Maggy Tual, consultant to the fashion and luxury industry specializing in traceability and transparency, and a guest lecturer in the ESSEC Business School SMIB program, explains in a discussion with Prof. Adrian Zicari why traceability and transparency have become strategic imperatives for the Fashion and Luxury Brands. Through her insights, she reframes traceability and transparency not as constraints, but as strategic assets that ignite trust and unlock long-term value.

Traceability and Transparency: Why They Have Become Strategic Imperatives in Fashion & Luxury? From an interview by Prof. Adrian Zicari, ESSEC Business School. Edited by Adrian Zicari, Tom Gamble, and Maggy Tual.

Traceability and Transparency: Two interdependent but distinct notions

Adrian Zicari: First, could you please refresh our readers’ understanding of these two notions: Traceability and Transparency?

Maggy Tual: Traceability and Transparency are often used as synonyms, but they are in fact two different notions. They are interconnected, yet fundamentally distinct.

Traceability is essentially about knowledge. It refers to the ability to identify, track, and document a garment’s journey across the entire value chain: from the very first raw material all the way through processing, manufacturing, logistics and eventually end-of-life. In other words, it’s about collecting granular data at every step of the value chain to answer key questions such as who grew the cotton, which mill spun the yarn, which factory cut and sewed the garment, and what happened to the product after it left the store.

Transparency, on the other hand, is about making that information accessible, understandable, and meaningful to people who need it: the customers, the regulators, the investors, the partners.

Put simply: traceability is the system that generates the information, while transparency is the act of sharing it. The two are inseparable as you can’t have transparency without traceability, and traceability without transparency doesn’t create value.

Traceability and Transparency now matter more than ever

Adrian Zicari: One of the key messages you deliver to SMIB students is that time to act is now. Why is now the defining moment for Traceability and Transparency in Fashion and Luxury?

Maggy Tual: The first, and perhaps most fundamental, force is the consumer. We are witnessing a structural shift in the way people buy fashion and luxury. Today’s customers are deeply informed. The majority research products online before purchasing, even when they ultimately buy in-store, and this behavior is accelerating with the rise of artificial intelligence. Already, 53% of US consumers using AI for search in Q2 2025 are now also using it to help with their purchases (1).

But what is really significant is not just that they are researching more, it is what they are actually looking for. According to a study by Highsnobiety in collaboration with Boston Consulting Group, Craftsmanship, Production Processes, Ethical and Eco-friendly Practices have become core information categories for luxury consumers when they evaluate a brand. This is a profound change. Few years ago, aspiration and brand aura were enough. Today, relevance and product proof are part of the purchase decision (2).

And alongside this, expectations have risen sharply. Consumers are not just better informed, they are more demanding, and more value-driven. They now expect brands to provide transparency as a baseline. But they are not simply asking for communication or claims. They are asking for proof. They want to understand what justifies the price, what makes a product worth it. And the data confirms that quality remains the cornerstone of that equation: 71% of luxury clients say they are primarily motivated by a desire for high-quality products, and 62% ranked quality of fabric among the top five drivers of their last purchase (3).

What this tells us is that traceability and transparency are no longer just ethical commitments. They are the tools that allow brands to demonstrate quality, justify value, and meet the expectations of today’s customers, especially the new generation who will not simply take a brand’s word for it.

The second force is regulatory. Over the past decade, the number of laws addressing sustainability, due diligence, and supply chain transparency has grown exponentially: from the German Supply Chain Act, to the French AGEC and Duty of Vigilance Laws, from the US Uyghur Forced Labor Prevention Act and the EU Corporate Sustainability Reporting Directive. I could go on. The piece of regulation that will most profoundly transform our industry is the ESPR, the Ecodesign for Sustainable Products Regulation. It entered into force in July 2024 and was designed to enhance the energy efficiency, reusability and durability of all products sold on the EU market. And more importantly, the ESPR introduces what I think is one of the most disruptive tools our industry has ever faced: the Digital Product Passport, or DPP.

In a nutshell, the DPP is a digital record that will come with every single product put on the EU market, a sort of product identity card that contains comprehensive, verifiable information about that product’s entire life: its materials, its origin, its manufacturing history, its environmental footprint, its after-purchase and end-of-life instructions.

The DPPs will be disruptive because it will transform the way the industry operates. It will force brands to implement advanced end-to-end traceability and share accurate information about their products across the entire supply chain. It will also empower customers to make informed choices and consume more responsibly. And beyond that, it will extend the lifespan of products by enabling circularity as, thanks to the DPP, economic operators, such as repairers or resellers, will be able to access and update important information or events about the product (4).

The full implementation date of DPP for textiles is not yet fixed, but it should be around early 2029. That may sound far away, but operational readiness takes time. It requires brands to collect and structure product-level data, map all the interdependencies within the company, and align systems across the entire organization.

It also means engaging suppliers and getting them on board, because the data provided needs to be accurate. Brands must also define clear governance, assign responsibilities, and mobilize the right resources. This is not a plug-and-play solution. It’s a transformation project that touches every part of the company, for the better. Brands need to start now.

Beyond Compliance: Traceability and transparency as drivers of value and trust

Adrian Zicari: So beyond compliance, what is the business case? Why should brands see traceability and transparency as strategic investments rather than regulatory burdens?

Maggy Tual: Because they create value. Let me explain.

First, traceability creates visibility, and visibility gives brands control, which means they can mitigate risks before they become crises. Advanced traceability can help brands identify and remove unauthorized subcontractors, prevent labor exploitation, and avoid misleading sustainability claims with verifiable data and stronger internal governance. It can also protect against counterfeit products through authenticity certificates. In a world where one scandal can destroy years of brand equity, this is not insignificant.

Second, transparency can build trust. By making information easily accessible and credible, customers better understand what they are buying and what justifies the price. They can see the quality, the sourcing, the craftsmanship. And when they understand that, the perceived value increases. They feel more confident about the quality and the value of their investment.

Beyond consumers, transparency can also reinforce stakeholder confidence, whether that’s investors, partners or regulators, by demonstrating stronger reporting capabilities and providing accessible data on certified materials.

Beyond trust, transparency can also fuel customer preference, enhance brand desirability and resonance. The Digital Product Passport is not just a compliance tool, it’s a storytelling platform. Brands can use it to create distinctive narratives and offer exclusive, tailored experiences that deepen the connection with customers.

Third, it can drive incremental revenue. Traceability and transparency can enable circular services like care, repair and resale, which can rapidly become real revenue drivers. Also, they can equip sales teams with the content and tools they need to elevate the conversation from price to value, and close sales more effectively.

And finally, it can enable cost savings such as better customer acquisition and retention thanks to the data captured after purchase, and more efficient supplier relationships. The list is not exhaustive as the savings will depend on the brand, but the bottom-line impacts are real.

So when I say traceability and transparency can create value, I mean it in very practical terms: they can reduce risk, build trust, strengthen brand equity, unlock new revenue streams, and improve efficiency.

But here’s what matters most: traceability and transparency should not be treated as compliance driven paperwork. They should be embedded in how companies run their business. Only then do they stop being a cost center and become a strategic asset.

Time is running out and the transformation required will not happen overnight. The brands that move now will build trust and capture value. The ones that wait will be playing catch-up.

My message is simple: start now and treat Traceability and Transparency not as a burden, but as an opportunity to rebuild trust in brands and make customers see the real value again.

Sources: (1) State of Fashion 2026_ BOF X McKinsey & Company, 2025; (2) Luxury Refined _ Highsnobiety & Boston Consulting Group, 2025; (3) Luxury Client Index_ EY, 2025; (4) Official Journal of the European Union – Regulation (EU) 2024/1781 of the European Parliament and of the council.

Useful links:

• Link up with Maggy Tual on LinkedIn
• Read a related post: The Fashion & Retail Industry: Stitching together regenerative business models
• Discover ESSEC Business School
• Apply for the ESSEC Master in Strategy and Management of International Business program.

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