Digital Product Passport (DPP): Emerging Business and Employment Opportunities for Bangladesh’s RMG, Textile and IT Sectors
A recent study involving 500 consumers in Portugal found that 79.2% had never heard of the Digital Product Passport (DPP). Although 73.4% considered environmental impact when purchasing clothing, only 35.2% were willing to pay extra for products carrying a DPP.
The study, conducted by researchers from the University of Minho and CITEVE, also found that awareness was significantly higher among textile and apparel professionals than among consumers outside the industry. The findings were reported by Apparel Insider.
What Is a Digital Product Passport?
A Digital Product Passport is a digital system designed to provide relevant product information, including material composition, product origin, manufacturing processes, durability and recycling-related information, depending on applicable requirements.
As the European Union advances its sustainable product policies, DPP-related requirements could create new opportunities for businesses and professionals across the textile and apparel supply chain.
New Business Opportunities for Bangladesh
DPP should not be viewed solely as another compliance requirement. With proper preparation, it could create opportunities for technology-based businesses, specialised services and skilled employment.
1. DPP Software Development
Bangladeshi IT companies can develop software to help garment factories manage product information, supplier records, material composition and relevant sustainability data. Subscription-based software could provide a potential recurring revenue model.
2. QR Code and Digital Traceability Services
Businesses can offer QR code generation, digital product information management and traceability solutions for garment manufacturers and exporters. However, a QR code alone does not guarantee compliance with all DPP requirements.
3. Supply Chain Data Management
Specialised service providers can help track and organise relevant information throughout the supply chain, from yarn and fabric production to dyeing, finishing and garment manufacturing.
4. DPP Consulting and Compliance Support
Consultancy firms can help factories assess their readiness, organise product data, identify information gaps and develop systems to meet applicable regulatory requirements and buyer expectations.
5. Material Verification and Sustainability Data Services
There may be opportunities to collect, organise and manage evidence related to fibre composition, recycled materials, supplier documentation and environmental claims. These services could also involve qualified testing and verification organisations where necessary.
6. Affordable Services for Small and Medium-Sized Factories
Many smaller factories may not have the resources to develop their own digital systems. Affordable cloud-based platforms, shared software solutions and outsourced data management could provide practical business opportunities.
New Career Opportunities for Young Professionals
The development of DPP-related services could create demand for software developers, data analysts, textile engineers, digital traceability specialists, sustainability professionals and compliance consultants.
Young entrepreneurs, textile engineering graduates and IT professionals in Bangladesh should explore these emerging fields. Practical training, early preparation and pilot projects with garment factories could help them develop relevant expertise and build market-ready solutions.
A New Market or Just Another Compliance Cost?
An important lesson from the Portuguese study is that consumer concern about sustainability does not necessarily translate into a willingness to pay more. Therefore, the cost of DPP implementation and how that cost is distributed among brands, buyers and manufacturers will be important considerations.
Bangladesh must also recognise that DPP requirements may differ by product category and implementation timeline. Businesses should verify the applicable EU regulations, implementation schedules and specific buyer expectations before investing in new systems or services.
Preparing Bangladesh for the Emerging Opportunity
While many people are searching for jobs, DPP could open new opportunities for skilled professionals and entrepreneurs who are prepared to serve an emerging market.
For Bangladesh, the potential extends beyond garment manufacturing. With the right technology, skills and business planning, DPP-related services could support new enterprises, skilled employment and technology-driven service exports.
The key is to prepare early, understand actual market demand and develop affordable, practical solutions for Bangladesh’s textile and apparel industry.
Author: Md. Salauddin
Director, Reaz Garments Ltd.