Filipino Gen Z Shopping Habits Revealed

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

The 41 million Gen Zs in the Philippines comprise about 38% of the total population.

The study found that about three out of four Filipino Gen Z consumers living in urban areas shop online because they believe 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.

Financial Sources and Spending Habits

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 ten.

John Brylle L. Bae, Research Director at The Fourth Wall, emphasized the significance of this behavior: “The young generation is rapidly becoming a significant portion of the consumer market and is already shaping market trends, especially in the e-commerce space. This self-rewarding behavior among Filipino Gen Zs stems from their growing self-awareness, driving them to seek rewards that affirm their sense of self-worth.”

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

Intelligent and Trust-Based Buying

Urban Filipino Gen Zs are intelligent buyers, with 81% prioritizing quality and 10% focusing on price competitiveness.

They are likely to repurchase from brands that consistently deliver high-quality and affordable products but remain open to trying other brands even if they are emotionally attached to their current ones.

Trust and personal affinity play a critical role in their purchasing decisions. Upon hearing about a product, 81% of them do not purchase immediately but instead search for customer reviews on shopping platforms and Google.

Word of mouth remains a primary source of product discovery (60%), while social commerce ads are also important to their shopping experience (59%).

They rely on recommendations from friends, family, and trusted influencers who provide honest, objective reviews.

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Online Shopping Preferences

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 their mobile phones for purchases and favor cashless payment methods (53%).

Given these preferences, Uniquecorn Strategies founder and CEO Dean Bernales emphasized the importance of understanding 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.”

Opportunities for Brands

The study identifies several key opportunities for brands to connect with Filipino Gen Z consumers more effectively.

There is 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.

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.

When developing brands, products, and services, tapping into Gen Z's hobbies, interests, and desired personal images 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 about 38% of the total population, according to the Philippine Statistics Authority's latest official 2020 census.