Blockster Features Authentique's Consumer research on Digital Product Passports

Authentique's insights on luxury consumer demand for Digital Product Passports (DPPs) were featured in Blockster, underscoring growing interest in enhanced product transparency and engagement.

Digital Product Passports are set to become a mandatory feature for all textiles sold within the European Union as part of the EU’s Ecodesign for Sustainable Products Regulation. These passports will provide detailed information about the products, including attributes such as durability, reparability, and recycled content, thereby fostering more informed and sustainable consumer choices.

Key Findings from the Study

The study surveyed 330 qualified luxury consumers, each with a combined annual spending of over €4 million. The findings reveal a high level of awareness and interest in DPPs among luxury consumers:

53% of respondents have heard of DPPs.
25% are familiar with some functionalities of DPPs.
90% would use product information aspects of DPPs.
87% would use digital certificates of authenticity.

Simon P. Lock, Chairman and CEO of The Ordre Group, emphasized the transformative potential of DPPs:

“From my extensive experience, I foresee DPPs becoming a pivotal marker for innovative change for brands. Leveraging consumer insights is a chance for brands to build a new connection point with their consumers that can actively drive more engagement and adoption.”

Simon P. Lock, Chairman & CEO of The Ordre Group

Despite the high awareness, there remains a significant need for consumer education. John Buckley of Me the Customer & I highlighted this gap: “While awareness is surprisingly high, there is still a gap in understanding the full potential of DPPs. Brands need to focus on educating consumers about the benefits and practical applications of these digital tools.”

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Enhancing the Consumer Experience

Currently, luxury consumers must navigate a complex array of receipts, certificates, labels, and websites to gather information about their purchases. DPPs hold the potential to centralize all of this information, significantly enhancing the luxury shopping experience.

“Our research shows that consumers are eager to adopt this innovation, seeing it as a crucial enhancement to their shopping experience.”

Dr. Daniela Ott, Strategic Advisor at Authentique

Luxury consumers are looking for more than basic compliance with EU regulations. They seek comprehensive product information, digital certificates of authenticity, and detailed aftercare advice through DPPs. Dr. Ott explained, “Consumers are not just looking for sustainability data; they want a richer, more informative connection with their purchases. DPPs can provide that, creating new opportunities for brands to engage with their customers.”

The Role of DPPs in Sustainability

The inclusion of detailed product information through DPPs aligns with broader sustainability goals. By providing insights into the materials, manufacturing processes, and lifecycle of products, DPPs can help consumers make more environmentally conscious decisions. This transparency is crucial in fostering a more sustainable luxury market, where consumers are increasingly concerned about the environmental impact of their purchases.

One of the most promising aspects of DPPs is their potential to significantly boost the resale market. Currently, only 24% of respondents buy second-hand, but 56% indicated they would be more inclined to do so if DPPs were available. Additionally, 65% agreed that DPPs would facilitate resale by providing verified authenticity and detailed product history.

“DPPs can transform the resale market by providing verified authenticity and detailed product history, making it easier and more attractive for consumers to buy and sell pre-owned luxury items. For brands, it presents a unique opportunity to engage secondary owners through the DPP.”

John Buckley

A digitally stored certificate of authenticity provides reassurance to luxury consumers that their products are genuine, particularly when buying or selling used goods through the circular economy. Proof of authenticity dramatically reduces the possibility that consumers will be sold counterfeit products. This makes reselling easier, potentially increases the product’s value at resale, and will increase the lifecycle of the product.

Simon P. Lock commented, "A DPP alone does not validate the authenticity of a product. Anything that acts as a proxy for the physical product can be removed, damaged or itself counterfeited. Authentique can provide a further level of protection through DPPs utilizing its unique Vision AI technology that uses the product itself to establish the link with any certificate of authenticity that has been created."

Challenges and Opportunities for Brands

For luxury brands, the introduction of DPPs presents both challenges and opportunities. Between now and the mid-2027 deadline for implementation, brands must educate consumers on what DPPs are, how they benefit them, and what they can be used for. Anticipating and addressing customer concerns and then educating them will be key to adoption and a successful implementation strategy.

Dr. Ott highlighted the importance of consumer-driven strategies: “Consumer insight must drive DPP implementation strategy. Our research shows that consumers are eager to adopt this innovation, seeing it as a crucial enhancement to their shopping experience.”

Looking Ahead: Strategies for Implementation

To successfully implement DPPs, luxury brands should begin with small pilot projects to align their DPP offerings with consumer expectations. These pilots can help brands gather feedback, refine their strategies, and ensure that their DPP solutions meet the needs and desires of their customers.

“Dream big, pilot small. Start with the consumer and build your solutions alongside them, giving them a real voice.”

Dr. Ott

The demand for DPPs is clear, and brands that are early adopters stand to gain a competitive edge. By leveraging consumer insights, educating their audience, and piloting innovative solutions, luxury brands can enhance customer experience and stay ahead of regulatory deadlines. As the luxury market evolves, DPPs offer a unique opportunity to create deeper connections with consumers, foster sustainability, and transform the resale market.

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About Me the Customer and I

A global agency specializing in customer and brand experience, helping companies transform their brand identity into meaningful customer experiences. For more details on the study, contact Me the Customer & I at https://www.methecustomerandi.com.

About Authentique

A leading fashion technology company and part of The Ordre Group, specializing in Vision AI and Digital Product Passports. Authentique offers a comprehensive suite of services including consulting, visual recognition technology, and crafting DPPs for the luxury sector. To learn more about Authentique’s solutions, visit https://www.authentique.com.

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Please click the link here to read the full article on Blockster. Reach out toinfo@ordre.com should you want to discover more from the luxury consumer-focused study on Digital Product Passports (DPPs).