A new co-authored report from Bain & Company and eBay contends that digital product passports (DPPs) can radically reshape the fashion industry—potentially doubling the lifetime values of fashion items.
Although future EU legislation will require DPPs to be used in textiles, Bain and eBay call on brands to act quickly—not merely to comply, but to take advantage of a significant business opportunity.
Aaron Cheris, partner at Bain, said that brands that implement DPPs early on can realise enormous economic and strategic benefits. He added that this has nothing to do with checking a regulatory box. DPPs are a new way of thinking about creating, extending, and personalising value across the life of a product.
The report points out that a fashion product bought for US $ 685 today would earn an extra US $ 685 in resale and associated services if backed by a DPP—enhancing trust, facilitating resale, and releasing new revenues. That value advantage accrues not only to consumers, but also to resale platforms, authentication providers, and the brands themselves.
For brands, DPPs provide a great deal more than traceability. They open the door to resale, trade-in, and buyback schemes; allow for customised aftercare, servicing, and warranty; offer richer customer information; and facilitate more ESG reporting with greater transparency.
For buyers, DPPs remove friction—no lost receipts, cumbersome resale listings—and facilitate ‘one-click resale’ and increase confidence in secondhand transactions. As the circular economy expands, DPPs can be a “flywheel for participation,” establishing trust and making circular shopping second nature.
Based on Bain’s research, however, just 90% of fashion brands continue to see DPPs as first and foremost a compliance requirement and not as a strategic asset. The report urges a shift in mindset and invites firms to look at DPPs as a revenue-building, relationship-enhancing innovation.
Alexis Hoopes, VP of Global Fashion at eBay, emphasised the potential, stating that DPPs are critical to enabling the next era of circular fashion. As a global resale leader, they’re investing in better product data to drive smarter buying, more responsible selling, and a more trusted marketplace. He added that at the core of this is empowering consumers—and that’s where DPPs shine.
