not only fashion but also a wide range of industries. Seeing this concept evolve into a driver of transformation is both exciting and affirming, as the groundwork was laid years ago.
While not mandatory yet, Digital Product Passports (DPPs) are expected to become compulsory for various products between 2026 and 2030, with enforcement through the Ecodesign for Sustainable Products Regulation (ESPR). This bold step aligns with the EU’s Green Deal, which aims for climate neutrality by 2050. The DPP will track key lifecycle data—from product origin and material sourcing to environmental impact, repairability, and recyclability—across several industries including textiles (e.g., clothing and footwear), furniture, chemicals, batteries, consumer electronics, electronic devices, and construction products. This regulatory push isn’t just a compliance exercise—it’s set to redefine transparency, accountability, and innovation across industries. As luxury brands and fast fashion alike adapt, the DPP will be central to how products are created, sold, and valued in the years ahead.
The European Commission’s Push for Digital Product Passports
In 2024, the European Union will introduce new regulations under the Ecodesign for Sustainable Products Regulation (ESPR), requiring nearly all consumer goods sold in the EU to carry a Digital Product Passport. This initiative is part of a broader movement toward transparency and sustainability, aligning with the EU’s ambitious Green Deal to achieve climate neutrality by 2050. The DPP will provide key information on a product’s lifecycle, including its origin, materials, environmental footprint, and recyclability. This regulatory shift will impact multiple sectors beyond fashion, including furniture, electronics, and chemicals, driving greater accountability and innovation.
The EU Commission will also launch a public web portal where consumers can access and compare sustainability information from Digital Product Passports. However, how the data will be collected, verified, and uploaded to this portal remains undetermined, leaving open questions about data accuracy and governance.
Digital Product Passports: A New Era for Fashion
The Digital Product Passport (DPP) is set to revolutionize the fashion industry by the end of the decade. As the EU’s ESPR becomes a legal requirement, fashion brands will need to transform their operations to accommodate new expectations for data sharing around product sourcing, sustainability, and recyclability. In the future, consumers could gain access to crucial lifecycle information for products, making transparency and accountability the norm rather than the exception. Fashion brands will be empowered to provide digital proof of their sustainable practices, enhancing consumer trust and driving more responsible consumption.
Luxury Brands Leading the Charge
Luxury brands are already laying the groundwork for Digital Product Passports, setting the stage for industry-wide adoption. Brands like Prada, through initiatives such as the Aura Blockchain Consortium, are utilizing blockchain to enhance the shopping experience. With DPPs, consumers will gain access to rich details about a product’s history and material sourcing through secure, blockchain-backed digital identities. Prada’s digital storytelling could soon strengthen customer engagement, particularly among younger consumers. The future of shopping will combine in-store personalization with data-driven insights, delivering a more immersive experience. Luxury brands, by embracing this level of transparency, are setting a new standard for authenticity and innovation..
Startups and Their Role in the Digital Passport Revolution
Startups will play a pivotal role in expanding Digital Product Passports, offering Web 2.0 and Web 3.0 solutions to drive adoption. Companies like EON and Arianee represent two different approaches to DPP technology. EON, with its traditional Web 2.0 solution, aims to provide scalable digital identity tools for mainstream retailers and fast fashion brands. By offering detailed information on product sustainability and lifecycle, EON will help brands comply with upcoming regulations without disrupting existing operations. On the other hand, Arianee’s Web 3.0 solution leverages blockchain and NFTs to deliver decentralized, secure digital identities for luxury goods. Arianee's focus on immutability and control appeals to luxury brands looking to offer unparalleled transparency. Whether through a centralized or decentralized approach, startups will be key to defining the future of DPPs.
The Oracle Problem: Connecting the Physical to the Digital
As Digital Product Passports become more widespread in the coming years, one of the critical challenges that brands will face is the "oracle problem"—ensuring a reliable and tamper-proof connection between the physical product and its digital identity. Technologies like NFC tags, RFID chips, and QR codes are likely to bridge this gap, but their security and scalability will need to evolve to meet future demands. Brands will need to adopt tamper-resistant solutions to ensure that the integrity of a product’s digital identity remains intact throughout its lifecycle. Blockchain's immutability offers a promising avenue for securing these digital identities against bad actors, ensuring that once data is uploaded, it cannot be altered or manipulated.
Fast Fashion and the Challenge of Sustainability
Fast fashion faces unique challenges in integrating Digital Product Passports. While DPPs offer an opportunity to improve repairability, recyclability, and transparency, fast fashion’s current business models will require significant adjustments. In the future, these brands may need to embrace circular business models, designing products with longevity and reuse in mind. As consumers demand greater accountability, fast fashion brands could leverage DPPs to regain consumer trust and reimagine their production cycles.
LUKSO’s Early Innovation: A Proof of Concept
At LUKSO, we anticipated this shift as early as 2018. My team developed a proof of concept that allowed brands to register their products on the blockchain, and users could claim ownership via a mobile app. This early innovation laid the groundwork for what Digital Product Passports are becoming today, although the project was deprioritized in 2021. As the fashion industry adopts DPPs, projects like these could be reactivated to provide a robust foundation for product authenticity and consumer engagement in the digital age.
The Path Forward: Interoperability and Adoption
The future of Digital Product Passports hinges on their interoperability and widespread adoption across different sectors of the fashion industry. While luxury brands are setting the stage, the need for cross-industry standards will be essential to ensure that DPPs work seamlessly for both high-end and fast fashion retailers. In the years to come, the collaboration between startups, luxury brands, and governmental bodies will be crucial in defining these standards and driving widespread adoption. While it remains to be seen which stakeholders will lead the charge, one thing is certain: Digital Product Passports have the potential to reshape the fashion industry from top to bottom, ushering in an era of greater transparency, accountability, and consumer engagement.
Are These Policies Truly Effective?
While the European Union’s initiatives, such as the charging port mandate and Digital Product Passports, are designed to promote sustainability and reduce waste, there’s room for discussion about how much they truly achieve these goals versus potentially overstepping into design decisions that might be better left to companies and consumers.
Take the charging port mandate, for example. While it undoubtedly simplifies things for consumers and reduces electronic waste, some might argue that this decision is intrusive in terms of innovation and design freedom. Shouldn't companies have the flexibility to develop new charging technologies that might be more efficient or even more sustainable than USB-C? By locking all devices into a standard, are we potentially stifling innovation that could lead to even better solutions down the line?
Similarly, while Digital Product Passports hold immense promise, there’s a concern that they could evolve into little more than a marketing tool—a way for brands to signal sustainability without truly embracing it. This could lead to increased complexity for both consumers and smaller brands, who might find it more difficult to comply with the passport requirements, creating more barriers to entry rather than promoting a more transparent and sustainable industry. If DPPs are not implemented with care, they risk becoming another layer of superficial greenwashing rather than driving meaningful change.
Future in Your Hands
As we look ahead to a future where Digital Product Passports might shape our fashion choices and industry standards, I want to know what you think. What excites you the most about this new wave of transparency and technology in fashion? Will brands fully embrace it, or will it become just another marketing tool? How will consumers interact with these digital layers of storytelling?
Let me know your thoughts in the comments.
xMH
About Marjorie Hernandez
Marjorie Hernandez is a visionary entrepreneur and leader at the intersection of culture, design, and technology. With a background in architecture and years of experience pioneering Web3 and digital fashion through projects like DEMAT and LUKSO, Marjorie’s work is reshaping the creative economy. Recognized for her transformative influence in the tech and fashion industries, Marjorie has been featured in publications like Vogue Business and Business of Fashion for her contributions to digital innovation.
