Previously in Part 1
this investment-auto-motives web-log highlighted the major
socio-political global trends which have emerged over the last 15
tears or so. These being:
'Shifting Middle:
The 'Shifting Middle'
regards the reality of an upward life-enhancing trajectory for a new
middle-class across EM regions (viewed as earning between $10-100 per
day), versus at best a stagnancy and often decline of lifestyles of
the established middle-class in the Triad regions as earnings are
capped by necessary company budgeting during what is still a fragile
western economic period. Whilst a wide demographic have felt the
subsequent affects of constrained finances (leading to family
problems, separation, divorce etc), perhaps the greatest impact on
life outlook is felt by a disaffected youth; themselves caught
between the unrealistically high 'bling' lifestyles within much of
youth media and created aspiration verses the apparent bleak reality
that actually ahead.
New Economic Order:
Whereby the top 30
rising EM countries account for 40% of global GDP, and wherein the
lessons learned over the latter half of the 20th century
are been increasingly implemented. Specifically to rectify the 'boom
and bust' phases of the 1997/8 Asian Tiger Crash, a rationalisation
of Latin America's regional fragmentation across left vs right
policy-thinking (with even Argentina now pro-reform), Africa's new
desire for greater continental economic unity and likewise across the
CIS region.
Internationalist Angst:
The perception that
whilst standards of living are indeed being improved for many across
EM regions, that the spread of global capitalism also brings with it
the local decentralisation and reduction of power and influence, this
increasingly handed to multi-national corporations, who are
themselves seen as promiscuous; quickly able to “lift and shift”
operations elsewhere, so undermining growth. Or indeed cautious of
altering economic course when involved with big businesses, as seen
in coffee-bean farming and production through the aligned
'agenda-pushing' between mid and high grade beans for different
corporate buyers serving different consumer markets.
Beyond this Angst:
The desire to create
commercial and economic platforms which allow for the “rising of
all boats” and not at the “expense of some”, ie a win-win
global approach and not the winner-loser, 'zero-sum' experiences of
global capitalism of some to date. Given the innate nature of
capitalism thus far based upon the premis of comparative advantage,
new opportunities for productivity improvement so attracting capital
flows, what has historically been essentially a competitively based
“zero sum game” system will require far greater 'joined-up'
global thinking'.
Hence the need for a
true appreciation for that all too post-modern term 'glocalisation'.
A New Era of
'Glocalisation' -
This is a recognition
that broad spread of western influence must inevitably adopt ever
increasing cultural sensitivity to the local conditions of any
singular country or region. Not to do so effectively forfeits entry
through an ever widening door into ever more networked global trade.
Put simply, a case of
respecting and extending the old adage “when in Rome, do as the
Romans do”
Perhaps the only
exception that proves the rule is that European 'high culture' has
been and will continue to be adopted virtually unchanged within EM
countries. Doing so across the various realms of haute couture
fashion, wine, opera, equestrianism etc; so fulfilling the new
participants' desire for high brow 'culture-dipping' and to
demonstrate to others their own appreciation of 'taste'.
In direct contrast, the
massively broad spread of American influenced mass consumption
culture, itself very closely correlated to what has largely been a
California-centric media-culture, must likewise continue to evolve.
This looks set to alter
its own course and modus operandi, so as to suit the distinct wishes
of an ever more culturally diverse emergent consumer base; one which
whilst keen to seek the once powerful 'American dream' also wants it
essentially translated so as to match its own growing national and
regional confidence.
Critically given the
typically different social structures of EM regions, which have
historically seen a massive negative wealth divide between the small
sliver of rich and the rest of the mass populace, such countries will
demand their own 'new dreams'.
Whereas the 'American
dream” was effectively originated from a WASP (white anglo-saxon
patriachial) base – which was seen to systemically fail its
immigrant non-whites (blacks, latinos and asians) – though the
first fruits of economic growth typically goes to the incumbent
powers, the 'EM dream' in many of those countries will need to be
better directed to spread the wealth across their own immigrant
populations; and seen to do so to compel intra-EM trade.
The Cultural Tensions
of Globalisation -
Before trying to
guestimate the future, based upon past and current circumstances, it
is worth absorbing a snap-shot of the past, through the with the
obvious influence of
Western culture across
drinks, foods, music, cinema and cars, was initially digested by what
were once second-world and third-world countries in what could be
described in a (quite literally) wholesale manner during
globalisation's early phases.
At first distributed
unchanged to a usually eager and enthusiastic young audience keen to
experience 'better' things. Later items – typically commodity goods
- were simplistically altered to suit mass-absorption via
advertising, packaging and distribution channels. Once again the
highly influential and largely Californian based film industry
utilising sub-titles and voice dubbing as soon as was practicable.
But, even the most
rudimentary and basic production techniques and tools were soon
acquired locally – typically with government backing recognising
cultural erosion – to create a localised counter-trend to outside
influence. So helping to create an internalised, circular, new
sub-economy, so as to redress the homeland vs foreign cultural
balance, and importantly maintain cultural control.
As Seen Through the
Lens -
Cinematography was
actually born in Europe, but typically exploited by wealthy Jewish
emigrés at the turn of
the 20th century across the world. Most notably through
the industrial productivity wealth created in the US, with the masses
serviced by new metropolitan cinemas themselves fed by the
value-stream inter-connectedness of Hollywood. That model replicated
elsewhere through FDI, local funds and a mix of both, with varying
degrees of success.
Cultural control has of
course been the prime issue for India since 1947 Independence, China
since the 1966 Cultural Revolution (even through its decline),
Brazil's modernisation period of the 1960s and Russia's rise and
contraction since the 1920s and since 1989, the latter arguably
creating yet greater 'cultural containment'.
India is of course the
prime example. As its own populations migrated to 'the west' so
indigenous cinema spread, just as did favoured foodstuffs and
tele-communications services; to provid that all important ancestral
connection which underpins self and group identity. Hence today, much
the result of India's historical disporas, and the ever higher
degrees of cross-cultural coverage reaching what are termed 'mosaic'
audiences, Mumbai's 'Bollywood' is nearly as well recognised
worldwide as its 'Hollywood' derivation, yet historically produces
far more output, approximating 2000 films per year.
China, in contrast to
India's gradual cinematic global exposure over decades, has not been
well exposed globally, because of obvious political circumstances.
Yet that has altered over the last 5 years, with a basic
understanding of the Chinese cinematic sphere communicated outwards,
as part of its own cultural exportation. Previously largely unseen in
western mass culture and kept within ex-pat communities, thus far
only seen through mid-brow events and media such as the 2013 London
Chinese Film festival and insights into its inner workings through
pertinent articles from The Economist and similar. However, the odd
television showing of films such as 'Ip Man' (informing of its
martial arts history), that Chinese culture – even if somewhat
presently stereotypical - is being dispersed.
Brazilian cinema
started in 1898 during a period when S.America was arguably at its
most economically powerful (to be soon eclipsed by N.America). Though
there was a flourishing national film sector up to the mid 1920s, but
the USA's economic dominance saw Latin cinema effectively used as PR
tool to enhance US-Latin political and trade relations through the
first half of the 20th century. As a more separatist
region post WW2 up until the 1990s, its cinema was initially a
private sector concern with US and Italian influences and true
economic clout in the 1940s and 50s, but as the general economy
contracted and socialism gained popularity so it became a largely
government funded concern, ironically including risqué
films of the 1970s to serve both domestic and overseas Italian
audiences, so as to strengthen Brazilian-Italian trade ties (eg the
establishing of FIAT Brazil).
Russian cinema,
likewise started in the late 1890s, started with the crowning of
Nicholas II. Thereafter, during what became tumultuous times
indiginous film-making took on an anti-German propogandist aire
during WW1, and much held in the hands of Bolshevics became
increasingly anti-royalist. After the Revolution cinema maintained a
propogandit slant, though localised to suit the very different ethnic
regions held within the USSR. After WW2 homeland productions became
more experimental, innovating in some techniques, though still
heavily censored. That censorship declined as time passed,
encompassing greater creativity and imagination, so much so that
various icon films heavily influenced the works of western film
directors. Of specific note were the cultural efforts to more closely
tie distant Havana to Moscow.
Thus for many decades
regards cinematic endeavours, there has been a “glocal replication”
of what may be described as the Californian 'original'.
One which has
manufactured perceptional 'realities'; as part of both the original
'American dream', aswell as 'Indian (fantasy) Escapism', 'Chinese
(Moaist-Confuscianist) Unity', 'Brazilian (self-asserting)
Celebration' and 'Russian (inter-territory) Collaberation'.
From Culture Toward
Cultural Goods -
The televisual then has
been used for approximately a century as an endemic cultural tool,
and one which beyond the notions of maintaining national identity,
has been deployed as the promoter of consumption.
And since industrial
economies inevitably grow in a phased manner of industrial
complexity, from FMCG in drinks, foodstuffs and personal goods, to
clothing fashions, to household 'white and brown' (kitchen and
leisure) goods, to now personal computer goods, and eventually
reaching the pinnacle of durable goods: the vehicle, so the
televisual has itself played the lead role upon the stage of economic
development.
Though of course
reliant upon buying-in foreign industrial know, typically from
previously competing US vs USSR world powers, so as to obtain either:
cost advantage, suitably aligned processes or advanced processes.
Manufactured Realities
-
Here,
investment-auto-motives uses the term 'manufactured realities'
because over the course of the 20th century the masses
have been invariably influenced by the visual stories told which have
befitted respective locales and respective zeitgeist.
So much so that such
televisual stories have shaped what has become effectively merged
realities for billions of people, with seemingly graspable dreams
achieved via materialistic consumption; a process by which people
even sub-consciously actually compare and indeed steer their lives.
Once again the
brilliantly adroit, poignant and now decade old TV commercial for the
Peugeot 206 is highlighted. Set in India, but broadcast to western
markets, the hero transforms a yesteryear Hindustan Ambassador into
the simulacra (ie near copy) of a modern 206.
Yet, because of the
innate 'neural power' the televisual its influence by way of combined
imagery and script seeps deep into the mass consciousness, often and
intendedly sub-consciously.
As such the term
'manufactured reality' has long been in use amongst culture pundits.
[NB Such powerful
influences can and is be used as manipulation devices by not just
propogandist governments, but by those within social groups who seek
to intrinsically control the lives of others. Of those who are less
aware, usually the naturally trustworthy and naïve, done so by
identifying their fears and desires. Disingenuous individuals,
who appear to be multiplying in this age of increased 'awareness' and
selfishness, view such people “gullible or stupid”, and view them
as akin to the unaware mouse, its head in the teapot, at the the tea
party in 'Alice in Wonderland')].
B2B and B2C 'Point and
Counter-Point' -
A similar story of
trends toward globalisation and counter-point localisation has been
seen across the replicable industrial and consumer goods.
Although initially
reliant upon buying-in of foreign industrial know - typically from
previously competing USA vs CCCP world powers, so as to obtain
either: cost advantage, suitable 'bolt-on' processes or indeed
leapfrog advanced processes – the very nature of now well enmeshed
international and inter-regional trade means that the days of
industrialisation and consumerism being heavily politicised and
either American or Russian led largely have gone. Though they
continue to lead in specific fields, other nations have come to the
fore relative to their own economic template agendas, such as Japan
now in propulsion methods, medical research, bio-mechanics and
robotics, and S.Korea in aspects of personal computing.
But, undeniably whilst
the battle for industrial independence and 'democracy' has been
increasingly won by EM nations, able to themselves gain from the
export of everything from base commodities to mid-tech capital
equipment and ever more sophisticated durable goods, they recognise
the need to influence portions of global culture itself, if they are
to continue to economically expand, and not become caught in the
endemic “trapped culture” model which saw Japan unable to extend
beyond its industrial pinnacle in the early 1990s and so causation to
dramatically stagnate.
So, whilst small
incursions into global popular culture are made by other nations,
often using the immediacy of the web – such as S.Korean pop singer
Psy with “Gangnam Style” and “Gentleman” hits, simultaneously
adopting and undermining high culture motifs in the formulaic pop
manner – the fact is that whilst other nations are able to now
export their own literal pop cultures (though not seemingly their
high-cultures), they must do so through what is a heavily American
monitored, policed and controlled global communication web.
And as seen with the US
vs G20 leaders telephone hacking scandel, for all the diplomatic
apologies made, that Big Bother like control looks unlikely to
diminish in the near or mid terms.
As shown in the last
web-log post, since the early days of Hollywood and to date, whilst
California is known for its tourism, fruit-growing, oil and defence
sectors, beyond a shadow of a doubt, the state has for many decades
moulded itself as the focal-point of cultural creation (global
cultural creation), this grasp strengthened with the ever advancing
and ever incursive computer age. (Just as New York's Wall Street has
been and is the focal-point of financial creation).
Together these two
influential centres, along with US military capabilities, effectively
controlled much of the world over the last century.
And whilst there is
much discussion about a necessary loosening of tight foreign affairs
policies, so reducing military costs so as to help pay-down US
national debt levels, the fact is that California through the
combination of historical precedence and proactive soft-power
planning remains the technological hub at the centre of international
“cultural processing”.
“Californiacation”
Revisited -
The web-log at the end
of 2013 applied the term 'Californiacation' to describe the manner in
which automotive high-culture represented by 1920s and 1930s
masterpiece cars was itself being imported from elsewhere in the US,
from Europe and Japan.
'Californiacation'
itself as a word was created as a parody label created by
counter-culture commentators to describe the LA-centric
ultra-liberalism that reached heady heights by the late 1990s,
specifically amongst the media-based 'in-crowd'.
The term first came to
broader appreciation when used as the title for an album by the Red
Hot Chili Peppers in 1999, then used as a self-referential TV series
title in 2007. Loosely, Californiacation is wherein the cult of the
'LA media personality' rules, and in doing so becomes a social norm.
Behaviour patterns of such people, typically removed from
conventional life and living within their own bubble become,
conveying extreme narcissism entwined with fashion obsession and
social trend setting. In a navel-gazing way, such personality types
became in the focus and content of new threads for TV entertainment
under the banner of 'Reality TV'.
This LA effect
reverberated and was intentionally replicated elsewhere across the
USA and overseas to the UK etc. To such an extend that today each
region (typically a correlated to specific TV region or social
strata) has its own simulacrum of the LA original; whether it be the
'Houswives of Orange County' (mimicing the close by LA set) expanded
to the 'Housewives of Atlanta', or in Britain, 'The Only Way is
Essex' leading to 'Geordie Shore' and even (very sadly) 'Made in
Chelsea', (an overtly previliged 'cast' of people who really ought to
know better.)
Hence, from the social
perspective 'Californiacation' is already endemic within a merged
modern culture wherein the physically real is blended almost
imperceptively with the image portrayed on screen. Something set to
continue as the screens of personal devices become the lifestyle
'brokers and prompters' of those willing to unquestioningly accept
such IT intrusion.
[NB the new film 'Her'
alludes to this as a lonely man becomes infatuated with his
human-like electronic personal assistant. A BBC Newsnight interview
with the film's director negated the assumption that the plot set out
to pose a question for humanity, and instead sought to present the
plot as an expected future outcome, a socially networked, social
engineering fait accompli].
'Californiacation's'
Modus Operandi -
As seen, American
cultural hegemony through the 20th century has led to what
may be described as a contemporary global mass culture.
As also seen, Hollywood
itself has been replicated to varying national degrees of success
across the world. Bollywood (and similar regional others), Hong Kong,
and now 'Chinawood' (the Hengdian World Studio) the most high profile
and prolific, to reach respective EM audiences and beyond.
Yet as the rest of the
world seeks to catch-up, California is set to continue its global
cultural domination. But doing so recognising the vital importance of
'glocalisation'.
Doing so in three ways:
A. “Centrifugal
Initiatives”
B. “Centripetal
Initiatives”
C. “Copy Plus Cloning
Initiatives”
Centrifugal efforts
whereby it continues to export its televisual wares, whether: music
videos, films, video-games or literally 'spun-off' franchising
agreements with foreign production companies.
Centripetal efforts
whereby the Californian epicentre remains ostensibly in control, the
creative 'gravity', exemplified by US produced films such 'Bride and
Prejudice' (set in Los Angeles, London and Goa), and 'The Mistress of
the Spices' (set in San Francisco).
Copy plus cloning is (a
poorly phrased but apt) term to describe the production companies of
California (and all US) setting up local joint venture production
houses with prime foreign markets. The presumed ideal to where
possible to recreate the once all powerful 'Hollywood Studio System'
(which ran between 1927-48) provided nigh on full control to the
oligopoly of film studios. Though of course such an ideal problematic
since it is unlikely that foreign film and television operators and
regulators would allow a 50-50 split of the full value chain between
itself and the USA.
The Car is the (EM)
Star -
As is well recognised
today, a major contribution to the success of national and regional
economic templates through the 20th century was the
concomitant dual processes of increased televisual immersion 'into'
the created reality of cinema/television prompting an increase in
lifestyle aspiration and so consumer spending, from the affordability
of FMCG items and upwards as improved personal and household
circumstances (typically earning through learning) allow.
Also as seen, besides
the aspiration of home ownership, at the very top of the consumption
ladder is purchase of an automobile. The vehicle - whether small car,
light van or pick-up truck - has since its invention been revered by
the masses. For many reasons. Though primarily as a provider of
autonomous freedom for driver and passengers, and as a vitally
culturally important symbol of social achievement. The latter based
upon the ladder-climbing process of successive purchases of: used
car, affordable new car, better model or brand, ongoing replacement
improvements.
This aspirational
reality well understood by Alfred P Sloane, the modern father of
General Motor' after being established by Durant. He recognised in
the 1920s that the American masses would seek (though not necessarily
require) something more than the functional but stark Model T Ford;
thus creating the amalgamated group brand ladder from Chevrolet to
Cadillac, ironically poaching Harley Earl as lead designer who had
honed his theatrical styling skills in Hollywood
The next 45 years saw
Detroit prosper, as the capitalist economic model combined with
televisual driven consumerism created a near virtuous circle of
wealth creation. That period contracted in the 1970s, so allowing the
previous trickle of Japanese import brands morph into FDI trans-plant
players, whilst by the mid 1980s the USA had become revitalised with
by the 1990s domestic large cars and truck derived SUVs the
reflective symbols of economic confidence.
[NB a similar story but
based upon very different product types played-out in Europe over the
same
70 year period]
But ever since the
erosion of the Cultural Revolution in China and the fall of the
Berlin Wall so conjoining West and East Europe, the winds of global
change re-set the mid and far global economic horizon. And with it
auto companies across the world have shifted gear accordingly.
Let us not forget that
it was the Trabant and its encapsulation of an old, now defunct
political order which captured the mood of the times,. Ex-GDR
citizens looking to 'time-travel' into the future with desire for
modern, svelte and comfortable VWs, and hopefully eventually BMW's
and Mercedes'.
From the western
viewpoint toward Eastern Europe, the BRIC countries and beyond, it
was recognised that affordable automotive 'time-travel' was a prime
requirement, wherein private consumers, new start-up enterprise and
indeed privatised old state businesses could demonstrate their new
standing through symbols of modernity.
To this end, since 1999
Renault used the name 'Symbol' for its small sedan; reflecting the
intention of global manufacturers to replay the consumption model of
the western 20th century for 21st century EM
regions.
To this end,
aspirational vehicles remains an increasingly important economic
topic. Consequentially, “the car is the (EM) star”.
Rapid Economic
Advancement -
Although slowed from
previous rapid growth rates, the outer districts of the BRICs and
those of the CIVETS nations, continue to transform from what what has
been ostensibly a '2nd class' consumption culture (in B2B
and B2C spheres) over the last half century. This derived from
locally re-branded yesteryear generation western goods (eg India's
and Turkey's truck sectors).
Now toward a '1st
class' consumption basis, enabled from broader and deeper wealth
trickle-down through education, many seeking western levels of
quality from local and regional producers, from drinks to clothes to
cars.
So setting the scene
for a new stage in the continued era of 'glocalisation', one spanning
more intelligently formulated, hybridised identities and functions,
achieved through ever more integrated EM-Triad corporate joint
ventures and local producers accessing more capital from local and
global sources to improve quality and broaden goods and services
reach, domestically and regionally.
Each offering deployed
localised business models aligned to local B2B and B2C demands, and
reliant upon the economies of scale manufacturing for products and
scale distribution for film.
Items which shifted
from the initial appeal of foreign exotica to eventually for many
millions the very staples of their everyday lifestyle. But expanded
by the Apple Inc, a brand which for many Generation Y-ers reflects
their inclusion within a cutting-edge, notionally socio-tech advanced
global tribe.
Creating Cross-Cultural
Connections -
The emergence of new
economic order countries obviously required that the Euro-American
economic template, which had largely proven itself over the preceding
hundred years, be fundamentally reconsidered per the apparent
opportunities that lay ahead elsewhere across the world.
Whilst the formula for
doing so was relatively simple for automotive companies – such as
Renault re-utilising a previous generation – critically
capex-absorbed – platform, the approach required by the formulators
of (to date western) mass-culture had to be arguably more
holistically considered.
The highly successful
2008 film 'Slumdog Millionaire' the prime example as both a
reflection of the zeitgeist and simulacrum product of these times.
Produced by a company which had already developed the original format
of TV's 'Who Wants To Be A Millionaire' (and franchising its
simulacrum / replication across the globe), it sought to created its
own staircase of continued EM success by using that general knowledge
quiz as a focal-point to connect with old and new audiences.
The by now very well
known Indian plot centres around the 'Millionaire' gameshow, a
'glocalised' product itself; though often wrongly perceived as
derived from Hollywood.
'Slumdog Millionaire'
accords to the rather conventional but compelling Indian plot of the
underdog overcoming poverty, social adversity, friendship betrayal
and conspiratorial accord between the elite and local police; wherein
lost love is recaptured just as the hero's life is massively altered
thanks to his ability to learn and recall.
Interestingly, given
the context of new EM target audiences, as sub-themes there are
subtle allusions to: the corruptive vs positive social power of the
US dollar as the global currency (via “Benjamin Franklin on the
$100 bill”), the spread of American might (via the Colt 45
handgun), and globalisation itself, via the backdrop of the
“off-shored” Indian call-centre, This constructed as an
Anglo-Indian cultural matrix itself, with the in-joke of cultural
faux pas (via a rabidly Scottish customer) so highlighting the
cross-cultural problems of globalisation.
To Follow -
The original remit of
this second part of the web-log was to subtly segue into the manner
in which the California-centric culture industry had well recognised
the need for cross-cultural sensitivity and affiliation. This as a
required action so as to simultaneously maintain its soft-power
momentum and so continued global leadership across a yet wider
multi-cultural global canvas.
Doing so by deploying
its biggest soft-power players, such as Disney-Pixar, which has been
centre-stage in creating televisual and experiential feasts, aimed at
youngsters across both Triad and EM nations. And vitally through
which the presently powerful US media companies can ride a future
wave of increasingly EM sourced growth.
However, before moving
to such an thesis, it was necessary that the historical context to
that broad global canvas to date be given; this providing the natural
bridge.
Hence, instead a Part 3
will now offer a very basic examination of how the corporate futures
of the US media sector and US auto sector, have been advantageously
intersected, and so set to reap from the expanding the global stage.
Done so through the
entertaining but yet potent case study of Disney-Pixar's
film-animation releases of 'Cars' and 'Cars 2'. And by which a mode
of ever expanding 'auto-replication' of the original Californian
cultural template, will be sought - deploying the ideology of
culture-specific simulacrum.
