A recent collaborative study by The Fourth Wall, a Filipino-focused sociocultural research firm, and Uniquecorn Strategies, a communications firm, has found that Filipino Gen Z consumers predominantly spend to reward themselves after a stressful situation or day.

According to the study, nearly 75% of urban Filipino Gen Z consumers shop online because they feel they deserve it. This behavior is driven by their pursuit of happiness, fear of missing out on trends, and the need to reward themselves for overcoming stress from work or studies.

The survey indicated that half of a typical Filipino Gen Z’s income comes from parental allowances, while the other half is earned through full-time jobs, businesses, or part-times. On average, they make six online purchases per month, with the number ranging from one to ten.

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

He explained that this self-rewarding behavior is rooted in their growing self-awareness, leading them to seek rewards that affirm their sense of self-worth. John also linked this to the Filipino “sayang” (wastefulness) mindset, where daily struggles and deprivations drive them to seize rewarding opportunities to avoid missing out.

Filipino Gen Zs are discerning shoppers who prioritize quality (81%) and price competitiveness (10%). They are likely to repurchase from brands that consistently offer high-quality and affordable products but remain open to trying new brands despite emotional attachments to their current ones.

The study also revealed that Filipino Gen Zs make purchasing decisions based on trust and personal connections. About 81% of them do not buy a product immediately after hearing about it but instead search for customer reviews on shopping platforms and Google.

Word of mouth remains a primary method for discovering products (60%), with social commerce ads (59%) also playing a significant role. They take recommendations from trusted individuals, friends, and family seriously and are influenced by honest, objective reviews from influencers or content creators with relevant expertise.

As the first generation to grow up with the internet and digital devices, Gen Z prefers the convenience of online shopping. Almost all respondents (92%) use mobile phones for purchases, and 53% favor cashless payment methods.

Dean Bernales, founder and CEO of Uniquecorn Strategies, emphasized the importance of understanding the shopping habits of the younger generation. “Online retailers must pay close attention to the desires and needs of Filipino Gen Zs. Brands should reassess their supply chain strategies and enhance their social commerce platforms to build trust, foster personal connections, and create a relatable image to attract the young market,” he said.

The study identifies several opportunities for brands to connect more effectively with Filipino Gen Z consumers. Advertising on emerging media platforms like podcasts presents significant potential. Brands can enhance their appeal by incorporating elements of self-expression and identity into their branding.

According to the latest official 2020 census by the Philippine Statistics Authority, Gen Zs in the Philippines number about 41 million, making up approximately 38% of the total population.

Moreover, tailoring messaging strategies and formats to align with influencers’ content can resonate with their niche audiences. Creating personalized subscription models for fast-moving consumer goods (FMCGs) can provide an immersive experience, promoting convenience and catering to personal preferences. Engaging with Gen Z’s hobbies, interests, and desired personal images when developing brands, products, and services can further boost their engagement and loyalty.

H/T: adobomagazine