Ski lifts and instant resale: New ways to use digital IDs

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Digital twins, which rose to the mainstream during the metaverse boom, are gaining new steam in the form of digital IDs, or product passports (DPPs), that store data including manufacturing details, supply chain origins, materials used and ownership history. It’s no longer a “nice to have” for fashion brands — it will soon become a requirement.

Starting as early as 2026, the European Commission will require brands selling in the EU to equip items like apparel, accessories and electronics with DPPs in order to make supply chains more transparent and enforce brands to meet their sustainability goals. Brands currently testing the technology are figuring out ways for it to collect customer data and add perks beyond the point of purchase.

This winter, Boss equipped ski jackets with the digital IDs that could access ski slopes and contactless payments. The RealReal partnered with Eon to eventually enable it to automatically ingest product details when listing consigned luxury goods. In the autumn, Balenciaga gave hoodies and tees their own exclusive soundtrack that could only be heard by physically tapping the garment. Coach’s Coachtopia products now come with a unique Eon-provided digital ID to access repair-and-restore services.

Once a digital identity is established for a product, brands can add information and features over time, so even though the specific requirements of DPPs aren’t yet known, brands have begun trialling how the tech can be used, beyond metaverse wearables or NFT collectibles. In this case, the physical product is the focus, offering new incentives to establish digital IDs.

The concept and methods of linking the digital identity with physical goods have generally stayed the same, such as through QR codes or NFC chips. The strategies are different, especially in comparison to recent digital-first products tested by Gucci, Adidas and Tiffany’s, says Raakhee Miller, CEO of Web3 platform Mojito. This physical-first approach “not only enhances the product’s value, but also deepens consumer engagement”.

The pivot in strategy also reflects a shift in metaverse approaches. Consumers crave something that is easier to use with more obvious benefits. The concept of “phygital” goods “was very much linked to the metaverse, and now we see [brands] coming back to use cases and services for the clients with something more anchored in client needs”, says Laura Escure, VP of brand partnerships at Vestiaire Collective, which teamed up with Chloé and Eon to enable “instant resale” via digital IDs. “It’s back to the basics. The barriers around Web3 were not helping consumers to think thoroughly about luxury.”

Usefulness drives data collection

During Austria’s ski competition, Hahnenkamm Races, Boss worked with Mastercard and wearable payment-tech provider Digiseq to develop a custom tag for its ski jackets that combined multiple contactless technologies and a web app for customers to tailor their experience. VIP guests who were gifted the jackets could tap the tag on its sleeve to access the event, the ski resort, the lifts and log in to a physical pop-up store, in addition to making contactless payments.

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Author: BLOGGER