Product Red

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Product Red
Type Division of the ONE Campaign
Industry Retail
Founded 2006
Key people Bono
Bobby Shriver
Website red.org

Product Red, styled as (PRODUCT)RED, is a licensed brand that seeks to engage the private sector in raising awareness and funds to help eliminate HIV/AIDS in Africa. It is licensed to partner companies including Nike, American Express (UK), Apple Inc., Starbucks, Converse, Head, Bugaboo, Penguin Classics (UK & International), Gap, Armani, Hallmark (US), SAP and Beats Electronics (Beats by Dr. Dre). The concept was founded in 2006 by U2 frontman and activist, Bono, together with Bobby Shriver of the ONE/DATA. The Global Fund to Fight AIDS, Tuberculosis and Malaria is a recipient of (RED) money.

As part of a new business model, developed in partnership with Wolff Olins, each partner company creates a product with the Product Red logo.[1] In return for the opportunity to increase revenue through the Product Red license, a percentage of the profit gained by each partner is donated to the Global Fund.[2] As Product Red is a private company, a portion of the contributions received from the partner brands is assigned as profit. Such an amalgamation of humanitarian aid and for-profit businesses is one example of "ethical consumerism."

In 2012 ONE acquired (RED) as a division of ONE.

The Global Fund[edit]

Created in 2002, the Global Fund to Fight AIDS, Tuberculosis and Malaria supports large-scale prevention, treatment and care programs for these three infectious diseases.[3] Today, a quarter of all international funding for HIV/AIDS-related programs, over half for tuberculosis, and almost three-quarters for malaria worldwide comes from The Global Fund.[citation needed] The concept of “performance-based funding” is central to the organization and only those grant recipients who can demonstrate measurable and effective results from the monies received will be able to receive additional financing.[4] 100% of the funds generated by Red partners and events goes to Global Fund programs that provide medical care and support services for people affected by HIV/AIDS in Africa. No overhead is taken by either Red or the Global Fund. Red is the largest private sector donor to the Global Fund, and has generated over $150 million for HIV/AIDS programs in Africa. In November 2013 Jony Ive and Marc Newson hosted an auction at Sotheby's to raise millions for the fund.[5][6] The event was attended by major celebrities including Bono, The Edge, Hayden Panettiere, and Courtney Love.[7]

Products[edit]

A Product Red iPod Nano, one of the products included in Product Red

Products include:[8]

  • Bugaboo International. A design company that makes pushchairs for infants and toddlers. Bugaboo contributes 1% of its total revenue to The Global Fund.
  • American Express Red card.
  • Gap sells a line of merchandise including T-shirts, jackets, scarves, gloves, jewelry, bags and purses. Gap donates 50% of all Product Red profits directly to the Global Fund.
  • Converse is selling a shoe made from African mud cloth.
  • Giorgio Armani has announced a line of Emporio Armani products that include clothes, jewelry, perfume, and accessories.
  • Motorola has announced special editions of their SLVR, KRZR and RAZR mobile phones, with a 50% profit of each purchase going to the Global Fund.
  • Canon released a version of their SD990 camera along with a leather case in 2008/2009. Only 500 were produced.
  • The Independent newspaper is in partnership with Product Red.
  • The Hotel Café tour is presented by MySpace and Product Red.
  • Apple Inc. has released special edition iPod Touch 5th generation and five other generations of iPod Nano and the iPod Shuffle with a Product (RED) theme, as well as a (RED) $25 iTunes Gift Card. They have also released Product (RED) branded Smart Covers and Smart Cases for the iPad 2, iPad (3rd generation), iPad Air, iPad Mini, and a leather case for the iPhone 5S. On 29 October 2013, Apple created and donated a one-of-a-kind (RED) Mac Pro computer which was auctioned by Sotheby's at the (RED) Auction on 23 November 2013. The (RED) Mac Pro was auctioned for $977,000 (Sotheby's had estimated it would bring $40,000-60,000).[9] A one-of-a-kind pair of solid gold Apple EarPods was auctioned for $461,000. It is reported that Apple has raised more than $65 million for (RED) since 2006.[10]
  • Nike has released a special line of red shoelaces, with the profit going to the charity. Their motto is "Lace up, save lives."
    Nike RED laces
    Didier Drogba is the face for the promotion of the laces.
  • NEED magazine is in partnership with Product Red.
  • Hallmark has introduced greeting cards that are Product Red.
  • Dell has released three computers (M1330, M1530 and XPS One) and one printer (V505 All-In-One) that are Product Red; the contract as lasted for 3 years, ended January 2011.
  • Microsoft and Dell teamed up to offer a new Dell laptop that included a new Windows Vista SKU called Windows Vista Ultimate (Product) Red.
  • Windows Vista Ultimate (Product) Red included six wallpapers, two sidebar gadgets, one screen saver and one DreamScene movie.
  • Girl Skateboard Company released a two-part deck series with a (Product) Red graphic. A share of the profit goes to the charities.
  • Starbucks participated during their 2008 holiday promotion. For every holiday beverage[clarification needed] ordered, 5 cents went to Product Red. Starbucks also offers the Red Card, and donates five cents every time the card is used.
  • The Killers write a Christmas song every year, with the latest being "Christmas in L.A.", in aid of RED. Profits are given to the charity.
  • Flowe(RED) a new online flower delivery service launched in the UK.
  • Monster Cable makes special edition of Beats by Dr. Dre Solo HD with name Solo HD (PRODUCT)RED[11]
  • Carolina Bucci has created a special edition of her gold and silk Lucky bracelets.
  • Tourneau created two special edition watches, with 15% of the retail price contributed to The Global Fund to Fight AIDS, Tuberculosis and Malaria.[12]
  • Belvedere vodka produces special edition red-colored bottles. A portion of the proceeds go to (PRODUCT)RED.
  • Head (company) produces special RED tennis bags as part of the (PRODUCT)RED project.[13]
  • In 2014, U2 released a charity single "Invisible", and a Super Bowl commercial to announce the partnership between RED and Bank of America.

Criticism[edit]

Product Red has been criticized for not having an effect proportional to the advertising investment, for being much less efficient than direct charitable contribution,[14] and for having a lack of transparency with regards to the amount of money going to charity as a percentage of every purchase. Some critics argue that a retail middleman between donor and charity is unnecessary; donors should just give.[15] Another critique is that Product Red's expansion into traditional fundraising techniques, such as art auctions, undermines its claim to be a different and more sustainable approach to raising money for AIDS.[16] Other critics have pointed out that its emphasis on funding treatment for AIDS sufferers meant that large amounts of the money will ultimately end up with pharmaceutical companies "unwilling to distribute their drugs for free".[17] Many accuse the campaign of profiting by using diseases as a marketing vehicle,[17] for being "cause branding" rather than corporate social responsibility.[18] In the Stanford Social Innovation Review, Mark Rosenman wrote that it was an "example of the corporate world aligning its operations with its central purpose of increasing shareholder profit, except this time it is being cloaked in the patina of philanthropy."[19]

The National Labor Committee for Worker and Human Rights criticised Product Red for its links with Gap,[20] which was historically a target of anti-sweatshop activists, although anti-sweatshop organisation Labour Behind the Label states that Gap has "come further than many"[21] clothing companies to counter exploitation.[22] Gap's Product Red clothes are made in Lesotho, rather than simply for the best price in China (this goes beyond the requirements of Product Red). Labour Behind the Label criticises Product Red for not requiring more measures to protect the rights of the workers who make their products.[21]

Data released in 2007 by Advertising Age claimed retail participants in Product Red including Gap, Motorola and Apple had invested $100 million in advertising and raised only $18 million for The Global Fund.[14] In July 2010, however, Red claimed to have raised over $150 million.[23]

Timeline[edit]

Launch Date Product Type Partner Product Name Description Amount donated to Global Fund (US$) MSRP (US$)
January 26, 2006 Launch WEF Announcement (Product) Red initiative first announced at the World Economic Forum in Davos, Switzerland. The Global Fund identifies Rwanda as the first country to receive funding from (Product) Red.
March 1, 2006 Credit Card American Express American Express Red American Express Red Card launched in the UK. Only UK residents with UK bank accounts are eligible. 1% of total spend. Up to 1.25% after spend over £5,000. No annual fee for life. Typical 16.9% APR variable.
March 15, 2006 Clothing Gap Gap Red Launch party in London for the Gap line with 22 page feature in the April issue of Dazed & Confused magazine. 50% of profits from sales of Product Red items
April 3, 2006 Fashion accessory Giorgio Armani Emporio Armani sunglasses Metal wrap-around sunglasses (style EA 9285/S) launched worldwide. Available in green, rose, blue, smoke grey, grey and brown, all embossed with the Emporio Armani Red logo. The forked frame arms, available in shades of ruthenium, gunmetal and light gold, are superimposed on the single lenses. 40% of gross profit margin from sales of all Emporio Armani Red products directly to the Global Fund.[24]
April 3, 2006 Shoes Converse Mudcloth shoes Converse (Product Red) limited edition Mudcloth trainers, designed by Giles Deacon, are available in the UK and US. 5 - 15% of Net wholesale price Starting from $60
May 15, 2006 Mobile phone Motorola Red Motorola SLVR Red Motorola SLVR L7 launches in the UK £10 & 5% of every bill $249.99
May 15, 2006 Newspaper The Independent
August, 2006 Fashion watches Giorgio Armani Emporio Armani watch Giorgio Armani's second Red product is an Emporio Armani unisex watch (style AR0537/AR0538). It features a large 43 mm stainless steel case with a coin-ridged bezel, a leather strap available in black with red contrast stitching, or vice-versa, and steel rivets that secure the strap to the case. The large digital dial displays the time in oversized numerals and has calendar, chronograph and timer features with push button controls on the side of the case. The dial also features the Emporio Armani Red logo at 12 o’clock printed onto the dial's outer ring. 40% of gross profit margin (see sunglasses) $225
September 21, 2006 Newspaper The Independent The Independent printed its second (Product) Red special edition, guest-designed by Giorgio Armani. This Red edition includes articles from a host of public figures and celebrities including George Clooney, Bill Gates, Leonardo DiCaprio and Beyoncé. The newspaper's daily features section, Extra, is a 36-page magazine for the day and each paper comes with a free Kate Moss poster. All revenue from online sales will be donated to help fight AIDS in Africa. All revenue from online sales.
October 13, 2006 MP3 player Apple Inc. iPod nano (Product) Red Special Edition Red iPod nano which is only available at the Apple Store and the Apple Store website.[25] $10 $199–$249
November 2006 Mobile phone Motorola Red Motorola RAZR US Cellular launches the Red Motorola RAZR in the United States $17 $259.99
January 9, 2007 Stored-value card Apple Inc. iTunes (Product) Red Gift Card Gift card for purchases at Apple's iTunes online store, for movies, TV shows or music. Currently only available in the US at Apple's online store. 10% ($2.50) $25
June 2007 Magazine Vanity Fair Bono edits the issue of the magazine, title "The Africa Issue", which features a wide array of celebrities dedicated to issues in Africa (including Barack Obama, Muhammad Ali, Queen Rania Al-Abdullah, Bono, Condoleezza Rice, President George W. Bush, Archbishop Desmond Tutu, Brad Pitt, Djimon Hounsou, Madonna, Maya Angelou, Chris Rock, Warren Buffett, Bill Gates, Melinda Gates, Oprah Winfrey, George Clooney, Jay-Z, Alicia Keys, Iman Abdulmajid, and Don Cheadle.) on a total of twenty different covers. $5 of every subscription to Vanity Fair sold.
September 7, 2007 MP3 player Apple Inc. iPod nano, iPod shuffle (Product) Red Special Edition (Product) Red is available with the 1GB and 2GB iPod Shuffle, and the 8GB and 16GB iPod nano, which are only available at the Apple Store, and the Apple Store website.[26] $10 (Nano) shuffle $49(1GB), $69(2GB); nano $149(8GB), $199(16GB)
January 24, 2008 Computers/Operating system Dell Inc. + Microsoft Corporation XPS One, XPS 1330, XPS 1530, and AIO 948 Printer (Product) Red Special Edition; All computers include Windows Vista Ultimate Red[27] (Product) Red is available with the XPS One (80 dollar donation), XPS 1330 (50 dollar donation), XPS 1530 (50 dollar donation), and the AIO 948 (5 dollar donation) 80.00, 50.00, or 5.00 XPS One starting at $1599, XPS 1330 and XPS 1530 starting at $1,149 and AIO 948 starting at $99
November 11, 2008 MP3 player Apple Inc. iPod nano (Product) Red Special Edition Apple announces new iPod nano 4th generation (Product) Red N/A Apple iPod Nano starts at $149 for an 8GB capacity, with a 16GB version costing $199
November 27, 2008 Beverages Starbucks (STARBUCKS)RED Exclusive beverages RED exclusive beverages consist of Starbucks holiday beverage options including Peppermint Mocha Twist, Gingersnap Latte, and Espresso Truffle $0.05 from every (STARBUCKS)RED Exclusive beverage sold through January 9, 2009.
November 30, 2009 Shoelaces Nike (NIKE) RED laces Red shoelaces with the slogan "Lace Up. Save Lives." Sponsored by footballers Didier Drogba (Chelsea F.C.), Joe Cole (Liverpool F.C.), Andrey Arshavin (Arsenal F.C.), Denílson (Arsenal F.C.), Marco Materazzi (Inter Milan), Lucas Neill (Galatasaray), Clint Dempsey (Fulham F.C.) and Seol Ki-Hyeon (Fulham F.C.) 100% $4/pair
May 20, 2010 Books Penguin Books Penguin Classics Red Penguin Classics is publishing a set of eight classic novels: The House of Mirth by Edith Wharton, The Turn of the Screw by Henry James, The Secret Agent by Joseph Conrad, Great Expectations by Charles Dickens, Notes from Underground by Fyodor Dostoyevsky, Dracula by Bram Stoker, Anna Karenina by Leo Tolstoy and Thérèse Raquin by Émile Zola. 50% of profits £6.99/£7.99 a book.
December 7, 2011 MP3 player Apple Inc. iPod nano Product Red Special Edition Apple announces an iPod nano 6th generation (Product) Red, available only through Apple's website or an official Apple Store.[28] 50% of profits Apple iPod Nano starts at $129 for an 8GB capacity, with a 16GB version costing $149
December 7, 2011 iPad Smart Cover Apple Inc. iPad Smart Cover (Product) Red Special Edition Apple announces the Red Leather iPad Smart cover to be a part of Product Red.[28] 50% of profits $69.00
August 14, 2012 iPhone Bumper Apple Inc. iPhone Bumper (Product) Red Special Edition Apple announces the Red iPhone Bumper to be a part of Product Red.[29] 50% of profits $29.00
September 1, 2012 Alcohol Belvedere (vodka) Limited Edition (Product) Red Bottle 50% of profits $35.00
October 15, 2012 MP3 player Apple Inc. iPod Touch Product Red Special Edition Apple announces an iPod Touch 5th generation (Product) Red, available only through Apple's website or an official Apple Store.[28] 50% of profits Apple iPod Touch starts at $299 for a 32GB capacity, with a 64GB version costing $399

See also[edit]

Notes[edit]

  1. ^ "RED Case Study". Wolff Olins. Wolff Olins. 2011. Retrieved 15 October 2012. 
  2. ^ http://www.independent.co.uk/news/world/politics/ethical-shopping-the-red-revolution-524692.html[dead link][dead link]
  3. ^ Source: Avert
  4. ^ Source: Gates Foundation
  5. ^ http://www.sothebys.com/en/auctions/2013/null-n09014.html#&i=0&px=67450-1925000
  6. ^ Source: the Global Fund
  7. ^ http://inthemixxshow.com/3645/fall-season-2013-episode-8
  8. ^ JoinRed.com, Products.
  9. ^ Lot | Sotheby's. Sothebys.com (2013-11-23). Retrieved on 2014-03-06.
  10. ^ One-of-a-Kind Products Designed by Jony Ive and Designer Marc Newson Sold Off at (RED) Auction. Mac Rumors (2013-11-24). Retrieved on 2014-03-06.
  11. ^ Solo HD (PRODUCT)RED.
  12. ^ (PRODUCT)RED.
  13. ^ RED - HEAD Tennis. Head.com. Retrieved on 2014-03-06.
  14. ^ a b AfriComNet, African Network for Strategic Communication in Health and Development, Costly Red Campaign Reaps Meager $18 Million, March 5, 2007.
  15. ^ Philanthropyaction.com, News & Commentary: (Red) Gets a Beating, Mar 20, 2007 Archive.
  16. ^ Philanthropyaction.com, News & Commentary: "The Global Fund Not Seeing Red", April 29, 2008
  17. ^ a b MSNBC.com, Retailers tap into shoppers' do-gooder spirit, by Matthew Perrone, December 2, 2006.
  18. ^ Yuvraj Joshi, Can Red Lattes beat Aids in Africa? The Guardian, 1 December 2009
  19. ^ Stanford Social Innovation Review, The Patina of Philanthropy by Mark Rosenman, April 11, 2007.
  20. ^ New York Magazine, Achtung, Bono! Activists See Red, by Geoffrey Gray Published Oct 23, 2006.
  21. ^ a b "Labour Behind The Label". Labourbehindthelabel.org. Retrieved 2013-04-07. 
  22. ^ http://www.cleanupfashion.co.uk/companies/gap.php
  23. ^ (RED). Joinred.com. Retrieved on 2014-03-06.
  24. ^ "Emporio Armani official Press Release". Retrieved October 29, 2006. 
  25. ^ "Red iPod supports AIDS charity". News.cnet.com. Retrieved 2013-04-07. 
  26. ^ "Apple Store for Business". Store.apple.com. Retrieved 2013-04-07. 
  27. ^ Windows Vista (Product) Red
  28. ^ a b c Apple Website (RED) Page
  29. ^ Apple iPhone Bumper (RED) Page

References[edit]

External links[edit]

Official links[edit]

Other websites[edit]