5 reasons fashion brands need digital IDs

Sustainability has become a decisive factor in how people shop for clothes, shoes, and accessories. Today, four out of five consumers are willing to pay more for responsibly made products, and nearly 70% expect brands to prove their sustainability claims. The demand for authenticity, transparency, and traceability has never been this strong. To meet these expectations, digital IDs are stepping in as the ultimate solution, giving consumers instant access to a product’s entire journey—from raw materials to resale or recycling—with a simple scan. In this blog, we’ll explore what digital IDs are, how they differ from digital product passports (DPPs), and why they’re becoming essential for the future of fashion.

So, what are digital IDs?

A digital ID is a unique digital identifier embedded within a fashion product, often in the form of a QR code, NFC chip, RFID tag, or blockchain-based marker. These identifiers act as a digital twin for the physical product, storing important data such as:

• Product authenticity and ownership history, enabling brands and customers to verify whether an item is genuine.
• Sustainability information, detailing material origins, carbon footprint, and ethical sourcing practices.
• Customer engagement features, providing personalized styling recommendations, care instructions, and exclusive brand content.
• Supply chain tracking details, offering real-time visibility into inventory movement and product lifecycle management.

Retailers like H&M and Adidas are exploring digital IDs to enhance their resale strategies and sustainability commitments.

Digital IDs vs. digital product passports: What’s the difference?

While digital IDs and DPPs are often mentioned together, they serve distinct roles. Let’s break it down with an example:

Imagine a luxury handbag. Its digital ID provides a unique identifier that stores all types of information. For instance, it can include details like authenticity, origin, sustainability claims, and resale history. A simple scan lets customers verify its legitimacy or check its resale value.

Now, from a regulatory perspective, a DPP takes it further. It contains a standardized data set outlining materials, carbon footprint, ethical sourcing, and end-of-life recycling instructions—ensuring compliance with EU sustainability regulations and supporting circular fashion. Under the EU's Ecodesign for Sustainable Products Regulation (ESPR), DPPs will become mandatory for certain sectors like textiles by 2026, laying the foundation for all goods sold in Europe to comply by 2030.

In short, a digital ID tracks authenticity and brand-driven data, while a DPP ensures full transparency and regulatory compliance. As DPPs become a legal requirement, investing in strong product data management systems will help businesses stay ahead of evolving regulations.

5 reasons why fashion brands must leverage digital IDs

1. Win the fight against counterfeits

Fashion brands lose an estimated $50 billion each year to counterfeiting, with footwear and apparel being the most heavily impacted industries. Fake products not only hurt revenue but also damage brand reputation and consumer trust.

Digital IDs help brands authenticate products instantly. Customers can verify a product’s legitimacy by scanning a QR code, while businesses can track ownership history. They also help brands to regain control over resale and secondary markets, ensuring that only genuine products circulate.

2. Enhance sustainability and circular fashion

Seventy-three (73%) of shoppers say they’re willing to pay more for a product if it comes from sustainable brands. At the same time, governments—especially in the EU—are enforcing stricter regulations on transparency and waste reduction.

Digital IDs allow brands to disclose essential fashion sustainability information, such as material sourcing, carbon footprint, ethical sourcing details, care instructions, and recycling options. They help brands manage sustainable production by tracking product materials, which ultimately makes meeting corporate social responsibility goals more attainable.

For example, Puma’s RE:SUEDE sneaker program uses digital IDs to provide customers with information about the product’s biodegradability and recycling options.

3. Improve supply chain visibility and inventory management

Stock mismanagement is a major challenge in the fashion industry. In 2023 alone, an estimated 2.5 to 5 billion excess items were produced, resulting in $70 billion to $140 billion in unsold inventory.

With digital IDs, products can be tracked in real-time—from manufacturing to the final sale—helping prevent overproduction and lost inventory. When integrated with feed management solutions, they ensure that accurate product data flows across all retail and marketplace channels, reducing errors in online listings. Retailers and warehouses gain better inventory insights, preventing overstocking and markdown losses.

4. Enhance customer experience and brand loyalty

What if a product could offer more than just its physical form? Today’s consumers want a seamless, engaging brand experience—and digital IDs make that possible by delivering valuable insights at every touchpoint.

They provide personalized content such as exclusive brand stories and care instructions. Customers can easily check resale value and warranty details, making long-term ownership more attractive. They allow brands to offer loyalty rewards and exclusive perks, strengthening customer relationships.

While digital product passports (DPPs) are often introduced to meet regulatory requirements, brands like Victoria’s Secret are going a step further. In February 2025, the company launched DPPs for its new lingerie collections, allowing shoppers to scan and instantly view material sourcing, sustainability credentials, and care guidance. The initiative also highlights direct partnerships with four family farms in Alabama, connecting customers with the growers and makers behind their products. It’s a strong example of how transparency and storytelling—whether through digital IDs or DPPs—can strengthen brand trust and loyalty.

5. Ensure compliance with emerging regulations

As regulations around sustainability, transparency, and product tracking become more stringent worldwide, digital IDs are playing a key role in this transition. They centralize compliance-related data, helping brands seamlessly adapt to evolving regulations. By documenting material sourcing and ethical production practices in advance, brands can avoid penalties and regulatory setbacks.

For instance, the EU’s DPP initiative will soon require this information, making compliance non-negotiable. Brands should start implementing them before they’re mandatory, using a flexible product data management system to ensure a smooth transition.

What’s next?

Digital IDs are opening doors to a more sustainable and connected fashion industry—helping brands embrace circular models and create deeper customer relationships. But as regulations tighten and the digital landscape grows more complex, the real question is:

How do you make it all work seamlessly? How can brands seamlessly integrate digital IDs while ensuring product data remains accurate, consistent, and optimized for every sales and marketing channel? That’s where a strong product data strategy makes all the difference.

Find out how fashion brands can streamline their operations and optimize their product experiences with Productsup’s feed management and syndication platform. Book a demo to see how we tailor our solutions to you for a higher ROI.