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July 04.2025

2 Minutes Read

Could Digital Product Passports Double the Value of Resale Fashion?

Hand scanning QR code on phone in store for Digital Product Passport Regulation.

How Digital Product Passports Are Revolutionizing Resale Value

The fashion resale market is on the brink of transformation, thanks to the forthcoming introduction of digital product passports (DPPs) by the European Union in 2026. DPPs are expected to provide critical information regarding a product's materials, origin, and environmental impact. A recent study by Bain & Company and eBay suggests these passports could significantly increase the longevity and resale value of fashion items.

Unearthing Untapped Potential in Secondhand Fashion

According to Bain's estimates, a fashion item bought for £500 could potentially yield another £500 upon resale when accompanied by a DPP, thereby doubling its lifetime value. This statistic illustrates just how pivotal the DPPs could be for consumers and brands alike. As Aaron Cheris from Bain highlights, DPPs represent more than compliance; they are catalysts for creating sustainable value in the fashion industry.

Brands Must Embrace Change

Despite the positive prospects, 90% of brands perceive the digital passport regulation as an operational burden. However, early adopters who embrace DPPs will likely capture the growing market demand for verified goods. For those unsure, eBay's VP of global fashion, Alexis Hoopes, notes that understanding how to leverage data-rich relationships with consumers can lead to innovative selling strategies and greater trust.

Luxury Fashion Leads the Charge

The luxury sector is at the forefront of adopting product traceability technologies. For instance, brands like Chloé are making strides by allowing buyers to track the authenticity and origin of their purchases. The Aura Blockchain Consortium, comprising major luxury brands, is also expanding its influence beyond fashion to promote sustainability across industries, including high-end furniture.

What Lies Ahead for Fashion Resale

The impending regulations under the Ecodesign for Sustainable Products Regulation (ESPR) indicate a clear trend: the future of fashion is circular. The potential market for pre-owned clothing is valued at an impressive $230 billion, notably surpassing the wider apparel sector threefold. As regulations take shape, brands must pivot to meet changing consumer expectations for sustainability and verification.

What This Means for Consumers

The impending shift not only opens new revenue streams for brands but also ensures that consumers will receive more transparency in their purchases. The question now is whether brands will act swiftly enough to stay ahead or whether compliance will remain a stumbling block. Ultimately, the DPPs herald a new era of responsibility and accountability in fashion, encouraging a much-needed shift toward sustainability.

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Could Digital Product Passports Double the Value of Resale Fashion?

How Digital Product Passports Are Revolutionizing Resale Value

Unearthing Untapped Potential in Secondhand Fashion

Brands Must Embrace Change

Luxury Fashion Leads the Charge

What Lies Ahead for Fashion Resale

What This Means for Consumers

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