An overview of technological challenges in implementing the digital product passport in the textile and clothing industry

3.1 Barcodes

A barcode is the most visually recognisable Universal Product Code (UPC) represented as multiple vertical lines (barcode) and a 12-digit UPC number. Later, using different geometric patterns, two-dimensional (2D) QR codes were developed. QR codes are effective for inventory management and assessing product availability and are widely used in the internal processes of different companies. First of all, labelling with QR codes was adapted to improve the customer experience in the retail by providing specific information about product and attracting attention. For example, the customer can learn more about the features of functional clothing through the QR code used in the garment label [14,15].

An online archive for the textile companies to keep detailed information about the fabrics could be available through the QR Code Fabric Tag system [16]. The CEO of H&M Karl-Johan Persson was considering a QR code system for clothing labels to trace the environmental and social footprint of H&M garments in 2015 [17]. The Fabapp^® platform accessed via QR scanning was used to simulate a smart tag framework for textile products [18]. The information on production processes, as well as guidance for users and manufacturers in the post-usage stage for recycling, aiming to reintegrate these products into a new lifecycle was provided by a digital tag.

QR codes may carry access to a variety of information. To achieve the goal of QR code utilisation, it is crucial that the codes can be applied on different surfaces, even on textiles [14,19], using printing [15], heat transfer, embroidery [20], and other applicable techniques.

QR scanners were used to read the information on the code, but nowadays any consumer who has a digital device – a smartphone or tablet with a built-in camera – can read the information stored on the code. This feature is very important for convenient QR code usage by customers.

3.2 Radio-frequency identification (RFID)

RFID tags are commonly used in both commercial and consumer sectors. RFID technology enables supply chain management and enhances visibility by tracking products from manufacturing to retail. Producers employ them to detect and track products automatically during production processes to determine bottlenecks and retailers to trace products in warehouses and points of sales. Tags vary greatly in size, shape, and frequency range: low, high, and ultra-high. A special wireless RFID reader is used to pick up an RF signal and to read it.

While active RFID tags cost up to tens of euros, a passive RFID tag only costs a few cents. RFID solutions such as paper tags [21], button tags [22], plastic tags [23], embroidered tags [24], and others can even offer washable and ironable options. The RFID tag in the form of a thread is offered by RFiD THREADS^®, and the company states that a micro-chip could stay with the product for life and can continue to collect full life cycle assessment (LCA) data [25].

RFID tags, as opposed to QR codes, may store a lot more data, including product details, special identification numbers, and even location data. However, still they are more expensive than QR codes, which can be an issue for textile and clothing business.

3.3 Near-field communication (NFC)

NFC is a widely recognised wireless technology used to transfer data, share media, and perform other functions between two nearby devices. NFC offers a faster and more secure alternative to QR codes for many short-range applications, including mobile payments [26]. NFC permits two-way communication as opposed to QR and RFID, which only permits one-way communication [27]. NFC tags can wirelessly accept power from an NFC reader through electromagnetic induction [27]. The simplest NFC tags are frequently constructed in the form of squares or circular and are available in a very wide range of formats from iron-on textile stickers to sew-on buttons [28,29]. NFC tags can withstand bending, washing, dry cleaning, and ironing, making them suitable for garment labelling [30,31] or for authentication to prevent URL copying and unauthorised use [28].

Near-field-responsive patterns were developed using printed and computer-embroidered conductive threads [32]. These patterns were utilised to create textile-based smart tags that are free of fragile components and offer significant tactile benefits, seamlessly integrating with clothing. Digital labels as textile product ID cards have already been tested by the brand Désirée, which adopted the NFC technology inside their product label [33].

NFC operates within a limited range, typically around 10 cm. To overcome this limitation, researchers at the University of California, Irvine (UCI), have developed a novel high-tech fabric and extended the range of wireless transmission technology to more than 120 cm [34].

3.4 Blockchain technology (BT)

BT has the potential to significantly accelerate the transition to a circular economy as this technology is already being used in many industries to increase transparency and traceability [35]. The BT has been examined in food [36,37], pharmaceutical [38], and fashion sectors [39,40,41].

The smart tags (QR or RFID) integrated with blockchain could ensure that each production process is recorded and registered, and consumers can track the entire information and verify the authenticity of the product not only during the retail stage but also when initiating the post-usage stage by offering the product to resale or reusage.

The patent obtained by Nike company [42] has shown that a unique digital asset code could serve as a form of DPP for blockchain-secured retail products. In 2018, a limited edition Nike sneakers with an embedded NFC chip were offered for consumers through the NikeConnect app to obtain the certificate of authenticity and detailed product information [43]. Few years earlier, in 2015, Greats x Beastmode 2.0 Royale Chukka sneakers were produced with smart labels recorded on the blockchain and could be scanned with a smartphone [44]. The VeChain app was used to verify the authenticity of Babyghost product that had either an NFC chip or a QR code. In 2019, LVMH launched a first luxury blockchain platform Aura [45] to provide the traceability and authenticity of luxury goods’ production process. A blockchain-based LCA framework was analysed using leather handbags as a case study to explore circularity opportunities through enhanced traceability and data sharing [40]. The research highlighted the critical role of supply chain actors’ collaboration in establishing transparency and trust and noted the lack of specific protocols in the textile and fashion sector.

3.5 Comparison from the perspective of DPP usage

The potential of current data management technologies to contribute to achieving the sustainability goals of the industry through DPPs depends on addressing producers’ interests, protecting the uniqueness of the product, and providing consumers with sufficient information about the product at different stages of its usage. From the exploitation side, smart tags suitable for the clothing garments should be durable in the wearing and laundry environments, of low cost, flexible, easy to mass produce, and comfortable for flexible textile items [46].

More specifically, Table 1 presents an analysis of the pros and cons of utilising digital technologies from the perspective of DPP usage to secure garment traceability throughout the entire lifecycle.

While RFID tags have higher functionality and connectivity (e.g. scannable in bulk remotely), QR tags are often a lot cheaper, and a fashion retailer can tag every piece of clothing in a store with it. The QR code is more practical as it is easier to generate. NFC technology is reliable and cost effective; however, woven or printed on textile NFC antennas/tags are not ready for mass production, and such technologies are still under development.

Several brands and researchers are developing new traceability solutions to adapt digital data sharing technologies to the requirements of textile products. The University of Borås has announced that Tarun Kumar Agrawal developed unique “cryptotags” containing tiny particles, which randomly form a unique pattern [47]. The tag was successfully tested at the lab scale. A group of Chinese scientists tested a new technical solution of hybrid tag where the barcode and RFID technologies are combined [48].

Since the analysed technologies are already used in businesses, a survey of company experts was conducted.

4.1 Experts’ survey

To explore the producers’ attitude towards the EC’s call for textile companies to take responsibility by introducing product labelling based on upcoming DPP requirements, semi-structured interviews with ten experts of Lithuania and Latvia companies were conducted between June and August 2023. To strengthen the power of situation analysis, the information provided in the company’s website and public statements of company representatives were collected and examined. The interview started with questions to collect general information about company’s profile, followed by a more specific discussion based on five questions with short introduction to each of them. The representatives of production companies were asked “[…] to describe the company’s attitude towards the European Commission’s call for textile companies to take responsibility and take action to reduce their carbon and environmental footprints, and how this call is relevant in the company,” and “what actions being done to make it happen?” The second question was “What activities are carried out in company to ensure the sustainability of the product and the full cycle of the product circulation?” The last three questions were related to scenarios of technological implementation: it was asked, whether “the company is bound by the European Commission’s recommendation on the implementation of DPP,” “what benefits and risks are assessed for the implementation in practice,” “whether the company is committed to implementing DPP,” and “what technology would be the most suitable” to fulfil upcoming garment traceability requirements.

4.2 Producers’ attitude towards sustainability and DPP

The answers of producers showed a positive attitude to EC’s CEAP to launch a new strategy to make textiles more durable, repairable, reusable, and recyclable. Experts of companies confirm that they regularly review their operations, eliminate deficiencies, and hire external consultants to analyse the business impact of other EU Green Deal initiatives.

With the second question of the interview, the experts were invited to discuss about the activities that are carried out to ensure the sustainability of their product. The labels provide customers with the information of product origin country, material’s composition, and product care requirements, as well as a visible certificate of the fabric quality, whether the fabric is organic or, for example, recycled. However, before the new labelling regulations come into force, there are already discussions that the existing labelling of garments is insufficient and does not provide customers with relevant information about production ethics and how rights of workers are protected [14]. The identification of the composition of material is necessary in order to ensure efficient recycling of used textiles. Although the raw material must be indicated on the garment label, that information is not enough, and it is claimed that information about raw material is still a barrier to implement the circular economy in the textile sector [49]. The active involvement of the customers is necessary to ensure the sorting and recycling process of end-of-use textile garment. Encouraging consumers to classify garments based on the type of textile fibre before disposal is crucial. The low reliability of the current garment labels is a significant factor affecting consumer participation in textile recycling efforts [50].

Sustainability is an important issue for producers. Company “A” (Latvia) says: “we only use fabrics from recycled plastic waste, we only buy fabrics in white and dye them ourselves with the help of sublimation (it’s a waterless system), we use scraps and leftovers for new products, we donate our waste to new products, we only produce custom-made clothes, we avoid microplastics, we re-use packaging.” Company “B” (Latvia) provides CMT (cut, make, and trim) services for fashion brands and does not engage in direct product design. However, the company confirmed that the operation of production equipment and the transportation of materials were carried out using modern technologies that are friendly to the environment and secure a lower CO₂ footprint.

Clothing production companies in Latvia and Lithuania are increasingly thinking about sustainable design, sticking to frugal, practical, and classic values in design development, as well as taking care of the quality of fabric and sewing, so that the clothes last for a long time. The experts also agreed that additional information on materials sustainability or recommendations for sustainable care, as well as recommendations for garment disposal or reuse, could be valuable to their consumers and add higher value to their products. However, this information is not currently mandatory and is not provided by brands and producers.

In the technology section of the interview, three topics were discussed with experts: whether the company is committed to implementing DPP in accordance with forthcoming EC regulations, how the whole process could work in practice, and which technology would be most suitable. It must be admitted that the questions in this section were somewhat more confusing for experts. The companies participating in the survey were fairly unanimous in recognising that the EC recommendations are binding, however only two of them were more convenient with the DPP, while others stated that they were waiting for more precise guidance and support from local legislation on how the EC recommendations should be implemented. Consequently, it was mentioned that the actions related to these issues and how they should be taken are not entirely clear. The companies are ready to implement a DPP, as long as there is additional support for producers to take all the necessary steps.

At the same time, however, it was also noted that companies store data related to the garment production in various databases: for example, products are tagged with RFID tags for inventory purposes in warehouses, while QR codes work well at the level of product orders. In order to successfully implement DPP, it is necessary to understand how to combine the existing technologies and databases with each other, what information should be directly disclosed to the customer, and for how long this information needs to be provided. Discussions with experts revealed that companies are concerned about the workforce they will need to fulfil upcoming requirements. The implementation of the DPP is not only about technology but also about a fundamental reorganisation of the entire existing system. In order to achieve this in a unified and successful manner, it is essential that the EU develops uniform guidelines for the next steps.

Lithuanian company “C” states that they are aware of the implementation of DPP and take it into account as some of their customers are interested in DPP, but the company also notes that there are currently no uniform rules at the EU level and therefore it is not entirely clear what actions should be taken. The company is working more on risk management related to the implementation of the DPP. International standards and certification need to be implemented for the garments produced outside the EU market, and these production volumes are high.

Company “D” (Lithuania) has revealed the experience of the LTP Group [51] utilising sustainability and transparency. The company developed a mobile application Consciously Crafted^® app and a concept “tailored to individual brands, … designed specifically for the end-consumer and … accessible via QR codes featured on labels and hangtags, developed to provide insight for customers to verify marketing claims, the app can provide vital information about the manufacturer behind the garment, environmental and social conditions, material choices, how to care for the products etc.” [51]. However, the application that was created in 2020 is still under limited access.

The survey indicates that companies regularly monitor requirements, especially those related to sustainability requirements for products and production. Producers are concerned about sustainable production and are willing to take on more responsibility, but they lack clear guidance on how the process will be done and how producers’ competitiveness will be protected. It should also be mentioned that the technological side of the forthcoming requirements to implement product traceability based on DPP is unclear. Garment production companies are ready to adapt their processes digitalising product information, but EU documentation is awaited first, as there is a lack of clear guidance on how to proceed. Textile and clothing companies are ready to respond flexibly to consumer demand for more detailed, user-orientated information about products and to share their experience on how to reduce the environmental impact of their products throughout the entire lifecycle. With the upcoming EU regulations, Lithuanian and Latvian producers see new competitive opportunities for their products and CMT services, although they agree that DPP could be a good practice to introduce circular business models and increase the added value of products.