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Closing the Innovation Gap by Aligning Execution With Shopper Needs

In retail today, innovation is not just about what is new, it’s about what shoppers notice. Standing in store aisles, one truth becomes clear: there is a widening chasm between what brands launch and what consumers perceive as innovative.



Industry research reveals this disconnect across consumer goods categories, where even thoughtfully developed innovations fail to capture shopper attention at the critical moment of truth: the shelf. This is not a product development challenge. It is an execution crisis that demands brands rethink how they bring innovation to life where it matters most.

 

The Modern Innovation Paradox

Despite strong economic data, 73% of consumers believe personalized experiences are important, while only 60% believe current personalization is sufficient. This expectation gap extends to innovation itself.

 

Today's shoppers want elevated experiences, quality, and innovation beyond good deals. Yet many innovations go unnoticed despite significant investment, not because they lack merit, but because they become invisible to consumers at the moment of purchase.

 

In 2025, 84% of retail sales will take place in stores, yet less than 1% of retail media spending goes toward in-store opportunities. This stark imbalance reveals where the innovation perception gap emerges at physical touchpoints where most purchasing decisions are made.

 

The Execution Imperative

This perception gap reveals why field activation has evolved from a tactical necessity to a strategic differentiator. With Gen Z representing USD 9.8 trillion in global customer value and stores evolving into immersive destinations, in-store execution quality directly impacts innovation perception.

 

Modern field activation must orchestrate multiple elements: ensuring product availability coincides with launch timing, optimizing shelf placement for visibility, implementing planograms that tell innovation stories, and maintaining promotional compliance. Without proper positioning and support, new products become just another SKU rather than meaningful innovation.

 

Research shows 71% of consumers would shop more frequently with brands offering AR experiences, yet these technologies mean little without human expertise to implement them effectively at retail.

 

Technology Meets Human Insight

Seven in ten retail executives expect AI capabilities within the year to help personalize experiences, yet sophisticated technology means little without human expertise, local market understanding, and strong retailer relationships.

 

Field activation leverages data analytics to optimize coverage and merchandising standards, but experienced merchandisers who understand category nuances transform data into meaningful shopper experiences. This enables predictive approaches: anticipating needs, optimizing timing, and ensuring innovation stories are told consistently across thousands of touchpoints.

 

The Competitive Advantage

The opportunity is unprecedented. While competitors focus on product innovation or digital transformation in isolation, the greatest returns come to those mastering the intersection, bringing innovations to life through execution that creates genuine shopper recognition.

 

Success in 2025 requires synchronized launch excellence, continuous perception monitoring, and adaptive execution strategies that pivot based on real-time feedback. Retailers increasingly expect flexibility: 58% of consumers prefer buy-online-return-in-store options, and 65% want to check in-store availability online before visiting.

 

The brands that win won’t just launch better products. They will ensure those products are perceived and chosen by shoppers who increasingly expect flexibility and elevated experiences. The innovation perception gap represents both a challenge and an opportunity.

 

At DKSH, our Field Activation services cover 26,000 stores across six markets. We are supported by 1,490 dedicated merchandisers. With coordinated launch planning, smart inventory management, and long-standing retailer relationships, we help ensure your innovations reach shelves effectively and are seen by the right shoppers at the right time.

 

Reach out to us to explore how we can support your field activation strategies. 

 

Sources:

·        Retail Trends 2025

·        10 retail trends for 2025

·        Retail Distribution Industry Outlook

·        Retail Predictions

·        The Future of Shopping Experiences

·        Retail Industry Trends Innovation

·        The Future of Shopping: 3 trends that will define-2025

·        Retail 2024 wrap and 7 trends in-store for 2025

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