Tesco, which paid US$260 million (£136.7 million) for a 50 per cent stake in local operator Hymall in 2004, has asked the Chinese government to authorise the use of the Tesco logo on its stores. The retailer will also keep Hymall's Chinese name, Le Gou (happy shopping), on its shop fronts.
According to Shanghai Hymall Commercial Retail Group chairman and chief executive Ying-Chiao Wei: 'It is an announcement to consumers that we are international. It differentiates us from local businesses, it will be beneficial to improving the brand name.'
The move is part of a larger plan to make the Tesco name more prominent within China, through increased store openings and the imminent launch of Tesco-branded noodles and other own-label lines.
Both Wal-Mart and Carrefour operate under their own brand names in China. The two companies believe that international branding is very popular with Chinese consumers.
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