Exploring the role of digital product passports for supply chain traceability in the “Made in Italy” textile sector

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.