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​Luxury Observatory Lugano: LOL-ESSAYS

Ethereal and Ephemeral Luxury: Chocolate’s Transformational Journey from Luxury to Commodity (and back?) -       Part II -

20/8/2025

 
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LoL Essay 008 - By Mario Schultz

LOL Essay 008 - By Mario Schultz 

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Abstract
Drawing on the example of chocolate’s evolution, this two-part essay explores ethereal and ephemeral luxury – two unconventional perspectives on luxury. Ethereal luxury, as discussed in Part One, is rooted in transcendence and the sublime, as demonstrated by tracing chocolate‘s historical journey from a sacred “food of the gods” to a globally accessible commodity. Part Two examines ephemeral luxury, illustrating how impermanence shapes luxury value both in fleeting moments and over time. The discussion highlights that soaring cocoa prices - driven by climate change and related environmental pressures - may reposition chocolate as a rare luxury in the near future. Overall, the essay underscores the dynamic interplay between changing cultural meanings, material abundance, and ecological constraints in shaping the peculiar nature of luxury.

 
Ephemeral Luxury
Building on the exploration of ethereal luxury through the example of chocolate’s journey from a sacred “food of the gods” to a democratized commodity (Part 1), this second essay explores luxury through an ephemeral perspective. Ephemeral refers to something that lasts for a short amount of time, highlighting impermanence, transience, and its fleeting nature (Cambridge University Press, 2025). For a better discussion, the concept of ephemeral luxury may be broken down into two categories: (1) narrow and (2) broad luxury ephemerality. While narrow luxury ephemerality focuses on the fleeting nature of individual experiences and goods, broad luxury ephemerality emphasizes how the perception and accessibility of luxury itself can evolve over time.

  1. Narrow luxury ephemerality
The narrow form arises from the appreciation of short-lived luxury experiences and goods. Notions of heritage and longevity have shaped traditional perceptions of luxury ownership. The value of owning a rare Rolex Daytona, or Cartier diamond, stems from their endurance, while never becoming old-fashioned —or as De Beer’s famous slogan puts it, “A diamond is forever” (Janssen et al., 2014). But “What if diamonds did not last forever?” is what Desmichel et al.’s (2020) title provocatively replied. Well, in this case, we enter the realm of ephemeral luxury.
Narrow luxury ephemerality departs from the traditional understanding of luxury ownership and holding onto a luxury item, instead emphasizing the appreciation of its fleeting nature (Berthon et al., 2009). In other words, ephemeral luxury is luxury of the moment, where impermanence is the actual source of its value - when it’s gone, it’s gone (Holmqvist et al., 2020). The introductory quote of Mariska Hargitay precisely highlights how value arises from the fleeting “deliciousness in the moment, childhood memories, and that grin-inducing feeling of getting a reward for being good.” Thus, the key for companies to exploit ephemeral luxury lies in curating moments of fleeting impermanence, or positioning luxury items as keepers of precious, yet fleeting moments, as Patek Philippe once brilliantly did in an iconic campaign, positioning its watch as a keeper and bridge of fleeting moments of joy (Pulvirent, 2016).
Understanding narrow, ephemeral luxury and the value of impermanence in a singular experience provides a foundation for grasping broader trends in luxury consumption and how they may alter the very definition of luxury over time.
 

Figure 1: New York Cocoa futures price (USD per ton) from 1960 to 2024, based on data from Bloomberg and the Intercontinental Exchange Inc. (Source: Blas, 2024). Graph created by M. Schultz, background photo by Ákos Helgert on Pexels.

2. Broad luxury ephemerality
Broad luxury ephemerality captures how the perception and access to luxury can evolve over time, involving a dynamic interplay between scarcity and abundance. Once exclusive items may become widespread, and vice versa, contributing to their perceived status as luxury. In this regard, scarcity plays a crucial role in enhancing perceived value and desirability (Janssen et al., 2014). As a consequence, managing scarcity is at the heart of modern-day luxury management, as companies can implement this principle through pricing, production, and distribution strategies, and sometimes even by destroying millions of dollars’ worth of their products (Lieber, 2018).
What Janssen et al. (2014, p. 47) describe as ‘natural scarcity’ – “shortages of raw ingredients or components” may be the most difficult to manage, as illustrated by cocoa’s transformational journey. For 28 centuries, the narrow luxury ephemerality of chocolate lay in its exclusive consumption being reserved for the elite. However, the abundance of raw materials, facilitated by dehumanizing slave-based plantation economics, combined with mass production through the “Dutching,” made chocolate accessible to a very wide population (Coe & Coe, 2013; Norton, 2006). Thus leading to an increase in the raw ingredients and ultimately resulting in wider accessibility to ephemeral moments of chocolate consumption. Ironically, the very abundance that contributed to chocolate’s changing luxury status is now threatened by climate change. Climate change has a major impact on cocoa plantations worldwide, with high temperatures, low pollination, and soil (Läderach et al., 2013; Lander et al., 2025) loss threatening the central growing locations (Lander et al., 2025). Outperforming even tech giants like Nvidia, cocoa futures have skyrocketed over 250% in 2024 amid severe supply shortages (Blas, 2024; Richter, 2024). This highlights how financial speculation and environmental pressures are reshaping cocoa’s status as a commodity, and its potential reclassification as a luxury, while mirroring the broader tension between abundance and scarcity that shaped cocoa’s ethereal legacy (Part 1). Similar trends are affecting markets for vanilla and coffee (Gerretsen, 2021).
As chocolate’s journey from ‘food of the gods’ to democratized luxury now faces an uncertain future, it becomes clear that its fate as luxury is not fixed. Mariska Hargitay called chocolate our “first luxury,” but with the current climate change trajectory, we are likely on a path to making it our last. As cocoa becomes scarcer and more expensive, will chocolate be relegated to the exclusive domain of the few, transforming into a bittersweet reminder of more abundant times?
 
References
Berthon, P., Pitt, L., Parent, M., & Berthon, J.-P. (2009). Aesthetics and Ephemerality: Observing and Preserving the Luxury Brand. California Management Review, 52(1), 45–66. https://doi.org/10.1525/cmr.2009.52.1.45
Blas, J. (2024, March 26). Chocoholics Won’t Be the Only Victims of Cocoa’s Surge. Bloomberg. https://www.bloomberg.com/opinion/articles/2024-03-26/chocoholics-aren-t-the-only-victims-of-cocoa-s-surge
Cambridge University Press. (2025, June 11). Ephemeral. https://dictionary.cambridge.org/dictionary/english/ephemeral
Coe, S. D., & Coe, M. D. (2013). The true history of chocolate (3. ed). Thames & Hudson.
Desmichel, P., Ordabayeva, N., & Kocher, B. (2020). What if diamonds did not last forever? Signaling status achievement through ephemeral versus iconic luxury goods. Organizational Behavior and Human Decision Processes, 158, 49–65. https://doi.org/10.1016/j.obhdp.2020.01.002
Gerretsen, I. (2021). The everyday foods that could become luxuries. https://www.bbc.com/future/article/20210923-the-everyday-foods-that-could-become-luxuries
Holmqvist, J., Diaz Ruiz, C., & Peñaloza, L. (2020). Moments of luxury: Hedonic escapism as a luxury experience. Journal of Business Research, 116, 503–513. https://doi.org/10.1016/j.jbusres.2019.10.015
Janssen, C., Vanhamme, J., Lindgreen, A., & Lefebvre, C. (2014). The Catch-22 of Responsible Luxury: Effects of Luxury Product Characteristics on Consumers’ Perception of Fit with Corporate Social Responsibility. Journal of Business Ethics, 119(1), 45–57. https://doi.org/10.1007/s10551-013-1621-6
Läderach, P., Martinez-Valle, A., Schroth, G., & Castro, N. (2013). Predicting the future climatic suitability for cocoa farming of the world’s leading producer countries, Ghana and Côte d’Ivoire. Climatic Change, 119(3), 841–854. https://doi.org/10.1007/s10584-013-0774-8
Lander, T. A., Atta-Boateng, A., Toledo-Hernández, M., Wood, A., Malhi, Y., Solé, M., Tscharntke, T., & Wanger, T. C. (2025). Global chocolate supply is limited by low pollination and high temperatures. Communications Earth & Environment, 6(1), 97. https://doi.org/10.1038/s43247-025-02072-z
Lieber, C. (2018). Why fashion brands destroy billions’ worth of their own merchandise every year. https://www.vox.com/the-goods/2018/9/17/17852294/fashion-brands-burning-merchandise-burberry-nike-h-and-m
Norton, M. (2006). Tasting Empire: Chocolate and the European Internalization of Mesoamerican Aesthetics. The American Historical Review, 111(3), 660–691. https://doi.org/10.1086/ahr.111.3.660
Pulvirent, S. (2016). In-Depth: The Untold Story Of Watchmaking’s Most Iconic Advertising Campaign. Hodinkee. https://www.hodinkee.com/articles/untold-story-patek-philippe-generations-advertising-campaign
Richter, F. (2024, March 28). Infographic: Forget Nvidia! Here Comes Cocoa! Statista Daily Data. https://www.statista.com/chart/32008/nvidia-vs-cocoa

Ethereal and Ephemeral Luxury: Chocolate’s Transformational Journey from Luxury to Commodity (and back?) -       Part 1 -

2/7/2025

 
LOL Essay 007. By Mario Schultz

​Abstract
​Drawing on the example of chocolate’s evolution, this two-part essay explores ethereal and ephemeral luxury – two unconventional perspectives on luxury. Ethereal luxury as discussed in Part One, is rooted in transcendence and the sublime, as demonstrated by tracing chocolate‘s historical journey from a sacred “food of the gods” to a globally accessible commodity. Part Two examines ephemeral luxury, illustrating how impermanence shapes luxury value both in fleeting moments and over time. The discussion highlights that soaring cocoa prices - driven by climate change and related environmental pressures - may reposition chocolate as a rare luxury in the near future. Overall, the essay underscores the dynamic interplay between changing cultural meanings, material abundance, and ecological constraints in shaping the peculiar nature of luxury.

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Photo by Photo by Vie Studio on Pexels
 
“Chocolate is the first luxury. It has so many things wrapped up in it: deliciousness in the moment, childhood memories, and that grin-inducing feeling of getting a reward for being good.” - Mariska Hargitay, US actress (Steinman, 2009).
Introduction The above quote captures the essence of luxury as something that transcends its material form, evoking intangible and fleeting characteristics that are often overlooked. Luxuries are typically viewed as non-essentials that come with high quality and a correspondingly high price, or seen through a Veblenian lens, as conspicuous consumption through which their owners display wealth or status (Ko et al., 2019; Thorstein, 1899). However, such a view overlooks the deeper, more nuanced layers that contribute to its meaning. As explored in the following, luxury can also be understood through two additional and interrelated, yet distinct lenses: ethereal and ephemeral luxury. Whereas ethereal luxury refers to the transcendent, sublime, and otherworldliness, ephemeral luxury underlines its transient, fleeting, and temporary nature. The subsequent paragraphs will unwrap these lenses while examining examples from the world of chocolate.
Ethereal Luxury Ethereal refers to the transcendent or otherworldly nature of luxury. In the Cambridge Dictionary (Cambridge University Press, 2025), ethereal is described as “very light and delicate, especially in a way that does not seem to come from the real, physical world.” The etymology of the adjective can be traced back to the ancient Greek term ‘aitherikos’ and the concept of aether, an element defined by its unique and heavenly qualities (Milutis, 2006). Thus, ethereal aligns with the idea of luxury as something otherworldly, a quality transforming the ordinary into the sublime. The ethereal nature of luxury is evident when examining the historic journey of cocoa from its origins in South America to its current status as an indispensable part of many people’s lives.

Image: Theobroma cacao/ ‘Food of the gods’ with cocoa pods. Photo by KLT Dinusha on Pexels.


Long before their introduction to other continents, cocoa trees held profound significance in Mesoamerican cultures. Native to Middle and South America, cocoa was not merely a commodity and common currency but also a sacred entity deeply embedded in the societies of, for example, the Aztecs and Maya (Norton, 2006). Its scientific name, “Theobroma cacao,” translates to “Food of the Gods” (Dreiss & Greenhill, 2008, p. 4). As Dreiss and Greenhill (2008, p. 4) describe: “[t]he cacao tree emerges from creation mythology as a sacred World Tree, worthy of the protection of cacao gods and goddesses. As a symbol of abundance, rulership, and ancestry, the cacao tree serves as a metaphorical conduit by which human souls and gods travel between Earth, Sky, and Underworld” (Dreiss & Greenhill, 2008, p. 4). Consequently, the consumption of chocolate (i.e., processed cocoa beans) was an exclusive pleasure in Mesoamerican cultures, reserved only for the ruling elite.
After Spanish conquistadors introduced cocoa beans to Europe in the 16th century, not much changed in this regard. Chocolate quickly gained popularity among the European elite, who embraced its exotic, otherworldly mystique (Norton, 2006). During this Baroque period, chocolate was consumed by “the white-skinned, perfumed, bewigged, overdressed royalty and nobility of Europe,” however, in a new ethereal shape (Coe & Coe, 2013, p. 175). The Spanish had decided to change chocolate’s spiritual reverence among the Mesoamericans, toward a new ethereal essence: as an esoteric European medicine in line with the dominant humoral theories of that period (Coe & Coe, 2013). The prevailing humoral theory of the time posited that bodily fluids governed health and temperament, making chocolate an appealing elixir to balance these forces.
Ultimately, chocolate’s ethereal charm was destined to undergo a transformation again in the 1800s. With the invention of Dutch processing and the chocolate press, 28 centuries of elite chocolate consumption came to an end — the ethereal became accessible to everyone — as mass production democratized chocolate consumption, paving the way for all the varieties that people love to unwrap today (Coe & Coe, 2013). Away from the status of an esoteric elixir, the ethereal is now grounded in hard science, backing positive health benefits of (some) chocolates: “cocoa has been found to improve antioxidant status, reduce inflammation, and correlate with reduced heart disease risk” (Cooper et al., 2008, p. 1).
However, as we believe science has explained it all, we find that modern research and corporate marketing playfully uphold chocolate’s ethereal appeal. Published in Nature under the title “Chocolate habits of Nobel prizewinners,” Golomb (2013) reports on Nobel laureates’ self-reported chocolate consumption and them being significantly more likely to eat chocolate, compared to equally educated peers. Recognizing their studies’ multiple limitations, Golmb (2013, p. 409) acknowledges “that the laureates’ responses, like chocolate consumption itself, could be tongue in cheek.”  Essentially, the ethereal nature of chocolate endures, and luxury companies like India’s ITC Limited know how to exploit this sublime mystique as illustrated by their “Feels Like Heaven” campaign, which promises a transcendent sensory journey (ITC Limited, 2025).
Conclusion
Part One has explored ethereal luxury by tracing chocolate‘s historical journey from a sacred “food of the gods” to a democratized commodity. Part 2 will shift focus to ephemeral luxury, examining how impermanence shapes the value of luxury both in fleeting moments and over time. As cocoa prices soar and scarcity looms, can chocolate’s legacy as democratized luxury endure? Part 2 will uncover the stakes.

 
References
Cambridge University Press. (2025, June 11). Ethereal. https://dictionary.cambridge.org/dictionary/english/ethereal
Coe, S. D., & Coe, M. D. (2013). The true history of chocolate (3. ed). Thames & Hudson.
Cooper, K. A., Donovan, J. L., Waterhouse, A. L., & Williamson, G. (2008). Cocoa and health: A decade of research. British Journal of Nutrition, 99(1), 1–11. https://doi.org/10.1017/S0007114507795296
Dreiss, M. L., & Greenhill, S. E. (2008). Chocolate: Pathway to the Gods. University of Arizona Press.
Golomb, B. A. (2013). Chocolate habits of Nobel prizewinners. Nature, 499(7459), 409–409. https://doi.org/10.1038/499409a
ITC Limited. (2025). Fabelle chocolates are ITC’s premier offering in the luxury chocolate space. https://www.itcportal.com/brands-microsite/fabelle.aspx
Ko, E., Costello, J. P., & Taylor, C. R. (2019). What is a luxury brand? A new definition and review of the literature. Journal of Business Research, 99(November 2016), 405–413. https://doi.org/10.1016/j.jbusres.2017.08.023
Milutis, J. (2006). Ether: The nothing that connects everything. University of Minnesota Press.
Norton, M. (2006). Tasting Empire: Chocolate and the European Internalization of Mesoamerican Aesthetics. The American Historical Review, 111(3), 660–691. https://doi.org/10.1086/ahr.111.3.660
Steinman, E. (2009, January 15). Mariska Hargitay. Bon Appétit. https://www.bonappetit.com/people/article/mariska-hargitay
Thorstein, V. (1899). The Theory of the Leisure Class: An Economic Study in the Evolution of Institutions. The Macmillan Company. https://openlibrary.org/books/OL27109424M

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Luxury as family: and why this next level of exclusivity is not the answer to the current "middelclassization of luxury".

20/5/2025

 
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LoL Essay 005. By Peter Seele
 
Right before Christmas in 2024 Katharine Zarella in an opinion piece for the New York Times presented a perspective, why the luxury industry is in crises. It boils down to “Obscene Prices, Declining Quality” explaining why “luxury is in a death spiral” (https://www.nytimes.com/2024/12/19/opinion/vuitton-chanel-burberry-lvmh-hermes.html ).
I could not agree more. Many of the very successful luxury brands have entered mass markets, which made them economically successful by a larger consumer bases, but they lost their essence of luxury by presenting average industrial quality and materials. I would call it the “middelclassization of luxury”. Now many have a small LV key bag, an Hermes belt, an iron Rolex, a Mercedes A-class, a Porsche Macan, or - what a name - a BMW 1 (that lowest level is probably why BWM has bought Alpina to make it the Maybach of BMW serving luxury clients next to sporty Tupperware AMG or M inhouse-tuning).
 
But after the sun comes rain. And the current low sales numbers in Switzerland (‘the rain’) of fine arts, vintage cars, fashion, watches and wines (https://www.blick.ch/wirtschaft/preise-fuer-luxusgueter-wie-kunstwerke-oldtimer-und-uhren-brechen-ein-reiche-schweizer-schauen-ploetzlich-aufs-geld-id20881850.html ) is not only a consequence of volatile markets, geopolitics, Panic Monday, and a more pessimistic consumer confidence, but homegrown by diluting quality and exclusivity of luxury products and brands while increasing prices leading to more revenue and profits for years for the industry (‘the sun’). So how do luxury brands increase (perceived) exclusivity if pricing strategies are already also in the luxury segment dominated by ‘trading down’ strategies and price perception, see “death circle” in the NYT, becomes a critical factor?
More narratives, story telling, customization, membership clubs? Really? I do not know.. Here is the thing: What sector has the highest profits (next to academic publishing due to careless and ignorant academics and taxpayers)? Right: drugs. Drugs from luxury brands: fine wines and spirits. How can you make it even more exclusive (synonym for expensive)? Making the top product (‘trading up’ strategy) something that money can’t buy: family. I remember from one of my academic teachers and friends, Rudolf Prinz Zur Lippe (https://www.usi.ch/en/feeds/6065 ), that he would offer a special cognac from his wider family network. A quality hard to find in the market. If at all. The price? No idea. Here the luxury is that the product does not even have a price tag. You cannot buy it. It’s family. It’s family only. A quality you would offer family, not to ordinary consumers.  Where the grapes were grown tells it all. The land. It’s family. That is enough. And sometimes is it offered on special occasions also to non-family members. Maybe this kind of traditional and exclusive ‘family’ branding was the inspiration for major brands to create a top level product branded as ‘familia’.
 
Here a few random examples:
 
Cognac:
Cognac Hine Family Reserve 603 CHF
Camus: Borderies XO Family Reserve Single Estate: 170 CHF
XO Family Cellar 130 Euro
Jean-Lux Pasquet: Trésors de famille cognac : 350 Euro
 
Rum :
Diplomatico Seleccion de Familgia 65 CHF
Aldea Familia Rum 55 CHF
Botucal Seleccin de Familia 62 CHF
Rum La Familia Especial 49 CHF
Arehucas 18 Años Añejo Selección Familiar
 
Tequila
Jose Cuervo Reserva de la Familia extra: 138 CHF
Mi Familia Flores Anejo Tequila 116 CHF
 
If you consider on top of this marketing sales story of being part of a family, that most of the brands are owned or distributed by a few majors like Diageo, Heineken, Brown -Forman, Pernod-Ricard or the well-known top-level inflators of luxury Richemont or LVMH owning Moet and Hennessy.
Family: Making ‘small groups’ a global product. Family is a concept in marketing that is not protected. As far as I know everyone can come up with a product and call it family. Like the word ‘natural’. It does not cost you anything but creates the impression of personal connectedness, belonging, home, identity, or: where you lay your head.
 
Wrapping up: The extension ‘family’ to a luxury product provides a new level of exclusivity playing with the social identity of the consumer being part of something, what money cannot buy. Here you can. And that is why brands confronted with the ‘death circle’ described by Katharine Zarella, try to escape the circle. But is this true? I doubt that. It is next level dilution. After the middelclassization of luxury ‘family’ is watering down an immaterial, I dare to say sacred level. Here not only of something very personal, but of the most personal context we have, that gave birth to us and shaped us like nothing else. Family.
 
 
 

Jaguar Type 00: On the luxury of concept cars, reverse-polarization, reverse-imperialism, and the mighty black panther

3/12/2024

 
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LOL-Essay 004
December 3rd, 2024
By Peter Seele
 
Jaguar is back with a big bang. Type 00 was introduced today. Well done. The formerly British car maker, now owned by Tata, a multinational corporation from India, a former British colony under former British rule of the former British empire concentrates so much of symbolism in times of automotive turmoil between the greenlash, an idealized electric vehicle age in times of globalization. A globalization, that is no longer characterized by liberalization as from the World Bank program in the 90ies, but by political, cultural and geographical compartmentalization and nationalization in times of a multipolar world, where it is still unclear, to which pole the global compass is fixed.
The woke-not-so-woke pre-campaign went viral. Fatalists were forecasting the end of the brand and carmaker. Too woke. Too pink. Too arty. Toot Toot. I can’t hear you. Just another example of the notorious “go woke, go broke” mantra, excessively used by non-woke conservatives, who also today are not buying the current Jaguar models, whose design is as boring and camouflaged as the conservative hunters in their Barbour jackets in the woods. In terms of outreach the arty-pink-diverse campaign was a great success. Too many pundits, journalists and influencers could not resist to comment on the video clip without having seen the concept car, that was released one week later. Well done, Jaguar. Now the concept car is here, it looks fabulous and fresh and I am damn sure, it will never see series-production and maturity phase.
However, the concept car Jaguar Type 00 is a great topic for a LOL-essay. Let’s tailor the argument:
 
1. Wokeness and polarization
The producers of the campaign released at the Art Basel in Miami 2024 did a great job in making the video arty and controversial and not showing a car, using way too much pink and by redesigning the logo, where the elegant cat jumping to get its prey is removed. By using the stereotypes of wokeness, the media-reflex was anti-woke, which seems to be the sign of our time not opening up the minds but narrowing them down to binary, nationalist, populist, tribalist thinking. A planned scandal. Well deserved. So is the concept car woke, like the first video was paving the road? Hell, no. It is brutalist design, just like the cybertruck from Elon Musk, a brutalist in every sense. Elegant, but brutalist. Interior shows Alabaster, brass and concrete. Individualized passengers divided by a grating. An armlength of distance is guaranteed inside the Type 00.
We therefore need to understand the campaign as anti-woke by feeding woke-clichees. It was just a trigger in the attention economy to address those who like the design language of art and brutalism, that is Swiss by nature through Corbusier, Botta and the Art Basel. But the real code is elitist, not woke. Which seems more than understandable for a car, that probably comes with a price tag (if the series production is close to the concept car) that probably nearer to a quarter million, than the equivalent of a plain Porsche 911 (which in reality you cannot buy, but that is another story). Everyone, who argued along the lines of “go woke, go broke” has – anticipated by an ex-post perspective – been instrumentalized to feed the attention economy and success of a viral campaign. Woke was a bluff. A trick. A teaser. Not a branded ideology of a currently boring car maker, who was risking everything, as everything is at stake.
The Jaguar concept car Type 00 is as woke as Oscar Wilde was establishment. Of course he was. But that is not the point about Oscar Wilde.
 
2. Imperialism and back
British car industry. What a story. Bentley: part of Volkswagen. Mini: part of BMW. Vauxhall: Part of General Motors. Rolls-Royce: part of BMW. Aston-Martin: Was Ford, than private equity with Mercedes V8 engine. Land Rover and Range Rover and Jaguar: Part of Tata. What an irony. The British empire of noble brands. Brands, but no technology. The United Kingdom with a king and royal family that falls apart. The former colony India, now independent and – what an irony of fate – the largest democracy in the world with global entrepreneurs and companies and one of them, Tata is the owner of the Jaguar, an animal, that never lived in England by the way. On a symbolic level, Tata wins in any case. If the new Jaguar relaunch fails, it is – symbolically – the late revenge of the former colony. If the risky and fresh design and brand is a success, then it is the success of a new world with new actors, symbolically the language spoken in the visuals of the campaign.
Imperialism after imperialism is commercial success. Consumers are self-determined masters of their own decision, feeding corporate empires.
 
3. Concept cars and luxury
Yes, Jaguar Type 00 aims at the luxury segment. Rock bottom was the Jaguar Wagon, called “sportbrake”. A Jaguar wagon, that is as exciting and consistent as a Porsche Panamera wagon or a Volkswagen Phaeton. But the real problem to enter the luxury segment (luxury, not just expensive), is to keep the design for series production. Just have a look into the history of elegant and iconic concept cars. And have a look at what happened to the design of the concept car. Remember the amazing Mercedes EQXX from 2022 (https://www.mbusa.com/en/future-vehicles/vision-eqxx)? What if they had built it in reality?


​The Cybertruck still looks like a concept car. But that is exactly the reason why it will not enter in some countries, as the edges are too sharp and the overall design is too dangerous for pedestrians. I would think the same holds true for the Jaguar Type 00: With a flat side-board in the front, where you could put your 80 zoll TV-screen in a living room, this is just too dangerous and the cw-value will be only great in outer space, where there is no aerodynamics. That is the price, brutalists are willing to pay. But mass or serial production? I would be surprised.
From a luxury-as-design perspective, the luxury would be to make the concept car reality, not some diluted and boring and compliant deduction.
 
4. The black panther is the new jaguar
Finally, and summing up the previous arguments: The world famous car show “Top Gear” in their first video on the Jaguar Type 00, which is currently presented in only two colors (pink and light-blue), played around with the design of the car and presented it in black (https://m.youtube.com/watch?v=QzGlTULmheI# watch at 2:51 ). What a blast. Does that car look woke anymore? No. It is a brutal but elegant predator. Like the black panther chasing its prey. That is more the reality of the Jaguar Type 00, when it becomes a Type 007 one day in the future. If Jaguar has not made a deal with the next James Bond installment, it is about time. 

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Is the opera a luxury? Is luxury political? Is art free? Some thoughts on Anna Netrebko premiering in Puccini’s Turandot at Milano’s Scala last week.

2/7/2024

 
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LOL-Essay 003
2nd of July 2024
​By Peter Seele
 
One of the most ethically controversial questions is whether luxury is political or not. Is it just design, excellence, or quality any without normative, moral or political strings attached? This however seems to be the communication strategy of most brands and companies. Maybe some rainbows here or some controversial pictures there. But it is hard to tell, if this is part of the marketing strategy or if this is a statement linked to an identity or to a founder or an executive. I am thinking of Armani’s current huge advertisement in Milano in walking distance from the Armani hotel. A man, fashionable, but however without shoes is behind a wall luring to the city behind. Or the ads from the Benetton campaign many, many years back creating one scandal after the other with a dying person in hospital, a blood-soaked shirt of a soldier, a nun etc. These were also the most successful years of the brand. So political messages do have a function from a purely marketing management perspective, but is that political? I would doubt that in a world, where marketing is king.
The second dimension of luxury and being political: isn’t the mere fact that luxury products are qualified as such form a purely economic point of view by the fact, that it is price elasticity defining also what is luxury and what is not? Simply put: By scarcity through a price tag (and other means) the dimension of social inequality is already set. And social equality and inequality as such is political. In this perspective the very idea of luxury is political – just by being luxury. Or by being perceived as luxury. It is not available for everyone. Or as Bugatti’s current claim puts it: “If it is comparable, it is no longer Bugatti.”
But next to these two perspectives where luxury and political visibility are affected, the third dimension is the question of cancelling luxury products or events for political reasons. Shall we consider this a bit controversial, socially acceptable or a necessity? I want to zoom in on this third dimension with the example of the world-famous opera singer Anna Netrebko, who has been cancelled in several countries, among them the U.S.A, Germany and Switzerland. The reason to think about this, is that last week the premiere of Puccini’s Turandot took place at Milano’s Teatro alla Scala. Princess Turandot was played by Anna Netrebko, prince Calaf, by her husband Yusif Eyvazov, the famous tenor.
To make it short: I argue that canceling artists – unless they engage in political discourse or propaganda – should not be considered at all. What is remarkable of the case of the premiere in Milano on June 25th 2024 (except for the fact that I was there), is the question of timing. And with timing I am speaking of the Russian invasion in Ukraine in February 2022. New Yorks Metropolitan Opera fired her. The soprano sued Metropolitan and won later and was compensated for the financial loss, as the NYT reports. Also in 2022 the Bayrische Staatsoper in Munich canceled her as for the lack of distancing herself from “Putin’s politics and the attack of Ukraine”, as several media outlets reported.
However, in 2024 the Berliner Staatsoper in Germany will start the autumn season again with her, which led to some critical voices finding a “lack of tactfulness” but the outrage seems to have calmed down, particularly as the soprano also distanced herself from the Russian president, as the “Standard” from Vienna reports (it might be noteworthy here, that Anna Netrebko holds both a Russian and Austrian passport). And Milano just did open the Turandot. Just like that. No big deal. Nevertheless in Lucerne, a city in neutral Switzerland, Anna Netrebko was cancelled also in 2024 for “security reasons” following NZZ, though the show at the KKL did not directly coincide temporally or spatially with the Ukraine-Peace-Conference.
As Anna Netrebko condemned the war and as there was no upfront political communication or propaganda – to my knowledge – I am with the Scala and the Berliner Staatsoper to feature one of the best sopranos of the world – for the sake of art. And art only.
If artists decide to become political actors, that is quite a different story. But in this regard art and commerce, as in the first example mentioned above share the attitude of being neutral – for reasons of professionality. Does it make a difference, if the opera house is funded by public money, and the respective government does have a political role in a conflict? I would say: In open democratic societies is should not play a role, even if the house is funded with public money. As art is free and the freedom of art is guaranteed in the constitution. See the example of the painter Jonathan Meese and the controversy and the legal decision that the freedom of art covers his performances. Does this also apply to non-deliberative democracies, autocracies, monarchies and other absolutistic regimes? When there is not freedom of art, then art is becoming political. Which in return leads to the interpretation, that the underlying luxury of culture is the freedom of art, and not the prestige of the stage, not the origin of an artist and not the attempt to politicize art.
And if anyone does not like the artist or context of the art: In open societies everyone is also free to discuss. Or stay at home.
 
 
PS: The question of cancelling or not cancelling Anna Netrebko after the premiere in Milano had hardly any news value or coverage. Why? Maybe because things have calmed down. Or even more probably: Because the day after the premiere at the Scala, the news was published that Anna Netrebko and her husband Yusif Eyvazov split up. Is this specific distribution of gossip over political news value a good sign? 

Capitalizing on the Greenlash – Part 2: Porsche launching the 911 T-Hybrid (992.2) and the question whether technology is neutral

23/6/2024

 
Picture
 
LOL-Essay 002: June, 22nd 2024
 
Capitalizing on the Greenlash – Part 2: Porsche launching the 911 T-Hybrid (992.2) and the question whether technology is neutral 
By Peter Seele
 
Keywords: faster fast, Kitification of the 911, 2nd order greenlash, Bugatti Tourbillion
 
The neutrality of technology?!
Technology is neutral. It is never technology’s fault. It is users giving technology meaning, purpose and direction. No knife has ever killed anyone. However, just like money, being an “absolute medium” following the landmark book of Georg Simmel on the “Philosophy of Money” from 1900, we tend to associate qualities with concepts, though technically and logically the concept is neutral. Green tech, clean tec, smart tec, etc. Like blood money or black money. Tec is Tec. Money is Money. But is that all that drives human perception and consumer’s desires?
The marketing of technologies often is not only about social purpose and philosophical meaning, but strategic communication along the lines of trends and developments serving both commercial and political markets. Sustainable development is such a catchphrase, institutionalized by the 17 Sustainable Development Goals (SDGs) of the United Nations. Before anyone misunderstands my words on neutrality: The concept of sustainability is derived by a myriad of scientific evidence, showcasing that human activity in the last decades or even centuries have led to overconsumption of resources and setting free emissions that massively disturb the planetary equilibrium, which took some four billion years to evolve and create life full of biodiversity on the planet’s surface. Beautiful as it is.
Technologies now may be used for all sort of purposes. Many good ones. Medical technology saving life and curing diseases. Assembly lines making production more efficient. Artificial Intelligence helping humans to evolve into a new age. Weapons helping to secure freedom and security… Well. I think you get the point of the impossibility of (absolute) neutrality. Every technology and every meaning we associate to it may turn into positive aspects. And every positive aspect may be framed to turn into a negative aspect as well. So what’s the link to the new Porsche 911?
The recently launched new 911 (992.2) is the first 911 coming not only with the famous six cylinder engine in the back, but infused with e-technology. The new 911 (currently only the GTS) makes use of hybrid technology, combining the six cylinder combustion engine with e-drive and a battery. This is not the place to discuss the features and performance data, but to think about the meaning of electrifying the 911, an icon from the oil-age, created as a sports car. The utility of the 911 is fun, performance and status. Just the right thing to discuss after the last essay on Ferrari’s new twelve cylinder with a full commitment to the combustion engine.
Now here is the point. Electric vehicles and hybrid cars in most cars are created to reduce emissions. That is why many governments reduce(d) taxes for e-vehicles and increased taxes for cars with high performance data. Here in Lugano for example the tax for the car is based on the cubic capacity as a proxy for emissions. The larger the engine, the more emissions. Hybrid cars therefor in many cases contribute to an environmental agenda. Some cities allow only emission-free cars. Some only cars qualifying for certain emission standards. Also having a battery on board helps saving energy through recuperation. That is when using the break, the energy is saved into the battery and not lost to friction and temperature. This is what the new 911 also does to a certain extent, but here is the difference. The hybrid technology in the 911 is meant to accelerate. A boost, like elder generations may remember from the TV-series “Knight Rider”, where the car – named Kit – makes use of the “Turbo Boost”, some kind of energy boost that makes Kit fly, move objects or just look cool because of the boosted acceleration.
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Kitification of the 911 (Knight Rider)
Let’s call it the “Kitification of the 911”. You may not talk to it like David Hasselhoff to Kit, but we are getting there, as also the 911 is getting smarter and smarter (that is making use of algorithms and artificial intelligence). Porsche calls this the “T-Hybrid” and is very clear about the purpose of the hybrid drive: “New Porsche 911: T-Hybrid for significantly enhanced performance”. The additional energy is used to get a speed boost. But it does not stop there. The all-new Bugatti Tourbillion from one month later, that is June 2024 also combines combustion engine (16 cylinders, takt that Ferrari Dodici Cilindri) with three electric engines – also used only for performance (beyond the 1000 horsepower threshold, 1775 to be precise). And on top – poor Porsche marketing guys – the Bugatti does not have a Turbo in the combustion engine, but the traditional “naturally aspirated engine”, also part of the traditional DNA of the 911. And Bugatti explains it not via performance, but sound and volume. Ergo volume of sound.
 
As anyone knows who drives cars for more than two years, the famous proverb has some merit: Every additional part of a car is one more part that may break and needs replacement. And as sustainability researchers know: Producing additional parts means more emissions when producing them, and secondly the question of disposal. Plus, number 3: every additional part adds weight, which requires energy to be moved and more energy to be accelerated. So, using a technology like hybrid that has its prevalent use-case in reducing unsustainability, the new 911 T-Hybrid uses the same technology to be – faster fast. Hey 911, one talks to the wrist-watch: Turbo Boost. That is certainly a match with the symbolic DNA of the 911 performance feature.
But from the perspective of the greenlash discussed in the last LOL-Essay, the T-Hybrid 911 is also capitalizing on the greenlash, but unlike the Ferrari Dodici Cilindri, it is capitalizing on the greenlash on the next level. It is not a step back like the twelve cylinder pure emission driven engine, but using electic technology not to go ahead (understood here of reducing unsustainability), but to be faster fast. And the new 911 is (again) the fastest 911 ever as it combines T-Hybrid plus Turbo (see the very entertaining Topgear review).
When engineering meets creative accounting
To increase performance, the weight had to be reduced. Particularly given that a new battery plus the T-Hybrid module had to be integrated. So how to reduce weight? Expensive carbon? Textile door grips like in the GT3 or Carrera T? No, for the ‘basic’ model (understood here as no GT3, GT2 or Turbo or any other limited edition special edition) the new default for ordering the 911 is without backbench. What a sacrilege!!! The 911 is an icon also because it is a 2+2. That is the two seats in the rear that hardly qualify as seats, but that nevertheless make Swabian eyes shine (the author has a mother from Stuttgart), when you need to give a lift all of a sudden. The GT3 without 2+2 is understandable, not only for the 10 kh. But the ’basic’ model? That is close to blasphemy in my humble opinion. But the reality is slightly different. When ordering the +2 is not included, but for no money on top you may order the +2 seats and have a real 2+2 911. So what is this about? When engineering meets creative accounting. Making the default 10 kg lighter, the performance-data is better. Not only for the car, but also for the engineers, who added a battery and hybrid, but only added 50 kg to the 992.1.
Yes, who cares? I get the 911 2+2 for the same price. I think in the luxury segment even the most insignificant differences may turn significant. As the words suggests. As a sign, as a symbol. Here two interpretations:
  1. It is a cheap trick. Reducing weight by cutting out a 911-top-identiy-feature like the +2 seats and then allowing them to be reintroduced for free (plus the weight, but that does not affect the default values – and physics of performance).
  2. We may also admire the company for their smartness combining performance engineering with creative accounting? Isn’t creative accounting in our finance driven world one of the major drivers for profit?
In any case. The new 911 GTS with T-Hybrid capitalizes on the greenlash, as it instrumentalizes a green technology for mere performance boost. No technology is neutral, when humans use it. And technology without humans does not exist (at the moment). Other than the Ferrari Dodici Cilindri, this capitalizing on the greenlash happens on a more sublime level; call it 2nd order capitalizing on the greenlash.
 

Capitalizing on the Greenlash? On the (re-)launch of 12-cylinders luxury cars (here Ferrari’s Dodici Cilindri)

8/6/2024

 
Peter Seele
LOL – Luxury Observatory Lugano
May, 26th 2024
 
Capitalizing on the Greenlash? On the (re-)launch of 12-cylinders luxury cars (here Ferrari’s Dodici Cilindri) 
Greenlash: the latest trend in sustainability
It is complicated: studies are still not clear if and from what milage onwards electric vehicles are more environmentally friendly than cars with combustion engines. What about the rare materials to produce batteries? What about their disposal? The early days of the green economy and sustainable development are over. The peak of going green was reached when becoming (political) mainstream. As a consequence, corporations are not the only greenwashers anymore. Also, politicians have discovered the temptation of framing green messages to attract votes and thus have become greenwashers. Just think of the EU taxonomy labeling gas, a fossil fuel and nuclear, producing waste for millennia, officially as green. The Guardian calls this the “biggest greenwashing ever”. Or just think of the COP conference  2024 hosted by the monarch of an oil state and CEO of an oil company. Greta, the former teenage activist is not credible as moral authority anymore. Her most important and relevant claim “follow the science” has lost much of its impact, though the scientific evidence pro sustainability is – unfortunately – still overwhelming. In today’s hyper-polarized times the sentence “follow the science” sounds like a long gone echo. Now what is the green state-of-the-art. What is the Zeitgeist’ response to the crisis of sustainable development?
All this complicated green mess is summarized in the latest trend in the green universe: The “Greenlash”, a grammatical composite of “green” and “backlash”. Greenlash. 
 
Ferrari as trendsetter for capitalizing the greenlash?
Now how does the greenlash impact on luxury goods? As sustainable luxury, positive luxury and ethical luxury have been top-selling concepts for the last years – and still are – what does the Greenlash do to the luxury industry? I argue, infused with a dash of cynicism, that it creates an attractive business opportunity for the luxury industry. Among the many examples possible (like private jets, superyachts, architecture, etc.) I focus on luxury cars, more specifically the recent launch of the new Ferrari “dodici cilindri” (Italian for 12 cylinders). The model’s name tells everyone right in the face (and I shall assume that you can also hear a heroic sound of majesty right in your ears), that it represents three regular 4 cylinder cars in one chassis. Ok, it also tells us, that Ferrari is still modest as it does not represent four regular 4 cylinder cars like the 16 cylinder Bugatti, build by Volkswagen. But it is also two six cylinder Porsche 911, which grosso modo also represents the price tag of the new Ferrari with a proposed starting price of 395 000 Euros (another text on the tragedy of the 911 as victim of its own success is coming soon, but seriously, we do not have to feel sorry for Porsche). The Dodici Cilindri also works with the non-charged “naturally aspirated engine” like the 911 - did in the past (if I may:“naturally” is an absurd word for a machine).
Now: why is the launch of a new 12-cylinder car – by the name “12 cylinder” – such an issue seen through the greenlash perspective? For three reasons:
  1. Downsizing: The general trend of downsizing cars for the last years due to the commitment to reduce emissions and stop, ahhh, sorry, mitigate climate change.
  2. International regulation: Changing from fossil fueled to electronic vehicles from around 2035 onwards.
  3. Lobbying: Fleet emission regulation and – pars pro toto –  Ferrari as smartest luxury brand in the room (quote LoL).
 
Ad 1: Downsizing: The general trend of downsizing cars gained momentum during the last years due to the commitment to reduce emissions and stop climate change. Mercedes for examples banned all 8 cylinders from the main brand, that is Mercedes-Benz. So, the famous S-Class 500, an institution for decades with 8 cylinders and 5000 ccm has been abandoned from the Mercedes-Benz brand universe. It has however to be said, that the 8 cylinder is still available as supercharged version in the inhouse-tuning brand AMG, a legally separate Mercedes company. But even on the AMG level, the 12 cylinder has been banned, and only supercharged 8 cylinders will be available. The AMG S class with 12 cylinders is not produced anymore. The Mercedes-AMG S 65 Final Edition from 2019 was the last model. But sorry, Mercedes. We got your holistic thinking. Mercedes-Maybach, a third independent company belonging to Mercedes still has the 12 cylinders. So good news for the environmentally friendly middle class Mercedes drivers. Their brand cares about downsizing. Needless to say, that the same is true for Stellantis, to which Fiat belongs, to which Ferrari used to belong. Still fan of upsizing? Currently the following brands feature 12 cylinders: Ferrari, Rolls Royce, Maybach, Aston Martin, Lamborghini and the Bugatti 16 cylinders from VW, whereas Bentley (also VW) stopped in April 2024, shortly before the Ferrari Dodici  cilindri launch.
 
Ad 2: International regulation. Several jurisdictions have issued plans to ban all fossil fueled combustion engines from around 2030 or 2035 onwards. The EU commission declared that the “Fit for 55” deal will end the sale of new CO2 emitting cars in Europe by 2035. Several US states as well. The UK from 2040 onwards. China plans 50 % elective vehicles by 2035 and Norway bans new combustin enginge cars from as early as 2025. So all in all, plenty of time so sell the 12 cilindri in the next 11 years. Only in Norway this will get difficult, but as one can read these days many Norwegian billionaires left Norway and are now living in sunny Lugano. As of now Switzerland is still thinking about adopting the EU regulations of going emission-free in 2035. Maybe, maybe not. Good for Ferrari! That means a life cycle of at least 10 years. And Germany’s strongest political party (CDU/CSU) just now in May 2024 argues for abandoning the ban of combustion engines - and I have not yet mentioned the oil-states in the deserts, who are not so much known for downsizing anything.
 
 
 
 
Ad 3: Lobbying: Ferrari’s strategy to launch and thus to celebrate the 12 cilindri in 2024 is therefore an extremely smart move. Bold, but smart. A slap in the face of the non-Ferrari drivers, but isn’t that what 12 cylinders is all about in the first place. Conspicuous consumption as Thorstein Veblen has described it more than a hundred years ago? But “Ferrari as the smartest luxury brand in the room” (did you realize the play of word borrowing from Enron?) does not stop with intelligent timing of channel-specific product development. The EU allowed for an exception of the upcoming emission regulation for Ferrari (and some other car makers selling small numbers of units – sorry Porsche, no sorry, you just sell too much). Selling less than 1000 units per annum in Europe means that no restrictions of emissions whatsoever will apply. As “auto-motor-sport” one of Germany’s most relevant car magazines explains, this exception is a concession for Italy, as the Italian minister for environmental affairs Roberto Congolani (who by chance happens to have worked before with Ferrari,) argued, that “European Small Volume Car Manufacturers” (ESCA) produce luxury goods with a longer lifespan. Did they use the word sustainable? Well, I do not know, but given the almost Babylonian confusion of language when it comes to the term sustainability, I would not even be surprised.
So, all in all an extremely smart move from Ferrari not only getting an exception from the legislation for the other car makers, but taking a restriction and turning it into a business opportunity. Creating a new 12 cylinder and play the marketing concept in a blunt way upfront calling the product a 12 cylinder. This goes much further than Maserati calling its rare four-door-car a Quattroporte (Italian for four doors). That was elegant, also because of the elegance of the Italian language for non-italophone-ears. Ferrari goes all-in symbolically saying: “This is Ferrari”. A bit like “This is Sparta” like in the Jack Znyder film “300”. “This is Ferrary. This is the Dodici Cilindri.” It is a bold message of a bold identity.
Learnings
So, what may we learn from this little LoL-reflection?
  1. Downsizing is for the luxury middleclass. The top segment still has a fantastic variety of 12-cylinder models, and the Ferrari 12-cylinder opens the new chapter of being clear about it: Maybach, Ferrari, Bugatti. The top level segment does not downsize. The middle-top level luxury segment has to find itself in the political mainstream of regulation. Just think of the S-class 500. Once the highest standard, now the top end of the lowest brand range (under AMG, under Maybach) of cars with the star from Mercedes. Louis Vuitton is for ordinary people watching the Olympics (maybe an essay on LV as Olympic sponsor when the games start in Paris later this year).
  2. Why follow the money is more powerful than follow the science: Coming back to the greenlash. The success of the Dodici Cilindri from Ferrari, which, although not yet launched, is highly probable, confirms the greenlash – embodied in the chassis of a luxury grand tourer sports car. As the luxury segment often works as anticipating trends that later enter mainstream, I would expect that the greenlash is just getting started. Sad but true, seen from a scientific point of view. Just think of the decline of biodiversity. But business follows the money, not the sciences. And the sciences look into details. Business however says: Don’t look up. (Lol).
  3. Hey Porsche. Sure, the 911 is an icon with 6 cylinders we all love and here in Lugano you can see the 911 marking its territory all over the place. But how will you explain to your shareholders n o t to capitalize on the top luxury segment with a real top-end luxury car with an insane big engine like the Ferrari dodici cilindri? And didn’t Ferrari – ähhh – borrow the black stallion in the logo from Porsche in the first place? But Ferrari somehow gets away with it. Always. Turbo Furbo.
 
 
Cite as:
Seele, P. (2024). Capitalizing on the Greenlash? On the (re-)launch of 12 cylinder luxury cars (here Ferrari’s Dodici Cilindri). LOL-Essay 001. Luxury Observatory Lugano. http://lolugano.ch/blog-home/capitalizing-on-the-greenlash-on-the-re-launch-of-12-cylinders-luxury-cars-here-ferraris-dodici-cilindri
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    Editors LOL-Essays:

    Peter Seele
    and
    Mario Schultz
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