As part of a new business model, 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 50 percent 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."
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
A Product Red iPod Nano, one of the products included in Product Red
Bugaboo International. A design company that makes pushchairs for infants and toddlers. Bugaboo contributes 1% of its total revenue to The Global Fund.
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.
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 (4th 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. Apple has now designed PRODUCT red Apps. Apple has claimed that all IN-App Purchases bought within these PRODUCT Red Apps are donated to the relief of AIDS.[10]
Nike has released a special line of red shoelaces, with the profit going to the charity. Their motto is "Lace up, save lives." File:Nike (RED) Laces.jpgNike RED lacesDidier Drogba is the face for the promotion of the laces.
Hallmark has introduced greeting cards that are Product Red.
In a partnership with Microsoft, Dell announced that it would manufacture versions of its computers (XPS One, XPS M1530, and XPS M1530) that would come with a PRODUCT (RED) version of Windows VistaUltimate preinstalled. The company also released a PRODUCT (RED) printer.[11]
Microsoft would later release the PRODUCT (RED) version of Windows Vista Ultimate as a standalone product.[12]
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 "Dirt Sledding", 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[13]
Carolina Bucci has created a special edition of her gold and silk Lucky bracelets.
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.[15]
In 2014, U2 released a charity single "Invisible", and a Super Bowl commercial to announce the partnership between RED and Bank of America.
In 2014, some iOS apps and/or games, such as Angry Birds, Cut the Rope 2, The Sims FreePlay and Clash of Clans added a 'RED' update for a limited time (November 24 - December 7), in which, the 100% of the money spent on the app or making an In-App Purchase will go to the Global Fund.[16][17]
Criticism
Product Red has been criticized for not having an effect proportional to the advertising investment, for being much less efficient than direct charitable contribution,[18] 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.[19] 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.[20] 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".[21] Many accuse the campaign of profiting by using diseases as a marketing vehicle,[21] for being "cause branding" rather than corporate social responsibility.[22] 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."[23]
The National Labor Committee for Worker and Human Rights criticised Product Red for its links with Gap,[24] 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"[25] clothing companies to counter exploitation.[26] 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.[25]
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.[18] In July 2010, however, Red claimed to have raised over $150 million.[27]
(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.
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.[28]
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.
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.
Red iPod nano was available with the 1GB and 2GB iPod Shuffle, and the 8GB and 16GB iPod nano. They were only available at the Apple Store, and Apple Store website.[30]
XPS One, XPS 1330, XPS 1530, and AIO 948 Printer (Product) Red Special Edition; All computers include Windows Vista Ultimate Red[31]
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
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