A Tesco outlet in Changzhou, Jiangsu province. China Resource Vanguard announced it had completed the takeover of Tesco's supermarket chain on the Chinese mainland. CFP

It came as no surprise when China Resource Vanguard, one of China's largest (State-owned) supermarket chains, announced it had completed the takeover of Tesco's business on the Chinese mainland.

Tesco brand reportedly to be dropped

How the cookie crumbled for Tesco

Tesco remains the largest food retailer in the United Kingdom and one of the largest across Europe but has struggled since entering China in 2004. CRV has invested heavily on the mainland with almost $3 billion required to control an 80 percent stake in the newly formed joint venture (JV). Tesco will retain a 20 percent interest.

But of most significance is CRV's now unequivocal commitment to "rebrand" each of Tesco's 155 stores across mainland China.

Much has been said about the need for more ambition, confidence and, above all, belief in the potential for Chinese brands and a Chinese brand image.

It is, therefore, immensely encouraging to witness the bold move by CRV in, first of all, acquiring one of the world's largest food retailers, but also, crucially, having the confidence in its own brand's potential.

At the same time, it is also a shrewd move to retain Tesco as a minority JV partner. The UK retailer's international experience and know-how may prove invaluable as CRV embarks on first national and then global brand expansion.

For far too long, Chinese companies have not only hidden behind their Chinese brand identity but in many cases have actually made strenuous efforts to replace it with some sort of foreign brand image, association and appearance. Nike, Adidas and Starbucks are just three examples of famous foreign brands the image and appearance of which Chinese competitors have attempted to emulate.

Let's hope that CRV's audacious removal of the Tesco brand is the start of sizable number of Chinese companies also demonstrating faith in their Chinese identity and eschewing the fickle, short-term "brand copycat" business model so fondly embraced by far too many Chinese companies.