As the European Union accelerates implementation of the Digital Product Passport (DPP) under the Ecodesign for Sustainable Products Regulation (ESPR), a fundamental shift is underway in the global textile and apparel industry. What was once a competitive advantage—digital traceability—is rapidly becoming a prerequisite for market access.
For large apparel exporters, this transition is challenging but manageable. Most already operate Enterprise Resource Planning (ERP) systems, Product Lifecycle Management (PLM) platforms and digital traceability tools that capture production and supplier data across the value chain.
For thousands of small and medium-sized enterprises (SMEs), particularly across South and Southeast Asia, the picture is markedly different. Many continue to rely on spreadsheets, manual documentation and fragmented supplier records, leaving them exposed to a regulatory environment that increasingly demands real-time, verifiable product information.
The risk is no longer simply higher compliance costs. It is the possibility of losing competitiveness in one of the world&#**;s largest apparel markets.
