ONLINE RETAILERS will need to rethink how they advertise to Gen Z consumers, who are emerging as their most enthusiastic users, according to the results of a study.
In a joint study, The Fourth Wall and Uniquecorn Strategies concluded that Gen Zs (born between 1997 and 2012) are now solidly in favor of online shopping.
“Almost all the respondents (92%) use their own mobile phones for purchases and prefer cashless methods (53%),” they said.
The study, which surveyed 400 people, found that three out of four Filipino Gen Z consumers in urban areas shop online because they believe they deserve it, which the study referred to as the “Deserve ko ’to” mentality.
“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,” according to John Brylle L. 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,” he added.
The Philippine Statistics Authority (PSA) estimates that Gen Zs account for 38% of the population, or 41 million.
Uniquecorn Strategies founder and CEO Dean Bernales said that it is important for retailers to “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,” he added.
According to the study, brands face challenges in establishing trust due to the prevalence of scams and paid endorsements, in establishing personal affinity, and in creating an immersive customer experience.
The study concluded that brands must develop tailor-fit marketing strategies.
The study said partnering with podcast creators may help boost brand awareness and conversion, describing podcasting as an emerging medium for sharing more “personal yet credible brand reviews.”
It added that brands could also encourage thorough and well-crafted reviews left by customers to build trust and drive conversion.
The study said that brands need to focus on the Gen Zs’ entrepreneurial mindset, “Deserve ko ’to” mentality, and emotions.
“Emphasize how your products can support Gen Zs in their side hustles or hobbies, which some also turn into their side businesses,” according to the study.
“For local brands, highlight the process or journey of how the products were sourced, crafted, and transported to reach consumers,” it added. — Justine Irish D. Tabile
