How Digital Product IDs Help Fashion Brands Solving Sustainability

Each product is given a unique digital code known as a digital product ID. These codes, which can be read with a smartphone, reveal details on the materials, origin, and environmental effect of the product.

Digital product IDs can be printed directly onto an item or its packaging, and they are often used in conjunction with a physical label or tag on a product. Digital codes can be read using a dedicated scanner or an app on a smartphone, which retrieves sustainability statistics and product details from a database.

Depending on the product and brand, a digital product ID may provide different information. Nonetheless, it frequently contains details on the product's construction materials, manufacturing location, and environmental effect.

With this knowledge, customers can choose items that align with their beliefs and make more informed purchasing decisions.

A startling 2-8% of the world's greenhouse gas emissions are attributed to the fashion business, according to estimates. But the fashion business has detrimental effects beyond that. The fashion sector is predicted to grow its carbon emissions at a pace of 2% annually, or 2.7 billion metric tonnes annually, by 2030 if nothing is done. 

Reducing climate change consequences is crucial, according to two-thirds of respondents to a McKinsey & Company poll concerning sustainability in fashion. And 88% of respondents believe that lowering pollution should receive more focus. More than a third of shoppers are prepared to pay more for sustainable apparel, according to a different NPD poll.

In a future when the circular economy drives higher revenues for companies and complete environmental sustainability, imagine what fashion might look like.

According to a survey by Fortune Business Insights, the market for green technology and sustainability is expected to increase at a Compound Annual Growth Rate of 20.3%, from $11.43 billion in 2021 to $41.62 billion in 2028.

According to the Ellen MacArthur Foundation, the European Union alone may save $1.3 trillion annually if businesses adopted circular designs. Fast-moving consumer items, such as domestic cleaning supplies, have the potential to save $700 billion annually, but complex, medium-lived products, such as cell phones, appliances, and the like, might save as much as $630 billion.

As they strive to buy sustainably, consumers are looking on companies to deliver on their promises. In addition, brands need to adhere to environmental, social, and governance (ESG) programmes and sustainability targets.

Companies that don't begin implementing circular, sustainable business models run the danger of lagging behind rivals and losing clients to them.

For companies to achieve industry standards, meet ESG requirements, and meet sustainability key performance indicators (KPIs), they must have digital and linked goods.

Connectivity extends beyond the conventional landing page-directing QR codes seen on tags or packaging. Since each product has a unique Digital ID, connection promotes sustainability and real circular production. In addition to tracking important data and sharing them with suppliers and customers, brands may also provide item-by-item customization.

This goes beyond just stating that, in contrast to, say, jeans, skirts have a distinct ID and offer a more customised experience. A level-up version of an item SKU, two identical garments have personalised IDs.

Many luxury firms, such as Ralph Lauren, Prada, and Coach, are looking to use digital product IDs or have already done so. This is part of a bigger effort to more firmly integrate technologically-advanced and sustainable practises into their operations. Similar to this, Amazon Style, which debuted its first physical location in California last year, has tagged its clothing with QR codes that provide information more about consumer reviews and size of the items than about Amazon's production methods.

According to a new report from the U.N. Climate Change and CDP, the fashion sector is at last implementing noticeable reforms to attain sustainability and combat climate change. However, there is still more to be done: fast-fashion poses significant hurdles, and greenwashing is still pervasive among high street firms. Fashion wear-throw-away is still a big problem: every year, 92 million tonnes of textiles wind up in landfills. This amount of garbage is predicted to rise to 134 million tonnes per year by 2030.

Many in the fashion business think that technology, such as digital IDs, has the ability to bring about meaningful change. The tags serve as a kind of garment passport in this instance, giving a comprehensive, end-to-end overview of the merchandise. In the end, they provide the three most sought-after blueprint techniques: recycling, repairing, and reselling—the most ecologically beneficial strategy in the fashion industry.

• Adidas

Adidas has adopted a digital product ID system known as "Scan to Give Back," which allows customers to scan the digital ID on their items to learn more about the product's sustainability attributes and give to sustainability programs.

• Levi’s

Levi's has launched a "Care for Our Planet" campaign, which includes a digital product ID system that allows customers to trace the environmental impact of their denim products, such as water and energy usage and the quantity of waste produced during manufacture.

• Patagonia

Patagonia's digital product ID system informs customers about the environmental impact of their products, including information about the materials used, the production process, and the product's carbon footprint.

H&M

H&M's digital product ID system informs customers about the sustainability of their products, including information about the materials used, the production process, and the company's sustainability pledges.

Stella McCartney

Stella McCartney has established a digital product ID system that gives buyers information about the sustainability elements of their products, such as materials used, production processes, and the company's animal welfare practices.

In the quest for sustainability, digital product identification is a game-changer. These digital IDs, which frequently take the shape of signet tags, act as a distinct and traceable label for every item in the inventory of a fashion company. Numerous advantages provided by this technology help to create a more transparent and sustainable industry.

• Supply Chain Transparency:

Digital product IDs enable a level of transparency that was once thought unattainable. Brands can now provide consumers with real-time information about the journey of a garment, from raw material sourcing to production and distribution. This transparency not only builds trust but also allows consumers to make informed choices about the products they purchase.

• Reduced Counterfeiting:

Counterfeiting is a significant issue in the fashion industry, contributing to both economic losses and environmental harm. Digital product IDs make it much more difficult for counterfeiters to replicate products, protecting both the brand and consumers. By ensuring the authenticity of each item, brands can mitigate the environmental impact associated with counterfeit production.

• Circular Economy Integration:

Digital product IDs facilitate the implementation of circular economy practices. Brands can track the life cycle of a product and encourage consumers to return items for recycling or upcycling. This shift towards a circular economy model reduces waste and promotes the responsible consumption of fashion.

• Consumer Engagement:

With the help of digital product IDs, brands can engage consumers in the sustainability journey. Through apps and online platforms, customers can access information about the environmental impact of their purchases and receive suggestions for more sustainable alternatives. This direct interaction fosters a sense of shared responsibility for sustainability between brands and consumers.

• Data-Driven Decision-Making:

The data generated by digital product IDs allows brands to make informed decisions about their supply chain and production processes. By analyzing this data, fashion companies can identify areas for improvement and implement more sustainable practices, leading to a reduced overall environmental footprint.

In summary, fashion labels are leading the way in a sustainability revolution, and digital product IDs—such as signet tags—are showing to be an invaluable friend on this path. These digital IDs are transforming the fashion industry into a more sustainable and responsible force by utilizing technology to increase transparency, decrease counterfeiting, and facilitate a circular economy. Fashion firms that use digital product IDs are not only satisfying customer needs today but also creating the foundation for a more transparent and environmentally responsible future as consumers continue to stress making eco-friendly decisions.