Buying red tap desire to do good

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Walk into any Gap clothing store this holiday season and expect to see red T-shirts, red hats and red bracelets.

Of course decorating with red is nothing unusual this time of year, but the merchandise is meant to remind customers of something not often associated with the holidays: the global AIDS epidemic.

Gap is one of a number of companies this year who are tapping into consumers’ growing desire to do good deeds with their purchasing dollars.

Other retailers selling products to benefit humanitarian causes include Bath and Body Works, a division of Limited Brands Inc., which recently launched a line of candles and fragrances that benefit the Elton John AIDS Foundation, as well as Macy’s, which is selling baskets made by Rwandan widows to help support that nation’s developing economy.

"I think the demand for these types of products has always been there, but companies just weren’t filling it until now," said Dan Henkle, Gap’s vice president for social responsibility. For the Gap, filling that demand means donating half the profits from all items marked with a Product Red label to the Global Fund to Fight AIDS, Tuberculosis and Malaria. Items launched in October range from a $20 candle to a $350 leather jacket modeled by director Steven Spielberg in the company’s star-studded marketing campaign.

Product Red is the brainchild of U2 rock star and activist Bono and philanthropist Robert Shriver, who persuaded companies such as Gap Inc., Apple Computer Inc., and American Express Co. to design customized red products.

The portion of profits donated to the Global Fund varies for each company, with Apple donating $10 from each $199 red iPod sold and American Express pledging 1percent of each purchase made with its red credit card. The companies have contracted to promote the products for at least four years.

But don’t confuse this new spirit of giving with a charity, Product Red developers say.

"Our focus is really on creating a sustainable business model, and the only way to do that is to make it beneficial for the companies as well," said Julie Cordua, vice president of marketing for Product Red.

- DailyNews 

 

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