Toothpaste Tariffs and Trade Tensions: How US-India Disputes Could Impact Your Business Investments
CHENNAI: Dabur, a leading Indian consumer goods company and competitor to Colgate-Palmolive, is leveraging rising nationalist sentiment by positioning its toothpaste as the patriotic choice and urging consumers to avoid American brands. This move comes amid escalating trade tensions between India and the United States.
On Thursday, Prime Minister Narendra Modi reinforced his appeal to support “Swadeshi” or made-in-India products. He encouraged children to create lists of foreign-branded goods and urged teachers to discourage their use.
Last week, US President Donald Trump imposed tariffs of up to 50% on imports from India, triggering a campaign on WhatsApp by Modi’s supporters to boycott American brands such as McDonald’s, Pepsi, and Apple.
Dabur, valued at $11 billion, featured a front-page newspaper advertisement showcasing unbranded toothpaste packaging reminiscent of Colgate’s design. Although the ad did not explicitly name Colgate, it described India’s top toothpaste brand as American-born and promoted Dabur as the authentic “Swadeshi” alternative. The ad included the phrase “Born there, not here” styled in the red, white, and blue colors of the American flag.
Dabur declined to comment on the advertisement, and Colgate did not respond to Reuters’ inquiries.
According to Euromonitor data for 2024, Colgate controls 43% of India’s toothpaste market. The Indian subsidiary of Unilever, which owns the Pepsodent brand, follows, with Dabur holding the third position with a 17% market share.
With a population of 1.4 billion, India is a significant market for American consumer goods, often sold through US-based online retailer Amazon.com. Over the years, US brands have expanded their presence into smaller towns across the country.
Communications consultant Karthik Srinivasan described Dabur and other brands’ advertising methods as “moment marketing,” aimed at capitalizing on current nationalist sentiment for short-term gain.
Similarly, Amul, India’s largest dairy company, has used social media to promote “Made in India” products, including animated ads featuring its mascot proudly holding the Indian flag alongside a slab of butter.
— رويترز
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The intensified promotion of "Swadeshi" or locally made goods in India, driven by rising nationalism and trade tensions with the US, highlights a growing consumer shift towards domestic brands. For businesses in Oman, this signals both a risk of reduced market access to nationalist-driven markets and an opportunity to strengthen local brand identity and resilience amid geopolitical uncertainties. Smart investors should consider diversifying supply chains and investing in homegrown innovation to capitalize on rising local consumer loyalty trends.
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