Filipino Gen Zs prioritize self-reward when shopping, study finds

Filipino Gen Z spend primarily to reward themselves, according to a joint study by the Filipino-focused sociocultural research firm The Fourth Wall and communications firm Uniquecorn Strategies.

About three out of four Filipino Gen Z consumers living in urban areas said they shop online because they believe that they deserve it. This shopping philosophy is driven by their desire for happiness, fear of missing out on trends, and the need to reward themselves for overcoming work or study-related stress.

The survey revealed that 50% of a typical Filipino Gen Z’s finances come from parental allowances, while the other 50% come from full-time work, businesses, or side gigs. On average, they make six online purchases per month, ranging from a minimum of one to a maximum of 10.

“The young generation is rapidly becoming a significant portion of the consumer market, and is already shaping market trends, especially the e-commerce space,” said John Brylle L. Bae, research director at The Fourth Wall.

“This self-rewarding behavior among Filipino Gen Zs stem from their growing self-awareness, driving them to seek rewards that affirm that sense of self-worth,” he added.

Mr. Bae also attributed this behavior to the Filipino “sayang” mindset, where daily struggles and deprivations lead them to seize rewarding opportunities out of fear of missing out.

The study adds that urban Filipino Gen Zs are intelligent buyers as they splurge based on quality (81%) and price competitiveness (10%). They are most likely to repurchase from the same brand that consistently delivers high-quality and affordable products, but are also willing to try other brands even if they are emotionally attached to their current ones.

The study also found that Filipino Gen Zs buy based on trust and personal affinity. Upon hearing about a product, 81% of them do not purchase immediately but search customer reviews first on shopping platforms and Google.

They still primarily rely on word of mouth to discover products (60%), while others rank social commerce ads (59%) as important to their shopping experience. They take cues from the people they deeply trust, friends, and family. They are also more influenced by honest, objective or out-of-pocket reviews from influencers or content creators with appropriate expertise.

Gen Z is known as the first generation to grow up with the internet and digital devices practically glued to their hands, which means they prefer the convenience of online shopping. Almost all the respondents (92%) use their own mobile phones for purchases and prefer cashless payment methods (53%).

Given this, Uniquecorn Strategies Founder and CEO Dean Bernales said that it is important to understand the consumer behavior of the younger generation.

“Online retailers should pay close attention to the shopping desires and needs of Filipino Gen Zs. Brands need to reassess their supply chain strategies and enhance their social commerce platforms to build trust, create personal connections, and develop a relatable image to capture the young market,” Mr. Bernales said.

As a result, the study identifies several key opportunities for brands to connect with Filipino Gen Z consumers more effectively. There is a significant potential for advertising on more personal yet credible emerging media platforms such as podcasts. Brands can leverage self-expression and identity in their branding to establish a personal affinity with target customer personas.

Additionally, adapting different messaging strategies and formats to align with influencers’ content can appeal to their niche audiences. Creating personalized subscription models for fast-moving consumer goods (FMCGs) can offer an immersive experience while promoting convenience and catering to personal preferences.

Tapping into Gen Z’s hobbies, interests, and desired personal images when developing brands, products, and services can further enhance their engagement and loyalty.

Citing prior research, the study noted that there are about 41 million Gen Zs in the Philippines, making up for about 38% of the total population, according to Philippine Statistics Authority’s latest official 2020 census.