11 Reasons Why Luxury Brands need a Digital Product Passport
1. Enhanced Brand Trust and Reputation
Luxury brands are the most counterfeited brands in the world. Digital IDs provide an efficient way to authenticate products thus enhancing trust in the brand and increasing customer loyalty. Authentique’s non-invasive Vision AI, adds a level of security to the process as it uses the product itself to verify authenticity and not a tag or label with RFID or QR codes that can be removed.
The Authentique solution uses Vision AI Models developed by strategic technical partner Veracity Protocol to represent the unique material structure of physical objects, providing the highest level of security and authenticity verification.
Outcome: Increases customer lifetime value, loyalty, repeat purchases, average transaction value, encourages referrals and decreases customer retention costs.
2. Improved Customer Engagement
Brand Digital IDs engage customers at a deeper level providing extensive product information that could never be provided on a swing tag. Exclusive content and experiences accessible through the Authentique App’s Digital ID make ownership more immersive and valuable.
Outcome: Increased consumer loyalty, greater engagement through innovative special offers, reduction in direct-to-consumer marketing.
3. Supply Chain Transparency
Brand Digital IDs, utilising blockchain technology, enables transparency in the supply chain to easily be communicated to customers. It also allows the journey of the product from manufacturing to the hands of the consumer to be tracked and can help identify and eliminate inefficiencies and unethical practices in the supply chain ( i.e. distribution through the grey market).
Outcome: Increased consumer confidence, support heritage and craftsmanship.
4. Data and Consumer Insights
Brand Digital IDs enable the collection of valuable first-party data about consumer behaviour and product usage on a one-to-one basis without intermediaries such as Apple, Google, Meta etc;. This data can be used to tailor marketing strategies, product development and inventory management to better meet consumer needs.
Outcome: More effective marketing through a direct relationship and greater consumer insights, reduction in 3rd Party social media, consumer insights and research costs.
5. Control the Reselling of Product
Brand Digital IDs provide the opportunity to take control of the resale of product through an aligned branded marketplace enabling products to be resold with an original Digital ID to verify authenticity. This introduces a significant new revenue stream securing a 15% commission on resales (the industry standard currently established by third party resellers).
Outcome: Establish consumer confidence in resale product and introduce significant new revenue stream.
6. Fighting Counterfeits
Counterfeit products cost luxury brands hundreds of millions of dollars each year. Digital IDs can help in the fight against counterfeits by making it impossible for counterfeiters to replicate Authentique’s unique digital fingerprint technology and traceability feature.
Outcome: Increase consumer confidence, combat counterfeit sales, decrease in costs of prevention.
7. Exclusive Ownership Experience
Brands offer exclusive services and benefits through Digital IDs, such as fashion show and special event invitations,. Access to limited edition product and personalised recommendations.
Outcome: Increase perceived brand value, extend loyalty, increase sale promotions revenues, decrease in direct to consumer marketing costs.
8. Efficient After Sales Service
Using Digital IDs, the history and condition of products is be tracked making it more efficient to provide after sales service, repairs and warranties. All these service can also be directly assessed via the brands Digital ID including care instructions and refresh services.
Outcome: Higher customer satisfaction and product performance, decrease in management and communications of after sales services.
9. Environment Sustainability
Brands use Digital IDs to communicate their commitment to sustainability and responsible sourcing. Information can be shared about the materials used in products and their environment impact catering to consumers growing interest in sustainable luxury.
Outcome: Increased brand appeal and sustainable credentials.
10. Innovative Competitive Advantage
Building on luxury brands early adopter reputation for digital innovation, Digital IDs can provide a further competitive advantage in the luxury market. Brands that offer greater transparency, trust, and added value to consumers are likely to stand out, increase loyalty and attract more discerning customers.
Outcome: Establish a competitive advantage through innovation and increase loyalty.
11. Global Reach
Digital IDs assist in reaching a global audience more effectively. Customers from different parts of the world easily verify the authenticity of products and establish a direct relationship with brands through their smartphone that stores all Digital IDs and facilitates communication.
Outcome: Maintain consistency ,efficiency and reduce costs in global outreach.
The strategy can have significant impact on brand integrity across numerous metrics including customer loyalty and engagement. It can provide the gateway to customers for authenticity, traceability and sustainability. Brand Digital IDs can also have a significant impact on both incremental sales and the introduction of a new revenue stream for resale product. Costs can also be reduced in a range of marketing and communications activities.
Contact info@ordre.com for more information on Authentique Digital ID’s