6.1 Circular business models

Circular business models change what a fashion company earns from: instead of depending on selling as many new garments as possible, the business profits from keeping products in use — through rental, resale, repair, care and take-back services. These models existed before the Digital Product Passport; what the DPP changes is the economics of trust and coordination that made them hard to scale. Reliable product data reduces the cost of verifying a product’s condition, authenticity and history — the three uncertainties that slow down every second-hand, rental and repair transaction.

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