Digital transparency in fast fashion

: assessing the impact of digital product passport implementation in fast fashion on consumers’ purchase behaviors

Abstract

The fast fashion industry is widely known for its unsustainable practices and socio-environmental impacts. However, in recent years, consumers have increasingly valued and demanded greater product transparency and traceability. In response, the European Commission has proposed mandatory implementation of Digital Product Passports (DPPs) for all textile products sold in the EU by 2030. Similar to traditional passports, DPPs will act as unique digital identifiers, offering detailed information about a product’s lifecycle, including its origin, materials, environmental impact, and disposal recommendations. Drawing on Signaling Theory, an experimental study was conducted to understand how DPPs can signal a brand’s commitment to product transparency and influence consumer purchasing behavior. Specifically, it examined the impact of DPP presence (versus absence) on consumer purchase intentions and willingness to pay, while also exploring the moderating effects of perceived brand transparency and consumer perceived ethicality. The results show that perceived ethicality strengthens the positive impact of DPPs on willingness to pay only when perceived brand transparency is high, although it does not significantly affect purchase intentions. Overall, this dissertation provides valuable theoretical and managerial insights into the transformative potential of DPPs as track-and-trace tools in enhancing product transparency and traceability within fashion and how they can influence consumer purchasing decisions.

Date of Award	14 Oct 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Vera Herédia Colaço (Supervisor)