Recent geopolitical and economic crises have only added fuel to the fire, disrupting supply chains, inflating raw material prices, and creating financial roadblocks for small and medium enterprises (SMEs).
The results are evident: cult favourites like Christopher Kane, The Vampire’s Wife, and Dion Lee have filed for bankruptcy, while others like Roksanda narrowly escaped insolvency. With the independent fashion ecosystem under siege, a pressing question arises: how can these brands rebuild and adapt?
The answer, increasingly, lies in technology, specifically, in the nascent concept of Digital Product Passports (DPPs).
DPPs: More Than Just a Fancy Label
A potential game-changer comes in the form of Digital Product Passports (DPPs), a cornerstone of the EU’s Eco-design for Sustainable Products Regulation (ESPR). Set to roll out as early as 2026, DPPs aim to revolutionize the fashion landscape by embedding transparency and sustainability into the very fabric of the industry.
DPPs act as digital "nutrition labels" for fashion, offering a comprehensive overview from the origin of its materials to its environmental impact, care instructions, and even its journey through the second-hand market. Paired with technologies like NFC chips or QR codes, these passports link physical products to a digital ecosystem, enabling new possibilities for consumer interaction and brand storytelling.
But for independent brands, they represent more than just compliance; they offer a lifeline.
Empowering the Underdog
Research conducted by Smart DPP offers a comprehensive look into the operational frameworks of independent fashion brands, uncovering both their strengths and challenges. These brands typically produce collections with an average of 35-50 SKUs, often focusing on niche markets and operating through e-commerce platforms like Shopify. Their agility allows them to pivot quickly to market demands, with many embracing made-to-order models that minimise overproduction and waste. However, the research highlights a significant gap in their technological infrastructure, particularly in the areas of sustainability tracking and data analytics.
A notable finding is the lack of advanced tools to monitor key metrics such as fabric origin, environmental impact, and post-purchase consumer behaviour.
Hana Hamer, Creative Director of Couca Couture, elaborates on these challenges: “We use zero-waste and up-cycled fabrics, and it has been a challenge to track the origin and source of fabrics.”
This sentiment underscores a broader issue revealed by the study: while many independent brands are deeply committed to sustainable practices, they often lack the resources or tools to fully verify and communicate these efforts to stakeholders and consumers.
The absence of comprehensive systems for assessing supply chain transparency and environmental performance leaves these brands at a competitive disadvantage, particularly as consumer expectations around sustainability and traceability continue to grow. This research underscores an urgent need for scalable digital solutions to bridge these gaps, empowering independent brands to enhance their sustainability narratives while remaining agile in their operations.
DPPs address these pain points head-on
Luxury fashion houses have already begun experimenting with DPPs as a way to strengthen their connection with customers. Dior’s B9S sneakers, for instance, include NFC-enabled DPPs that offer buyers a window into the manufacturing process and exclusive previews of upcoming designs. Similarly, Mugler has incorporated digital passports into its bags, enriching the customer experience and setting a benchmark for transparency.
Independent brands, however, are uniquely positioned to harness the transformative potential of DPPs. As noted in the EU’s “Support Report Mapping Sustainable Fashion Opportunities for SMEs”, these smaller brands possess the agility and operational control needed to drive meaningful change. By adopting DPPs, they can begin to tackle some of their most pressing challenges.
With DPPs, brands can forge partnerships with maintenance services and resale platforms, creating new revenue streams while championing sustainability. The wealth of lifecycle data captured by DPPs provides invaluable insights into customer care habits, recycling behaviors, and repair activities. These insights empower brands to refine their offerings and precisely target customers interested in resale or maintenance services. Features like push notifications, care updates, and feedback loops enable brands to cultivate meaningful relationships with their customers.
The potential is staggering. A recent report from thredUP predicts that by 2028, the global secondhand market will reach $350 billion.
Building a Loyal Tribe
Moreover, the integration of DPPs fosters a direct line of communication between brands and consumers. Through features like push notifications, care updates, and feedback loops, brands can establish meaningful relationships with their customers, transforming them into loyal advocates. This enhanced engagement is especially critical in e-commerce, where issues such as returns due to fit or quality discrepancies can erode consumer trust. DPPs address this pain point by offering detailed product information upfront, empowering customers to make informed decisions and reducing return rates.
The Bottom Line
For independent fashion brands, DPPs aren't just about ticking regulatory boxes; they are a lifeline for survival and a springboard for reinvention. DPPs enable brands to demonstrate their commitment to sustainability by providing verifiable data on the origins of materials, production processes, and environmental impacts. This level of transparency builds trust with consumers, aligns with evolving regulations, and sets a new standard for accountability in the industry.
The clock is ticking, and as the 2026 deadline for compliance with emerging EU sustainability regulations approaches, the stakes are high. For many in the independent fashion sector, the adoption of Digital Product Passports may spell the difference between thriving in an increasingly sustainable and transparent market or fading into obscurity. The time to innovate is now—embracing DPPs is an imperative for those looking to lead the charge toward a more sustainable and ethical fashion industry.
