DIGITAL NATIVES On average, Filipino Gen Zs make six online purchases per month. —LYKA RAPAL
“Deserve ko ‘to!” (I deserve this!)
It’s a phrase that Filipinos have come to use to reaffirm their spending habits, which sometimes can be described as compulsive, especially when facing tempting discounts and promos that are offered right around pay days.
It’s a behavior that’s seen strongly among today’s Gen Z consumers, who spend primarily to reward themselves, says a recent study—one that is crucial for brands to understand in order to cater to this growing demographic, and facilitate immersive shopping experiences that promote convenience and appeal to their personal preferences.
The study, jointly conducted by Filipino-focused sociocultural research firm The Fourth Wall and communications firm Uniquecorn Strategies, says that three out of four Filipino Gen Z consumers living in urban areas shop online because they believe that they deserve it—a philosophy driven by their desire for happiness, fear of missing out on trends and the need to simply give themselves a gift for overcoming work or study-related stress.
The survey, conducted among 400 Gen Z consumers in Metro Manila, shows that 50 percent of a typical Filipino Gen Z’s finances come from parental allowances, while the other half 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.
Citing prior research, the study notes that there are about 41 million Gen Zs (born between 1996 and 2010) in the Philippines, making up about 38 percent of the total population, according to Philippine Statistics Authority’s latest official 2020 census.
“The young generation is rapidly becoming a significant portion of the consumer market, and is already shaping market trends, especially the e-commerce space,” says John Brylle Bae, research director at The Fourth Wall. “This self-rewarding behavior among Filipino Gen Zs stems from their growing self-awareness, driving them to seek rewards that affirm that sense of self-worth.”
The research, which leveraged machine learning clustering and social listening, also identify five dominant psychographic profiles of urban Filipino Gen Z consumers, who have distinct preferences and motivations:
- the Austere Austins, who prioritize budget-friendly options;
- the Budgetarian Bellas, who focus on cost-effective choices;
- the Frugal Fionas, who advocate for affordable and sustainable products; and
- the Deserving Desires, who seek rewards for their hard work and dedication.
Intelligent buyers
Overall, however, Filipino Gen Zs are intelligent buyers, the study states. They splurge based on quality (81 percent) and price competitiveness (10 percent), and are most likely to repurchase from the same brand that consistently delivers high-quality and affordable products. Still, they are willing to try other brands, even if they are emotionally attached to their preferred ones.
The study also shows that Filipino Gen Zs buy based on trust and personal affinity. Upon hearing about a product, 81 percent do their due diligence and look up customer reviews first on shopping platforms and Google.
Word of mouth, therefore, is still one of the primary ways they discover products (60 percent), while others rank social commerce ads (59 percent) as important to their shopping experience. They take cues from the people they deeply trust, which include friends and family. They are also more influenced by honest, objective, or out-of-pocket reviews from influencers or content creators with the right expertise.
These digital natives, naturally, also prefer the convenience of online shopping. Almost all the respondents (92 percent) use their own mobile phones for purchases and prefer cashless payment methods (53 percent).Given this, 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, and brands can leverage self-expression and identity in their branding to establish a personal affinity with target customer personas.
Tuning into these behaviors, says Uniquecorn Strategies founder and CEO Dean Bernales, will ultimately help brands come up with the right strategy to employ to capture the Gen Z market.
“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,” Bernales says. —Contributed INQ