.png)
Digital Product Passports are changing how value is defined in luxury.
Luxury has long been built on controlled perception.
Scarcity, storytelling, and brand narrative have shaped how value is created and sustained.
That model is now being challenged.
Product-level data is becoming more structured, more accessible, and increasingly comparable across brands.
As this shift accelerates, value is no longer defined only by what is said about a product, but by what can be verified.
In this conversation with Yana Bushmeleva of Fashionbi, a data and insights provider for the fashion and luxury industry, we explore how this transition from perception to proof is reshaping value in luxury, and what it means for brands as Digital Product Passports enter the landscape.
1. Luxury Is No Longer Defined by Perception Alone
What structural shifts are you observing today in how value is created and sustained in the sector?
Democratization of luxury brands has been a key movement in bringing about how customers today view these brands. At the same time, the meaning of the term ‘democratization’ continues to be challenged by customers. The idea of a luxury brand’s process being elusive to customers used to drive curiosity and consequently sales. However, with increased access via social media platforms, customers are no longer easily influenced by the kind of marketing campaigns that drove desirability and sales in the past. They are questioning the provenance of products, and are wary of green-washing tactics which once worked. Today, they expect all claims to be backed by solid evidence. At the core, there has been a shift in who controls the market. Brands must disclose everything to customers, and if convinced, they shall grant value to the brand.
2. Perception vs Data: What Drives Value Today
To what extent is luxury still driven by narrative, and how is product-level data changing that balance?
The vast majority of brands in the sector are still not revealing in-depth product-level data. There is cursory information related to where a brand produces its collections, and where a product is manufactured. Considering how complex the process of making any single product is, the associated data will also be quite vast. With reducing attention spans, the biggest challenge would be to deliver this data to customers. Having said that, there exists a group of customers and advocates who will scrutinize the data and re-evaluate their perception of the product and brand. Just like the “Made in” label has played a big role in value perception, this will also have an impact. How large an impact will entirely depend on how digestible the data will be. A hefty price tag on a product that claims to be “Made in Italy” will be questioned if there is additional information on how much percentage of the product was actually made in Italy. At that point, it is likely that customers will start questioning the price and authenticity of the ‘Made In’ labels.
3. Comparable Product Data: What Changes for Luxury Brands
What changes when product information is structured and comparable across brands?
If it is easy to compare, it will make a huge difference when it comes to decision making. But that is easier said than done. Comparability means the data points across brands have to be harmonized. Additionally, if there are several data points, it would be cumbersome for many customers to make this comparison manually. For those devoted, they will definitely utilize this information. And then we can assume it would be a trickle-down effect of information flowing from these discerning customers, climate advocates and the brands themselves that will lead to large-scale effects.
4. The Product As a Data Layer
Are we moving towards a model where each product becomes a layer of data, not just a physical or symbolic asset? What implications does that have for how luxury brands operate?
If we are evaluating a brand as a whole, yes, each product will become a data layer. For instance, if the leather goods are made in Europe, but clothing is made in Asia, this information can be analysed to understand where on the scale of sustainability and circularity does this brand land. For a customer viewing a singular one-off product, the product level information will remain just that. However, when it comes to brand loyalty, customers will have the opportunity to dig through the product-level data across multiple items and make an overall assessment if that brand fits into their value system.
5. Digital Product Passports: Compliance or Structural Shift?
How do Digital Product Passports fit into this evolution of value and transparency in luxury?
There is a certain amount of information fatigue within the minds of customers. What is the truth is lost in translation. From greenwashing or false claims to vague promises, the sustainability movement cannot just thrive on individuals and organizations questioning these brands. A systemic change is being brought about for this very reason. There is only so much that can be achieved at an individual level, and this has led us to this precipice. The climate crisis has become more apparent to people around the world, the reality of overconsumption can no longer be ignored, and the world has become a much smaller place with how easily information can be transmitted from one end of the world to another. Plus, there is now also the support of unprecedented technology, which is being put to use. For those who always questioned the status quo, Digital Product Passports are the answer, while for the rest, the availability of DPPs will lead to the larger shift.
6. Can Data Redefine Control in Luxury?
If brands can no longer fully control the narrative, can structured product data redefine how value is controlled and measured?
The way customers value a brand or product will likely depend on both, controlled narratives by brands, as well as the product data provided by them. Only once this information is available across the industry thanks to mandatory requirements, will customers have the option of responding to the data. At this stage, the challenge for most brands is the pre-existing perception of products made in certain regions. For example, many customers are apprehensive of products made in Asian countries as compared to European or North America. However, the reality is that the quality of product is not solely determined by the place of manufacturing, as many Asian-made products are comparable and at times superior in quality than those made in more developed countries. Once brands start to provide DPPs, it will also be crucial to dismantle these notions, only then will the data have a positive impact on brand value.
7. How Product Data Impacts Pricing and Margins
How do you see this shift impacting economic performance in luxury, particularly in terms of pricing power, margins, and long-term brand equity?
We are still a long time away from the information being so readily available that it can show an industry wide impact. However, if the brands are able to adapt soon, customers will probably question the disconnect (if there is one) between the brand’s philosophy and verifiable data. The regulations demand that brands must divulge this information, but it does not compel them to highlight it on their website, stores, apps and so forth. If the data does not favour the brand, will these brands be making it easily accessible?
8. What Will Differentiate Luxury Brands Next
In a context of standardized and comparable data, what will define differentiation?
If customers have access to easy to understand and comparable data, then the question of whether they are drawn to a particular brand will boil down to the brand’s core value, whether that is their aesthetic or ethics. The fashion and luxury sector is still driven by the feeling of pure desire. What causes this desire in people can range from the design, craftsmanship and quality to sustainability standards (albeit rarer). Many luxury brands are at the cusp of redefining and reiterating their identity, which they must accomplish in the near future. And even then, the supply chain data will have to justify the pricing of the product, alongside the desirability of the product’s design will have to justify cost to the environment.
About Yana Bushmeleva and Fashionbi
Yana Bushmeleva is Chief Operating Officer and Partner at Fashionbi, a data and insights company focused on the fashion and luxury industry. Fashionbi provides analysis and strategic intelligence to over 1,500 brands globally, supporting decision-making across digital performance, market trends, and brand positioning.
.png)
.png)
.png)
.png)
.png)