(RED) update

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biff

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From the Economic Times, January 16, 2007:

(RED) storm rising
RAVI BALAKRISHNAN

TIMES NEWS NETWORK

Barely a year after its launch (RED) — yes, (RED), with the brackets — is one of the most talked about brands in the world. Surprisingly enough, it has no products of its own, and a marketing budget that would seem minuscule compared to most brands in the launch phase.

Yet, it’s got some of the hottest, most desirable products on offer, besides assembling a legion of supporters, detractors and unaffiliated spin-offs — the sort of frenetic activity that would generally take several years to attain.

But then (RED) is unusual. It stands out amid a clutter of new and old brands trying to flog their credentials as friendly, empowering Web 2.0-ready beasts. However, not too many brands the world over can boast of being launched at the World Economic Forum. Or of having Bono, the charismatic vocalist of U2, as a co-founder. Going way past a run-of-the-mill celebrity endorsement, Bono’s commitment to (RED) can be traced back to the creation of DATA (Debt, AIDS, Trade, Africa) along with Bobby Shriver.

Even as the duo enjoyed a certain measure of success getting cheques for Africa from politicians, they were told the private sector would have to be involved for the effort to be truly meaningful. According to Tamsin Smith, president, (RED), “The global fund was not able to get even 10% of what was required. It was then that we decided to get some of the greatest marketers in the world to work for its most poor people.”

Pro Bono Cause

The first brand that associated with (RED) seemed a tad unlikely — American Express. Sneaker brand Converse, GAP and Armani followed soon, in time for the official launch at Davos. Subsequently, Motorola and Apple have come on board. Each of these manufacturers creates specially branded (RED) products and contributes a part of the proceeds — 1% of the credit card bill in the case of Am Ex — to the cause.

The brand name was a bit of a no-brainer. Says Bono, “AIDS in Africa is an emergency, so we chose the colour Red. When you buy a (RED) product, the company gives money to buy pills that will keep someone in Africa alive. The idea is simple, the products sexy, and people live instead of die. It is consumer power at work for those who have no power at all.”

It has worked to the extent that (RED) has so far managed to raise approximately $11 million targeted to Swaziland and Rwanda from the UK alone. This excludes sales figures post the mid-October launch in the US and Japan. While cause-related marketing efforts generally focus on making people feel guilty about consumption, (RED) actively encourages it.

Critics decry the companies for giving too little; and point out that people genuinely interested can make larger donations directly, but in a time-strapped world, it’s arguably never been this easy to make a difference. The accent is less on awareness of the issue and is sharply focused at making a sale, since that’s what helps buy the pills. Says Smith: “Making your pocket book work for you is the core.

People have to take the action and make the purchase to complete the circle.” It’s also easy to see money at work via the (RED) calculator on the joinred.com website which helps consumers figure out the value of each contribution in terms of medicine supplied; and a webpage on MySpace where (RED) has over 50,000 fans.

According to Smith, (RED) has galvanised many of its consumers into action beyond just making a purchase. This Christmas, for instance, several user-created (RED) cards were on sale. Smith explains, “They want to apply themselves to helping eliminate AIDS. It extends to companies that want to join, and individuals contributing as employees or volunteers. We went into this looking for the creativity of world’s most iconic brands, but the inherent vision that lives within people has been released. They are as much a part of the brand as the products on the shelves.”

Perhaps it’s easier for individuals to contribute to (RED) than companies. Every planned association does not necessarily work out, considering the stringent long-term commitments that are expected. (RED) is clear that it does not want to associate with one-off promotions or ultra-premium purchases.

Smith says, “So far it has been about brands with a lot of resonance and personal connect with consumers. We are particularly interested in things that touch people’s lives; objects they use everyday. We want to work with huge companies who can throw the full weight of their marketing strength behind (RED), rather than take on lots of smaller licensees.”

Consumer goods, personal care, automobiles and electronics are among the usual suspects who’ve approached (RED), and according to Smith discussions are on with players in many of these categories; companies willing to make (RED) a core part of their strategy. Smith explains, “We are looking for multi-year commitments. We would like to add exciting compelling partners to grow it in a democratic and engaging fashion.”


Many (RED) products have been touched by a sense of exclusivity. For instance, GAP has created bespoke advertising for (RED), and its collection is designed and made in Africa. According to Smith, there has to be a two-way exchange, “We see the passion of the designers come through. The infectious enthusiasm and drive is part of what we’ve shared with the companies themselves.”

(RED) has focused primarily on the UK. The Am Express credit card and t-shirts from GAP were both launched there last March. Motorola’s SLVR phone debuted in the market with an assurance from rival cell networks that they would give 5% of the bill to (RED). For its US debut in October, Bono put in an appearance on the Oprah Winfrey show. He launched many (RED) products including the (RED) iPod nano; Bono, of course, being no stranger to Apple’s portable music player after the U2 special edition was one of its top-selling models.

As of now, Smith says that the demand for (RED) is global, and participating companies are figuring out how best to meet it. Many of them use the internet to get past the limitations imposed by official launch schedules. Smith says, “(RED) is live in a number of countries. Armani has boutiques in dozens of markets. Motorola is planning to expand the range and has discussed getting into India. GAP is also live in Canada and France. But the big markets are the UK, the US and Japan.”

So far though, (RED) is constrained by the retail and online strategies of its participating brands. Some, like GAP, do not ship outside the US, though the entire (RED) range is available on the net. Others like Apple and Converse (which allows for customisable (RED) sneakers) ship to only a few markets — excluding India. The only alternative so far is to get (RED) products off e-bay, but Smith says the ultimate intent is to be a worldwide brand.

It’s early days at (RED), even in terms of having a team in place. Smith likens team (RED) as of now to a garage band. “There’s around a dozen or fifteen of us. It’s not a comfortable, flexible job. We are all working like madmen.” Even when the brand spreads to other markets, Smith would like it to remain a small non-bureaucratic group, “to preserve the flexibility and fierceness that’s built us”.

Of course, it helps having the backing of the main draw of one of the world’s biggest rock bands. Smith agrees, “Bono is an amazing asset. There’s a special alchemy to his association with (RED), and we will have to be allowed some mystery along those lines. But he’s incredibly engaged, and we honour and cherish the contributions he makes. He’s part of turning things (RED) and we tap into that."
 
Critics decry the companies for giving too little; and point out that people genuinely interested can make larger donations directly, but in a time-strapped world, it’s arguably never been this easy to make a difference. The accent is less on awareness of the issue and is sharply focused at making a sale, since that’s what helps buy the pills. Says Smith: “Making your pocket book work for you is the core.

I got my sister a red iPod for Christmas. Not because I decided I should donate, but because she wanted an iPod. The fact that a little of the money went towards the global fund just made my decision about which one to get her easier (although she did joke that she "wanted the pink one." :wink: ).

I think that's what they are hoping for. If people are going to buy something anyway, why not have the product available as a (RED) product? That way if there's a choice between a regular converse and a red converse, they go for the red product. Almost accidental philanthropy by the consumer - "Hey I bought something I wanted and I got to donate to a charity and feel good at the same time."

Thanks for posting the article, biff :up:.
 
kellyahern said:


I got my sister a red iPod for Christmas. Not because I decided I should donate, but because she wanted an iPod. The fact that a little of the money went towards the global fund just made my decision about which one to get her easier (although she did joke that she "wanted the pink one." :wink: ).

I think that's what they are hoping for. If people are going to buy something anyway, why not have the product available as a (RED) product? That way if there's a choice between a regular converse and a red converse, they go for the red product. Almost accidental philanthropy by the consumer - "Hey I bought something I wanted and I got to donate to a charity and feel good at the same time."

Thanks for posting the article, biff :up:.
Exactly. People that want to donate money directly, will donate it. Product (RED) is sort of tricking people into donating, when they might not normally do so. There are plenty of people out there buying the products because they like them, not just because it's also a donation. There are also certainly people that don't even know/care that it's a donation. They just want the shiny red products.
 
Thanks so much for this article. I like to read what the media writes about (RED).


Although I love (RED) products too, I do keep down to a minimum any (RED) product that I may buy that is made in China.


And I also have suggested to the folks at (RED) that I would more inclined to buy even more (RED) products if the margin of what is given to the Global Fund was even greater than what most products currently give.


:bonodrum: :hug:
 
kellyahern said:


I think that's what they are hoping for. If people are going to buy something anyway, why not have the product available as a (RED) product? That way if there's a choice between a regular converse and a red converse, they go for the red product. Almost accidental philanthropy by the consumer - "Hey I bought something I wanted and I got to donate to a charity and feel good at the same time."


Yep. Hey, my uncle bought my cousin a (RED) iPod and had no clue why it was red, he just buys any toy that says "special edition" :huh: Ah well, $10 is $10. :shrug:
 
Great to read that RED is doing well and the demand is Global... Unfortunatly there is no GAP in Australia though... Well im looking forward to the global movement!
 
The idea behind the RED campaign is a great one in tying consumerism to giving, but the issue of so many Gap products manufactured in China is really, really troubling--forced labor (or a highly disenfranchised workforce), child labor, China's occupation of Tibet--it's odd to be giving money to the Global Fund, on the one hand, and supporting China's inhumane labor practices on the other. I'm really conflicted about it. I own a couple RED t-shirts, so I'm not arguing there should be a boycott.

I do understand that many areas in Africa interested in exporting their goods/fabrics, etc to the U.S. simply don't have the production capacity to meet market demands, but with more long term trade agreements they could get there. Gap should be making a huge effort to contract with African manufacturers if they are really interested in contributing to poverty alleviation and HIV reduction.


:end of rant:
 
The clothing that is made in China...is the material from Africa? It would make sense that the demand outways the ability to fill so perhaps to get the products out there for now, China is a needed player in the equation.
If the materials are made in Africa, then it still promotes jobs and trade to Africans.
Of course, I'm just thinking out loud. I have no information to support this.
I just don't want to be too quick to make a move against buying those products in fear I would be hurting the RED project.
 
Jeffo17 said:
Unfortunatly there is no GAP in Australia though.

:ohmy: Really I swear i saw one in Sydney on oxford (sp?) st.

i could be wrong tho i dont look there...there is no point i never have any money :lol:

Thanks for the article biff :)
 
biff said:

Motorola is planning to expand the range and has discussed getting into India. GAP is also live in Canada and France. But the big markets are the UK, the US and Japan.”

So far though, (RED) is constrained by the retail and online strategies of its participating brands. Some, like GAP, do not ship outside the US.



Hmph
:mad: So still no (RED) for Australia!!
I can't believe that not one of the (RED) companies ships to Australia - seriously - how difficult is it?
 
So far, all the GAP RED tees that I have bought (three of them) have been made in Lesotho.


The customized Converses were made in China and that is one reason why I may not purchase any more of those.


Any other products that I know are being manufactured in China for (RED), I will think very hard about purchasing (probably won't).


As far aa where the material to manufacture some of these clothing items for GAP RED are coming from is an interesting question.


For EDUN, they are very vociferous in letting people know that they are using as much African organic cotton as possible, but GAP RED has not been as forthcoming where their material is coming from.


(RED) is in a growth curve and a learning process. I'm sure that they will iron out all the kinks in their production lines within the next few months.


We have to give them some time to grow their business model and let them correct any oversights in productions that may have occurred.


:love: (RED) :hug:
 
Jamila said:
So far, all the GAP RED tees that I have bought (three of them) have been made in Lesotho.


The customized Converses were made in China and that is one reason why I may not purchase any more of those.


Any other products that I know are being manufactured in China for (RED), I will think very hard about purchasing (probably won't).


:love: (RED) :hug:

But don't forget that a portion of the purchase of the converse still goes to the global fund. I have the black hi tops and I like showing tag on the inside of the tongue that say the purchase of this sneaker goes to combat aids and malaria.

I totally understand what you are saying but as the tissue paper that comes in the box says there is no such thing as small change. Its still away to make a difference.
 
Jamila said:
So far, all the GAP RED tees that I have bought (three of them) have been made in Lesotho.


The customized Converses were made in China and that is one reason why I may not purchase any more of those.


Any other products that I know are being manufactured in China for (RED), I will think very hard about purchasing (probably won't).


As far aa where the material to manufacture some of these clothing items for GAP RED are coming from is an interesting question.


For EDUN, they are very vociferous in letting people know that they are using as much African organic cotton as possible, but GAP RED has not been as forthcoming where their material is coming from.


(RED) is in a growth curve and a learning process. I'm sure that they will iron out all the kinks in their production lines within the next few months.


We have to give them some time to grow their business model and let them correct any oversights in productions that may have occurred.


:love: (RED) :hug:

Converse are normally made in China anyway so i would see no difference in them making the red ones in China as well. I would still buy them as they are a fantastic brand and the fact they are a part of the (red) campaign would mean sticking with them anyway. They wouldnt change where they are manufactured just for one sort of converse as this would cost more money for the business and may then withdraw from the campaign. Bit of a catch 22 situation.
 
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JCOSTER said:


But don't forget that a portion of the purchase of the converse still goes to the global fund. I have the black hi tops and I like showing tag on the inside of the tongue that say the purchase of this sneaker goes to combat aids and malaria.

I totally understand what you are saying but as the tissue paper that comes in the box says there is no such thing as small change. Its still away to make a difference.



This was my original COMPLETE post. If you read it all the way through, I am giving "a pass" to (RED) for manufacturing some of their items right now in China.




"So far, all the GAP RED tees that I have bought (three of them) have been made in Lesotho.


The customized Converses were made in China and that is one reason why I may not purchase any more of those.


Any other products that I know are being manufactured in China for (RED), I will think very hard about purchasing (probably won't).


As far aa where the material to manufacture some of these clothing items for GAP RED are coming from is an interesting question.


For EDUN, they are very vociferous in letting people know that they are using as much African organic cotton as possible, but GAP RED has not been as forthcoming where their material is coming from.


(RED) is in a growth curve and a learning process. I'm sure that they will iron out all the kinks in their production lines within the next few months.


We have to give them some time to grow their business model and let them correct any oversights in productions that may have occurred."





All I am saying is that I may not buy any more items that are made in China for the same reasons that Ruffian had mentioned (labor treatment concerns).


That is my right.


Everybody can make up their own mind for themselves.




And as for the Global Fund, I have been supporting the Global Fund since it was created back in 2001 and welcome any contribution to it. :bonodrum:
 
ruffian said:
The idea behind the RED campaign is a great one in tying consumerism to giving, but the issue of so many Gap products manufactured in China is really, really troubling--forced labor (or a highly disenfranchised workforce), child labor, China's occupation of Tibet--it's odd to be giving money to the Global Fund, on the one hand, and supporting China's inhumane labor practices on the other. I'm really conflicted about it. I own a couple RED t-shirts, so I'm not arguing there should be a boycott.

I do understand that many areas in Africa interested in exporting their goods/fabrics, etc to the U.S. simply don't have the production capacity to meet market demands, but with more long term trade agreements they could get there. Gap should be making a huge effort to contract with African manufacturers if they are really interested in contributing to poverty alleviation and HIV reduction.


:end of rant:

Totally understand the concerns (and definitely agree on the Tibet issue) but in all fairness, Gap has been working hard to ensure transparency of its supply chain and, in recent years, has been lauded by several industry watchdog groups for its efforts (they publish an annual corp. social responsibility report which probably can be found on the Gap Inc website). It's still not perfect but they do take the issues seriously and currently have some of the most stringent factory condition guidelines in the apparel world. The company is also piloting a program in the Lesotho factory that manufactures the (RED) tees to ensure factory workers have access to health care/testing and AIDS medications.

Manufacturing is tricky. As much of the product as possible is produced in Africa but there are restrictions with regards to manufacturing capabilities (in approved factories) so producing in other countries is necessary in order to ensure a diverse product line. Gap is not alone in this, I believe Edun also produces apparel outside of Africa.

Great article Biff, thanks for posting!
 
redhotswami said:
whaaaaaaaaaaat? converse is only giving 10%???? ftw! why can't they bend a little more like everyone else? they should give in to peer pressure!!!


I guess thats why the paper the sneakers are wrapped in says "Theres no such thing as small change." :huh:

Mine were $45- so at least $4.50 went to the fund. :|
 
Jamila said:

For EDUN, they are very vociferous in letting people know that they are using as much African organic cotton as possible, but GAP RED has not been as forthcoming where their material is coming from.

The two shirts I got say "African cotton" and "Made in South Africa." Not sure abot the other clothes though.
 
bratty_cat said:


Totally understand the concerns (and definitely agree on the Tibet issue) but in all fairness, Gap has been working hard to ensure transparency of its supply chain and, in recent years, has been lauded by several industry watchdog groups for its efforts (they publish an annual corp. social responsibility report which probably can be found on the Gap Inc website). It's still not perfect but they do take the issues seriously and currently have some of the most stringent factory condition guidelines in the apparel world. The company is also piloting a program in the Lesotho factory that manufactures the (RED) tees to ensure factory workers have access to health care/testing and AIDS medications.

Manufacturing is tricky. As much of the product as possible is produced in Africa but there are restrictions with regards to manufacturing capabilities (in approved factories) so producing in other countries is necessary in order to ensure a diverse product line. Gap is not alone in this, I believe Edun also produces apparel outside of Africa.

Great article Biff, thanks for posting!

yes this is very true. as i've been watching some of the latest on this stuff, i have noticed GAP at least try to make some improvements after they were busted a few years back. that's more than can be said for loads of other corporations. i hope that as these companies see that more of their customers are becoming aware of sweatshop labor injustices, that they will make steps towards being more socially responsible for their workers.
 
JCOSTER said:



I guess thats why the paper the sneakers are wrapped in says "Theres no such thing as small change." :huh:

Mine were $45- so at least $4.50 went to the fund. :|


but then on the other hand probably less than that went to the child that made that pair of sneakers.

jc, i'm not attacking you at all :hug: i'm your friend! i'm not judging anybody for making their personal purchases and i'm happy you're enthusiastic about the cause too!

i'm just frustrated with the corporation itself. obviously since the sneakers are made in china, the worker received very small wages. converse could easily afford to give more than just 10%, especially when compared to the other (RED) products available. they just clearly don't want to cut their profits. its not really fair. while i'm glad that some money at all went to help dying people, at the same time, the people in these sweatshops are suffering, and converse is helping both the sweatshop workers and the people of Africa very minimally.

I really think Bono could've combined his (RED) efforts with his Trade Reform efforts http://www.maketradefair.com/en/index.php?file=bono01.htm that would certainly be something! could you imagine the possibilities of the impact if ALL the (RED) stuff we were buying also supported fair trade? oh my gosh!!! it really would be beautiful. that is my hope. who knows, maybe (RED) will evolve into that? it is possible. anything is :)
 
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Liesje said:


The two shirts I got say "African cotton" and "Made in South Africa." Not sure about the other clothes though.

Oh, I was referring to (RED) shirts. Sorry it wasn't clear.
 

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