Nothing says London like the Routemaster bus, the tube roundel logo or Harry Beck’s schematic underground network map. Now the capital’s transport authority is seeking to generate cash to reinvest in its hard-pressed tube, train and bus services, using the design classics to sell branded products overseas.
Transport for London has struck its first global licensing deal, aiming to create a £100m-a-year branding business. From designer chairs using tube seat patterns and lamps inspired by bus headlights to London Underground map tea towels, its own fashion brand and limited edition sets of Scrabble, Tfl is aiming to take its successful UK licensing programme to global markets.
“We have been chuntering along quite happily for a number of years and built a great foundation in the UK,” says David Ellis, head of intellectual property development for Tfl. “Since slightly before the London 2012 Olympics there has been an energy behind London. We are now hoping to really drive this internationally. It is time to push the brand in key territories across the global market.”
Ellis says that top of the list is Japan, China, North America and closer to home, Europe.
He cites the success of a pop-up shop opened in a Tokyo station in the Ginza shopping district last year as an example of the overseas sales potential. Among items on sale was a trainer made in partnership with Nike, patterned with the font used in all London Underground maps, signs, logos, leaflets and social media messages. This typeface, Johnston100, is an updated version of the original font, introduced in 1916 by typographer Edward Johnston.
“It was way oversubscribed and was a huge success,” Ellis says. “We are now talking to a major Japanese trading company about how to take that forward. If you can build a strong licensing programme in fashion that can lead to accessories. And homewares is where we have also done well in terms of previous licenes, such as our collaboration with Aga cookers.”
Previous licensing deals have been struck with companies including online furniture store Made.com, games maker Mattel and Kirkby Design, which made items including cushions based on the tube’s retro seat patterns, stocked in outlets including John Lewis. TfL even has its own fashion brand, Roundel London, launched in 2013.
Tfl would not elaborate on targets for the international programme but licensing industry sources believe it could be a £100m-a-year brand in terms of retail sales, or £50m of wholesale value.
The organisation would typically expect to retain about 10% of the wholesale figure, meaning the global branding push could generate £5m a year to reinvest in the London transport network if all goes according to plan.
“We are not competing against Disney or other character brands selling merchandise,” says Ellis. “We are a corporate brand which takes longer to build. We are certainly not going to use huge amounts of public money to advertise. It has to be low-risk commercial income, this is low margin but high profit.”
Ellis is confident but says that sales are likely to fluctuate in line with the popularity of London.
“Our brand is synonymous with London,” he said. “You can see our brand rise and fall with London’s popularity and presence in the global market. There is great potential and it could earn significant income and we are confident it can. But we also go with the ups and downs of the capital city.”
The international expansion is also partly designed to protect its brands from makers of fake products. Ellis said that Tfl currently has more than 90 trademark infringement cases globally, and it gets “six or seven warnings a week” from authorities around the globe flagging up attempts to register various TfL trademarks.
“We must stop other people trying to benefit from our trademark and assets,” he said. “Also, when you trademark a sign or mark you must use them in those classes or categories or you could lose rights to them for not trading. We have spent over 100 years building our assets, we have to protect our brands.”
Tfl’s global licensing strategy will be unveiled by branding agency TSBA, with which it has struck a five-year deal, at the annual Licensing Expo in Las Vegas later this month. “TfL has a fantastic design heritage with instantly recognisable and loved logos art and vehicles,” says Ian Mallalue, chief executive of TSBA. “This provides us with an opportunity to present London to the world using world-class British design.”
