ReValue – Clothing Resale through Digital Product Passports

How can brands make money from their products being used longer? ReValue explores how Digital Product Passports can streamline resale of clothes. Based on a theoretical business model, the project puts into practice how extended product lifespan can become a profitable venture for clothing brands.

ReValue investigates whether brands can receive a share of resale revenues – a potential new business model for circular companies of the future.

The Problem

The textile industry is one of the EU’s most resource- and climate-intensive sectors. In Sweden, we consume an average of 14 kilos of clothing and home textiles per person each year. More than 90 percent of the climate impact from Swedish textile consumption stems from new purchases – a figure that includes emissions from both production and consumer transport to and from stores. But the ultimate climate impact of a garment depends on how long it is used: the shorter its lifespan, the greater the resource loss and carbon footprint. Despite growing consumer interest, the secondhand market remains limited and technologically underdeveloped.

Our Solution

ReValue aims to demonstrate that profitability can be achieved not only through new production, but also by extending product lifespans. Based on a business analysis by consulting company Accenture, which forecasts profitable new business models in the secondhand segment, ReValue seeks to test how these models can work in practice. The project explores how Digital Product Passports can enable more efficient sorting, pricing, and authentication. Standardized condition grading and digital system support – instead of manual sorting and valuation – are also key components.

ReValue investigates whether brands can receive a share of resale revenues – a potential new business model for circular companies of the future. The project is carried out in dialogue with various actors across the value chain, with a focus on business value, system efficiency, and interoperability.

Our Work

Axfoundation leads the initiative and coordinates stakeholders across the entire value chain. By facilitating co-creation, the project creates the conditions for interoperability and ensures that the solutions developed are commercially viable, measurable, and scalable.

We aim to explore how Digital Product Passports – and digitalization more broadly – can pave the way for business models where brands profit from their garments being used longer.

– Stina Behrens, Project Manager Axfoundation

Results

A playbook by Accenture, with insights from the analysis phase and business model design, will be launched in May 2025. The playbook is based on a process facilitated by Accenture, including business analysis through workshops and value chain mapping conducted with project partners.

Small Glossary

A Digital Product Passport (DPP) is a digital fingerprint for a specific product, often accessible via a QR code. A DPP contains data about the product’s manufacturing, materials, carbon footprint, and – in the case of ReValue – resale-related information.

Interoperability is the ability of different systems, organizations, or technologies to work together and exchange information effectively.