November 8, 2023

Millions of Luxury Products Now Come With Unique Digital Passports. Here’s What That Means.

Brands are starting to adopt Digital IDs in large numbers as they prepare to meet major new EU regulations. They’re using the opportunity to build in customer-facing features that can appeal to customers, too.

Over the past few years, fashion companies have been exploring the potential value of Digital IDs, viewing them as a way to let customers authenticate products, transfer ownership and access an array of services like resale and repair. The impending EU rules have accelerated those efforts and created a sense of urgency as brands start thinking about how to make sure they’re in compliance.

Given the scope of what brands are trying to do, the impending EU regulations aren’t so far off, even if the start date is ultimately pushed back, as some expect. Companies may need to make technology investments, rethink processes and get a large number of people trained and aligned on creating Digital IDs for all effected products. EON’s brand clients have a three-year roadmap for going from instituting Digital IDs on an initial collection of products to having their whole assortment covered.

""The legislation that’s passing in Europe, I believe, is going to be a huge accelerator. But because many US businesses have either manufacturing or distribution in Europe, I believe it’s going to have a broader impact. It's happening - it's not sci-fi, it's now.""

Global Head of Luxury, Boston Consulting Group

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