The EU's Digital Product Passport (DPP) policy is moving from concept to implementation, with the apparel sector at the forefront. According to industry sources, Ecommerce Europe recently recommended 'flexible granularity' in execution to avoid one-size-fits-all mandates that could burden SMEs. This stance reflects the EU's intensifying push for supply chain transparency in textiles and apparel.
Policy Background
DPP requires each garment to have a traceable electronic record covering its entire lifecycle—from raw material sourcing and manufacturing to logistics and distribution. The EU aims to combat greenwashing and promote a circular economy. However, the apparel sector is highly diverse, ranging from basic T-shirts to high-performance fabrics. Uniformly demanding the finest data granularity would impose heavy system upgrade costs on small brands and contract manufacturers.
Industry Impact
For Chinese textile exporters, DPP brings two layers of impact. First, compliance costs: orders destined for the EU will gradually require DPP data, forcing factories to upgrade ERP systems and align data with brands. Second, competitive dynamics: SMEs lacking digital capabilities may be squeezed out of the European market, while early-moving leaders can capture market share. Industry data shows China's textile and apparel exports to the EU exceeded €40 billion in 2023, with SMEs accounting for a significant portion—flexible rules are critical to their survival.
Notably, Ecommerce Europe's call isn't against DPP but advocates phased implementation. This means brands and suppliers must negotiate data granularity levels: basic products may only need origin and compliance declarations, while premium segments require carbon footprint and water usage details. This tiered logic tests companies' data management and supply chain transparency.