From Noodles to Niche: Understanding Where Your Customers Are At

There’s a lot of buzz about how consumer behaviour is changing in our “post-pandemic” world. But let’s pause right there—because if you ask anyone in the medical field, we’re not quite in the clear yet. COVID hasn't exactly packed its bags and left the party. It’s more like that guest who lingers awkwardly at the end of the night… still there, still shaping our routines.

Layer in a cost-of-living crisis, and you’d be forgiven for assuming everyone is battening down the hatches and surviving on instant noodles. But according to McKinsey’s State of Consumer Report, 2024, that’s not quite the full story.

Sure, some folks are tightening their belts—but others? They're doubling down on luxury. Older shoppers aren’t exactly sipping chamomile and counting pennies. They’re out there treating themselves. Meanwhile, younger consumers in Asia and the Middle East are trading up, not down, choosing higher-priced brands. Even middle-income earners in Europe and the US are splurging with the enthusiasm of high-rollers.

And it gets more interesting. Some people are literally packing up and moving house—seeking lower living costs in exchange for the freedom to indulge in a few more creature comforts. It’s a sort of pandemic-afterglow rebellion: a collective “I deserve this” attitude after years of lockdowns and banana bread.

So, what does this all mean for businesses? One big thing: know your customer. With brand loyalty wobbling and spending habits shifting, there’s never been a better time to really dig into the minds—and locations—of your target market.

Start by asking where your customers are now (or where they’re heading). During the pandemic, we saw a mass exodus from cities to quieter regional spots. Now, the trend is reversing in some places, as people migrate back to urban areas in search of jobs, buzz, and better coffee. In the U.S., northerners are heading to smaller southern cities. In Australia, city dwellers are venturing to the outer suburbs for affordability, but also embracing the perks of apartment living—hello rooftop gardens and brunch cafés.

If you’re in the wellness business (especially the booming women’s wellness scene), being where your future customers are moving can make all the difference. People settling into new neighbourhoods are often open to fresh experiences—be it yoga, pottery, or pilates with alpacas. Okay, maybe not alpacas. (But never say never.)

In emerging markets like India and China, this geographic dance is even more crucial. Urbanisation is on the rise, with India’s urban population expected to hit 43% by 2035. China’s middle class is growing rapidly across cities of all sizes, and with that comes a willingness to spend more. This isn’t just about shiny malls and luxe labels—it's about understanding where the spending power is heading and getting there first.

Even tourists are back in action, passports in hand and wallets ready. A strategically placed business in the right location—whether it’s a boutique, café, or pop-up wellness studio—can cash in on this new wave of adventurous spending.

At the end of the day, one rule still holds true in business: it pays to be ahead of the game. Especially when the game keeps changing.