Fashion industry positioning by product digital passport

Mugler bags have a DPP code that provides consumers with information about the origin of production.

Since 2024, Europe has had strict regulations on the origin of fashion products. Specifically, in the new regulations of the European Union (EU), from 2024 to 2030, fashion products and goods sold in the EU must have a DPP, especially for luxury fashion products. DPP is considered a digital passport to authenticate the origin of products, protect brand value, and provide smart services to consumers after purchase.

Accordingly, luxury brands have gradually encrypted and positioned products using many digital methods. Prada, Mugler, Chloé have quickly applied DPP through QR code, NFC and Blockchain technologies. Specifically, Mugler has introduced a digital passport for the Spiral Curve bag line, allowing customers to scan QR codes to access product details and verify ownership. Prada also provides NFC-enabled authentication cards for jewelry, ensuring traceability.

According to a report from Vogue Business Index, the rate of DPP application in luxury fashion brands has reached 67%. This shows the strong transformation of the fashion industry when catching up with technology. Big names like LVMH or Richemont have established Aura Blockchain Consortium to invest in technology to prove product origin, especially applying it to the transfer of unchanged ownership.

In fact, identifying DPP for products not only helps customers trust the product, improve the experience but also helps prevent counterfeiting. Because each DPP code not only has an origin but also provides detailed purchase history.

According to experts, product transparency is of great interest to consumers. Specifically, a survey from Certilogo shows that 49% of consumers are aware of this concept and 54% of Gen Z show special interest in DPP. This shows that the younger generation pays great attention to using technology to enhance the shopping experience and address sustainability issues.

Also in the Certilogo survey, 56% of respondents said that DPP is an effective tool to prevent counterfeit goods. Thus, DPP is considered an important tool for brands to approach and establish trust with customers. With DPP, products are introduced systematically from raw materials, production processes to consumers. Customers can clearly understand the products they intend to buy and use.

In fact, the second-hand luxury goods market has been growing strongly for many years. In 2024, it is estimated that this market will reach 50 billion USD, showing that consumers still love used luxury goods. This is also consistent with the "old for others, new for me" mentality of consumers, or those who like to collect their favorite brands. In particular, DPP will show high transparency when the product is exclusive, special edition or unique. Therefore, the application of DPP is inevitable in the fashion industry, because both buyers and sellers need transparency about the product.

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Source: https://baocantho.com.vn/nganh-thoi-trang-dinh-vi-bang-ho-chieu-so-san-pham-a192187.html