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Digital Product Passport (DPP), what strategies do Korean companies have in response?
In today's global market, it is becoming increasingly important to transparently manage all information related to the product life cycle. In this trend, the Digital Product Passport (DPP) is gaining attention. DPP plays a crucial role in verifying product authenticity, enhancing sustainability, and increasing supply chain transparency. In this article, we will discuss the concept and necessity of DPP, examples of foreign fashion brands that have adopted DPP, and how Korean companies can respond.
Jul 1, 2024
Digital Product Passport (DPP), what strategies do Korean companies have in response?
In today's global market, it is becoming increasingly important to transparently manage all information related to the product life cycle. In this trend, the Digital Product Passport (DPP) is gaining attention. DPP plays a crucial role in verifying product authenticity, enhancing sustainability, and increasing supply chain transparency. In this article, we will discuss the concept and necessity of DPP, examples of foreign fashion brands that have adopted DPP, and how Korean companies can respond.
Jul 1, 2024
Digital Product Passport (DPP), what strategies do Korean companies have in response?
In today's global market, it is becoming increasingly important to transparently manage all information related to the product life cycle. In this trend, the Digital Product Passport (DPP) is gaining attention. DPP plays a crucial role in verifying product authenticity, enhancing sustainability, and increasing supply chain transparency. In this article, we will discuss the concept and necessity of DPP, examples of foreign fashion brands that have adopted DPP, and how Korean companies can respond.
Jul 1, 2024
Digital Product Passport (DPP), what strategies do Korean companies have in response?
In today's global market, it is becoming increasingly important to transparently manage all information related to the product life cycle. In this trend, the Digital Product Passport (DPP) is gaining attention. DPP plays a crucial role in verifying product authenticity, enhancing sustainability, and increasing supply chain transparency. In this article, we will discuss the concept and necessity of DPP, examples of foreign fashion brands that have adopted DPP, and how Korean companies can respond.
Jul 1, 2024
What is a Digital Product Passport (DPP)?
The Digital Product Passport (DPP) is a system that records and provides important information in digital format throughout the life cycle of a product. The primary purpose of the DPP is to verify the authenticity of the product, enhance sustainability, and improve supply chain transparency. Through the DPP, information regarding the composition of raw materials, environmental impact, and repair guidelines during the production process can be transparently managed. This DPP was first specified in the Eco Design Regulation (ESPR) announced by the EU in 2022, which came into effect on July 18, 2024. According to the Eco Design Regulation, priority items include textiles, steel, aluminum, furniture, tires, detergents, paints, lubricants, chemicals, and ICT products. For textiles and steel, the DPP system is expected to be implemented by mid-2027.
What is a Digital Product Passport (DPP)?
The Digital Product Passport (DPP) is a system that records and provides important information in digital format throughout the life cycle of a product. The primary purpose of the DPP is to verify the authenticity of the product, enhance sustainability, and improve supply chain transparency. Through the DPP, information regarding the composition of raw materials, environmental impact, and repair guidelines during the production process can be transparently managed. This DPP was first specified in the Eco Design Regulation (ESPR) announced by the EU in 2022, which came into effect on July 18, 2024. According to the Eco Design Regulation, priority items include textiles, steel, aluminum, furniture, tires, detergents, paints, lubricants, chemicals, and ICT products. For textiles and steel, the DPP system is expected to be implemented by mid-2027.
What is a Digital Product Passport (DPP)?
The Digital Product Passport (DPP) is a system that records and provides important information in digital format throughout the life cycle of a product. The primary purpose of the DPP is to verify the authenticity of the product, enhance sustainability, and improve supply chain transparency. Through the DPP, information regarding the composition of raw materials, environmental impact, and repair guidelines during the production process can be transparently managed. This DPP was first specified in the Eco Design Regulation (ESPR) announced by the EU in 2022, which came into effect on July 18, 2024. According to the Eco Design Regulation, priority items include textiles, steel, aluminum, furniture, tires, detergents, paints, lubricants, chemicals, and ICT products. For textiles and steel, the DPP system is expected to be implemented by mid-2027.
What is a Digital Product Passport (DPP)?
The Digital Product Passport (DPP) is a system that records and provides important information in digital format throughout the life cycle of a product. The primary purpose of the DPP is to verify the authenticity of the product, enhance sustainability, and improve supply chain transparency. Through the DPP, information regarding the composition of raw materials, environmental impact, and repair guidelines during the production process can be transparently managed. This DPP was first specified in the Eco Design Regulation (ESPR) announced by the EU in 2022, which came into effect on July 18, 2024. According to the Eco Design Regulation, priority items include textiles, steel, aluminum, furniture, tires, detergents, paints, lubricants, chemicals, and ICT products. For textiles and steel, the DPP system is expected to be implemented by mid-2027.
Expected effects through DPP
DPP is expected to establish itself as a powerful tool for confirming sustainability and ESG (Environmental, Social, and Governance) regulatory compliance in Europe. The DPP should include information related to the circular economy, such as methods for repairing and maintaining products, reusability, and the proportion of recyclable materials, thereby contributing to increasing resource circularity. Additionally, as ESG information related to the environment, labor, and carbon emissions is stored and disclosed, consumers and businesses can easily verify the ESG compliance of the respective products and companies.
Expected effects through DPP
DPP is expected to establish itself as a powerful tool for confirming sustainability and ESG (Environmental, Social, and Governance) regulatory compliance in Europe. The DPP should include information related to the circular economy, such as methods for repairing and maintaining products, reusability, and the proportion of recyclable materials, thereby contributing to increasing resource circularity. Additionally, as ESG information related to the environment, labor, and carbon emissions is stored and disclosed, consumers and businesses can easily verify the ESG compliance of the respective products and companies.
Expected effects through DPP
DPP is expected to establish itself as a powerful tool for confirming sustainability and ESG (Environmental, Social, and Governance) regulatory compliance in Europe. The DPP should include information related to the circular economy, such as methods for repairing and maintaining products, reusability, and the proportion of recyclable materials, thereby contributing to increasing resource circularity. Additionally, as ESG information related to the environment, labor, and carbon emissions is stored and disclosed, consumers and businesses can easily verify the ESG compliance of the respective products and companies.
Expected effects through DPP
DPP is expected to establish itself as a powerful tool for confirming sustainability and ESG (Environmental, Social, and Governance) regulatory compliance in Europe. The DPP should include information related to the circular economy, such as methods for repairing and maintaining products, reusability, and the proportion of recyclable materials, thereby contributing to increasing resource circularity. Additionally, as ESG information related to the environment, labor, and carbon emissions is stored and disclosed, consumers and businesses can easily verify the ESG compliance of the respective products and companies.
Case studies of overseas fashion brands that have implemented DPP.
Overseas fashion brands are responding to digital product passports by adopting technologies such as Digital ID and Digital Twin, which are already commercialized. Companies like Coach, Chloé, H&M, and Hailo are known to have implemented these technologies. Let's take a closer look at the DPP implementation cases of Coach (COACH) and Chloé.
◇ Coach (COACH)
Coachtopia: A key project that introduced the Digital Product Passport (DPP), it is a brand born to realize innovative product creation and a circular economy while considering the environment. The DPP includes detailed information about the sources of raw materials, manufacturing processes, and the environmental impact. Therefore, consumers can closely check how the product is made and what processes it has undergone. The introduction of the DPP plays a crucial role in building trust for Coach as a sustainable brand. Repair and Restoration Recommendations: Coachtopia actively encourages repairs and restorations to extend the product lifespan. To this end, Coach provides consumers with product repair support programs and helps restore old products for reuse. The repair and restoration programs aim to allow consumers to use products for a long time, minimizing the negative impact on the environment. Reuse and Circular Economy: Coachtopia aims for product reuse and resource circulation as its core objectives. The products of Coachtopia are made from recyclable materials and are designed to be recycled into different forms after use. Coach strives to promote the efficient use of resources and contribute to environmental protection through this circular economy model.
◇ Chloé
Digital Guarantee Announcement: According to Chloe's official website and various materials, they plan to offer a digital guarantee on all products by 2025. Here, a digital guarantee means providing detailed information about the product manufacturing process and issuing a unique digital certificate for each product. This certificate includes information about the product's origin, the manufacturing process, the materials used, and ESG (Environmental, Social, Governance) details. Second-hand Product Sales Project: To practice sustainable fashion, Chloe has launched a second-hand product sales project in partnership with the luxury second-hand platform Vestiaire Collective. The core aim of this partnership is to extend product life and promote sustainable consumption. Chloe and Vestiaire Collective provide a platform for consumers to resell their Chloe products, ensuring that consumption does not end as a one-time action. Through this second-hand product platform, the longevity of products can be increased, and unnecessary waste can be prevented.
Case studies of overseas fashion brands that have implemented DPP.
Overseas fashion brands are responding to digital product passports by adopting technologies such as Digital ID and Digital Twin, which are already commercialized. Companies like Coach, Chloé, H&M, and Hailo are known to have implemented these technologies. Let's take a closer look at the DPP implementation cases of Coach (COACH) and Chloé.
◇ Coach (COACH)
Coachtopia: A key project that introduced the Digital Product Passport (DPP), it is a brand born to realize innovative product creation and a circular economy while considering the environment. The DPP includes detailed information about the sources of raw materials, manufacturing processes, and the environmental impact. Therefore, consumers can closely check how the product is made and what processes it has undergone. The introduction of the DPP plays a crucial role in building trust for Coach as a sustainable brand. Repair and Restoration Recommendations: Coachtopia actively encourages repairs and restorations to extend the product lifespan. To this end, Coach provides consumers with product repair support programs and helps restore old products for reuse. The repair and restoration programs aim to allow consumers to use products for a long time, minimizing the negative impact on the environment. Reuse and Circular Economy: Coachtopia aims for product reuse and resource circulation as its core objectives. The products of Coachtopia are made from recyclable materials and are designed to be recycled into different forms after use. Coach strives to promote the efficient use of resources and contribute to environmental protection through this circular economy model.
◇ Chloé
Digital Guarantee Announcement: According to Chloe's official website and various materials, they plan to offer a digital guarantee on all products by 2025. Here, a digital guarantee means providing detailed information about the product manufacturing process and issuing a unique digital certificate for each product. This certificate includes information about the product's origin, the manufacturing process, the materials used, and ESG (Environmental, Social, Governance) details. Second-hand Product Sales Project: To practice sustainable fashion, Chloe has launched a second-hand product sales project in partnership with the luxury second-hand platform Vestiaire Collective. The core aim of this partnership is to extend product life and promote sustainable consumption. Chloe and Vestiaire Collective provide a platform for consumers to resell their Chloe products, ensuring that consumption does not end as a one-time action. Through this second-hand product platform, the longevity of products can be increased, and unnecessary waste can be prevented.
Case studies of overseas fashion brands that have implemented DPP.
Overseas fashion brands are responding to digital product passports by adopting technologies such as Digital ID and Digital Twin, which are already commercialized. Companies like Coach, Chloé, H&M, and Hailo are known to have implemented these technologies. Let's take a closer look at the DPP implementation cases of Coach (COACH) and Chloé.
◇ Coach (COACH)
Coachtopia: A key project that introduced the Digital Product Passport (DPP), it is a brand born to realize innovative product creation and a circular economy while considering the environment. The DPP includes detailed information about the sources of raw materials, manufacturing processes, and the environmental impact. Therefore, consumers can closely check how the product is made and what processes it has undergone. The introduction of the DPP plays a crucial role in building trust for Coach as a sustainable brand. Repair and Restoration Recommendations: Coachtopia actively encourages repairs and restorations to extend the product lifespan. To this end, Coach provides consumers with product repair support programs and helps restore old products for reuse. The repair and restoration programs aim to allow consumers to use products for a long time, minimizing the negative impact on the environment. Reuse and Circular Economy: Coachtopia aims for product reuse and resource circulation as its core objectives. The products of Coachtopia are made from recyclable materials and are designed to be recycled into different forms after use. Coach strives to promote the efficient use of resources and contribute to environmental protection through this circular economy model.
◇ Chloé
Digital Guarantee Announcement: According to Chloe's official website and various materials, they plan to offer a digital guarantee on all products by 2025. Here, a digital guarantee means providing detailed information about the product manufacturing process and issuing a unique digital certificate for each product. This certificate includes information about the product's origin, the manufacturing process, the materials used, and ESG (Environmental, Social, Governance) details. Second-hand Product Sales Project: To practice sustainable fashion, Chloe has launched a second-hand product sales project in partnership with the luxury second-hand platform Vestiaire Collective. The core aim of this partnership is to extend product life and promote sustainable consumption. Chloe and Vestiaire Collective provide a platform for consumers to resell their Chloe products, ensuring that consumption does not end as a one-time action. Through this second-hand product platform, the longevity of products can be increased, and unnecessary waste can be prevented.
Case studies of overseas fashion brands that have implemented DPP.
Overseas fashion brands are responding to digital product passports by adopting technologies such as Digital ID and Digital Twin, which are already commercialized. Companies like Coach, Chloé, H&M, and Hailo are known to have implemented these technologies. Let's take a closer look at the DPP implementation cases of Coach (COACH) and Chloé.
◇ Coach (COACH)
Coachtopia: A key project that introduced the Digital Product Passport (DPP), it is a brand born to realize innovative product creation and a circular economy while considering the environment. The DPP includes detailed information about the sources of raw materials, manufacturing processes, and the environmental impact. Therefore, consumers can closely check how the product is made and what processes it has undergone. The introduction of the DPP plays a crucial role in building trust for Coach as a sustainable brand. Repair and Restoration Recommendations: Coachtopia actively encourages repairs and restorations to extend the product lifespan. To this end, Coach provides consumers with product repair support programs and helps restore old products for reuse. The repair and restoration programs aim to allow consumers to use products for a long time, minimizing the negative impact on the environment. Reuse and Circular Economy: Coachtopia aims for product reuse and resource circulation as its core objectives. The products of Coachtopia are made from recyclable materials and are designed to be recycled into different forms after use. Coach strives to promote the efficient use of resources and contribute to environmental protection through this circular economy model.
◇ Chloé
Digital Guarantee Announcement: According to Chloe's official website and various materials, they plan to offer a digital guarantee on all products by 2025. Here, a digital guarantee means providing detailed information about the product manufacturing process and issuing a unique digital certificate for each product. This certificate includes information about the product's origin, the manufacturing process, the materials used, and ESG (Environmental, Social, Governance) details. Second-hand Product Sales Project: To practice sustainable fashion, Chloe has launched a second-hand product sales project in partnership with the luxury second-hand platform Vestiaire Collective. The core aim of this partnership is to extend product life and promote sustainable consumption. Chloe and Vestiaire Collective provide a platform for consumers to resell their Chloe products, ensuring that consumption does not end as a one-time action. Through this second-hand product platform, the longevity of products can be increased, and unnecessary waste can be prevented.
DPP response strategies for Korean companies
The DPP system is expected to impact not only the EU but also countries around the world due to complex global supply chains. If South Korean companies are unable to adopt the DPP system, their entry into the EU market may be restricted, affecting not only EU exporting companies but all businesses involved in the supply chain of those products. Therefore, South Korean companies need to closely monitor the trends of EU DPP regulations and actively adopt digital technologies that record information at each stage of the supply chain. Additionally, since DPP allows for easy verification of a product's ESG information, products that are not environmentally friendly are likely to be expelled from the market. As such, it seems very important to develop countermeasures in this regard. Furthermore, companies should regularly issue ESG reports that include data related to DPP, thereby enhancing transparency to global customers and investors. Along with this, the government and related agencies should put in various efforts such as supporting pilot DPP production, preparing support measures for small and medium-sized enterprises, and establishing carbon emissions measurement and verification systems to assist companies in responding to DPP. Since compatibility with the EU DPP is important, international cooperation is also essential, and the government and related organizations need to actively participate in the EU consortium to reflect South Korea's requirements. In the future, the Digital Product Passport (DPP) will be an essential tool for sustainability and compliance with ESG regulations, a crucial factor for competitiveness in the global market. South Korean companies must strengthen their presence in the global market through the adoption and utilization of DPP and realize sustainable management. At this point, active support and cooperation from the government and related agencies are needed.
DPP must provide Korean companies with the opportunity to secure a favorable position in the global market while recognizing that it is an essential change in sustainability, which is the current global trend. I hope that many companies will realize transparent and responsible management through the rapid implementation of DPP.
DPP response strategies for Korean companies
The DPP system is expected to impact not only the EU but also countries around the world due to complex global supply chains. If South Korean companies are unable to adopt the DPP system, their entry into the EU market may be restricted, affecting not only EU exporting companies but all businesses involved in the supply chain of those products. Therefore, South Korean companies need to closely monitor the trends of EU DPP regulations and actively adopt digital technologies that record information at each stage of the supply chain. Additionally, since DPP allows for easy verification of a product's ESG information, products that are not environmentally friendly are likely to be expelled from the market. As such, it seems very important to develop countermeasures in this regard. Furthermore, companies should regularly issue ESG reports that include data related to DPP, thereby enhancing transparency to global customers and investors. Along with this, the government and related agencies should put in various efforts such as supporting pilot DPP production, preparing support measures for small and medium-sized enterprises, and establishing carbon emissions measurement and verification systems to assist companies in responding to DPP. Since compatibility with the EU DPP is important, international cooperation is also essential, and the government and related organizations need to actively participate in the EU consortium to reflect South Korea's requirements. In the future, the Digital Product Passport (DPP) will be an essential tool for sustainability and compliance with ESG regulations, a crucial factor for competitiveness in the global market. South Korean companies must strengthen their presence in the global market through the adoption and utilization of DPP and realize sustainable management. At this point, active support and cooperation from the government and related agencies are needed.
DPP must provide Korean companies with the opportunity to secure a favorable position in the global market while recognizing that it is an essential change in sustainability, which is the current global trend. I hope that many companies will realize transparent and responsible management through the rapid implementation of DPP.
DPP response strategies for Korean companies
The DPP system is expected to impact not only the EU but also countries around the world due to complex global supply chains. If South Korean companies are unable to adopt the DPP system, their entry into the EU market may be restricted, affecting not only EU exporting companies but all businesses involved in the supply chain of those products. Therefore, South Korean companies need to closely monitor the trends of EU DPP regulations and actively adopt digital technologies that record information at each stage of the supply chain. Additionally, since DPP allows for easy verification of a product's ESG information, products that are not environmentally friendly are likely to be expelled from the market. As such, it seems very important to develop countermeasures in this regard. Furthermore, companies should regularly issue ESG reports that include data related to DPP, thereby enhancing transparency to global customers and investors. Along with this, the government and related agencies should put in various efforts such as supporting pilot DPP production, preparing support measures for small and medium-sized enterprises, and establishing carbon emissions measurement and verification systems to assist companies in responding to DPP. Since compatibility with the EU DPP is important, international cooperation is also essential, and the government and related organizations need to actively participate in the EU consortium to reflect South Korea's requirements. In the future, the Digital Product Passport (DPP) will be an essential tool for sustainability and compliance with ESG regulations, a crucial factor for competitiveness in the global market. South Korean companies must strengthen their presence in the global market through the adoption and utilization of DPP and realize sustainable management. At this point, active support and cooperation from the government and related agencies are needed.
DPP must provide Korean companies with the opportunity to secure a favorable position in the global market while recognizing that it is an essential change in sustainability, which is the current global trend. I hope that many companies will realize transparent and responsible management through the rapid implementation of DPP.
DPP response strategies for Korean companies
The DPP system is expected to impact not only the EU but also countries around the world due to complex global supply chains. If South Korean companies are unable to adopt the DPP system, their entry into the EU market may be restricted, affecting not only EU exporting companies but all businesses involved in the supply chain of those products. Therefore, South Korean companies need to closely monitor the trends of EU DPP regulations and actively adopt digital technologies that record information at each stage of the supply chain. Additionally, since DPP allows for easy verification of a product's ESG information, products that are not environmentally friendly are likely to be expelled from the market. As such, it seems very important to develop countermeasures in this regard. Furthermore, companies should regularly issue ESG reports that include data related to DPP, thereby enhancing transparency to global customers and investors. Along with this, the government and related agencies should put in various efforts such as supporting pilot DPP production, preparing support measures for small and medium-sized enterprises, and establishing carbon emissions measurement and verification systems to assist companies in responding to DPP. Since compatibility with the EU DPP is important, international cooperation is also essential, and the government and related organizations need to actively participate in the EU consortium to reflect South Korea's requirements. In the future, the Digital Product Passport (DPP) will be an essential tool for sustainability and compliance with ESG regulations, a crucial factor for competitiveness in the global market. South Korean companies must strengthen their presence in the global market through the adoption and utilization of DPP and realize sustainable management. At this point, active support and cooperation from the government and related agencies are needed.
DPP must provide Korean companies with the opportunity to secure a favorable position in the global market while recognizing that it is an essential change in sustainability, which is the current global trend. I hope that many companies will realize transparent and responsible management through the rapid implementation of DPP.
source
"Korea International Trade Association International Trade & Commerce Research Institute", "Current Status and Implications of the EU Digital Product Passport", p.6-7, p.20-22
(What is a digital product passport?, Expected benefits through DPP, Reference for DPP response strategy for Korean companies)
(Reference to cases of overseas fashion brands that introduced DPP)
(Reference to cases of overseas fashion brands that introduced DPP)
source
"Korea International Trade Association International Trade & Commerce Research Institute", "Current Status and Implications of the EU Digital Product Passport", p.6-7, p.20-22
(What is a digital product passport?, Expected benefits through DPP, Reference for DPP response strategy for Korean companies)
(Reference to cases of overseas fashion brands that introduced DPP)
(Reference to cases of overseas fashion brands that introduced DPP)
source
"Korea International Trade Association International Trade & Commerce Research Institute", "Current Status and Implications of the EU Digital Product Passport", p.6-7, p.20-22
(What is a digital product passport?, Expected benefits through DPP, Reference for DPP response strategy for Korean companies)
(Reference to cases of overseas fashion brands that introduced DPP)
(Reference to cases of overseas fashion brands that introduced DPP)
source
"Korea International Trade Association International Trade & Commerce Research Institute", "Current Status and Implications of the EU Digital Product Passport", p.6-7, p.20-22
(What is a digital product passport?, Expected benefits through DPP, Reference for DPP response strategy for Korean companies)
(Reference to cases of overseas fashion brands that introduced DPP)
(Reference to cases of overseas fashion brands that introduced DPP)