MCM and Aura Blockchain Consortium: redefining luxury with DPP technology

“Many products in the EU will need DPPs by 2028. Now is the time to develop these technologies, and early adopters will be best equipped to leverage DPPs as a competitive advantage”, Romain Carrere, CEO of Aura Blockchain Consortium

In today's data-driven, consumer-centric market, luxury brands must innovate to thrive. MCM, a pioneering force in the industry, is leading the charge with the introduction of its Digital Product Passport (DPP), developed in collaboration with the Aura Blockchain Consortium. This groundbreaking technology is poised to redefine industry standards.

Perfectly timed with the implementation of the EU's Sustainable Product Regulation (ESPR), the DPP offers a comprehensive solution to the industry's traceability and authenticity challenges. By providing consumers with unparalleled transparency, early adopters like MCM are not only meeting regulatory demands but eventually building a strong competitive advantage.

This article delves into the mechanics of the DPP, exploring how it can be a catalyst for growth and innovation in the luxury sector. Through insights from Romain Carrere, CEO of Aura Blockchain Consortium, FashionUnited examines the potential of this technology not just as a compliance tool, but as a strategic asset that can reshape the luxury landscape.

What is the value proposition of the Digital Product Passport (DPP)? How can blockchain technology contribute to the development of sustainable practices?

Romain Carrere: At Aura, we believe DPPs, powered by blockchain, are essential for driving sustainability. By reinforcing traceability, storytelling, and customer experience, we foster a holistic relationship between the consumer and the product throughout its entire lifecycle. Blockchain's immutability and transparency ensure the highest level of data integrity, that we see as advantageous compared to traditional cloud-based solutions. DPPs empower brands to build trust by certifying authenticity and traceability, while also enabling consumers to make informed choices based on comprehensive product lifecycle information.

What is the strategic imperative for developing this technology today? How does it address the urgent needs of today's market?

Romain Carrere: The Ecodesign for Sustainable Products Regulation (ESPR), which came into force on 18 July 2024, makes transparency and traceability a regulatory requirement for any luxury brand selling in the European market. This means that many products in the EU will need DPPs by 2028. Now is the time to develop these technologies - early adopters will be best equipped to leverage DPPs as a competitive advantage rather than simply meeting a regulatory requirement. Beyond compliance, DPPs also guarantee product authenticity and product lifecycle traceability. In turn, this offers benefits and rewards, fosters community and customer engagement, and enriches brand and product storytelling.

It is said that your technology will help customers to verify the sustainability of the product. In what ways? What specific information will they be able to access?

Romain Carrere: Modern consumers are more informed than previous generations. They are more sustainability conscious, meaning that they have particularly high expectations regarding the availability and accessibility of transparent information on each stage of the supply chain, from the provenance of raw materials to the production process and onwards. When this information is transparently and readily available, it enables consumers to gauge the sustainability of a specific product, showcasing a brand's commitment to sustainability, building trust between brand and customer, and ultimately driving purchase decisions. It is crucial to cater to customers' ever-evolving expectations.

How will the DPP eventually influence the consumer decision-making process?

Romain Carrere: With sustainability becoming a determining factor for consumers, it is crucial that brands cater to these ever-evolving expectations. DPPs make this possible and alongside providing consumers with the information they need to make ethically informed purchases; the depth of information offers new opportunities for product storytelling and customer engagement.

Can you provide specific examples of how Aura blockchain technology enhances the customer experience through the DPP?

Romain Carrere: In terms of the MCM example, by simply scanning an NFC chip, consumers can verify the authenticity and sustainability of the product on the Aura Blockchain. They then have full access to the product's details, including comprehensive product lifecycle information immediately available at their fingertips, such as the upcycled sea plastics, fishing nets used, and so forth.

Another example is Miu Miu’s 2024 Upcycled Collection. The collection, dedicated to Denim and Patch bags, features pre-2000 materials sourced from denim specialists all over the world and practices the idea of giving new life to vintage garments, bags, and accessories. To offer an enriched customer experience and enhance the product at the same time, Miu Miu partnered with Aura to make it possible to access, by scanning the NFC tag, specific information, exclusive content, and the Certificate of Authenticity registered on Aura's blockchain.

How do you see this technology developing? What are the ambitions of Aura Blockchain Consortium on that matter?

Romain Carrere: DPP adoption in the luxury industry is only going to accelerate in the coming years, and we’re excited to see the technology’s range of applications expand accordingly. Aura's standard framework for luxury DPPs is designed to enable brands to seamlessly tailor DPPs’ incredibly diverse utilities to their unique aims and strategies.

Widespread implementation is still in the early stages, but many forward-looking brands are using learnings from their current applications to plan increasingly innovative future uses, and we have recorded tens of millions of luxury products on our private blockchain.

Traceability and transparency tracking will also expand as more data is captured and recorded throughout the supply chain, enabling richer brand storytelling and bringing new depth and trust to the customer-brand relationship. Brands will also be able to create more options for customers through DPPs – by tokenising real-world assets and providing customers with a unique digital ID that provides greater levels of security regarding product authenticity, brands can unlock new value within the secondhand market, customer relationship management, and future Web3 utilities.

There are so many possibilities right around the corner, but to make the most of the technology’s powerful potential beyond regulatory compliance, brands need to make DPPs a priority today. This is an exciting time for the industry, and the brands that begin building their DPP strategy now will be best positioned to reap the technology’s future benefits.