January 26, 2006
Bono Helps Launch ‘Red’ Brand to Fight AIDS
By Mark Trevelyan
DAVOS, Switzerland -- Rock star Bono joined three leading fashion groups and American Express on Thursday to launch Product Red, an ambitious branding and fund-raising scheme with the declared aim of beating AIDS.
One percent of money that customers spend on the card will go to the Global Fund to Fight AIDS, Tuberculosis and Malaria, whose projects support nearly half a million people on AIDS treatment and a similar number of children orphaned by the disease.
Fellow launch partners Gap, Giorgio Armani and Converse, a subsidiary of Nike, will channel a portion of profits to the fund from selected 'Red-branded' goods -- including, respectively, T-shirts, wraparound sunglasses and training shoes made from African mudcloth.
"We sought out iconic companies who make iconic products," Product Red Chief Executive Bobby Shriver told a news conference at the World Economic Forum in Davos, Switzerland.
The scheme is designed to dramatically increase funds for fighting disease, drawing on the spending power of so-called "conscience consumers" in affluent Western societies.
"An ordinary person can simply walk into a shop and feel that they can participate in helping the needy by simply buying a perfume," said Armani, one of the world's top fashion designers.
"And cynically I would add, without us changing the price of the product."
The companies stressed the scheme will only succeed and be sustainable if it also generates money for the businesses taking part.
John Hayes, chief marketing officer at American Express, said: "It's conscientious commerce, and it's our hope it will both reward our shareholders and the global community."
The companies will roll out the Red brand in different markets at different stages, with Gap initially targeting the British and U.S. markets and Amex launching its card in early March in Britain, where it expects a market of some 4 million 'conscience consumers' by 2009.
They declined to estimate how much money the scheme could raise, saying it would depend on consumer response and the speed with which the brand could be expanded to other corporations and other countries.
Nor could they say what proportion of sales from Red-branded consumer goods would go to the Global Fund, saying this would depend on sales and on whether the products were sold directly or through a retailer.