Digital Product Passports in the Luxury Industry
The Case of The Aura Blockchain Consortium
Adam Lindholm​
Digital Product Passports in the Luxury Industry.................................................................... 1
The Case of The Aura Blockchain Consortium........................................................................1
Adam Lindholm.................................................................................................................. 1
1. Background of the Report....................................................................................................4
2. Purpose............................................................................................................................... 4
3. Literature Review/Theoretical Framework........................................................................... 4
4. Data Collection Approach.................................................................................................... 5
5. Presentation and Analysis of Collected Material................................................................. 6
5.1 Key features of digital product passports.....................................................................6
5.1.1 Blockchain and transparency..............................................................................6
5.1.2 Supporting circular economy.............................................................................. 6
5.1.3 Meeting regulations.............................................................................................7
5.1.4 Customer stories and trust..................................................................................7
5.2 Case studies of DPP use............................................................................................. 7
5.2.1 Examples from luxury brands............................................................................. 7
5.2.2 Aura blockchain consortium projects.................................................................. 8
5.2.3 Consumer trust and benefits...............................................................................8
5.3 Strategic impact of DPPs............................................................................................. 8
5.3.1 Building brand trust............................................................................................. 8
5.3.2 Improving operations.......................................................................................... 9
5.3.3 Achieving sustainability goals............................................................................. 9
5.4 Challenges and issues.................................................................................................9
5.4.1 Tech challenges.................................................................................................. 9
5.4.2 Adoption issues.................................................................................................10
5.4.3 Costs of DPPs...................................................................................................10
5.4.4 Data security risks.............................................................................................10
5.5 Future opportunities................................................................................................... 11
5.5.1 Expanding DPP use.......................................................................................... 11
5.5.2 Driving circular innovation................................................................................. 11
5.5.3 Global standards and teamwork........................................................................11
5.5.4 Better consumer engagement...........................................................................12
5.5.5 New tech-integration......................................................................................... 12
6. Conclusion......................................................................................................................... 13
Reference List........................................................................................................................14
1. Background
The Aura Blockchain Consortium was selected for this report because of it's inovative approach
in using Digital Product Passports (DPPs) to address challenges in the luxury fashion industry.
This consortium integrates the newest technology with sustainability which makes it highly
relevant to B2B marketing. It's blockchain based Digital Product Passports boost transparency
and authenticity in the supply chain, resonating with B2B principles by building trust, enhancing
brand value, and addressing the demand for sustainable practices.
The luxury fashion industry faces challenges such as fighting counterfeiting, ensuring supply
chain traceability, and fulfilling rising expectations of corporate buyers and stakeholders
concerning environmental and social responsibility. Digital Product Passports (DPPs) handle
these challenges by using blockchain technology that support verifiable data about product
origin, materials, and production methods, ensuring transparency and trust between brands and
their corporate partners.
This topic is crucial because it changes how luxury brands communicate value to B2B partners,
particularly in an increasingly sustainabilitydriven global marketplace. This report examines how
The Aura Blockchain Consortium promotes circular economy practices through DPPs,
investigating how this innovation aligns with the consortium’s strategic goals and how it plays a
key role in transforming the luxury industry.
2. Purpose
The purpose of this report is to examine how The Aura Blockchain Consortium leverages Digital
Product Passports (DPPs) to enable circular economy practices within the luxury fashion
industry. The report will focus on analyzing the implementation of DPPs and their impact on the
consortium’s strategic goals, particularly sustainability and transparency.
3. Literature Review/Theoretical Framework
Digital Product Passports (DPPs) are a key innovation within the luxury industry, connecting
physical products with digital identities. Blockchain technology provides transparency,
traceability, and data security throughout the entire product lifecycle. For example, as described
in Embracing Digital Product Passport as a Regulatory Requirement (Aura Blockchain
Consortium, 2024), blockchain securely logs each step of a product's journey, allowing
stakeholders to confirm details.
DPPs fit with circular economy principles, encouraging sustainable practices like recycling,
repair, and reuse to reduce waste. Research by Neligan et al. (2023) shows how DPPs enable
circularity by providing material and production data, bolstering closed-loop systems. Likewise,
the Aura Blockchain Consortium stresses DPPs’ importance in fighting counterfeiting and
building trust by verifying product authenticity.
The regulatory framework EU’s Ecodesign Regulation, highlight the growing need for
transparency and sustainability mandates (Aura Blockchain Consortium, 2024; Neligan et al.,
2023). Practical examples from brands like Prada and Cartier show how DPPs enhance
storytelling and consumer engagement while meeting sustainability goals (Glossy, n.d.). These
insights underline DPPs’ transformative impact on luxury brand strategies, combining
sustainability, transparency, and innovation.
This theoretical groundwork shapes the analysis of DPPs’ role in transforming the luxury
industry and driving circular economy practices.
4. Data Collection Approach
The data for this analysis was carefully gathered from various sources, ensuring a thorough and
balanced perspective on how The Aura Blockchain Consortium effectively uses Digital Product
Passports (DPPs). The main data sources involve the consortium’s official website, which offers
in-depth insights into it's mission, projects, and technological framework. Articles and white
papers released by the consortium, such as “The Digital Product Passport: A New Era of Luxury
Unveiled” (Aura Blockchain Consortium, n.d.) and “Unlocking Luxury: Digital Product Passport
Transforms the Luxury Industry” (Aura Blockchain Consortium, n.d.), were essential in
emphasizing core strategies such as improving supply chain transparency and supporting
circular economy practices. These documents also described specific results including
heightened customer trust through verifiable product details and improved compliance with
sustainability rules.
Additionally, external industry reports such as the Institut der deutschen Wirtschaft’s “Digital
Product Passport as Enabler for the Circular Economy,” provided an outside perspective on the
broader effect of DPPs on circular economy initiatives. Insights from luxury-centric media
platforms, including Glossy’s coverage of DPP adoption in the fashion sector offered real-world
illustrations and practical uses of the technology.
These sources, including official documents, articles, and industry publications, were chosen for
their significance, trustworthiness, and capacity to present varied perspectives on how DPPs
enhance transparency, traceability, and circular economy practices. This varied collection forms
the foundation for analyzing the practical effects of DPPs and their alignment with circular
economy objectives in section 5. These documents also identified particular outcomes, including
stronger customer trust through verifiable product details and elevated compliance with
sustainability regulations.
5. Presentation and Analysis of Collected Material
5.1 Key features of digital product passports
Digital Product Passports (DPPs) represent a transformative tool in the luxury fashion industry,
providing blockchain technology to enhance transparency and traceability and which also
alignes with circular economy principles. By integrating DPPs, The Aura Blockchain Consortium
addresses key challenges related to sustainability, supply chain traceability, and regulatory
compliance.
5.1.1 Blockchain and transparency
Blockchain technology provides traceability and security by keeping an unchangeable record of
each product lifecycle stage. This assures data accuracy, prevents counterfeits, and offers proof
of a product's origin and material sourcing. The Aura Blockchain Consortium’s DPPs provide
business purchasers and partners with protected, tamper-resistant data and build trust and
visibility throughout the supply chain. This blockchain also unifies data tracking which reduces
operational inefficiencies across supply chains which can enable smooth stakeholder
collaboration (Aura Blockchain Consortium, n.d., p. 13). Beyond trackability, blockchain-based
DPP's can automate a lot of operational activities, such as compliance documentation and
supplier checks which can cut a lot of time and effort tied to manual tasks. This setup helps
brands prioritize innovation and user-focused strategies while preserving data reliability.
5.1.2 Supporting circular economy
DPPs is helping with recycling, repairs and longer product life by offering in-depth details on
material makeup and production steps. This drives circular economy methods and supports
brands in developing sustainably by assisting consumers in making good choices about reuse
or discard. By enabling closed-loop models, DPPs can reduce environmental waste and
guarantee that materials remain trackable and efficiently reused. The IW Report 2023 highlights
how such data-sharing formats lets brands improve modular product designs which make
repairs and recycling more practical (IW Report 2023, p. 29). This in turn strengthens key
sustainability goals by limiting resource extraction and reducing waste buildup. For instance Prada’s inclusion of DPPs in buy-back and repair initiatives shows how circular concepts apply
in real life which keeps top-grade materials usable for extended periods. This lowers the
ecological impact of luxury items while boosting consumer loyalty toward brands that prioritize
sustainability (Glossy, n.d.). Circularity also enables luxury companies to meet shifting consumer
demands for ethical buying and enhances a long-term competitive advantage.
5.1.3 Meeting regulations
DPP's fulfill EU standards including the Ecodesign Regulation. This by capturing and presenting
sustainability data. This feature makes regulatory tasks more simple for brands and secures
adherence to legal requirements. By focusing on circular economy policies, these rules seek to
steer industries toward more responsible production and consumption methods. The Aura
Blockchain Consortium’s dedication to these guidelines highlights its place at the top of
sustainable luxury. Also, standardized rule-following reports improve brand-to-brand
cooperation, letting participating brands simplify processes and address shifting regulations
(Neligan et al., 2023, p. 14). Meeting legal requirements through DPP's can further limit potential
legal complications which drives a market advantage where sustainability credentials are closely
examined.
5.1.4 Customer stories and trust
DPP's upgrade customer interactions by presenting detailed and easily accessible product
histories. Buyers can now view the product’s background, raw materials and ethical standards
and build a stronger emotional link to the brand. This kind of openness not only strengthens
trust but also enable brands to show their adoption of circular economy ideals. Within the luxury
industry, these narratives speak powerfully to eco-conscious buyers who see sustainability as
important to their personal purchase decisions. As highlighted in How Digital Product Passports
Are Showing Up in Luxury (Glossy, n.d.), this engagement further links high-end consumption to
larger sustainability targets which reinforces both brand loyalty and eco-minded practices.
Digital campaigns featuring QR codes and augmented reality tools linked to DPPs can enable
interactive storytelling methods and further connect with tech-savvy audiences.​
5.2 Case studies of DPP use
The use of Digital Product Passports (DPPs) throughout the luxury industry shows how brands
are using this new technology to solve transparency, traceability, and sustainability issues. For
example, Cartier depends on DPPs so customers can confirm the ethical sourcing and
authenticity of their purchases, while Prada uses this technology to provide insights into product
lifecycles, promoting repair and resale practices (Glossy, n.d.; Aura Blockchain Consortium,
n.d.).
5.2.1 Examples from luxury brands
Cartier’s use of DPPs allows customers to access detailed information about the origins and
materials of their items. This feature not only helps combat counterfeiting but also underlines
Cartier’s commitment to sustainability. By giving consumers insight into ethical sourcing and
production, Cartier shows itself as a leader in sustainability, enhancing both customer trust and
brand loyalty.
Similarly, Prada has included DPPs in its repair and buy-back initiatives, aligning with circular
economy ideas. DPPs give Prada’s customers data about each product’s lifecycle, helping them
decide whether to reuse, recycle, or resell. These kinds of programs appeal to the increasing
number of eco-conscious consumers and strengthen Prada’s reputation in the marketplace.
5.2.2 Aura blockchain consortium projects
The Aura Blockchain Consortium has led several important DPP implementations among its
member brands. For instance, Bvlgari uses DPPs to check the authenticity and provenance of
high-value jewelry items. The unchangeable blockchain records support transparency and boost
customer confidence in their purchases. By integrating DPPs, Bvlgari ensures it meets
regulatory requirements while supporting ethical practices and storytelling (Aura Blockchain
Consortium, n.d., p. 15).
Another significant move by the consortium is standardizing DPP frameworks across its member
brands. This standardization allows for easier interoperability, letting luxury brands work
together more smoothly while meeting industry-wide sustainability goals. The Aura Blockchain
Consortium’s focus on scalable solutions shows its commitment to innovation and circularity
(Aura Blockchain Consortium, n.d., p. 15). These efforts reflect a broader trend of reducing
waste and optimizing resource use, which are key principles of a circular economy.
5.2.3 Consumer trust and benefits
Across all these implementations, a common outcome is the boost in customer trust and
engagement. By using DPPs, luxury brands can offer verifiable, transparent product histories
that create deeper emotional bonds with consumers. This trust-building approach aligns with
luxury brands’ strategic aims of keeping exclusivity while also showing they are devoted to
ethical and sustainable practices.
5.3 Strategic impact of DPPs
The introduction of Digital Product Passports (DPPs) has made a big strategic difference for
luxury brands and the wider networks around them. By solving important problems linked to
sustainability, brand image, and operational efficiency, DPPs have become a key part of modern
luxury brand strategies.
5.3.1 Building brand trust
DPPs increase a brand’s value by growing trust and openness between the brand and the
consumer (Aura Blockchain Consortium, n.d., p. 15). The Aura Blockchain Consortium’s studies
say that showing verifiable product information helps luxury brands fight counterfeits and create
a reputation for honesty and ethical behavior. Brands like Cartier and Bvlgari have used DPPs
to put themselves at the forefront of sustainability and new technology, developing stronger
emotional bonds with buyers (Aura Blockchain Consortium, n.d., p. 15; Glossy, n.d.).
5.3.2 Improving operations
Aside from the advantages for customers, DPPs also improve internal operations by offering a
single system to track materials and workflows (IW Report 2023, p. 12). The IW Report 2023
points out that DPPs reduce problems in supply chain management, such as delays caused by
manual checks. This technology also makes compliance reporting simpler, saving time and
money while matching strict EU regulations, including the Ecodesign Regulation. By automating
these processes, DPPs allow brands to adapt quickly to changing rules and focus on their main
strategic and operational goals (Aura Blockchain Consortium, n.d., p. 15).
5.3.3 Achieving sustainability goals
DPPs are very important in helping luxury brands reach their sustainability targets. By making it
possible to track raw materials and by promoting circular economy ideas, brands can lower
waste and lessen their environmental impact (IW Report 2023, p. 29). According to Embracing
Digital Product Passport as a Regulatory Requirement, DPPs give brands the tools to record
and present their sustainability work to all their stakeholders. Circular economy thinking is
central here, because it focuses on getting value from waste and making luxury products last
longer. By adopting these ideas, luxury brands not only respond to consumer wishes for ethical
behavior but also make sure their operations follow global sustainability standards.
5.4 Challenges and issues
While Digital Product Passports (DPPs) bring many advantages, their use also creates several
challenges and limits that both luxury brands and the wider industry have to deal with.
5.4.1 Tech challenges
Putting DPPs in place needs advanced technical systems and specialized knowledge. Many
brands, especially smaller ones, might not have the money or ability to successfully use
blockchain-based solutions. As the IW Report 2023 (p. 22) explains, having different technical
standards and lack of system compatibility is a major problem that makes supply chain
integration difficult. Making sure that all the data about materials and production is accurate is
another technical issue when building circular loops. Also, there are no common worldwide rules
for how to use blockchain, which adds to the difficulties, because luxury brands working in
different places must handle many different regulations and technology setups.
Blockchain’s use of a decentralized system also causes issues with scaling. For example, as
more data points enter a DPP system, the computer power needed to confirm and handle each
transaction goes up a lot. This can cause slower processing and higher costs. Smaller brands
might find these technical requirements too much, which could increase the gap between big,
well-known luxury companies and newer ones.
5.4.2 Adoption issues
A big problem is people’s reluctance to change, especially among stakeholders who do not
know much about blockchain technology (Glossy, n.d.). In How Digital Product Passports Are
Showing Up in Luxury (Glossy, n.d.), it says that some brands do not want to share data
because they worry about privacy and losing their competitive edge. This shows the wider
difficulty of being transparent while keeping an advantage in the luxury market. There is also
pushback from suppliers who may not be ready or willing to start using DPP systems. If
suppliers do not work together, the data that ends up in DPPs can be incomplete or less
reliable, making them less useful.
Also, using DPPs demands big cultural changes inside companies. Staff at all levels must be
trained to know how to use DPP systems properly. This training can take a lot of time and
money. If luxury brands do not focus on teaching their staff, they might have problems like
inefficiencies and low usage of the system.
5.4.3 Costs of DPPs
Creating and managing DPP systems has large costs, from the first setup stage to ongoing
updates and security (IW Report 2023, p. 25). For smaller labels, these costs can be too much.
High costs of using the technology can slow down adoption and make the industry uneven,
where only the richest brands can fully benefit from DPPs. Plus, the energy use of blockchain,
especially in proof-of-work methods, leads to extra financial and environmental costs that
brands must deal with to maintain sustainability without hurting their budgets.
5.4.4 Data security risks
Although blockchain technology is meant to be safe, it still has risks (Aura Blockchain
Consortium, n.d., p. 14). Threats like hacking or weaknesses in connected systems could harm
trust in DPPs. There is also the challenge of finding the right balance between openness and
privacy, especially to follow rules like GDPR. Brands must put serious effort into cybersecurity to
protect private data while making sure that any information they do share meets consumer
expectations for openness.
Moreover, luxury brands have to manage and keep huge amounts of data needed for DPP
systems. From sourcing materials to disposing of products at the end of their life, each step
produces data that must be recorded and stored accurately (IW Report 2023, p. 24). Any
mistakes or security breaches in this data weaken the trustworthiness and usefulness of DPPs,
and could hurt the brand’s image.
5.5 Future opportunities
Even though there are challenges, Digital Product Passports (DPPs) offer many chances for
future growth and innovation in the luxury industry. By dealing with the main problems and using
new trends, DPPs can continue changing how brands work and connect with all their partners.
5.5.1 Expanding DPP use
DPPs can go beyond the luxury industry into other fields like electronics, automotive, and fast
fashion (IW Report 2023, p. 27). The Aura Blockchain Consortium supports making DPP
frameworks consistent, so more industries can adopt them and create systems that work with
each other. This bigger reach could help promote more sustainable practices on a world scale.
For example, adding DPPs in the electronics sector might change how e-waste is handled by
letting companies better track parts for recycling and reuse.
In the automotive world, DPPs can improve supply chain openness by recording where
important materials like rare earth metals come from and how they are used. This clarity helps
meet rules about ethical sourcing and also supports vehicle recycling at the end of their lives,
which encourages circular economy ideas.
5.5.2 Driving circular innovation
By increasing product traceability, DPPs help in making better circular economy methods (IW
Report 2023, p. 29). For instance, brands could start buy-back or repair programs that use DPP
data about materials and the product’s lifecycle. As stated in the IW Report 2023, these ideas
can help brands cut waste and make products last longer, creating fresh income sources while
sticking to sustainability goals. By focusing on modular designs and making products easier to
take apart, luxury brands can keep materials in use, making sure resources get reused over and
over.
New technology like AI and the Internet of Things (IoT) could be combined with DPPs to make
them work even better. For example, sensors with IoT abilities inside luxury products could
instantly update DPPs with real-time information about how the item is being used and its
condition, making lifecycle management more accurate. AI programs could look at this data to
guess when maintenance is needed or offer the best ways to recycle, making circular economy
processes more effective.
5.5.3 Global standards and teamwork
There is a chance to set up worldwide standards for how DPPs are used, so they are done in a
similar way in all markets (IW Report 2023, p. 30). Working together among luxury brands,
law-makers, and tech suppliers can make DPPs stronger. This harmony can also make it easier
to follow international rules, building trust and better performance in supply chains worldwide.
Groups like the United Nations Environment Programme (UNEP) could help create these
standards, making one system that works for everyone.
Partnership between brands in the Aura Blockchain Consortium could also boost new ideas
(Aura Blockchain Consortium, n.d., p. 16). By exchanging success stories and combining
funding, member brands can build more reliable DPP setups that solve shared problems but still
keep each brand’s unique strengths. These partnerships might also include external groups, like
sustainability-focused NGOs or universities, to study new ways to improve DPP technology.
5.5.4 Better consumer engagement
Future upgrades in DPP technology may offer more interesting and personal consumer
experiences (Glossy, n.d.). For example, augmented reality (AR) or mobile apps could let
shoppers explore detailed product backgrounds or sustainability data in a fun and interactive
way. This matches what customers want: clear information and a good story around luxury
goods.
On top of that, brands could use DPPs to set up reward programs that encourage sustainable
choices. For example, shoppers who bring back items for recycling or join repair programs could
collect points to use for exclusive perks. These kinds of programs not only promote green
consumption but also build closer ties with consumers by matching brand values with shopper
interests.
5.5.5 New tech-integration
Connecting blockchain with other growing technologies, such as AI, machine learning, and IoT,
has huge promise for making DPPs more powerful (IW Report 2023, p. 32). AI can study DPP
data to learn about buyer behavior and trends, helping brands fine-tune their plans. Machine
learning systems might improve supply chain tasks by finding where processes can be improved
or forecasting demand based on past data. IoT devices in luxury items can give real-time
updates to DPPs, so everyone can see the latest and correct information.
For example, wearable luxury items could have IoT features to track how they are being used
and their condition, automatically updating their DPPs. This setup boosts the product’s appeal to
consumers and assists with sustainability aims by offering predictive maintenance and longer
product lifecycles.
These possibilities show how DPPs can transform industries by encouraging new ideas,
cooperation, and greater sustainability. By taking full advantage of these ideas, luxury brands
can lead the way in the sustainability movement, while giving excellent value to their customers
and partners.
6. Conclusion
Digital Product Passports (DPPs) are changing the luxury fashion industry by solving major
issues in transparency, traceability, and sustainability. Using blockchain technology, DPPs let
brands share verifiable information about where products come from, what materials they use,
and how they are produced, which builds trust and loyalty among consumers. They also help
brands adopt greener methods like recycling, repair, and resale, reducing environmental
damage and supporting circular economy principles.
From a strategic point of view, DPPs increase brand value by showing a commitment to honest
and open practices which appeals to eco-conscious consumers and stakeholders. They also
simplify operations by improving supply chain efficiency and making it easier to comply with
rules such as the EU Ecodesign Regulation. Because of these benefits, better operations and
easier rule-following DPPs have become an essential resource for modern luxury brands.
However, putting DPPs into practice involves challenges including high costs, technology
obstacles, and reluctance to change. Smaller brands in particular might struggle with these
requirements, emphasizing the need for joint efforts and common standards to encourage wider
DPP adoption. Despite these problems there is huge potential to spread DPPs beyond the
luxury sector into areas like electronics and automotive. New technologies such as AI and IoT,
can further enhance DPP functions, giving brands fresh ways to improve product lifecycle
management and connect with customers.
By using DPPs, luxury brands have a special chance to lead the way in being sustainable and
transparent, setting an example for other industries. These moves not only strengthen their
position in a fast-changing global market but also confirm their status as pioneers of ethical and
sustainable approaches. DPPs go beyond just a new technology, they are a strategic tool for
reshaping the future of luxury and other sectors as well.
Reference List
Aura Blockchain Consortium (n.d.) The Digital Product Passport: A New Era of Luxury Unveiled.
Available at:
https://auraconsortium.com/insight/the-digital-product-passport-a-new-era-of-luxury-unveiled
Aura Blockchain Consortium (n.d.) Unlocking Luxury: How Aura Blockchain Consortium’s Digital
Product Passport Transforms the Luxury Industry. Available at:
https://auraconsortium.com/insight/unlocking-luxury-digital-product-passport-transforms-the-luxu
ry-industry
Glossy (n.d.) How Digital Product Passports Are Showing Up in Luxury. Available at:
https://www.glossy.co/fashion/luxury/how-digital-product-passports-are-showing-up-in-luxury
Aura Blockchain Consortium (2024) Embracing Digital Product Passport as a Regulatory
Requirement: Setting a New Standard for Luxury Experiences and Circularity. pp. 9–15.
Neligan, A., Schleicher, C., Engels, B., and Kroke, T. (2023) Digital Product Passport as Enabler
for the Circular Economy. German Economic Institute. pp. 22–32.