CCI report on ‘Market Study on E-commerce in India'
CCI report presents the key trends identified and also discusses the issues that may, directly or indirectly, have a bearing on competition, or may hinder realisation of the full pro-competitive potential of e-commerce.
The Competition Commission of India (CCI) has released a report ‘Market Study on E-commerce in India: Key Findings and Observations’ on January 08, 2020. This study was initiated by CCI in April 2019 with an objective to understand the performance of e-commerce in India.
This study highlights that e-commerce is gaining importance across the sectors in India. The study shows that e-commerce has increased price transparency and price competition in the country. Apart from that, it also presents key trends and issues of the market.
Growing importance of digital commerce
CCI report on e-commerce in India confirms that the broad categories of consumer goods are sold online in India. The study covered goods like electronic appliances, mobile phones, lifestyle-related goods, and groceries where online commerce is still growing. Apart from that, online hotel bookings, apparel purchases, buying accessories, purchasing fashion products have been rising.
In food sector, 83 percent of restaurants admitted that they have an online presence. It was also reported by the respondent restaurants that their online sales is accounting for about 29 percent of total revenue. It has mentioned in the CCI report that most of the consumers are using price comparison tools for hotel bookings.
According to the CCI report, service providers’ reach to buyers on online platforms depends inter alia on their ranking on the platform’s website regarding related search queries. It was found in the research that sellers or service providers also ask customers about their perceptions.
CCI report highlights that payment system providers facilitate the digital transactions taking place on an e-commerce platform, which is imperative to the success and smooth experience of completing a transaction. Accordingly, the study included payment service providers such as payment aggregators, UPI based payment systems and providers of prepaid payment instruments. This segment was not studied as a sector, but as a pivotal component in the e-commerce ecosystem.