DPP Could Double the Life Value of Products

Upcoming EU regulations are expected to transform the fashion resale market by potentially doubling the lifetime value of products. Research from Bain & Company and eBay suggests that consumers could reap up to 65% of these benefits. This shift offers a unique opportunity for brands to enhance their value chains through increased transparency, trust, and circularity, moving beyond mere regulatory compliance.

The research article posted on the Bain website suggests that digital product passports (DPPs) will not only serve as compliance tools but also as commercial opportunities. For instance, a fashion item sold for £500 could generate an additional £500 in resale value when supported by a DPP, thereby enhancing trust and ease of resale.

Currently, around 90% of brands view DPPs as a compliance burden. However, the research encourages brands to see them as strategic investments that can foster ongoing revenue and strengthen consumer relationships. ‘DPPs are a foundational shift in value creation,’ said Aaron Cheris from Bain & Company.