Snow Fox Shifts From Retail To Professional Distribution—And Tees Up Retail Return

Two years after leaving retail in the United States, Snow Fox is making a slow return to American distribution with a new outlook.

Born in Australia and headquartered in Taiwan, the skincare and haircare brand has pivoted its U.S. strategy from traditional retail to the professional channel. It’s rolled out to about 150 spas, med-spas and salons. Snow Fox has developed products specifically for professional use, including treatment-boosting Ceramide & EGF Orbs containing 12-plus active ingredients in freeze-dried orbs. 

“After realizing how much it really costs to be in larger retail accounts, our distribution strategy is now focused purely on reaching a smaller target of clients, but with precision and deeper connection,” says Phoebe Song, founder and CEO of Snow Fox. “My mistake was not understanding the true size of the enormous U.S. retail market and the true cost of entering retail. I think a lot of indie brand owners also do the same thing. When you’re new and you’re young, you just jump in, and then you’re like, ‘Oh, I need to pay to seed a thousand units for this program and that program.’ And if you don’t do it, you get lost in the crowd.”

Snow Fox initially entered U.S. retail distribution in 2019 and quickly expanded to over 100 stores at multi-door retailers. In retrospect, Song has concluded the expansion was overly swift and broad for the self-funded brand. “We didn’t really think through our retail strategy. We got into a lot of doors, too much for us to handle,” she said. “You need to get your account manager’s attention in order to give them money so they spend advertising on you. It’s not even about paying.” 

At the time of its U.S. retail expansion, Snow Fox was known for single-use sheet masks, with $35 Arctic Breeze Rescue Mask its hero product. Being synonymous with a single product compounded the brand’s troubles at retail, particularly as retailers embarked on environmental initiatives that avoided single-use products. On top of the sheet masks, Snow Fox’s skincare range features serums, moisturizers, cleansers and oils priced from $35 and $78.

“I wish I had put more effort into introducing the market to a more well-rounded assortment rather than just focusing on our heroes,” says Song. “Snow Fox is eco-conscious. Whenever we can, we choose sustainable and recyclable packaging, but I’m not the kind of founder that will run around and virtue signal. Our priority has always been functionality. We work on rescuing troubled skin and sensitive skin.”

Launched in 2016 with three skincare products, Snow Fox specializes in gentle herbal-driven formulas for consumers with chronic skin conditions such as rosacea. The brand’s Arctic Breeze Rescue Mask sold out four months after it launched and garnered a two-month waiting list. To date, Snow Fox has sold over 3 million sheet masks worldwide. 

Pandemic-induced store shutterings further hobbled Snow Fox’s growth in the U.S. as sales faltered and retailers fell behind on payments. With its return on investment for retail distribution waning, the brand pulled out of all of its U.S. retail accounts by 2022. It also let go of its U.S. sales staff as it turned its attention to its direct-to-consumer business. 

DTC hasn’t been a breeze, though. “Traditionally, the margins from online businesses are actually lower than physical retail,” says Song. “So, it’s really tough unless you are magically making a ROAS [return on ad spend] of 8X, 9X or 10X, but I haven’t really met or heard of anyone who has been able to do that yet.”

Navigating the rise in anti-Asian sentiment that accompanied the pandemic has been tricky for Snow Fox, too. “Before the pandemic as an Asian brand and after the pandemic as an Asian brand, it was totally different. We definitely felt like there was some distancing from customers,” says Song, adding, “It took a while for that hate to go away. It’s much better now.”

Despite the obstacles, Snow Fox has experienced growth. Its sales have climbed more than 600% since 2020, and the U.S. is its top-performing market. Along with the U.S. and Australia, Snow Fox is sold in Taiwan, Hong Kong and Japan. The brand plans to extend to the United Arab Emirates in the fall. 

Venturing into haircare in 2022 has boosted Snow Fox’s sales momentum in the U.S. Although Song was worried about introducing the category to the brand’s assortment, customer requests for it convinced her to make the move. The brand started in haircare with multifunctional solid haircare bars, but ultimately found them a hard sell to consumers prizing efficacy above sustainability. Snow Fox’s haircare fortunes changed with the Gua Sha Hair & Scalp Brush, a product that’s become its haircare bestseller. 

Song’s struggle with postpartum hair loss that led to the creation of the Gua Sha Hair & Scalp Brush. During a visit to a salon in Taiwan, her hair was coming out in clumps in her hairstylist’s hand, and the hairstylist recommended she try a gua sha brush. Song recounts, “She gives me this little card and says, ‘Go to these brush makers.’ That’s how we ended up with our Gua Sha Brush today and that affects our retail strategy because now I have a second chance.”

Designed to massage the scalp and promote fuller hair growth, Snow Fox’s 24k gold-plated Gua Sha Hair & Scalp Brush is handcrafted by Taiwanese artisans and take between three to four months to produce. The brand sells a luxe wood version priced at $118 and a non-wood version for $98. Outside of the Gua Sha Hair & Scalp Brush, Snow Fox’s haircare products are priced from $16 to $78. Currently, haircare accounts for half of the brand’s sales.

Snow Fox is open to partnering with one to two large U.S. retail accounts in the future, and it’s had encouraging conversations with retailers. Song sees Gua Sha Hair & Scalp Brush as the brand’s key differentiator and its ticket back into U.S. stores. She says, “Now, we’re probably the only ones in the world with truly authentic gua sha brushes.” 

No matter what happens with retail, Song is intent on sticking to sustainable growth. “As a brand owner, it’s important to remember to stay focused on your original self and community,” she says. “Growth is amazing, but only when managed properly.”