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Purpose

This study explores blockchain and digital product passport (DPP) adoption in Italian fashion SMEs, analyzing supply chain challenges and sustainability benefits to support the circular economy transition.

Design/methodology/approach

Qualitative semi-structured interviews with Italian fashion companies and consultants were analyzed using thematic coding to explore blockchain’s impact on supply chain traceability, complemented by secondary data for context.

Findings

DPPs enhance traceability, supporting material recycling and reuse in the fashion industry. However, adoption is hindered by challenges related to data standardization, regulatory uncertainties and consumer education. Robust certification and collaboration are essential to overcome these barriers.

Practical implications

The DPP facilitates circular economy by enabling the recovery and transformation of end-of-life products. However, blockchain’s potential is fully realized only when paired with certifications that ensure data authenticity and prevent greenwashing.

Social implications

The social implications of DPPs underscore the importance of consumer education to foster sustainable purchasing behaviors. Sales staff play a crucial role in conveying the sustainability story, while storytelling enhances consumer engagement. A cultural shift is necessary to reduce overconsumption linked to unsustainable models.

Originality/value

This study examines the implementation challenges and opportunities of DPPs in Italy’s fashion industry, emphasizing the necessity of third-party certifications, consumer education and behavioral shifts to enhance the “Made in Italy” value. It highlights that blockchain alone does not guarantee transparency without these complementary measures.

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