DPPs to redefine fashion value chain, consumers to gain most: Report
The study highlighted a transformative opportunity for brands to go beyond mere compliance and reshape the value chain through enhanced transparency, trust, and circularity. With Digital Product Passports (DPPs) becoming mandatory for textiles from 2026 under the EU's Ecodesign Regulation, the report underscored their potential as more than just a regulatory requirement.
For instance, a £500 (~$684.67) fashion item today could unlock an additional £500 in value through resale and associated services, facilitated by the trust and traceability offered by a DPP. While resale platforms, brands, and verification services all stand to benefit, the greatest advantage is expected to go to consumers.
Fashion brands have been urged to embrace Digital Product Passports (DPPs) as a strategic tool, not just a compliance measure, according to research by Bain & Company and eBay. As EU regulations make DPPs mandatory by 2026, early adopters can unlock resale value, strengthen consumer trust, and drive circularity. With potential gains favouring consumers, DPPs promise a data-driven future.
Despite this potential, nearly 90 per cent of brands surveyed still view DPPs as a compliance cost. They have urged a strategic rethink—positioning DPPs as a tool for recurring revenue, stronger consumer engagement, and enhanced sustainability.
Around 90 per cent of those surveyed by Bain—currently view DPPs primarily as a regulatory burden. But research encouraged companies to reframe DPPs as a strategic investment capable of generating ongoing revenue, driving sustainability, and strengthening consumer relationships.
'DPPs are more than just checking a compliance box. They are a foundational shift in how value is created, captured, and sustained over a product's lifetime,' said Aaron Cheris, partner in Bain & Company's Retail and Customer Strategy & Marketing practices . 'Brands that act early can build a more direct, data-rich relationship with consumers, tapping into resale trends and personalising services in powerful new ways.'
Under the EU's forthcoming Ecodesign for Sustainable Products Regulation (ESPR), nearly every physical product sold in the EU will require a DPP by 2030—yet 90 per cent of brands still see this as a compliance burden, rather than a growth lever.
However, the report has called for a shift in mindset. It emphasises that DPPs, far from being a bureaucratic obligation, should be seen as strategic tools to drive revenue. By improving traceability and trust, DPPs can extend a product's value far beyond the original point of sale.
DPPs will play a pivotal role in enabling circularity and expanding access to second-hand markets. They can help brands tap into new revenue streams, reinforce consumer trust, and align with evolving sustainability expectations--ultimately positioning them for long-term competitive advantage in a regulation-driven future.
'Digital Product Passports are critical to powering the future of circularity in fashion,' said Alexis Hoopes, vice president (VP) of global fashion at eBay . 'As a global marketplace at the forefront of resale, we're exploring how better product data can enable smarter buying, responsible selling, and a more trusted platform. Unlocking value for consumers is a critical part of the connected product evolution.'
The report further highlighted that consumers would capture most of the DPP-driven value. By removing friction—no more lost receipts or clunky listings—DPPs will enable one-click resale and boost confidence. As second-hand markets expand, DPPs can act as a flywheel for growth—deepening trust, expanding participation, and making circular shopping second nature.
With the 2026 ESPR deadline fast approaching, it delivered a clear message: act now. Brands that begin building DPP infrastructure, engage consumers, and experiment with resale models today will lead the future of sustainable, data-driven fashion. Those that delay may struggle to keep pace as the resale economy rapidly expands.
DPPs are standardised digital records, accessible via QR codes, NFC, blockchain or similar technologies, and contain detailed information about a product's materials, components, origin, environmental footprint, and lifecycle.
Fibre2Fashion News Desk (SG)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
30 minutes ago
- Business Standard
China to EU: Russian defeat in Ukraine may push US to target Beijing next
Chinese Foreign Minister Wang Yi told the European Union's foreign policy chief this week that Beijing does not want to see Russia lose the war in Ukraine, according to a report by the South China Morning Post, citing several people familiar with the matter. In what was described as a 'tense' four-hour meeting with EU foreign policy chief Kaja Kallas, Wang suggested that a Russian defeat would prompt the United States to reorient its full strategic weight toward China—a scenario Beijing is determined to avoid. The comments were reportedly delivered in a tone considered blunt and at times 'lecturing', with Wang offering what one official called a 'dose of realpolitik' and 'lengthy history lessons'. China's messaging signals tactical neutrality on Ukraine The Chinese foreign minister's comments are among the clearest signals yet that Beijing views the war in Ukraine through a geopolitical lens. While China officially maintains that it is 'not a party' to the conflict and supports a peaceful resolution, Wang's remarks suggest a more tactical approach—one in which a protracted war may be preferable to a Russian collapse. China denies aiding Russia, rejects dual-use export claims Denying direct Chinese military or financial support for Russia, Wang claimed that if China had been actively aiding Moscow, 'the war would have ended long ago'. He also rejected EU accusations of dual-use exports and positioned China as a neutral actor—a claim met with scepticism in Brussels. The report added that EU sources said the bloc presented a united front, pushing back on China's portrayal of neutrality and reiterating the importance of upholding international law. EU-China summit clouded by tensions over sanctions, trade The Brussels meeting comes just weeks before a planned high-level EU-China summit, scheduled for 24–25 July in Beijing and Anhui province. However, insiders now say expectations for the summit have diminished, with Wang reportedly hinting that the agenda could be shortened in protest of recent EU trade actions. China warns of retaliation over EU's sanctions plan The EU has proposed blacklisting two small Chinese banks accused of facilitating sanctions evasion for Russian entities. Wang warned of retaliation if the move proceeds, as part of the EU's 18th sanctions package against Moscow. Meanwhile, the EU pressed China to clarify its rare earth export policy, amid growing supply chain disruptions that have forced some European manufacturers to halt production. Wang offered no long-term commitments, saying only that export licence processing times had been reduced. China calls ties 'stable', but gap between words and reality grows Following the meeting, China's foreign ministry released a statement describing EU-China ties as 'stable and constructive', calling for mutual respect and shared prosperity. The statement made no mention of Ukraine, sanctions, or rare earths. However, one diplomat told the South China Morning Post, 'There's a widening gap between what's said publicly and what's actually being discussed behind closed doors.' Wang's visit to Brussels included meetings with European Commission President Ursula von der Leyen and European Council President Antonio Costa. He will continue his European tour this week with visits to Berlin and Paris.
&w=3840&q=100)
Business Standard
30 minutes ago
- Business Standard
Godavari Biorefineries share price hits 5% upper circuit today; here's why
Godavari Biorefineries share price: Godavari Biorefineries share price was in demand on Friday, July 4, 2025, with the scrip hitting 5 per cent upper circuit at ₹258.60 per share. However, at 10:20 AM, Godavari Biorefineries share price was off highs, but continued to trade higher, up 1.60 per cent at ₹250.25 per share. In comparison, BSE Sensex was trading flat at 83,229.22 levels. Why did Godavari Biorefineries hit 5% upper circuit today? Godavari Biorefineries share price rose after the company announced that it has been granted a patent in Europe for its novel anticancer molecule. In an exchange filing, Godavari Biorefineries said, 'This is to inform you that the Company has been granted a patent in Europe for our novel anticancer molecule. This patent is now validated in Spain, the UK, and as a Unitary Patent.' The patent subject area is 'Anti-Cancer Research Segment.' The patent covers a very potent anticancer compound with proven efficacy on cancer and cancer stem cells, the company said. Godavari Biorefineries Q4 results Godavari Biorefineries reported its financial results for Q4 FY25, showcasing operational resilience despite a slight dip in revenue. The company posted consolidated revenue from operations of ₹579.5 crore, down from ₹615.2 crore in the same quarter last year. However, profitability remained robust, with Ebitda at ₹121.7 crore and a healthy margin of 21 per cent, marginally up from the 20.2 per cent Ebitda margin recorded in Q4FY24. Profit after tax (PAT) stood at ₹71.9 crore, reflecting a PAT margin of 12.4 per cent, higher than the 10.6 per cent in the previous year. On Q4 show, Samir Somaiya, CMD of Godavari Refineries said, 'FY25 was a defining year for Godavari Biorefineries, showcasing our agility, disciplined execution, and strategic progress. Our Bio-based Chemicals segment delivered over 2x growth in Ebitda, propelled by our shift toward high-value, sustainable solutions and enhanced operational efficiencies. We also achieved a record cane crushing of 24.65 lakh tonnes for sugar season 2024-25 at our Sameerwadi restoration of the ethanol blending programme using sugarcane juice enabled us to better utilise our ethanol capacity during the crushing season.' Somaiya added, 'Looking ahead, our 200 KLPD grain/maize distillery is progressing as planned and is expected to be commissioned in Q4 FY26. We are also exploring multi-feedstock options for greater flexibility, while undertaking debottlenecking and expansion initiatives focused on specialty products. FY25 has laid a solid foundation for future growth, and we remain committed to delivering value through innovation, sustainability, and disciplined growth.' About Godavari Biorefineries Godavari Biorefineries Ltd. is one of India's leading producers of ethanol and a pioneer in the manufacturing of ethanol-based chemicals. The company boasts a diversified product portfolio that includes bio-based chemicals, sugar, rectified spirits, ethanol, various grades of alcohol, and power. Notably, it is the only company in India with such an extensive range of bio-based products, including MPO, natural 1,3-butylene glycol, ethyl vinyl ether, and several other specialty chemicals.
Indian Express
2 hours ago
- Indian Express
Will the EU delay enforcing its AI Act?
With less than a month to go before parts of the European Union's AI Act come into force, companies are calling for a pause in the provisions and getting support from some politicians. Groups representing big U.S. tech companies such as Google owner Alphabet and Facebook owner Meta, and European companies such as Mistral and ASML have urged the European Commission to delay the AI Act by years. The rules for general purpose AI (GPAI) models take effect on Aug. 2, a Commission spokesperson reiterated, adding that the powers for enforcing those rules start only on August 2 2026. Under the landmark act that was passed a year earlier after intense debate between EU countries, its provisions would come into effect in a staggered manner over several years. Some important provisions, including rules for foundation models like those made by Google, Mistral and OpenAI, will be subject to transparency requirements such as drawing up technical documentation, complying with EU copyright law and providing detailed summaries about the content used for algorithm training. The companies will also need to test for bias, toxicity, and robustness before launching. AI models classed as posing a systemic risk and high-impact GPAI will have to conduct model evaluations, assess and mitigate risks, conduct adversarial testing, report to the European Commission on serious incidents and provide information on their energy efficiency. For AI companies, the enforcement of the act means additional costs for compliance. And for ones that make AI models, the requirements are tougher. But companies are also unsure how to comply with the rules as there are no guidelines yet. The AI Code of Practice, a guidance document to help AI developers to comply with the act, missed its publication date of May 2. 'To address the uncertainty this situation is creating, we urge the Commission to propose a two-year 'clock-stop' on the AI Act before key obligations enter into force,' said an open letter published on Thursday by a group of 45 European companies. It also called for simplification of the new rules. A Commission spokesperson said the European AI Board is discussing the timing to implement the Code of Practice, with the end of 2025 being considered. Another concern is that the act may stifle innovation, particularly in Europe where companies have smaller compliance teams than their U.S. counterparts. While the Commission is set for GPAI rules to come in force from next month, its plan to publish key guidance to help thousands of companies to comply with the AI rules by year end would mark a six-month delay from its May deadline. EU tech chief Henna Virkkunen had earlier promised to publish the AI Code of Practice before next month. Some political leaders, such as Swedish Prime Minister Ulf Kristersson, have also called the AI rules 'confusing' and asked the EU to pause the act. 'A bold 'stop-the-clock' intervention is urgently needed to give AI developers and deployers legal certainty, as long as necessary standards remain unavailable or delayed,' tech lobbying group CCIA Europe said.
