News
DPP and RFID - Why their combination is the future of retail
6. 3. 2026
3 minutes read
The European Union is gradually introducing the concept of the Digital Product Passport (DPP), a digital product passport that is designed to carry key information about a product throughout its life cycle. For retail, this is not just another regulation. It is a change in how products will be identified, tracked and managed. This is where RFID comes into play.
What is Digital Product Passport (DPP)
DPP is a digital dataset tied to a specific product.
It typically includes:
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origin of raw materials
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manufacturer and supply chain
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environmental footprint
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repairability and recycling information
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authentication and anti-counterfeit protection
The goal is greater transparency, sustainability and control over the product life cycle
Data alone is not enough.
The key is how to effectively connect it to the physical product.
When the DPP is coming and who it will affect
The Digital Product Passport is being phased in as part of the European Ecodesign for Sustainable Products Regulation (ESPR) legislation. The first concrete requirements are expected in the coming years, primarily in the segments with the greatest environmental impact.
Most frequently mentioned:
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textile and fashion retail
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electronics and consumer technology
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batteries and automotive
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building materials
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progressively other retail segments
Exact terms will vary by industry, but the direction is clear: digital product identity is set to become the standard.
Why the QR code is not enough
QR codes are a simple and cheap solution, but on a larger scale they have limits:
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require manual scanning
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cannot be read in bulk
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do not provide real-time inventory overview
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can be copied relatively easily
For customer information, they work.
For retail traffic management, less so.
RFID as physical product identity
The RFID tag gives a product a unique digital identity that can be:
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read without direct visibility
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read in bulk in seconds
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track in real time
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connect to warehouse and POS systems
While DPP is the data layer, RFID is the infrastructure that allows that data to actually work in the field.
What the combination of DPP + RFID brings
Automated compliance
The product carries its digital history automatically.
Loss control
More accurate visibility of goods movement means less shrinkage.
Better customer experience
Transparency without slowing down the buying process.
Better data for decision making
Real-time inventory, more accurate inventory, more efficient replenishment.
DPP is regulatory momentum.
RFID can make it a competitive advantage.
What it means for retail today
Retail stands between two pressures:
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increasing regulation and ESG requirements
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pressure for efficiency and margin protection
If the DPP is only formally implemented, there will be more administration.
If combined with automatic product identification, a modern digital retail infrastructure could emerge.
And that is what today is all about.
It's not just about transparency.
But about the digital identity of each product.