The European Commission is currently discussing the details of the Digital Product Passport (DPP), which will enable improved transparency around the regulation of certain products, including car batteries and luxury and electronic goods. This Passport could be enacted in the coming years and will allow consumers to obtain transparent and detailed information about the products they buy.
The latest Boston Consulting Group (BCG) report, commissioned by web3 leading consumer platform Arianee, highlights the following core ideas:
- Authenticity and circularity as keywords: with 34% of luxury goods consumers wary of counterfeits (True-Luxury Global Consumer Insight, 2020, BCG), the Digital Product Passport could become a certificate of authenticity and ownership. This would not only combat counterfeiting, but also enhance the secondhand luxury goods market. Indeed, the Passport is intended to accompany products throughout their lifecycle by, for example, enabling various repair phases to be traced or facilitating the recycling of complex parts such as batteries. This would respond to a demand from consumers of electronic and household appliances, 30% of whom say they are willing to purchase brands in order to have access to repair solutions (Creating the Consumer DNA, 2022, BCG).
- A tool for consumer communities: the Digital Product Passport may also become a preferred communication channel between brands and their communities, as a medium for promotional information or personalized invitations.
- Which technology should be used? Europe has not yet given any guidelines on which technology to use. Companies will therefore have to decide for themselves how to link the physical product and the Digital Product Passport. Many technologies can be used to store information (centralized database, blockchain, etc.), but tokenization alone appears capable of unlocking the Passport’s most ambitious functions, such as data storage, accessibility, data security, and access to additional services.
Although the Digital Product Passport seems promising, two challenges remain: (i) aligning all relevant parties with regard to the definition and regulation of the Passport and (ii) identifying the appropriate technology to ensure efficient and effective implementation.
CONTACT BCG
Claire Lebret Lebret.claire@bcg.com
ABOUT BOSTON CONSULTING GROUP
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.
Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.
CONTACT ARIANEE
Christelle Bakima christelle@arianee.org
ABOUT ARIANEE
Founded in 2018, Arianee is the leading web3 consumer platform for brands . Arianee combines an Association - Arianee Project - gathering major brands and tech companies around its open source protocol & a tech company - Arianee SAS - focused on developing and distributing the most advanced software as a service platform based on the Arianee open source blockchain technology. Based on web3, the range of technological solutions developed by Arianee - from a NFT Management Platform, to wallet solutions and web3 tooling (token gating, nft store) - enable brands to tokenize, distribute and engage NFTs to transform their relationships with their communities. With Arianee they can create enriched NFTs packed with exclusive and unique features. Arianee brings together major brands such as the Richemont Group, L’Oreal, Breitling, Paris Fashion Week, Moncler as well as partners in technology, including IBM and The Sandbox, in its vision to build a decentralized internet. www.arianee.org
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