1.3 Business value

Section 1.2 explained why Digital Product Passports matter for the fashion system as a whole. This section turns to the more practical question facing a small or medium-sized enterprise (SME): what is actually in it for my business?

Many companies see Digital Product Passports as a regulatory requirement, where compliance is the main driver. This view, however, overlooks the much greater strategic value DPPs have across the product lifecycle when it comes to value capture.

While DPPs are a way of making product data structured, accessible and interoperable throughout the value chain, they also unlock the ability to capture value beyond the point of sale of the product. At their core, DPPs are a way of transforming information into a business asset by leveraging not only pre-sale data, but also post-sale product lifecycle information. Overall, SMEs that treat the DPP as a strategic investment, rather than a box to tick, can use it to strengthen customer relationships, open new revenue streams, and compete on transparency against much larger rivals.

The sections below set out where that value comes from and how smaller fashion and textile companies can capture it.

← PreviousNext: 1.3.1. From compliance cost to competi...  →