In 2004, Tesco entered the Chinese market after acquiring a 50% stake in Hymall, a chain of grocery stores owned by the Taiwanese corporate group Ting Hsin.
“China is one of the largest economies in the world with tremendous forecast growth and a market we have researched extensively,” claimed Sir Terry Leahy, the British retailer’s chief executive at the time, adding that “these are a billion customers we cannot afford to ignore.”
Tesco and Hymall rebranded together as Tesco Lègòu, combining the English name with its translation in simplified Chinese. They used the British company’s red-and-blue colour scheme while stylising as Tesco 乐购. Tesco soon increased its stake to 90%, as it took control of the project, opening more stores around China and stocking many of its own labelled products.