BUSINESS ADMINISTRATION MARKETING SPECIALIZED

E-COMMERCE
Mr.Nguyen Minh Quang - ISC302

- GROUP ASSIGNMENT -

Group Member: Dương Đức Thành - HS140176

Nguyễn Huy Khuyến - HS140014
Nguyễn Trọng Minh - HS140021

Class: MKT1406

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 Table of content

I. Executive Summary

II. Introduction

III. Situation analysis

IV. Marketing Plan

V. Payment Option

VI. Supply chain management

VII. Ethical and social considerations of the business

VIII. The basic elements of Loẹt Quẹt

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 I. Executive Summary

In recent years, the demand for jewelry has grown strongly, especially on e-commerce
channels. Online handmade shops are opening more and more because of the advantages:
investment capital is not too large, and demand is high. High market, quick capital turnover...

Cheap jewelry products are suitable for many people's pockets, especially young students. As
a way for consumers to relieve stress, they can go shopping, admire beautifully designed
products, make people feel comfortable, and enjoy shopping. But besides that, online
business is not easy when competing with big competitors with good financial backgrounds
and experience. The initial online business is still difficult when the website is not known by
many people. Low customer interaction and information exchange.

Identify customers - This is an extremely important step when planning a cheap jewelry
business, greatly influencing the choice of the right product development direction as well as
the way to approach customers. Through the analysis of demographics and consumer
behavior, it can be seen that the group of teenagers and young adults aged 15-22 years old is a
suitable customer group with diverse and unique products. , the cheap price that the store is
aiming for. To attract customers, the store needs to find a source of quality, reputable,
diversified products, and update trends.

Currently, there are many small jewelry businesses facing many difficulties in choosing their
development strategy, and how to attract customers' attention to their products. its products.

There is another factor affecting the shopping behavior of customers that is also very
important for them to decide whether to purchase on the website or not. These are the forms
of payment and delivery. In recent years, in Vietnam, people still prefer to use the form of
payment on delivery (COD), but besides that, there are other forms of transfer, Momo wallet,
etc. projects. Indispensable security of customer information is an ethical issue in business.

Besides, indispensable marketing and advertising strategies. Because we sell on the website,
the best choice for advertising is in newspapers and social networking sites today. Not only
that, the store also offers diverse and meaningful workshop events.

However, selling jewelry goods online is not simply that you just have the product, the most
important thing is to build a detailed and clear business plan

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 II. Introduction

Today, with the extremely strong development of technology, e-commerce is also

increasingly used to buy and sell countless products. With one click, you can buy any item
you want. That's why it's so easy to have a product that you own, which means a lot of people
can own it.

The rapid development of society has increased the need for self-assertion of people. Besides
the essential products for daily life, we look for products that are bold, unique, and highly
aesthetic at low prices. This is the reason Loot Quet was born with the desire to serve and
meet the needs of customers. If in the past, cheap jewelry was often considered poor quality,
but now, these products are being consumed in large quantities because the production
technology is developing to help create jewelry products. It has a beautiful, unique design
with a low price that helps buyers to change depending on the style. Combined with the
development of e-commerce, opening a cheap jewelry store will bring many benefits to
sellers and buyers. Buyers will easily see the available items of the shop to choose from
without having to travel to waste time and effort. Besides, for sellers, opening an online shop
will help promote products as well as easily interact with customers through the internet.

Therefore, our group launched an online business model with cheap fashion and jewelry
products called Lot Que Accessories. "Loẹt Quẹt" is an onomatopoeia & pictogram
describing the image of a clumsy girl who loves to wear outfits such as long skirts, clogs and
a bit clumsy. We hope to bring useful and suitable jewelry products to our target customers.

III. Situation analysis

1. PESTLE
- Political
This is a factor that affects all trades in a territory. Institutional and legal factors can affect the
viability and development of any industry. When trading on an administrative unit.
Companies will be required to comply with the legal and institutional elements of that region.

From 2005 until now, the Government of Vietnam has developed and issued consistent and
long-term policies to develop e-commerce with five-year master plans for each phase. The
most recent is Decision No. 645/QD-TTg, dated May 15, 2020, the Government approved the
National E-commerce Development Master Plan for the 2021-2025 period. And this is an
important policy with comprehensive solutions and specific resources as the basis for
developing the e-commerce market.

Businesses and target groups who want to participate and operate on an e-commerce platform
must follow the policies of the e-commerce platform they join and comply with the laws of

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the e-commerce platform. eCommerce. The protection of customers' personal information is
highly appreciated by traders when Vietnamese state law has introduced many laws to protect
customers' personal information when customers join the exchanges. eCommerce. Therefore,
e-commerce platforms have very strict regulations on protecting customers personal
information and dealing with violations. However, the disclosure of personal information still
occurs, so it greatly affects the trust of customers in the stalls on the e-commerce floor,
causing psychological obstacles when customers buy goods on the e-commerce floor.
E-commerce.

- Economic
Companies need to pay attention to economic factors both in the short and long term. And
government intervention in the economy. Usually, companies will base their analysis on
economic factors. After deciding to invest in industries and regions. State of the Economy:
Any economy has cycles. During any given period of the economic cycle. The company will
make its own decisions.

State of the economy:

+ Factors affecting the economy: Interest rates, inflation,...

+ Economic policies of the Government: Law on basic wages, economic development
strategies of the Government,...
+ Incentive policies for industries: Tax reduction, subsidies,...
The higher the per capita income, the higher the demand for buying handmade products,
serving the material and spiritual life of people.

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Economic growth leads to more customer spending, businesses can expand their operations
and earn high profits. With the current and expected positive inflation situation, businesses
are likely to operate more efficiently. Inflation will decrease, commodity prices will decrease,
and consumers will be more open to spending and choosing consumer goods. When
consumers have financial potential, purchasing power increases, and in addition to material
necessities, higher spiritual needs are required. They can spend the most reasonable amount
of money to buy a product with high spiritual value: Beautiful, harmonize, and unique.

However, since 2019, our country's economy has shown signs of slowing down when the
growth indicators of a number of key sectors of our economy are the same every quarter. The
peak was at the beginning of 2020, under the impact of Covid 19, the economy of the whole
world in general and Vietnam in particular was also severely reduced, the US-China trade
war was tense, causing prices to fall. Both goods fluctuate erratically, goods are scarce, this
also greatly affects our economy when the import and export industry of our country's raw
materials depends heavily on countries such as the US and especially China. country, this
directly affects the price of domestic goods. At the beginning of 2020, with the complicated
development of Covid 19, the Prime Minister also called and issued a top resolution on
epidemic prevention and suppression. Sacrificing economic benefits to protect the Fatherland
and Vietnamese citizens. Cease operations and limit activities to non-essential occupations.
According to the report of the General Statistics Office, in the first quarter of 2020, Vietnam's
economic growth decreased sharply compared to the same period last year, typically the
growth of industry and construction reached 5.17% compared to the same period last year.
Compared with the same period last year, the agricultural area of ​rice cultivation was equal to
97% of the same period last year, and the service sector decreased by 18.1% over the same
period last year. People's spending also decreased due to the complicated development of the
epidemic when the salary paid to employees was also cut. And thanks to the right policies of
the government, at the beginning of the second quarter of 2020, our country's economy is
starting to recover when economic activities return to normal activities. People's purchasing
power and spending increased sharply after a long-term epidemic break. That creates
opportunities for fields including the business of jewelry goods on the e-commerce platform.

- Social
Along with the development of the economy, the satisfaction of human needs has been
gradually improved in material and spiritual terms. People gradually think of beauty and
consider it an essential need in life. The demand for fashion and jewelry is also increasing. As
the demand for fashion and jewelry has reached everyone, many people desire higher
demands for beauty. They want to own products that are different from others and have the
desire to receive compliments and glances on that difference.

Today, the internet is developing more and more, customers do not necessarily have to go to
the store to buy goods, customers can buy goods through the internet and through
e-commerce platforms. Save a lot of time and money.

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Today, although they have gradually adapted to buying directly on e-commerce platforms,
consumers still have the habit of wanting to see the quality of goods before deciding to buy.
Moreover, because the stalls on the e-commerce floor do not sell quality products, it has
hindered customers when shopping online, creating skepticism about products on the trading
floor. electronic device.

Focusing on developing material and spiritual production corresponding to all aspects of

society's consumption, with a variety of goods that are always improved in quality, creating
vividness and diversity, thereby creating customer satisfaction. consumer confidence.

- Technological
The whole world is in a technological revolution. A series of new technologies were born and
integrated into categories and services. If 30 years ago, the computer was just a tool used to
calculate. Today, it has enough functions to replace a completely independent human being.

About the percentage of internet users:

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 + According to “Vnetwork”, as of January 2021, Vietnam's population has reached
nearly 98 million people, along with the development trend of technology, users'
exposure to the internet is increasing.
+ As of January 2021, the population of Vietnam reached 97.8 million people, with an
urban population rate of 37.7%. In, about 68.17 million people are using the Internet
(accounting for 70.3% of the population) through different platforms and applications,
with an average duration of 6 hours and 47 minutes. This is considered a relatively
large amount of time used in 1 day.
Behavior on e-commerce (e-commerce):

+ 2020 is an explosive year of e-commerce in the world in general and Vietnam in

particular.
+ According to We Are Social's data, up to 45.6 million Vietnamese buy consumer
goods via the Internet, and 85.5% of consumers (16-64 years old) surveyed said that
they have searched for products/ services on the online channel. 77.3% of them have
visited an online retail store and 78.7% have made a purchase on any device. These
indexes all increased by more than 2% over the same period in 2020. In particular,
Vietnamese users prioritize buying on mobile applications. The rate of using mobile
for shopping accounted for 68.5%.

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+ The age of online shoppers is all 16 years old, of which the 35-44 group
accounted for the highest percentage of online purchases on e-commerce
platforms, with 85.3%, higher than the 45 groups. -54 (83.5%) and 25-34
(81.8%).
+ In terms of shopping, except for the growth of tourism, travel, and
accommodation services, which decreased by 40.5%, Fashion, Digital
Devices, Food, Personal Care, Games, and Online Music There are signs of a
sharp increase in spending. On average, user spending in these industries
increased by over 30%. Perhaps the COVID-19 pandemic that has forced
consumers to stay home more is the cause of this change in 2020.

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 - Environmental

These factors include all those that affect or are determined by the surrounding environment.
This aspect of PESTEL is very important for several industries, especially tourism,
agriculture, agriculture, etc.

Basically, doing business on the e-commerce platform does not really cause environmental
problems.

- Legal

These elements are both external and internal. There are certain laws that affect the trading
environment in a given country while there are certain policies that companies maintain for
themselves. The legal analysis takes into account both of these angles and then outlines
strategies according to these regulations.

Online payment services continue to improve and develop.

The law on e-commerce is getting better and better.

In 2014, Decree No. 185/2013/ND-CP took effect, guiding the implementation of the Law on
Handling of Administrative Violations, with a separate section (Section 11) consisting of 5
articles (from Article 81 to Article 85). regulations on penalties for violations on
e-commerce. These are new regulations associated with the development of e-commerce

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activities in Vietnam today. Along with the introduction and effect of Decree 185, in the
coming time, the law on e-commerce will gradually improve, in addition to the growth of the
Internet use rate of the people. Thanks to the gradual improvement of the legal corridor
system, the percentage of Internet users participating in online shopping tends to increase
year by year.

Obviously, the e-commerce market in Vietnam is considered as one of the potential markets,
promising tremendous growth in both breadth and depth.

2. SWOT

- Strength

Easy to use product

For women, products such as jewelry and earrings are used every day. They have the need to
use many products to change daily to match the outfit.

Careful product selection by Art Director

In order to bring the best product designs, the Art Director of the brand needs to carefully
select the best products to ensure the aesthetics and product orientation of the brand.

Easily distributed through E-commerce

Unlike traditional businesses, brands need a space to display their products, a separate
payment system and many other factors. Now, through Shopee, products are easily accessible
and distributed to customers.

- Weakness

New brand

Loet Quet is brand new to the market and is still unknown to many people. Customers often
tend to be interested in famous brands that have been purchased and reviewed by more
people.
Have not used the media and have not been able to convince customers to believe in this
business idea and product.

High competition

Especially on Shopee platform can cause products to be overshadowed in the first time of
operation

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No Loyal customer yet

For a new brand, customer retention and new customer acquisition always need to go hand in
hand. Loyal customers help brands develop sustainably.

- Opportunity

Increasing fashion demand

When the economy is stable, people will gradually pay more attention to their own needs,
that's why the demand for appearance will also increase.
State policies create conditions for the development of the garment market and help with
online shopping
With the convenience of online shopping and the influence of Covid, it will increase
customers' intention to buy online. The government is proposing policies to make online
shopping more popular

- Threats

Fierce competition in the market

Jewelry brands are slowly springing up in Vietnam, increasing the risk of competing for
customers

Price war
Jewelry and accessories are targeted as the main market by Glitter. However, the industry is
rife with imitators, waging price wars to make a profit. Many competitors' products with
similar materials but slightly lower prices influenced the company's purchase.

Must invest more in marketing

Because the shop on Shopee has just been put into operation, few people know about it, so it
will need to invest more money in Marketing

Only one form of online sales

It is still difficult to compete because there is no fixed store, only sales on ecommerce

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 IV. Marketing Plan

1. Competitor Analysis

Leuleu Accessorize Liulo Crafts Kapico Handmade

Brand Loyalty Awareness Non-recognition

Recognitio
n

Messaging Beautify customers with Created and curated arts Spread spiritual energy
small sparkling & craft by local through feng shui
accessories artists/makers stones on jewelry

Price 190.000-270.000/pcs 200.000-300.000/pcs 250.000-500.000/pcs

Product Gold and silver plated DIY clay jewelry Feng shui jewelry
line jewelries

Product - Various models and - Made by young local - Many types of feng
strength many choices designers shui stones with diverse
- Suitable for many ages - Unique design, uses and meanings
- Easy to match with different from other - Low price although
everyday wear brands the material is feng shui
- The price is accessible to - Express a lifestyle stone
the majority of customers clearly through products

Product - The design is too - Cheap material but - Not a popular style to
weakness common and easily sell at high price reach the masses
duplicated in brands with compared to a new - Each type of feng shui
super cheap prices brand stone has its own
- Since it's imported from - Handmade jewelries’ meaning, so the
China, customers think quality cannot be quantity purchased
they can buy it at a consistent between products is
cheaper price different

How to - Build similar online and - Develop a more - Instruct customers to

win offline sales channels to acceptable and combine unique
reach a large number of appropriate pricing accessories with
customers strategy based on the everyday wear to
- Show the difference in materials used convince of
product compared to - Cooperate with major applicability
Leuleu's mass products accessory
manufacturers

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*Appendix:
1. Leuleu Accessorize:
● Product:

● Media:

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2. Liulo Crafts:
● Product:

● Media:

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3. Kapico Handmade:
● Product:

● Media:

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Positioning Map:

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Segmentation and Targeting

Types of customers Daily User Style Expressing Trend Following

Demographics >26 years old 18-25 years old <20 years old

Income: Income: >4M/month Income:

>15M/month 1-3M/month
Life-stage: Newbie
Life-stage: Official or Junior Life-stage:
workers students/workers Adolescent

Behavioral Wear jewelries as a Buy jewelry in Buy affordable

habit uncommon stores jewelries from
like handmade, Shopee, Lazada
Use at work, at boutique,..
home, at parties Find similar
Tend to choose products to what
Buy jewelry as a unique products KOLs wears
way to treat
themselves Update fashion
trends actively

Psychographics Wear jewelries to Desired to show Desired to show

show beauty and unique fashion sense trendy outfits and
richness accessories
Wants other people
Consider jewelry as to be curious about Trendy models
savings what they wears preferred

Prefer cheap but

beautiful products

Media preference Facebook, Articles Instagram, Pinterest Facebook, Instagram

Influencer Friends, co-workers Artists, friends KOLs, friends

=> Targeting “Style Expressing” Group

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 - Understanding about Target Customer:

Portrait Why do they need unique Situation that accessories

accessories? or fashion is crucial

They are young adults who They want others to admire When they go to a crowded
have a very high need to and curious about their style event
express themselves through
the fashion, style, and colors They want to be When they meet friends at
they combine. They are the remembered through their the coffee shop
ones who tend to choose choice of accessories and
new, unique, and clothes When they go to job
unduplicated accessories. interviews in companies
They refer to the style related to art, photography,
through beautiful images on fashion,...
Instagram or Pinterest. They
have their own style of dress
and do not like familiar
styles.

=> Strategy: Turn artsy accessory selection into a lifestyle and signature image of customers

=> Tactics:
● Product:
- USP: Collections of hand-picked artsy accessories in affordable prices
- Upgrade product line: Add other line accessories such as scarves, turbans, rings, bags,
socks, cup handles

- Re-design packaging: Customized boxes

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● Price:
- Strategy: Lower than boutique brands, higher than mass production brands
- Discount: Seasonal sale

● Place:
- Open pop-up store: in garage sale, in fairs

- E-commerce channels: Develop Shopee channel by applying specialized tools to

boost users visit rate.

● Promotion:
- Advertisement: Selected poster on Facebook Ads, Instagram Ads and KOLs social
media
- Sale promotion: combo boxes, friends policy, loyalty policy

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 V. Payment Option

Payment on delivery (COD): This is still the main form of payment when buying goods
over the internet because of safety, customers will only pay when they receive the correct
purchase.
COD payment form is very convenient, fast and brings a lot of benefits to consumers.
Consumers will have less risk and more peace of mind when buying because they will
receive and check the product before paying. Limit the risks encountered such as goods
received of poor quality or not received goods when paid in advance. Moreover, it also helps
consumers avoid the risk of losing personal information and payment accounts when making
payment transactions on electronic websites.

In many developing countries such as the US, China, ... the value of cashless payments each
year is up to trillions of dollars. Meanwhile in Vietnam cash is "king". The number of cards
issued in Vietnam reached 121.5 million cards by the end of June 2017. That is, on average,
each citizen owes 1.3 bank cards for payment. However, most Vietnamese people have a
habit of using cash when nearly 90% of card transactions are simply withdrawals at ATMs
and only 10% are used to pay via POS. Although e-commerce has a fast growth rate, the
actual value only accounts for 2.8% of total retail sales and consumer service revenue.
Currently, most of the activities of eating, studying, playing, entertaining,... are paid in cash.
Therefore, cash is still a useful means of consumption, playing an important role in
consumption for Vietnamese people. This is one of the reasons why COD services dominate.
Bank transfer, Momo wallet, Shopee Pay Wallet: Through ATM or direct transaction at the
bank, via payment methods via Momo wallet, Shopee Pay wallet, the account holder transfers
to the seller's account one at a time. amount before receiving the goods. This is done when
the buyer trusts the seller. This method is very useful in case the buyer and seller are far from
each other, cannot pay directly in cash, but there is a certain risk for the buyer. With the high
penetration of the internet, mobile devices and social networks, more and more individuals
are engaging in e-commerce. Therefore, With the high penetration of internet, mobile devices
and social networks, more and more individuals are engaged in e-commerce. In the future,
online sellers will connect with official payment centers such as banks and e-wallets to
increase the rate of cashless payments, then the delivery service will be narrowed. again.
According to statistics of the State Bank of Vietnam (SBV), the exchange value via e-wallets
in 2016 reached VND 53,109 billion, up 64% compared to 2015. When buying goods on
Shopee - an online buying and selling channel, we can pay without using cash through
ShopeePay wallet.

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 VI. Supply chain management

The goal of the supply chain is to maximize the total value of the chain created by satisfying
customer requirements through efficient use of resources. This includes the ability to deliver,
stock, labor, and store, while keeping supply chain costs to a minimum.

Supply Chain Value = Customer Value – Supply Chain Cost

As shown above, it is the supply chain process. After the supplier signs a contract with us, the
contract establishes the binding between the supplier and the buyer in the supply chain, in
which the terms of the item, price, quantity, delivery time, Returned goods, quality, discount,
... will be specified after that, then the party will go through the manufacturer, close it and
then transport it to the retail point like here we are the website and bring it to the consumer.

Supply chain management needs to ensure that the set goals are carried out smoothly, without
interruption. Supply chain management profoundly affects the production and business
activities of enterprises, especially in the current situation when competition in the market is
increasing. The distribution strategy needs to ensure that the warehouse - the point of
departure can deliver products to the stores optimally in terms of both time and cost, while
keeping inventory to a minimum.
Enterprises need to plan the number of warehouses, should apply the classic distribution
strategy, direct shipping or cross-shift strategy to bring efficiency to the business. Next,

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Inventory control must be kept to a minimum to minimize costs for businesses and at the
same time ensure the quality of goods.

VII. Ethical and social considerations of the business

Business ethics contributes to regulating the behavior of business subjects: Business ethics
supplement, combined with the law to regulate business behaviors according to the legal
framework and the trajectory of ethical standards social virtue. On the other hand, the stricter
and more complete the law and strictly enforced, the higher morality is enhanced, and the
more illegal profit-making, corruption, smuggling, etc., when detected, will result in legal
action. regulation, at this time "the phenomenon of litigation forces people to behave
ethically".
Business ethics contribute to the quality of the business: Organizations considered ethical
rewards to be based on loyal customers as well as strong employees, because of trust and
interdependence. in relationships. If the employees are satisfied, the customers will be
satisfied; And if customers are satisfied, investors will be satisfied. In a work environment
like this, employees can expect to be treated with a great deal of respect and care by their
superiors. Trustworthy relationships within an organization between directors and their
subordinates and top management contribute to the efficiency of the decision-making process.
Most of the world's most admired companies emphasize teamwork, care deeply about
customers, promote fair treatment of employees, and reward good performance.
Business ethics contributes to employee commitment and commitment: Employee
commitment comes from employees believing that their future is tied to the future of the
business and therefore they are willing to willing to make personal sacrifices for their
organization. The more the port company cares about its employees, the more dedicated the
employees are to the business. The ethical environment of the organization is important to the
employees. The majority of employees believe that: the image of a company to the
community is extremely important, and employees who see their company actively
participating in community work will feel more loyal to their superiors. and feel integrated
into themselves. When employees feel that the ethical environment in the organization has
improved, they will be more committed to achieving high ethical standards in their
day-to-day operations.

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Ethics contributes to customer satisfaction: Current studies and experience from many
countries show a strong relationship between ethical behavior and customer satisfaction.
Unscrupulous behaviors can reduce customer loyalty and customers will switch to other
brands. Conversely, ethical behavior can attract customers to the company's products.
Therefore, when doing business, it is necessary to ensure privacy as well as information,
confidentiality of customers and keep credibility when working and building a long-term
relationship.

VIII. The basic elements of Loẹt Quẹt

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