Textile Insight

The Push for Digital Product Passport & Sustainable Commerce Ramps Up. IN THE MARKET / CIRCULARITY textileinsight.com Fall 2023 ~ Textile Insight • 7 I f the Digital Product Passport (DPP) isn't already on the corporate to-do list, it should be. At least according to execs in fashion, technology and textiles who presented on this piping hot topic recently. New legisla- tion in Europe, and fast-approaching legislation in the U.S., is the main driver behind the DPP buzz with industry execs encouraging busi- nesses to get their acts together in preparation for DPP requirements looming on the horizon. Why is this so important? ere is a growing belief that collecting, recording and sharing textile data via DPP is critical in the pursuit of circularity with the potential to redefine how customers buy, sell, own and interact with the world. "e moment is here," stated Natasha Franck, founder of EON, the first cloud platform to deliver end-to-end product traceability. "DPP is the biggest catalyst for sustainable commerce." Joon Silverstein, SVP global marketing, creative and sustainability for Coach, and an EON brand partner, shared, "Adoption is at a tipping point right now. DPP is more than compliance, it's how you engage with your customers." Silverstein, who also heads up the new Coachtopia platform that features EON technology, added, "Coachtopia is off to a flying start. It's exciting." Joe Walkuski, founder of TexBase, believes a stake has been put in the ground regarding DPP. "DPP is an inescapable part of our future," said Walkuski, whose company specializes in textile transparency in the supply chain. Franck, Silverstein and Walkuski shared their collective knowledge on the subject of DPP, technology advancements, and the importance of this new "digital-meets-physical" commerce reality in recent webinar and in-person trade show formats. Combined, these execs hope to light a fire across industries, sparking action by brands, suppliers and manufacturers to meet upcoming requirements that all products have a Digital Product Passport under initiatives like the U.S. Digital Care Label and the EU's Strategy for Sustainable and Circular Textiles. A Deeper Look at Data It's all about managing data and being pre- pared for legislation coming down the pike, according to Walkuski who was a featured speaker at the Functional Fabric Fair in New York City this summer. "U.S. legislation is in its infancy but knowing your data prepares you for the future. By early next year you'll need to have your ducks in a row regarding what is going on in the EU," remarked Walkuski, who called attention to legislation currently enacted in France with the EU following suit, and an initiative from American Apparel & Footwear Association (AAFA) with respect to digital labeling under discussion. "We as material sourcing people need to take a deeper look at data flowing in supply chains going into what data can be extracted from yarn, fibers and fiber feedstock," Walkuski explained. He stressed the importance of supply chain mapping, i.e., where the passport is getting stamped throughout a product's entire lifecycle which includes resale, repurposing and/or recycling. Said Walkuski, "is is super critical going forward. Companies need to realize that this information might not get to the recycler for 10-to-20 years down the road." A Global Movement Franck describes DPP as giving the prod- uct a "voice," via data points previously not heard that will allow consumers a better, fuller understanding of the product story. Franck explained that the DPP label is embedded in a product, and will have a QR code as well as RFID. "DPP is not just about material inputs," said Franck. "DPP puts data in one place for all involved to benefit from – consumers, recyclers, resellers, etc." EON provides tools and templates to help users of the platform to capture, manage and broadcast data. "DPP is developed to be adap- tive and intelligent," said Franck, adding that what brands want to drive is a data strategy, combining business value with sustainability compliance. Julie Brown, head of sustainability at EON, advises companies to start collecting data now in preparation for new circular business models taking shape. "ere is a movement for digitizing product," stated Brown. "I anticipate this to be global and fast." Changing the Business Model WIthin the last decade a lot has happened to change how products are made, sold and tracked to comply with new thinking within industry and new laws legislated on the local, state, national and international level. At the same time consumer demand for enhanced transparency surrounding a product has height- ened. "With one digital ID for every product, we can bridge the digital and physical — to increase the intelligence, sustainability and services associated with each item," explained Silverstein. By leveraging EON's enterprise tech, Coach can drive stronger customer relationships, support sustainability goals and increase value for its Coachtopia products. Silverstein refers to this added value as hyper-personalization. She stated, "is is changing the business model. It's not just about revenue from initial sale, but going beyond that for the full lifecycle of the product." n Ready, Set, Go Providing data proves authenticity and increases value on the secondary market.

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