Around the world consumers track packages through shipment and delivery. Some track family members via phone location. But what about following the creation and life of an article of clothing before purchasing it? Product passports allow just that.
What are product passports?
Product passports bring together information that both brands and consumers care about through technology such as blockchain, radiofrequency identification (RFID), QR codes, and near-field communication (NFC). They could include such information as: product materials, where and how the product was made (an example of traceability), and even working conditions where the product was manufactured (an example of transparency) (McKinsey, 2021). Passports could include details such as color, brand, and suggested retail price as well (BSR, 2021).
Why product passports matter
While current product tags provide helpful information, such as fiber content, place of manufacture, and care instructions, that is no longer enough information. Product passports serve a variety of purposes, such as increasing authentication, transparency, traceability, and sustainability. They help brands confront counterfeiting, build customer trust and loyalty (perhaps through exclusivity), and stand out in the industry. With 43% of Gen Z shoppers stating they go out of their way to shop from companies who support sustainability, passports provide the desired transparency, disclosing a brand’s practices and impacts (McKinsey, 2021). In short, passports provide knowledge that allows the customer to be a responsible consumer.
Where brands traditionally generate revenue only through selling new products, passports enable brands to have a longer association with their creations and potentially generate value throughout the lifecycle. Brands can also provide consumers a more comprehensive network of information about product care, resale, etc. (BSR, 2021). This is important, as the clothing resale industry grew 25 times faster than the retail industry in 2019 (BSR, 2021).
Along with providing more information about a garment’s creation, passport information matters at the end of a product’s life as well. Passports also support circularity by enabling easier and more accurate rental, resale, and recycling (McKinsey, 2021). Knowing specifics about a product’s fibers and dyes, for example, will help in disassembly and recycling (BSR, 2021).
The future has begun
McKinsey’s report, The State of Fashion 2022, states that “Approximately 2 out of 5 fashion executives plan to adopt product passports in 2022 or have already done so.” Those who have already done so include Pangaia, which uses “digital twins” for its products that can be updated in real time; Reformation, which offers customers a QR-accessible passport to view information on the lifecycles of its denim apparel; and TS Designs, which uses QR-supported passports to certify that items are made in the United States (McKinsey, 2021).
In conclusion, as brands are transparent, they gain trust and build a more loyal customer base for the future. Product passports offer a trustworthy method to determine and promote sustainability.
References
BSR. (2021, January). Digital passports for clothing. The Fast Forward. https://www.bsr.org/en/emerging-issues/digital-passports-for-clothing
McKinsey. (2021, December 1). The state of fashion 2022. https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/state%20of%20fashion/2022/the-state-of-fashion-2022.pdf
