Question

why Australian health products become popular around the world. Use badwagon effect, Dai-gou effect and giffen goods concept to explain this.

Answer 1

Ans.

Australian health products have become popular around the world and specially in China.  
Giffen goods are highly inferior and make up a large portion of the consumer budget. As price falls, the substitution effect tends to cause more of the good to be consumed, but the highly negative income effect overwhelms the substitution effect.
Bandwagon effect refer to herd mentality effect , when everyone is following someone else or trend.
Dai-gou effect refers to process of holding the inventory and create false shortage of goods , to artificially inflate the prices and gain from higher margin.
Cihina is a very big consumer market . It’s healthcare industry has suffered serious reputation damage and its products have suffered a lot of ciritsim of not being quality products. This has helped Australia to gain the market share in health care segment.
All these 3 concepts described here have together reduce the market share of the Chinese health care products and given room to Australian healthcare products to grow exponentially.