Demystifying the Urban Filipino Youth's Influence in Business

Lazy. Impulsive. Entitled. -- these are the words often associated when people think of Gen Zs. Every generation brings a fresh perspective and faces its own stereotypes. While these labels are prevalent, they often lead us to overlook the unique qualities and valuable strengths that each generation can collectively offer.

Consider that the Philippine Youth Development Plan (PYDP) 2023-2028 defines 'Youth' as those aged 15-30, and data from the Philippine Statistical Authority indicates that Gen Zers and Gen Alpha will constitute a growing majority of the population in the coming decades. With the country's median age currently at 26, it is projected that by 2035, this youth cohort will represent 64% of the population.

As Filipino Gen Zers emerge as a substantial portion of the future market, they present a significant opportunity for businesses. However, despite their potential, our understanding of them remains limited.

Growing up in an internet-connected society has its benefits and drawbacks. On one hand, it offers unprecedented access to information, learning opportunities, and global connectivity. This connectivity empowers individuals to advocate for causes, collaborate on projects, and access resources that were previously out of reach.

On the other hand, constant exposure to global issues and crises can be overwhelming. The barrage of news and social media updates about environmental degradation, political turmoil, and social injustice can lead to feelings of anxiety, helplessness, and burnout. This digital environment can make it difficult for individuals to determine how to make a positive impact or even to take a break from the stress of continuous negative news cycles.

Contrary to popular social belief, a Stanford report indicates that Gen Zers are not 'coddled.' Instead, they are self-reliant, highly collaborative, and radical pragmatists. Given their experiences growing up, it is understandable that they feel dismayed about inheriting the significant issues they will face in the coming decade. In a recent insightful TED Talk, Justine Danielle R. observed, "Many of us are starting to lose faith in the future because our point of reference for a 'good life' is still based on the realities of previous generations, whose circumstances are nowhere near what we're experiencing now," and a thought-provoking question,

“Aren't we ashamed that the current system we participate in is only built for survival and not success?"

Despite all these negativity, what's admirable about the GenZers, is their unwavering faith and collective hunger that drives them to not just act, but have long-lasting positive impact for better tomorrows.

So how exactly are they doing this?

As consumers, they “broke” the marketing funnel.

We’re all familiar with the purchase journey, which typically follows a linear path: awareness, interest, desire, and conversion. An article from Vogue Business, made a bold claim that this linear path no longer applies. They shared that the path to purchase today is an infinite loop of inspiration, exploration, community and loyalty.

A recent study by The Fourth Wall , which surveyed 400 respondents about the Urban Filipino Gen Z Consumer, reveals that it is not social media, rather word of mouth, is their primary touchpoint for discovering products and services. Recommendations from trusted friends and community discussions help them filter out the noise of everyday social media content. Once they discover a product, they typically engage in extensive research—not only on price, features, and benefits but also on materials, production methods, and how it aligns with their current life stage and brand accessibility.

Discovery is a crucial part of their identity exploration. Each choice reflects their individuality, making products and services an extension of their self-expression.

The study also highlights an intriguing dynamic: while this demographic shows a strong emotional connection to brands (scoring 3.81 out of 5), they are still highly inclined to switch and experiment with other brands (scoring 3.19 out of 5). This trend poses a challenge for brands, as the cost of customer acquisition and retention rises. The focus may need to shift from merely retaining customers to inspiring them to become advocates for the brand.

This demographic’s willingness to experiment can be attributed to two main factors; 1) underlying trust issues, and 2) a fluid sense of identity. Their skepticism reflects a cautious approach to forming lasting brand relationships, necessitating tangible proof through research and direct experience. Today’s consumer identity can no longer be boxed to a rigid persona. It is fluid and multi-dimensional, with individuals embodying multiple, evolving ones.

Known for their discerning choices, they value transparency and authenticity. They view recommendations as valuable advice from a close friend. As a result, brands should aim for consistency across all channels and offer genuine information that empowers consumers to make informed decisions. Rather than trying to attract them to your brand, focus on meeting them where they are.

The study also notes that participants make an average of six purchases per month, supported by diverse income streams. For those employed full-time, income comes from their main job, personal business ventures, and side hustles. Students, on the other hand, rely on parental allowances, micro-businesses, and side hustles to fund their expenses. This variety in financial sources explains how they can afford high-cost events like the recent Taylor Swift's Eras tour.

At work, they refuse to accept stagnation.

For the past seven months, the author and her team have been studying this demographic to understand their views, challenges, and motivations for academic reasons. They have engaged directly with Gen Zers and consulted with experts in human resources and psychology to explore their workplace behaviors and preferences.

The study unearthed a significant trend among Filipino youths moving away from the traditional 9-5 life. This shift is driven by three factors: 1) employer expectation mismatch, 2) limited career growth opportunities, and 3) salaries below industry standards. These issues make it challenging for incumbents to attract and retain talent. Even in the startup ecosystem, according to Uniquecorn Strategies , Philippines Startup Founders' Outlook 2024 report, hiring good talent ranked 3rd as the biggest challenge founders anticipate.

Employed adults face challenges with evolving skill demands, making it even more difficult for youth who lack extensive experience. In a 2023 study by the Asian Development Bank, youth unemployment rates are often two to three times higher than those for adults. Consequently, many young people today are focusing on building diverse skill sets rather than following conventional career paths.

An emerging trend is that job security is shifting from being tied to tenure to being tied to skills. For this generation, job security now depends on the continuous development of in-demand skills, with the freelance world offering a prime opportunity for this.

Rather than relying on a single job for stability, individuals are prioritizing the ongoing expansion and enhancement of their skill sets.

This shift in behavior has fueled the growth of the gig economy in the Philippines. According to the 2022 Payoneer Study, 33% of the Philippines' gig economy consists of Gen Zers. Majority of these individuals earned their undergraduate degrees during the pandemic and started their careers with remote work setups. Most of them started pursuing online jobs as early as their sophomore year.

Additionally, high underemployment rates due to skills mismatch and job obsolescence have pushed young people to seek alternative career options. The government recognizes this as one of the challenge areas in developing the young workforce. Recognizing these, addressing the skills gap through initiatives like the development of the Philippine Skills Framework (PSF), led by the Department of Trade and Industry (DTI) is underway. This framework aims to help the Filipino youth choose relevant career paths aligned with industry and employer needs.

Characterized by their commitment to lifelong learning and being the ever-informed generation, Gen Zers recognize that formal education can quickly become outdated. This drives them to actively seek opportunities to stay current with industry trends and advancements. Gen Z is not only redefining job security but is also shaping the future of work in a rapidly changing global environment.

Of all the shifts this generation is driving, the overarching theme that houses them all would be MAKING BUSINESS MORE HUMAN -- with emphasis on authenticity, empathy, and pragmatism. This generation has a strong belief that businesses are not just economic entities, but also social actors that can contribute to the greater good.

Each generation can leverage the strengths of the other, acknowledging that the digital future is vastly different from the industrial past. Mature colleagues can learn new methods from younger ones, while younger colleagues can understand the reasons behind traditional practices.

Without open dialogue, we risk a wasteful conflict between past and future approaches. The job-to-be-done is for generations to collaborate with openness and trust with empathy as the foundation, preserving valuable wisdom while discarding outdated practices.

What got us here, will most certainly NOT get us there...

So, will we cling to our generational divisions, or will we dismantle them and forge a future together?

Should you wish to know more and dive deeper? Let's talk about it.

• email: debriefwithdani@gmail.com

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views or positions of any organizations or affiliations with which the author is associated. The content provided is solely the author's perspective and is not influenced by any current or past affiliations.