Blockchain Consortium: Many EU products will need DPPs by 2028. Develop these technologies now, and early adopters will be best positioned to use DPPs as a competitive advantage. Romain Carrere, Aura Blockchain Consortium CEO Luxury brands must innovate to succeed in today’s data-driven, consumer-centric market. MCM, an industry pioneer, is leading the way with its Digital Product Passport (DPP), developed with the Aura Blockchain Consortium. This innovative technology will change the industry.
DPP provides a comprehensive solution to the industry’s traceability and authenticity issues, well aligned with the EU’s Sustainable Product Regulation (ESPR). Early adopters like MCM meet regulatory requirements and gain a competitive edge by offering consumers unrivaled transparency. This essay examines the DPP and how it might boost luxury industry growth and innovation. FashionUnited asks Romain Carrere, CEO of Aura Blockchain Consortium, how this technology may transform the luxury industry beyond compliance.
What makes the Digital Product Passport (DPP) valuable?
Romain Carrere: Here at Aura, we think that DPPs, driven by blockchain technology, are crucial for promoting sustainability. A more complete bond between buyer and product is created by bolstering customer experience, storytelling, and traceability at every stage of the product’s lifecycle. We find blockchain to be an advantage over more conventional cloud-based systems because to its immutability and transparency, which guarantee the utmost degree of data integrity. DPPs allow consumers to make educated decisions based on thorough product lifecycle information and also empower brands to establish credibility by certifying authenticity and traceability.
It addresses today’s pressing market needs How?
The Ecodesign for Sustainable Products Regulation (ESPR) mandates transparency and traceability for all luxury brands selling in the European market. This regulation came into action on 18 July 2024, according to Romain Carrere. As a result, DPPs will be required for a large number of EU items by the year 2028. Now is the perfect moment to develop these technologies.
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Those who are quick to adopt them will have a leg up when it comes to using DPPs for competitive advantage, not only to satisfy regulations. In addition to ensuring compliance, DPPs provide assurance of product authenticity and traceability throughout its lifecycle. As a result, this improves the brand’s and product’s narrative, encourages consumer participation, and provides advantages and rewards.
What particular data will they have access to?
Consumers today are better educated than their parents’ generation, according to Romain Carrere. They require comprehensive knowledge about the provenance of all industrial materials and other supply chain phases because they respect environmental responsibility. When visible and accessible, this information can show a brand’s commitment to sustainability, build trust, and impact purchasing decisions. Meeting the changing expectations of customers is of the utmost importance.
In the end, how will the DPP affect how consumers make decisions?
By simplifying transactions, improving security, and personalizing experiences, the Digital Payment Platform (DPP) will influence customer choices. As more people use DPPs for their convenience and quickness, payment ease will become a key component in buying decisions. Consumers may complete purchases instantaneously with a few smartphone clicks, reducing friction and encouraging impulse spending. DPPs also interface with loyalty programs and offer real-time discounts or incentives, making them appealing to budget-conscious shoppers. This integration lets users choose products based on product value and payment method benefits.
Cybersecurity features like biometric authentication and encrypted transactions can influence consumer trust. As concerns about data breaches and fraud grow, consumers may select DPPs with strong protection, affecting where and how they shop. Finally, DPPs watch consumer spending, allowing firms to provide individualized recommendations and targeted promotions. Personalization can influence consumer decisions since they are more likely to choose items and services that match their tastes.
How does Aura blockchain technology improve the DPP client experience?
Regarding the MCM example, Romain Carrere: Customers can check the product’s legitimacy and sustainability on the Aura Blockchain by only scanning an NFC chip. Details on the product, including its entire history (including the materials used, whether they are repurposing sea plastics or fishing nets), are then at their fingertips.
Miu Miu’s 2024 Upcycled Collection is another example. This denim and patch bag line revives antique bags, apparel, and accessories by employing materials from global denim experts from before 2000. Miu Miu collaborated with Aura to improve its product and customer experience by allowing NFC tag scanning for unique content, information, and a Certificate of Authenticity stored on Aura’s blockchain.
What direction do you see this technology going in?
Romain Carrere: DPP use in the luxury business will grow in the next years, and we’re delighte to see its applications increase. Aura’s standard structure for luxury DPPs lets brands easily customize DPPs’ tremendously diverse utility to their individual goals and strategies. Although widespread deployment is still in its infancy, many forward-thinking firms are using their present applications to develop new future uses, and our private blockchain has documented tens of millions of luxury products.
As more data is acquire and documented along the supply chain, traceability and transparency tracking will increase, enriching brand narrative and deepening customer-brand trust. Brands can unlock new value in the secondhand market, customer relationship management, and future Web3 utilities by tokenizing real-world assets and giving customers a unique digital ID that provides greater product authenticity security. There are tremendous opportunities ahead, but brands must prioritize DPPs today to maximize the technology’s capabilities beyond regulatory compliance. In this exciting time for the industry, firms that start building their DPP strategy now will profit most from the technology.
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