Why Blockchain Is Important for Fashion Brands Implementing Digital Product Passports
Date: 2024-09-12 Author: Gabriel Deangelo Categories: BLOCKCHAIN
Blockchain is becoming an important tool for luxury fashion brands to authenticate and trace their products, driven by recent European Union (EU) legislation.
The EU Ecodesign for Sustainable Products Regulation (ESPR) requires most products sold in the EU to meet sustainable and ethical standards. One of the key requirements for traceability is the presence of digital product passports (DPPs).
A digital product passport (DPP) is a digital tag associated with a product that provides consumers with information about the authenticity, supply chain, and sustainability of the product.
Megan Caspar, managing director of digital asset investment firm FirstLight, told Cryptonews that the need for DPPs is rapidly increasing.
Caspar attributed this to the growing importance of France’s Anti-Waste for the Circular Economy (AGEC) law, as well as the EU’s proposed new regulations that could require fashion and other sectors to implement DPPs for every product as early as 2026.
Blockchain-based DPPs are gaining popularity
Luxury brands like Prada have already adopted blockchain technology through DPPs to authenticate their products, Caspar said.
“This provides secure, transparent and traceable records of origin, ownership and authenticity,” she said. “By using blockchain, brands can guarantee full supply chain traceability and reduce counterfeiting, which increases consumer confidence.”
Caspar highlighted that companies like the Aura Blockchain Consortium are facilitating this process by linking physical products to the blockchain via embedded NFC chips or QR codes.
Aura Blockchain Consortium was founded by the Louis Vuitton Innovation Department, led by Agnès Visod.
The initiative has since expanded to create DPPs for over 40 million products for brands including Prada, Loro Piana, Maison Margiela, Rimowa, and Louis Vuitton.
Romain Carrère, CEO of Aura Blockchain Consortium, told Cryptonews that Aura is primarily focused on the application of blockchain-based DPPs in the luxury industry.
“With the upcoming EU regulation requiring the widespread use of DPPs from 2026, accelerating adoption is more urgent than ever,” Carrère said.
He added that Aura and its members are using DPPs for more than just regulatory compliance.
“Blockchain-based digital product passports offer an end-to-end guarantee of authenticity, product lifecycle traceability, incentives and rewards, and community and customer engagement while enriching the brand and product narrative,” he said.
