Given the growth of e-commerce, are Filipino Gen Zers a fan of online shopping? A recent study has shared some insights on their preferences. 

Gen Z, believe it or not, now makes up 38% of the Philippines’ total population. This according to the latest census from the Philippine Statistics Authority (PSA), which is cited in a recent study done by sociocultural research firm The Fourth Wall and communications firm Uniquecorn Strategies on Filipino Gen Z.

According to John Brylle L. Bae, the Research Director at The Fourth Wall, this age group, which includes those who were born from 1997 to 2012, has become “a significant portion of the consumer market, and is already shaping market trends, especially the e-commerce space.” 

In fact, the study shows that a Gen Zer makes an average of six online purchases per month. Some push it further and make a maximum of 10 online purchases per month. These numbers show that Gen Zers are willing to spend and buy products that have caught their attention. 

This is where the challenge lies for businesses who want to cater to this generation. In order to catch their attention, it is crucial for businesses to first understand the preferences and habits of Gen Zers and what factors affect their decision to purchase. 

Filipino Gen Z Prefers Online Shopping

Data from the study shows that 42% of the 400 Filipino Gen Zers surveyed prefer to purchase products from Shopee once they’ve made the decision to buy. Around one sixth, or 16%, said that they prefer making purchases from Lazada, while 9% prefer TikTok Shop. 

Despite the clear preference for e-commerce platforms, there are still Gen Zers who prefer to shop offline. In fact, 31% said that they prefer to go to physical stores to make their purchases. 

Shopping Using a Mobile Phone 

For those who prefer to make purchases online, 92% said they prefer to do it on their own mobile phone. Only 4% said that they prefer to purchase using their own laptop and even less Gen Zers prefer to use a desktop computer (2%) to make their purchases. 

The study notes that not a single person among the the respondents said that they prefer using a borrowed device to make their purchases. 

Cash or Cashless? 

Those who shop in physical stores pay using cash or opt for cashless modes of payment. The latter has been made more convenient these days due to the availability of e-wallets, bank apps, and QR codes. 

Despite this, Filipino Gen Z is almost evenly split when it comes to their payment preference. 47% prefer to still pay in cash, while 53% prefer to make their payments using cashless methods. 

Preference for Cash on Delivery 

Paying in cash is an option that even those who purchase online can enjoy as e-commerce platforms typically offer the cash on delivery option (COD). For Gen Zers who shop online, this is their most used payment method (34%). 

GCash follows closely at 32%, while 25% of Gen Zers prefer to use their credit or debit cards. Other preferred payment methods of Gen Zers include Maya, bank transfers, ShopeePay, and SPayLater. The last two are payment methods offered by Shopee to its users. 

Trust Issues

The preference to pay in cash is a very notable insight from the study and stems from trust issues that Gen Zers have with online platforms. According to the study, Gen Zers are very cautious when it comes to online platforms and are, therefore, hesitant to spend money by making purchases on them. 

In addition, Gen Zers are very much aware that fraud is prevalent online. Therefore, they prefer to see and touch products first before making any purchase. 

Filipino Gen Z: Key Takeaways 

Given the issues that Gen Zers have with online platforms, brands that do business on these platforms face the challenge of gaining their trust. This can be achieved by emphasizing authenticity of products and services and by ensuring the online modes of payment are safe and secure. 

The study has also clearly shown that, despite the prevalence of online platforms and modes of payments, Gen Zers still clearly trust products that they can see and each. Gen Zers likewise still have a preference for shopping in physical stores. These insights are undoubtedly beneficial to businesses with brick-and-mortar stores or those who are planning to open one but are concerned about attracting attention from Gen Zers.