Zudio Franchise Business in India: Requirements, Setup Cost, and Profitability

In the rapidly evolving Indian retail landscape, few brands have captured the market’s attention quite like Zudio. As part of the prestigious Tata Group through Trent Limited, Zudio has revolutionized affordable fashion retail in India, making trendy clothing accessible to the masses without compromising on quality.

For entrepreneurs seeking a lucrative business opportunity in the fashion retail sector, a Zudio franchise represents more than just a business investment—it’s a chance to partner with one of India’s most trusted business conglomerates while tapping into the country’s booming fashion retail market, which is projected to reach $43 billion by 2028.

This comprehensive guide provides everything you need to know about starting a Zudio franchise in India, from initial investment requirements to long-term profitability prospects.

About Zudio Brand

Brand Heritage

Zudio operates under Trent Limited, a flagship retail company of the Tata Group, one of India’s oldest and most respected business houses. This association provides franchisees with:

  • Trust Factor: Immediate customer trust due to Tata brand credibility
  • Financial Stability: Backing of a financially robust parent company
  • Long-term Vision: Commitment to sustainable business practices

Market Positioning

Zudio has strategically positioned itself as:

  • Value Fashion Retailer: Offering trendy fashion at affordable prices
  • Family Brand: Catering to men, women, and children
  • Quality Assurance: Maintaining quality standards despite competitive pricing

Product Portfolio

  • Apparel: Western and ethnic wear for all age groups
  • Footwear: Casual, formal, and sports footwear
  • Accessories: Bags, belts, jewelry, and fashion accessories
  • Home & Living: Decorative items and lifestyle products
  • Beauty & Personal Care: Cosmetics and grooming products

Current Market Presence

Zudio currently operates over 500 stores across India, with ambitious expansion plans targeting 1,000+ stores by 2027. The brand has established a strong presence in:

  • Metro cities (Delhi, Mumbai, Bangalore, Chennai)
  • Tier-2 cities (Pune, Ahmedabad, Jaipur, Lucknow)
  • Emerging Tier-3 markets

Franchise Investment Breakdown

Total Investment Range

The total investment for a Zudio franchise in India ranges from ₹50 lakh to ₹3 crore, depending on location, store size, and setup requirements.

Detailed Cost Analysis

1. Franchise Fee

  • One-time Franchise Fee: ₹10-15 lakh
  • Brand License: Includes right to use Zudio brand name and logo
  • Territory Rights: Exclusive operating rights in designated area

2. Security Deposit

  • Refundable Security Deposit: ₹20-30 lakh
  • Purpose: Ensures compliance with franchise terms
  • Refund Terms: Refundable upon successful completion of contract

3. Store Infrastructure

  • Store Renovation: ₹15-25 lakh
  • Interior Design & Fixtures: ₹20-35 lakh
  • Lighting & Electrical: ₹5-10 lakh
  • Air Conditioning: ₹8-15 lakh
  • Security Systems: ₹3-5 lakh

4. Technology & Equipment

  • POS Systems: ₹2-4 lakh
  • Billing Software: ₹1-2 lakh
  • CCTV & Security: ₹3-5 lakh
  • Music & Ambiance Systems: ₹1-2 lakh

5. Initial Inventory

  • Opening Stock: ₹25-50 lakh
  • Seasonal Collections: Additional ₹10-20 lakh
  • Buffer Stock: ₹5-10 lakh

6. Working Capital

  • Staff Salaries (3 months): ₹3-6 lakh
  • Rent Advance (6-12 months): ₹6-24 lakh
  • Utilities & Maintenance: ₹2-4 lakh
  • Marketing & Promotion: ₹3-8 lakh

7. Legal & Administrative

  • Legal Documentation: ₹50,000-₹1 lakh
  • License & Permits: ₹25,000-₹50,000
  • Professional Consultancy: ₹1-2 lakh

Investment Examples by City Type

Metro Cities (Mumbai, Delhi, Bangalore)

  • Total Investment: ₹2.5-3.5 crore
  • Monthly Rent: ₹8-15 lakh
  • Expected Turnover: ₹1.5-3 crore annually

Tier-2 Cities (Pune, Jaipur, Indore)

  • Total Investment: ₹1.5-2.5 crore
  • Monthly Rent: ₹4-8 lakh
  • Expected Turnover: ₹80 lakh-1.5 crore annually

Tier-3 Cities (Agra, Nashik, Vijayawada)

  • Total Investment: ₹80 lakh-1.5 crore
  • Monthly Rent: ₹2-5 lakh
  • Expected Turnover: ₹50-80 lakh annually

Franchise Requirements

📊 Financial Eligibility Criteria

Minimum Financial Requirements

Your financial profile should demonstrate:

Net Worth must be between ₹3-5 crore minimum, showing substantial financial backing for the venture. Liquid Capital of ₹1.5-2 crore should be readily available for immediate investment needs. Your Annual Income should exceed ₹50 lakh from existing business or professional activities. A Credit Score of 750+ CIBIL score is preferred to demonstrate financial reliability.

Investment Capacity Assessment

The financial evaluation process examines your debt-to-equity ratio, which should not exceed 60:40, ensuring healthy financial leverage. Your existing businesses should show positive cash flow patterns. Most importantly, you need to demonstrate financial stability with 3+ years of consistent income history.

🏢 Space & Location Requirements

Store Specifications

The ideal Zudio store requires an area of 800-1200 sq ft in high-traffic areas, though larger formats of 3000-6000 sq ft are increasingly preferred for comprehensive product display. The ceiling height must be minimum 12 feet for proper merchandise display and visual appeal. Store frontage should be minimum 30 feet for optimal brand visibility. Additional storage space of 200-300 sq ft is essential for inventory management.

Location Criteria

Your store location should be in high footfall areas such as malls, shopping complexes, or busy high streets. The surrounding demographics should match the target customer base of age 18-45 years, primarily middle to upper-middle class families. Ensure easy accessibility by public transport and private vehicles. Adequate parking facilities for customers are crucial for success. Strategic positioning relative to competitors should provide competitive advantage without oversaturation.

Catchment Area Analysis

The surrounding area should have a minimum population of 2-3 lakh within 5 km radius to ensure sufficient customer base. Household income levels should range from ₹3-15 lakh annually, indicating purchasing power for fashion products. Age demographics should show 50%+ population between 18-40 years, representing the core target market. The area should have regular fashion shoppers and brand-conscious consumers who appreciate quality and value.

💼 Business Experience Requirements

Preferred Background

Ideal candidates should have retail experience of 3+ years in retail or fashion industry, providing foundational understanding of the sector. Business management experience with a proven track record in business operations is highly valued. Team leadership experience in managing teams of 10+ people demonstrates operational capability. Understanding of customer relationship management shows market orientation.

Educational Qualifications

A minimum education of graduate degree is preferred, showing basic educational foundation. Business education such as MBA or business management qualification is advantageous for strategic thinking. Industry knowledge and understanding of fashion retail dynamics will significantly contribute to success.

📋 Application Process

🚀 Phase 1: Getting Started

Initial Application Submission

Begin your journey by visiting the official Zudio or Trent Limited franchise inquiry page. Look for sections labeled “Franchise,” “Become a Partner,” or “Business Opportunities” to access the application portal.

When completing your application form, provide comprehensive details including personal information and contact details, complete business background and previous experience, honest assessment of investment capacity and financial status, detailed preferred location analysis with market research, and realistic timeline for store launch and operations.

Preliminary Screening Process

During this stage, the Zudio team conducts an initial assessment of your eligibility criteria against their standard requirements. You’ll participate in a detailed phone interview discussing your business goals, expectations, and vision for the franchise. The team will also perform a preliminary assessment of your proposed location to gauge its commercial viability.

🔍 Phase 2: Deep Dive Evaluation

Financial Documentation Review

You’ll need to submit comprehensive financial documents that paint a complete picture of your financial health. This includes income tax returns for the last 3 years, bank statements covering the last 12 months, audited financial statements if you operate existing businesses, and solid proof of investment sources and fund availability.

Business Plan Presentation

Prepare a detailed study of local market conditions, including demographic analysis and customer behavior patterns. Conduct thorough analysis of competing brands and stores in your chosen area. Develop comprehensive 5-year business plan with realistic revenue forecasts and growth projections. Create a robust local marketing strategy focusing on customer acquisition and retention plans.

Location Assessment

The Zudio team will visit your proposed location for firsthand evaluation. They’ll conduct detailed evaluation of catchment area demographics and customer potential. Commercial viability assessment considers factors like foot traffic, accessibility, and competition. Infrastructure verification ensures the space meets all technical and operational requirements.

✅ Phase 3: Final Approval Journey

Due Diligence Process

This comprehensive phase includes complete background verification of the applicant’s personal and professional history. Financial verification confirms your actual investment capacity and fund sources. Business and personal reference checks validate your credibility and track record.

Franchise Agreement Finalization

Engage in detailed discussion of franchise terms, conditions, and mutual obligations. Complete all legal documentation and sign the official franchise agreement. Make payment of franchise fee and required security deposit to secure your territory.

Store Development Planning

Collaborate closely with Zudio’s design team on store layout and interior design that aligns with brand standards. Develop a realistic timeline for store launch with clear milestones. Get introduced to approved vendors and suppliers for seamless setup process.

🏪 Phase 4: Store Launch Preparation

Construction and Setup

Execute store renovation according to strict brand guidelines and quality standards. Install all display fixtures, equipment, and technology infrastructure. Set up POS systems and complete IT infrastructure installation for smooth operations.

Inventory and Staffing

Procure and arrange opening inventory based on local market preferences and seasonal trends. Recruit qualified store personnel through structured hiring process. Implement comprehensive training programs for all staff members to ensure service excellence.

Grand Opening Strategy

Conduct a soft launch with trial operations to identify and resolve any operational issues. Execute local marketing campaign and promotional activities to build awareness. Plan and execute official grand opening with full operations and community engagement.

📄 Required Documents

👤 Personal Documentation

Identity and Address Proof

Your personal document portfolio should include PAN Card as your permanent account number identification, Aadhaar Card for unique identification verification, a valid Passport with current address details, and a valid Driving License as additional identification. Educational Certificates proving your academic qualification background are essential, along with Experience Certificates documenting your work experience and professional journey.

💰 Financial Documentation

Financial Health Verification

Submit your Bank Passbook showing current account and savings account statements for the last 12 months to demonstrate financial stability. Income Tax Returns for the last 3 years’ ITR filings are mandatory to verify income sources. If you operate existing businesses, provide Audited Balance Sheet for the last 3 years. Include detailed Profit & Loss Statement showing financial performance trends. Most importantly, provide Investment Proof clearly showing the source of investment funds and your CIBIL Report displaying credit score and credit history.

🏢 Business Documentation

Legal Business Requirements

Obtain GST Registration certificate for goods and services tax compliance, which is mandatory for retail operations. Secure Shop & Establishment License from local authorities for legal retail operations. Get Trade License from municipal corporation for commercial business operations. Fire Safety Certificate from local fire department ensuring safety compliance is essential. Pollution Control Certificate for environmental clearance may be required depending on location.

🏠 Property Documentation

Location and Space Verification

Provide Property Agreement including lease deed or purchase agreement with clear terms. Submit Property Title with clear title documents free from legal disputes. If applicable in residential complexes, obtain NOC from Society or housing association. Municipal Permissions for building use approvals must be current and valid. Current Property Tax Receipts demonstrate compliance with local tax obligations.

⚖️ Legal Documentation

Business Structure Verification

Depending on your business structure, submit Partnership Deed if applying as a partnership firm, Company Registration documents for corporate entity registration, or Power of Attorney if applying through an authorized representative. The Trademark Agreement will be provided by Zudio, granting legal right to use the brand name and logo.

🏪 Store Setup & Operations

🎨 Store Design Standards

Layout and Visual Appeal

Your Zudio store layout requires strategic zoning with separate sections for men’s, women’s, and kids’ wear to optimize customer shopping experience. Display standards must follow Zudio’s standardized fixtures and display systems for consistent brand presentation. Strict adherence to brand guidelines ensures visual merchandising consistency across all locations. The layout should be optimized for smooth customer flow and easy navigation throughout the store.

Infrastructure Excellence

The store foundation requires high-quality tiles or vitrified flooring that can withstand heavy foot traffic while maintaining aesthetic appeal. Adequate LED lighting systems are essential for optimal product display and creating the right shopping ambiance. A centralized air conditioning system ensures customer comfort throughout the year. A professional background music system enhances the overall shopping atmosphere and customer experience.

💻 Technology Integration

Modern Retail Technology

Your store will feature cloud-based Point of Sale systems that handle billing and inventory management seamlessly. Multiple payment options including UPI, credit/debit cards, and cash ensure customer convenience. Real-time inventory tracking systems help maintain optimal stock levels and prevent stockouts. A comprehensive customer database system enables effective customer relationship management and personalized service.

Digital Infrastructure

High-speed internet connectivity is essential for all operational requirements and customer services. Digital LED displays showcase current promotions, offers, and new arrivals effectively. Advanced CCTV and alarm systems ensure security for merchandise and customers. Sales and customer behavior analytics tools provide valuable insights for business optimization and growth strategies.

👥 Staffing Requirements

Core Team Structure

Your store team should include one experienced Store Manager earning ₹25,000-40,000 monthly who oversees all operations. One to two Assistant Managers earning ₹18,000-25,000 monthly support daily operations and customer service. Six to ten Sales Associates earning ₹12,000-18,000 monthly handle customer interactions and sales. Two to three Cashiers earning ₹12,000-16,000 monthly manage billing and payment processing. Two Security Guards earning ₹10,000-15,000 monthly ensure store and customer safety. One to two Housekeeping staff earning ₹8,000-12,000 monthly maintain store cleanliness and presentation.

Comprehensive Training Program

All staff receive product knowledge training covering all product categories and their features. Sales techniques training focuses on customer service excellence and effective sales methodology. System operation training ensures proficiency with POS and inventory management systems. Brand standards training maintains adherence to Zudio’s service standards and customer experience requirements.

💰 Profit Potential & ROI

📈 Revenue Projections and Growth Trajectory

Monthly Sales Performance

Your Zudio franchise can expect progressive growth in monthly sales performance. During Year 1, anticipate monthly sales ranging from ₹40-80 lakh as you establish your customer base and market presence. Year 2 typically sees significant improvement with monthly sales reaching ₹60-120 lakh as brand recognition strengthens. By Year 3, mature stores often achieve ₹80-150 lakh monthly sales through established customer loyalty and optimized operations.

Annual Turnover Expectations

Revenue potential varies significantly based on location and market dynamics. Tier-1 Cities such as Mumbai, Delhi, and Bangalore can generate ₹8-18 crore annually due to higher purchasing power and dense population. Tier-2 Cities including Pune, Jaipur, and Lucknow typically achieve ₹5-12 crore annual turnover with growing middle-class consumption. Tier-3 Cities like Agra, Nashik, and smaller urban centers generally produce ₹3-8 crore annually but offer lower operational costs.

💵 Comprehensive Profit Analysis

Understanding Your Margins

As a Zudio franchise owner, you can expect profit margins ranging from 10% to 20% on total sales, depending on operational efficiency and location performance. The margin structure includes Gross Margin of 40-50% on retail selling price, reflecting the value positioning of products. Operating Expenses typically consume 25-35% of revenue, covering rent, staff, utilities, and other operational costs. Net Profit Margin ranges from 10-20% of total sales after all expenses and company fees.

Monthly Operating Expenses Breakdown

Your monthly fixed costs will include rent payments ranging from ₹3-15 lakh depending on location and store size. Staff salaries typically cost ₹4-8 lakh monthly for a full team. Utilities including electricity, water, and telecommunications range from ₹50,000-₹1.5 lakh. Maintenance costs for store upkeep and equipment servicing require ₹25,000-₹75,000 monthly. Insurance coverage for comprehensive business protection costs ₹15,000-₹30,000 monthly.

Variable Cost Management

Inventory replenishment represents 50-60% of sales, requiring careful management for optimal cash flow. Marketing and promotional activities typically consume 1-2% of sales for local customer acquisition. Miscellaneous expenses for unexpected costs should be budgeted at ₹25,000-₹50,000 monthly.

📊 ROI Timeline and Expectations

Investment Recovery Path

Your break-even period typically ranges from 24-36 months, depending on location performance and operational efficiency. Post break-even, expect ROI of 20-30% annually as your business matures and customer base stabilizes. The complete payback period for initial investment usually spans 4-6 years with consistent performance. Long-term growth potential offers 15-25% annual growth as the brand expands and market presence strengthens.

Support & Training

Pre-Launch Support

Site Selection Assistance

  • Location Evaluation: Expert assessment of proposed locations
  • Market Research: Detailed market analysis and feasibility study
  • Lease Negotiation: Guidance on rental negotiations
  • Legal Support: Assistance with property documentation

Store Setup Support

  • Design Consultation: Store layout and interior design guidance
  • Vendor Coordination: Introduction to approved vendors and contractors
  • Equipment Procurement: Assistance in equipment purchase and installation
  • Technology Implementation: Setup of POS and management systems

Training Programs

Franchisee Training

  • Business Operations: 2-week intensive training program
  • Financial Management: Accounting and financial reporting systems
  • Inventory Management: Stock procurement and management
  • Quality Standards: Brand compliance and quality maintenance

Staff Training

  • Product Training: Comprehensive product knowledge sessions
  • Customer Service: Service excellence and customer handling
  • Sales Techniques: Effective selling and upselling strategies
  • Visual Merchandising: Product display and store presentation

Ongoing Support

Operational Support

  • Regular Store Visits: Periodic visits by company representatives
  • Performance Monitoring: Monthly performance reviews and guidance
  • Inventory Planning: Assistance with stock planning and procurement
  • Technology Updates: Regular system updates and maintenance

Marketing Support

  • National Campaigns: Participation in brand-wide marketing initiatives
  • Local Marketing: Support for regional promotional activities
  • Digital Marketing: Online presence and social media support
  • Seasonal Promotions: Festival and seasonal campaign support

Market Analysis

Indian Fashion Retail Market

Market Size and Growth

  • Current Market Size: ₹4.6 trillion (2024)
  • Projected Growth: 12-15% CAGR through 2028
  • Organized Retail Share: 35-40% and growing
  • Online vs Offline: 70% offline, 30% online currently

Consumer Trends

  • Value Consciousness: Increasing demand for value-for-money products
  • Brand Awareness: Growing preference for branded fashion
  • Fashion Adoption: Faster adoption of global fashion trends
  • Digital Influence: Social media driving fashion choices

Competitive Landscape

Direct Competitors

  • Reliance Trends: Similar positioning, larger store formats
  • Pantaloons: Broader price range, established presence
  • Max Fashion: Landmark Group’s value fashion brand
  • V-Mart: Focus on smaller cities and towns

Competitive Advantages

  • Tata Brand Trust: Unmatched brand credibility in Indian market
  • Price Positioning: Optimal balance of quality and affordability
  • Product Range: Comprehensive family fashion destination
  • Supply Chain: Efficient procurement and distribution network

Target Customer Analysis

Primary Demographics

  • Age Group: 18-45 years
  • Income Level: ₹3-15 lakh household income annually
  • Lifestyle: Fashion-conscious, value-seeking consumers
  • Shopping Behavior: Regular fashion shoppers, family-oriented

Customer Preferences

  • Quality Expectation: Good quality at reasonable prices
  • Variety Demand: Wide range of styles and options
  • Shopping Experience: Pleasant and hassle-free experience
  • Brand Trust: Preference for trusted and reliable brands

Challenges & Risk Assessment

Business Challenges

Market-Related Risks

  • Competition Intensity: Aggressive competition from established and new players
  • Economic Sensitivity: Fashion retail affected by economic downturns
  • Seasonal Fluctuations: Significant variations in seasonal sales
  • Changing Preferences: Rapidly evolving consumer fashion preferences

Operational Challenges

  • Inventory Management: Balancing stock levels with demand patterns
  • Staff Management: High attrition rates in retail sector
  • Real Estate Costs: Increasing rental costs in prime locations
  • Technology Adaptation: Keeping pace with retail technology evolution

Financial Risks

Investment Risks

  • High Capital Requirement: Substantial upfront investment needed
  • Long Payback Period: Extended time to recover initial investment
  • Market Volatility: Fashion retail susceptible to market changes
  • Location Dependency: Heavy dependence on location success

Mitigation Strategies

  • Thorough Market Research: Comprehensive analysis before investment
  • Location Expertise: Leverage Zudio’s site selection expertise
  • Financial Planning: Maintain adequate working capital reserves
  • Insurance Coverage: Comprehensive business insurance protection

Regulatory Considerations

Compliance Requirements

  • Labor Laws: Adherence to state and central labor regulations
  • Tax Compliance: GST and income tax obligations
  • Safety Standards: Fire safety and building code compliance
  • Environmental Norms: Pollution control and waste management

Franchise Agreement Terms

  • Territory Exclusivity: Understanding of territorial rights and limitations
  • Performance Metrics: Meeting agreed performance standards
  • Renewal Terms: Conditions for franchise renewal
  • Exit Clauses: Understanding of termination conditions

Success Strategies

Location Strategy

Site Selection Best Practices

  • Demographic Matching: Align location with target customer profile
  • Competition Analysis: Optimal distance from direct competitors
  • Growth Potential: Consider area development and infrastructure plans
  • Visibility Factor: Ensure maximum brand visibility and accessibility

Negotiation Tips

  • Rental Terms: Negotiate flexible rental escalation clauses
  • Lease Duration: Secure long-term lease with renewal options
  • Maintenance Responsibility: Clear allocation of maintenance costs
  • Exit Options: Include exit clauses for unforeseen circumstances

Operational Excellence

Customer Experience Enhancement

  • Service Training: Regular training for exceptional customer service
  • Product Knowledge: Ensure staff expertise in all product categories
  • Quick Service: Efficient billing and customer handling processes
  • Feedback System: Regular customer feedback collection and action

Inventory Optimization

  • Demand Forecasting: Use historical data for accurate demand prediction
  • Seasonal Planning: Plan inventory according to seasonal trends
  • Fast-Moving Items: Focus on high-velocity products
  • Dead Stock Management: Implement strategies to minimize slow-moving inventory

Marketing and Promotion

Local Marketing Strategies

  • Community Engagement: Participate in local events and festivals
  • Social Media Presence: Active local social media marketing
  • Customer Loyalty: Implement customer retention programs
  • Word-of-Mouth: Encourage customer referrals and testimonials

Promotional Activities

  • Grand Opening: Impactful launch campaign with attractive offers
  • Seasonal Sales: Regular promotional events during festivals and seasons
  • Customer Events: Fashion shows, styling sessions, and customer events
  • Partnerships: Collaborate with local influencers and organizations

Financial Management

Cash Flow Optimization

  • Payment Terms: Negotiate favorable payment terms with suppliers
  • Credit Management: Offer credit options to increase sales
  • Expense Control: Regular monitoring and control of operational expenses
  • Revenue Diversification: Explore additional revenue streams

Performance Monitoring

  • Daily Sales Tracking: Monitor daily sales and performance metrics
  • Expense Analysis: Regular review of all expense categories
  • Profit Margins: Track margins on different product categories
  • ROI Calculation: Regular calculation of return on investment

Market Expansion Opportunities

Multi-Store Opportunities

  • Territorial Expansion: Potential for multiple store ownership
  • Format Variations: Different store formats for different locations
  • Market Penetration: Deeper penetration in successful markets
  • Investment Scaling: Gradual expansion with proven success

Future Growth Prospects

  • Digital Integration: E-commerce and omnichannel opportunities
  • Category Expansion: New product categories and services
  • Technology Adoption: Advanced retail technologies and analytics
  • Sustainability Initiatives: Eco-friendly and sustainable fashion options

Contact Information

Official Contact Channels

Trent Limited Franchise Division

  • Website: Visit Trent Limited’s official franchise portal
  • Email: Contact franchise development team through official channels
  • Phone: Call corporate franchise helpline
  • Address: Trent Limited Corporate Office, Mumbai

Application Submission

  • Online Portal: Primary application through official website
  • Document Upload: Digital submission of required documents
  • Follow-up: Regular communication with assigned relationship manager

Regional Offices

  • North India: Delhi, Gurgaon regional offices
  • West India: Mumbai, Pune regional presence
  • South India: Bangalore, Chennai regional teams
  • East India: Kolkata regional support

Support Channels

  • Franchise Helpline: Dedicated support for franchise inquiries
  • Technical Support: IT and technology assistance
  • Marketing Support: Brand and marketing guidance
  • Operations Support: Ongoing operational assistance

Conclusion

The Zudio franchise opportunity represents a compelling business proposition for entrepreneurs seeking to enter India’s dynamic fashion retail market. With the backing of the Tata Group’s reputation and Trent Limited’s retail expertise, franchisees benefit from a proven business model, comprehensive support system, and strong brand equity.

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