Product Red Explained

Product Red
Producttype:Brand
Currentowner:Red (One Campaign)
Markets:Worldwide

Product Red is a licensed brand by the company Red that seeks to engage the private sector in raising awareness and funds to help eliminate HIV/AIDS in eight African countries, namely Eswatini, Ghana, Kenya, Lesotho, Rwanda, South Africa, Tanzania, and Zambia.[1] It is licensed to partner companies including Apple Inc., Nike, American Express (UK), The Coca-Cola Company, Starbucks, Converse, Electronic Arts, Primark, Head, Buckaroo, Penguin Classics (UK & International), Gap, Armani, FIAT, Hallmark (US), SAP, Beats Electronics, and Supercell.

The concept was founded in 2006 by U2 frontman and activist Bono, together with Bobby Shriver of the One Campaign and DATA. The Global Fund to Fight AIDS, Tuberculosis and Malaria is the recipient of Product Red's money.

As part of a new business model, each partner company creates a product with the Product Red logo.[2] In return for the opportunity to increase revenue through the Product Red license, up to 50% of profits gained by each partner is donated to the Global Fund.[3] Such an amalgamation of humanitarian aid and for-profit businesses is one example of "ethical consumerism". In 2012, One Campaign acquired Red as a division of One.[4] Both organizations were co-founded by Bono and Shriver.[5]

Since 2020, Product Red has been used in the global fund to combat the COVID-19 pandemic.

The Global Fund

Created in 2006, the Global Fund to Fight AIDS, Tuberculosis and Malaria support large-scale prevention, treatment and care programs for these three infectious diseases.[6] Today, 20 percent of all international funding for HIV/AIDS-related programs, 69 percent for tuberculosis, and 65 percent for malaria worldwide comes from the Global Fund.[7] 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 continued financing.[8] All 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 $600 million for HIV programs in Africa as of July 2019.[9] In November 2013, Jony Ive and Marc Newson hosted an auction at Sotheby's to raise millions for the fund.[10] [11] The event was attended by major celebrities including Bono, The Edge, Hayden Panettiere, and Courtney Love.[12]

Products

Products include:[13]

Criticism

Product Red has been widely criticized for not having an effect proportional to the advertising investment, for being much less efficient than direct charitable contribution,[42] 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.[43]

For example, some argued that Gap's website encouraged consumption of the products, thus encouraging companies to use the product for publicity rather than social responsibility.[44] While Product Red has helped give funds and attention to the problem, it does not form a relationship between the donors and recipients. Scholars argue that this sacrifices the purpose of movements such as Product Red.[45] Jessica Wirgau, a professor at Virginia Tech stated that, "Red not only misses the opportunity to promote civic engagement with its audience but also ... gives corporations the power to decide which causes should be supported and to what degree".[45]

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.[46] 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".[47] Many accuse the campaign of profiting by using diseases as a marketing vehicle, for being "cause branding" rather than corporate social responsibility.[48] 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."[49]

The National Labor Committee for Worker and Human Rights criticized Product Red for its links with Gap,[50] which was historically a target of anti-sweatshop activists, although anti-sweatshop organization Labour Behind the Label states that Gap has "come further than many"[51] clothing companies to counter exploitation.[52] Gap's Product Red clothes are made in Lesotho rather than China, going beyond the requirements of Product Red. Labour Behind the Label criticized Product Red for not requiring more measures to protect the rights of the workers who make their products.[51]

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.[42] In July 2010, however, Red claimed to have raised over $150 million.[53]

In an attempt to combat the critics, particularly regarding Product Red's Transparency, around 2008, they implemented a calculator to show consumers how many doses of treatment would be received with the purchase of a Red Product.[54] With this, some have stated that, "the campaign offers the illusion of activism without requiring behavioral changes or political engagement". While these critics show that there are negative aspects of this program, they also state that "it finds a way to generate something positive out of the currently existent system".[54]

Timeline

Launch DateProduct TypePartnerProduct NameDescriptionAmount donated to Global Fund (US$)
January 26, 2006Launch WEFAnnouncementProduct 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, 2006Credit cardAmerican ExpressAmerican Express RedAmerican 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.
March 15, 2006ClothingGapGap RedLaunch 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, 2006Fashion accessoryGiorgio ArmaniEmporio Armani sunglassesMetal 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.[55]
April 3, 2006ShoesConverseMudcloth shoesConverse Product Red limited edition Mudcloth trainers, designed by Giles Deacon, are available in the UK and US.5 - 15% of net wholesale price
May 15, 2006Mobile phoneMotorolaRed Motorola SlvrRed Motorola Slvr L7 launches in the UK£10 & 5% of every bill
May 15, 2006NewspaperThe Independent
August 2006Fashion watchesGiorgio ArmaniEmporio Armani watchGiorgio 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)
September 21, 2006NewspaperThe IndependentThe 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, 2006MP3 playerApple Inc.iPod Nano Product Red Special EditionRed iPod nano which is only available at the Apple Store and the Apple Store website.[56] $10
November 2006Mobile phoneMotorolaRed Motorola RazrUS Cellular launched the Red Motorola Razr in the United States$17
December 5, 2006SongThe Killers (Band)"A Great Big Sled"The popular indie rock band The Killers release their first annual Christmas single in support of the red campaign. Their singles were combined into the album Don't Waste Your Wishes in 2016.
January 9, 2007Stored-value cardApple Inc.iTunes Product Red Gift CardGift 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)
June 2007MagazineVanity FairBono 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, 2007MP3 playerApple Inc.iPod nano, iPod shuffle Product Red Special EditionRed 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.[57] $10 (Nano)
January 24, 2008Computers/Operating systemDell Inc. + Microsoft CorporationXPS One, XPS 1330, XPS 1530, and AIO 948 Printer Product Red Special Edition; All computers include Windows Vista Ultimate Red[58] 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
November 11, 2008MP3 playerApple Inc.iPod Nano Product Red Special EditionApple announces new iPod nano 4th generation Product RedN/A
November 27, 2008BeveragesStarbucksStarbucks Red Exclusive beveragesProduct Red exclusive beverages consisted 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, 2009ShoelacesNikeNike Red lacesRed 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%
May 20, 2010BooksPenguin BooksPenguin Classics RedPenguin Classics published 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
December 7, 2011MP3 playerApple Inc.iPod nano Product Red Special EditionApple announced an iPod nano 6th generation Product Red, available only through Apple's website or an official Apple Store.[59] $13.20[60]
December 7, 2011iPad Smart CoverApple Inc.iPad Smart Cover Product Red Special EditionApple announced the Red Leather iPad Smart cover was to be a part of Product Red.$4.80
August 14, 2012iPhone BumperApple Inc.iPhone Bumper Product Red Special EditionApple announced the Red iPhone Bumper was to be a part of Product Red.[61] $2
September 1, 2012AlcoholBelvedere (vodka)Limited Edition Product Red Bottle50% of profits
September 12, 2012MP3 playerApple Inc.iPod shuffle Product Red Special Edition2 GB iPod Shuffle exclusive to the Apple Store and Apple Store website.$4.80[62]
October 15, 2012MP3 playerApple Inc.iPod Touch Product Red Special EditionApple announces an iPod Touch 5th generation Product Red available only through Apple's website or an official Apple Store.$13.20 (64 GB)[63]
February 2014Card readerSquare, Inc.Squa(Red) ReaderSquare releases a special edition card reader, available on the Square website.[64] $9.72
2014GuitarGretschGretsch Red Bono Edition Electromatic GuitarBono signature edition of the Gretsch G5623.[65] 5% profit
July 15, 2015MP3 PlayerApple Inc.iPod Touch (6th generation) Product RedApple announces the iPod touch 6th generation, with a Product Red colour option.N/A
November 18, 2016AlbumThe Killers"Don't Waste Your Wishes"The Killers released a compilation of their annual Christmas singles featuring; Elton John, Neil Tennant, Dawes, Ryan Pardey, Toni Halliday, and Jimmy Kimmel.
March 24, 2017Mobile phoneApple Inc.iPhone 7 and 7 Plus Product Red Special EditionApple announces the Special Edition Product Red iPhone 7 and iPhone 7 Plus, available through Apple's website, Apple Stores, and other mobile carriers and retailers that carry the iPhone.[66] N/A
April 9, 2018Mobile phoneApple Inc.iPhone 8 and 8 Plus Product Red Special EditionApple announces the Special Edition Product Red iPhone 8 and iPhone 8 Plus, available through Apple's website, Apple Stores, and other mobile carriers and retailers that carry the iPhone.[67] N/A
September 12, 2018Mobile phoneApple Inc.iPhone XR Product RedApple announces the iPhone XR, with a Product Red color option.[68] N/A
May 28, 2019MP3 PlayerApple Inc.iPod Touch (7th generation) Product RedApple announces the iPod touch 7th generation, with a Product Red colour option.N/A
September 10, 2019Mobile phoneApple Inc.iPhone 11 Product RedApple announces the iPhone 11, with a Product Red color option.N/A
2019RobotPiaggio fast forward(gita)REDN/A
April 24, 2020Mobile phoneApple Inc.iPhone SE (2nd generation) Product RedApple announces the second generation iPhone SE. One of the available colors is a Product Red edition.[69] N/A
September 18, 2020SmartwatchApple Watch Series 6Apple announces the Apple Watch Series 6, with a Product Red color option.[70] N/A
October 23, 2020Mobile phoneiPhone 12Apple announces the iPhone 12, with a Product Red color option.N/A
November 13, 2020Mobile phoneiPhone 12 MiniApple announces the iPhone 12 Mini, with a Product Red color option.N/A
September 24, 2021Mobile phoneiPhone 13 / 13 MiniApple announces the iPhone 13 and 13 Mini, with a Product Red color option.N/A
October 15, 2021SmartwatchApple Watch Series 7Apple announces the Apple Watch Series 7, with a Product Red color option.N/A
Mobile phoneApple Inc.iPhone SE (3rd generation) Product RedApple announces the third generation iPhone SE. One of the available colors is a Product Red edition.N/A
SmartwatchApple Inc.Apple Watch Series 8Apple announces the Apple Watch Series 8, with a Product Red case and strap option.N/A
Mobile phoneApple Inc.IPhone 14Apple announces the iPhone 14, with a Product Red color option.N/A
Mobile phoneApple Inc.iPhone 14 PlusApple announces the iPhone 14 Plus, with a Product Red color option.N/A
SmartwatchApple Inc.Apple Watch Series 9Apple announces the Apple Watch Series 9, with a Product Red color option.N/A

See also

Sources

Notes and References

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  2. Web site: RED Case Study. Wolff Olins. 15 October 2012. 2011. https://web.archive.org/web/20120112211538/https://www.wolffolins.com/work/red. 12 January 2012. dead.
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  10. Web site: Jony Ive and Marc Newson's (RED) Auction | Sotheby's . Sothebys.com . 2013-11-23 . 2015-05-06.
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  67. News: Apple introduces iPhone 8 and iPhone 8 Plus (PRODUCT)RED Special Edition. 13 September 2018. Apple. 9 April 2018.
  68. News: Apple introduces iPhone XR . 13 September 2018 . Apple Newsroom . 12 September 2018.
  69. Web site: Apple reveals new £419 iPhone SE to capture mid-range market.
  70. Web site: Apple Watch Series 6 delivers breakthrough wellness and fitness capabilities. 2020-09-30. Apple Newsroom. en-US.