Underbond Trading

Key Partners

Who are your key partners?
2. Who are your key suppliers?

Alcohol Manufacturers and Importers

From Large Scale Manufacturing and bottling companies, to small Exporters and Importers based in Europe, UK, UAE and other target markets.

Traders

Traders specializing in Underbond trading and doing business globally from the Western World to Middle East and South East Asia. The bigger the network, the better as it gives us not only International exposure but diverse choices to buy and sell our products.

Bonded Warehouses

Having Bonded Warehouses as Key Partners is essentially important because not only they handle the transport and logistics, but also gives us access to a vast database of potential customers in the market.
For Underbond Trading of Alcohol,having partnerships or accounts in bonded warehouses such as Loendersloot (Netherlands), Seabrooks (UK) is essential as they are major players in Storage and Logistics which forms a major part of Trading business.

Freight Forwarding Companies

Having Freight Forwarders as partners can be highly beneficial to the business as Forwarding and Logistics form a major part of any trade business.

Key Activities

What are your key activities?

Underbond Trading

Trading of Alcohol from Bond to Bond, i.e., from one Bonded Warehouse to another across Europe and UK through various trade organizations established all over the world.

Sales/Purchase of Alcoholic Beverages

Purchase of Alcoholic Beverages from Manufactures and Distributors and selling them to Wholesellers and Retailers in UK and Europe, which includes obtaining a WOWGR Licence from HMRC.

Trading of other Products

Having a general trading licence based in UAE gives us the freedom to trade other products as well, from FMCG to Tobacco, which can be done using the Underbond Network and Partnerships with Bonded Warehouses.

Value Proposition

What are your value propositions?

Competitive Rates

Providing good market prices by purchasing alcohol from direct manufactures in bulk and selling in bulk as well.

selling best and genuine products as well as cheap fast selling products

In the alcohol business, it is essentially important to have a wide range of products, from High Value Scotch such as Johnny Walker to cheap market Vodka like Glens which sells fast in UK Markets. Having a wide range helps keep the buyers in control and stops them from going elsewhere.

Customer Relationships

Your customer relationships?

Regular Correspondence

In trading, it is essentially important to have a regular correspondence with buyers and sellers, as it is not only helps in maintain a grip in the market but also maintains good customer relationships.

Flexibility and Understanding Customers

Due to many unforeseen reasons, sometimes the deals break off at the last moment and don't go through but we should never spoil any relation and look forward to further business

Monitoring of Products

It is very important to have regular monitoring of products that are lying in bonded warehouses in order to keep the quality up to the mark always which in turn never spoils customer relationships.

Customer Segments

Customer Segments

Traders (B2B)

Wholesalers and Retailers (B2C)

Selling to various Wholesalers such as Cash and Carries in UK and retailers across the world depending on the network and demands.

Key Resources

What are your key resources?

Licences and Banking

General Trading licences based in Trade Free Zones in UAE which in turn gives us Banking and Tax Freedoms.

Financial Backing

Good Financial Backing to buy your own stock Pre Season and stock them in Bonded Warehouses so you can have best and Competitive Rates in the market.

Team of Traders

A good team of Traders who can execute Underbond Trading using various online Portals and Websites and travel at the same time to various exhibitions and conferences across the world to increase and expand the business. The should have knowledge of International Trade including Logistics and Customs Procedure and Freight Forwarding.

Channels

Channels

Online Web Portals

To increase the network of Underbond Traders using websites like Exporters.SG and Alibaba. These portals are brilliant to get in touch with other Traders and execute Underbond Operations.

Business Meetings/Conferences

Business Conferences and Exhibitions are held on a yearly basis in trade rich countries like Singapore, Hong Kong, Dubai etc. These places are best places to network and make new business connections to expand the business.

Cost Structure

What about your cost structure?

Licences and Banking

Initial Cost to obtain Licences, example below (Proposition received from a Company Formation organization in UAE) :

A. General Trading License with Virtual Office
Activity
COST (AED)
Periodicity
General Trading License
15,000
Per annum
Third party Liability Insurance for Office
1,500
Per annum
General Service for Office
1,200
Per annum
Internet Listing
300
Per annum
Signboard for Office
300
Per annum
Flexi Lounge
15,000
Per annum
Total
33,300
First time Payment
Total
33,300
Yearly Payment for renewal

Office/Staff Expenditures

Office Expenses
Staff Salaries

Warehouse/Logistics Cost

Storage and Transportation cost to store and transport products.

Stock Purchase

Buying few loads of Alcohol and Other FMCG Products.

Revenue Streams

What are your revenue streams?

Profits from Underbond Deals

Profit Margins from Underbond deals made. These margins are good when the quantity is more as it is a quantity oriented market more than quality.

Regular Revenue from Wholesale Markets

Regular selling of products to Wholesalers and Retailers and earning small but regular profits out of it keeps the revenue stream moving

Revenue from Bonded Warehouses

Using the partnerships with Warehouses to bring them more business and earning margins out of deals and businesses. Also providing business solutions using Freight Forwarding connections.