Buy a red T-shirt to fight AIDS. But does it really help?
Companies spent $1.34 billion on 'cause-related marketing' last year in the US, but critics cite a lack of transparency.
from the March 12, 2007 edition
Page 3 of 4
Confusion over what profit means
Among the unknowns: How much each company has contributed to The Global Fund, and in the case of Gap and a few others, including Giorgio Armani, how much each purchase of (RED) products counts. Gap says it contributes half the profit on each purchase of a (RED) item, but declined to be specific about how profit is calculated, citing competitive reasons. And, asks Davis, "what does that really mean to the consumer?"
Indeed, some people at Gap stores are confused. Cortez thought that half the purchase price of a RED item went to Africa. And even a couple of Gap salespeople in San Francisco – who were enthusiastic about spreading the word about the AIDS crisis – had the same false impression.
Some companies are more straightforward. Apple donates $10 per (RED) iPod to The Global Fund; American Express gives 1 percent of expenditures generated on a (RED) credit card; and Motorola gives $17 on the purchase of a MotoRazr V3m Red Cell Phone. Converse donates 15 percent of its net retail sales of (RED) shoes.
Though Gap is not as explicit, its commitment to the cause is undeniable: It has signed on for about five years, sent factory work to Africa, and devoted prime advertising, store space, and employee training to it. "The amount of real estate that Gap has given to this campaign – it's truly tremendous," says Mr. Feldman.
Calls for transparency
The company points to significant results, too. To date, contributions from Gap's (RED) products can cover the annual cost of AIDS treatments for more than 20,000 women and children in Africa, says spokesperson Robin Carr. "We're getting really amazing, positive feedback from customers and our employees."
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