In the first of its kind at BoF VOICES, executives from Versace, Tommy Hilfiger, Nike, Casablanca, H&M, J. Crew, Target and Fear of God, among others, gathered for an exclusive knowledge luncheon, co-hosted by Certilogoâs founder and general manager, Michele Casucci and BoFâs Robin Mellery-Pratt, to discuss the opportunities found in digital product passports (DPPs) â not only as a requirement for compliance, but as an opportunity to create a direct line of connection to customers.
Held at Soho Farmhouse in Oxfordshire, UK, BoF VOICES 2024 marked the ninth edition of the annual gathering for big thinkers from fashion and the wider world. Executives, entrepreneurs and creative leaders from more than 25 countries across industries such as fashion, luxury, technology, economics, philanthropy and contemporary art were in attendance, to posit the forces shaping the fashion industry in the year ahead.
DPPs serve as digital records linked to a physical product, documenting key details across its entire lifecycle. This includes information about the origin of materials, manufacturing processes, supply chain data, environmental impact, and recommendations for end-of-life use â all accessed on a smartphone via digital markers like NFC tags or QR codes. And, as regulation from the European Commission will require fashion and other consumer goods to be fitted with unique DPPs as early as 2027, Itâs a timely investment to make.
âCertilogo began with the idea of putting brands in contact with end-consumers,â said Certilogoâs Casucci. âEmbedding that technology makes it possible for a product to become a vehicle whereby brands can deliver content and services to the end-customer, and make it easier for that customer to make an informed decision based on upstream traceability and the overall impact of the product.â
Since 2006, Certilogo â a leader in connected products and digital authentication â has been delivering innovative digital experiences and integrating end-to-end secure and turn-key DPPs into the fashion and luxury sectors. Today, over 540 million products from its partner brands have a corresponding digital asset.
âToday, the focus for businesses is compliance, given impending regulation,â Casucci added. âHowever, there is a risk that brands will miss out on the broader perspective â to upgrade your relationship with your customers.â
Moderated by BoFâs Alice Gividen, the conversation was held under Chatham House Rule, which grants anonymity for individuals in the discussion.
Below BoF shares three key themes from the discussion.
Leverage Connected Products to Build an In-Brand Resale Offering
âWe just onboarded a new technology where consumers can see, at the point of purchase, the resale value of the item. From there, a microsite can facilitate that resale, so it stays within our brandâ opened one guest, on their learnings in the space. âConsumers can broadly just use our images â they only need to upload one as proof of condition. Whatâs more, we see that the resale value is only 5 to 10 percent lower than the original price. Weâre now considering how connected products could make that even more seamless.â
âWe are also working to developing ways to own resale â itâs a fundamental business model shift, as is facilitating rental and repairs, because you have to work closely with the customer,â added another attendee. âAt present, we are seeing more of an uptake in our home markets, where the strength of our brand lends makes it easier to integrate these solutions. But my mission is to connect these new models to broader shopping trends and also to all the product categories that lend themselves to circular shopping methods. Of course, itâs not an easy task â weâre currently struggling with bigger questions regarding brand value and communicating that with our customers.â
Utilise DPPs to Ensure Authenticity and Protect Brand Integrity
âThe European Union Intellectual Property Office conducted a survey in June of this year. It found that more than 50 percent of consumers between the ages of 15 and 24 said theyâd purchased at least one counterfeit product online in the last 12 months,â shared one attendee. âIn a world where Cartier can no longer authenticate their âLoveâ bracelets due to the rise in high-quality counterfeit pieces, we should consider how brands can retain the critical trust of consumers.â
âWhen a brand has category winners, then counterfeiting becomes an overwhelming issue. For example, I have seen some of our hero products for sale in Asia for â¬0.53 â and leather goods for â¬5,â said one executive. âThe problem is obviously the cost. If youâre a small business, survival is the number one strategy. Now, I donât know whether the consumers purchasing those fake goods will ever be true customers, but we need to combat this â even if itâs through technology that helps consumers make the right choice and guarantee the authenticity of the items they purchase.â
Enhance CRM Strategies with Storytelling and Tech-Enabled Connections
âWe are starting to think about what we could leverage to stimulate revenue-generating activities beyond the initial path-to-purchase and rooted instead in community interactions,â added another attendee. âI think I need to discover more of this world â yes, we have thought about authentication and traceability, but we have some work to do in terms of using this technology to create new value and conversation around existing products.â
âFor us, that added value comes in as part of a CRM programme,â responded another guest. âHarnessing the technology not just for authentication or compliance reasons, but looking in a much more strategic way to help build connections is key. If you think about the amount of product sold through third-party distribution channels, connected products can still give brands a link to consumers and allow for clienteling and relationship-building.â
âClienteling is important, but the most valuable component of that is truly creating a story â building a connection with the end-consumer,â countered another guest. âThose stories can be centred around maintaining a product, but it should be about creating a relationship before unlocking further commercial opportunities. Here, the connected product becomes a relationship-enabled product.â
This is a sponsored feature paid for by Certilogo as part of a BoF partnership.
