Latent

 Latent Demand Is Typically Larger Than Actual Sales in the Sports Equipment Market - Forbes.comHome  (Related) Business  (Related) Tech  (Related) Markets  (Related) Entrepreneurs  (Related) Leadership  (Related) Personal Finance  (Related) ForbesLife  (Related) Lists  (Related) Opinions  (Related) Video  (Related) Blogs  (Related) E-mail Newsletters  (Related) People Tracker  (Related) Portfolio Tracker  (Related) Special Reports  (Related) Commerce  (Related) Energy  (Related) Health Care  (Related) Logistics  (Related) Manufacturing  (Related) Media  (Related) Services  (Related) Technology  (Related) Wall Street  (Related) Washington  (Related) CIO Network  (Related) Enterprise Tech  (Related) Infoimaging  (Related) Digital Infrastructure  (Related) Internet  (Related) Personal Tech  (Related) Sciences  (Related) Security  (Related) Wireless  (Related) Bonds  (Related) Commodities  (Related) Currencies  (Related) Economy  (Related) Emerging Markets  (Related) Equities  (Related) Options  (Related) Finance  (Related) Human Resources  (Related) Law & Taxation  (Related) Sales & Marketing  (Related) Management  (Related) Technology  (Related) Careers  (Related) Compensation  (Related) Corporate Citizenship  (Related) Corporate Governance  (Related) Managing  (Related) Innovation  (Related) CEO Network  (Related) Reference  (Related) ETFs  (Related) Guru Insights  (Related) Investing Ideas  (Related) Investor Education  (Related) Mutual Funds  (Related) Philanthropy  (Related) Retirement & College  (Related) Taxes & Estates  (Related) Collecting  (Related) Health  (Related) Real Estate  (Related) Sports  (Related) Style  (Related) Travel  (Related) Vehicles  (Related) Wine & Food  (Related) 100 Top Celebrities  (Related) 400 Richest Americans  (Related) Largest Private Cos  (Related) World's Richest People  (Related) All Forbes Lists  (Related) Business Opinions  (Related) Investing  (Related) Technology Opinions  (Related) Washington & The World  (Related) Companies  (Related) People  (Related) Reference  (Related) Technology  (Related) Companies  (Related) Events  (Related) People  (Related) Reference  (Related) Companies  (Related) People  (Related) Companies  (Related) Events  (Related) People  (Related) Reference  (Related) Companies  (Related) Events  (Related) People  (Related) Reference  (Related) 

    ');

//-->

E-mail  (Related)   |



Comments  (Related)   | Request Reprints  (Related)   |








E-Mail Newsletters  (Related)   |
My Yahoo!  (Related)   |
RSS  (Related) 

 Business Wire - Press Release

 Latent Demand Is Typically Larger Than Actual Sales in the Sports Equipment Market

  04.27.07, 9:13 AM ET







 Research and Markets
(http://www.researchandmarkets.com/reports/c55308) has announced the
addition of "The 2007-2012 Outlook for Masks, Pads for Chests,
Kidneys, Knees, and Shoulders, and Other Body Protective Equipment for
All Sports Excluding Helmets in Greater China" to their offering.





  WHAT IS LATENT DEMAND AND THE P.I.E.?





  The concept of latent demand is rather subtle. The term latent
typically refers to something that is dormant, not observable, or not
yet realized. Demand is the notion of an economic quantity that a
target population or market requires under different assumptions of
price, quality, and distribution, among other factors. Latent demand,
therefore, is commonly defined by economists as the industry earnings
of a market when that market becomes accessible and attractive to
serve by competing firms. It is a measure, therefore, of potential
industry earnings (P.I.E.) or total revenues (not profit) if Greater
China is served in an efficient manner. It is typically expressed as
the total revenues potentially extracted by firms. The "market" is
defined at a given level in the value chain. There can be latent
demand at the retail level, at the wholesale level, the manufacturing
level, and the raw materials level (the P.I.E. of higher levels of the
value chain being always smaller than the P.I.E. of levels at lower
levels of the same value chain, assuming all levels maintain minimum
profitability).





  The latent demand for masks, pads for chests, kidneys, knees, and
shoulders, and other body protective equipment for all sports
excluding helmets in Greater China are not actual or historic sales.
Nor is latent demand future sales. In fact, latent demand can be
either lower or higher than actual sales if a market is inefficient
(i.e., not representative of relatively competitive levels).
Inefficiencies arise from a number of factors, including the lack of
international openness, cultural barriers to consumption, regulations,
and cartel-like behaviour on the part of firms. In general, however,
latent demand is typically larger than actual sales in a market.





  For reasons discussed later, this report does not consider the
notion of "unit quantities", only total latent revenues (i.e., a
calculation of price times quantity is never made, though one is
implied). The units used in this report are U.S. dollars not adjusted
for inflation (i.e., the figures incorporate inflationary trends). If
inflation rates vary in a substantial way compared to recent
experience, actually sales can also exceed latent demand (not adjusted
for inflation). On the other hand, latent demand can be typically
higher than actual sales as there are often distribution
inefficiencies that reduce actual sales below the level of latent
demand.





  As mentioned in the introduction, this study is strategic in
nature, taking an aggregate and long-run view, irrespective of the
players or products involved. In fact, all the current products or
services on the market can cease to exist in their present form (i.e.,
at a brand-, R&D specification, or corporate-image level) and all the
players can be replaced by other firms (i.e., via exits, entries,
mergers, bankruptcies, etc.), and there will still be latent demand
for masks, pads for chests, kidneys, knees, and shoulders, and other
body protective equipment for all sports excluding helmets at the
aggregate level. Product and service offerings, and the actual
identity of the players involved, while important for certain issues,
are relatively unimportant for estimates of latent demand.





  For more information visit
http://www.researchandmarkets.com/reports/c55308.


 1 of 1

 Article Controls

E-mail  (Related)   |



Comments  (Related)   | Request Reprints  (Related)   |








E-Mail Newsletters  (Related)   |
My Yahoo!  (Related)   |
RSS  (Related) 

 Related Sections

Home  (Related)   > News & Analysis  (Related) 

 ');

//-->




News Headlines  (Related)   | More From Forbes.com  (Related)   | Special Reports  (Related) 

  







 


 
Subscriptions >  (Related)  Subscriptions >



Subscribe To Newsletters  (Related)  Subscribe To NewslettersSubscriber Customer Service  (Related)  Subscriber Customer Service







    Trading Center 
Brought to you by the sponsors below
    

 Small Businessmore >  (Related) The Entrepreneur Library  (Related)  The Entrepreneur Library

 Ten books that no entrepreneur should be without.
 Sponsored By

 CEO Book ClubThe Sound Of Silence  (Related)  The Sound Of Silence

  Paul Maidment

 Having trouble managing your business? Maybe you talk too much.

READ REVIEW  (Related)           

Heart And Soul  (Related)  Heart And Soul

  Robert Lenzner

 The mind's way to a healthy heart.

READ REVIEW  (Related)           

    
 

 
 

    
 



 Wine Club Auto Insurance Quotes Car Insurance Quotes Credit Card Processing Credit Cards Ecommerce Hosting Health Insurance Leads Home Loans Home Mortgage Loan Life Insurance Leads Life Insurance Quotes Merchant Account Mortgage Leads Mortgage Lenders Mortgage Loans Online Colleges Online Degrees Online Education Online Universities Real Estate Refinance Mortgage Student Loans Wrongful Death Attorney Business Loans Debt Consolidation Loan Health Insurance Quotes Medical Malpractice Lawyer Mesothelioma Attorney Mortgage Mortgage Calculator Restaurant LoansWine Club  (Related) Auto Insurance Quotes  (Related) Car Insurance Quotes  (Related) Credit Card Processing  (Related) Credit Cards  (Related) Ecommerce Hosting  (Related) Health Insurance Leads  (Related) Home Loans  (Related) Home Mortgage Loan  (Related) Life Insurance Leads  (Related) Life Insurance Quotes  (Related) Merchant Account  (Related) Mortgage Leads  (Related) Mortgage Lenders  (Related) Mortgage Loans  (Related) Online Colleges  (Related) Online Degrees  (Related) Online Education  (Related) Online Universities  (Related) Real Estate  (Related) Refinance Mortgage  (Related) Student Loans  (Related) Wrongful Death Attorney  (Related) Business Loans  (Related) Debt Consolidation Loan  (Related) Health Insurance Quotes  (Related) Medical Malpractice Lawyer  (Related) Mesothelioma Attorney  (Related) Mortgage  (Related) Mortgage Calculator  (Related) Restaurant Loans  (Related) 

  

Sitemap  (Related) Help  (Related) Contact Us  (Related) Investment Newsletters  (Related) Forbes Conferences  (Related) Forbes Magazines  (Related) Forbes Autos  (Related) Ad Information  (Related) Forbes.com Mobile  (Related) RSS   (Related) Reprints/Permissions  (Related) Subscriber Services  (Related) Privacy Statement  (Related) Terms, Conditions and Notices  (Related) American History  (Related) Polska  (Related) 

Luxury Cars  (Related) 

Luxury Travel  (Related) 

Oracle DBA by   (Related)