The Toy Book presents: State of the Industry
The Toy Book brings together a panel of industry leaders, manufacturers, and retailers to discuss the trends, wins, challenges, and opportunities shaping the North American toy industry. It’s a no-holds-barred conversation with a rock ‘n’ roll attitude toward the business of play.
Zack Farber
CEO, RMS
This year marks RMS’s debut at Toy Fair, but the company has been around for more than 40 years. Why has the U.S. become such an important focal point for growth?
The U.S. consumer is craving true value for their money. RMS has thousands of amazing products at everyday price points between $1 and $20. Every shopper deserves a great experience no matter how much money they have to spend, and given RMS’s mission to “Wow!” consumers with unbelievable value, it is the perfect time for us to delight U.S. retailers with our market-leading designs, incredible product content, and unbelievable margins.
What were some big wins for RMS last year?
RMS had double-digit growth despite our negative category comps, which shows the power of true value. We expanded our retail presence, partnered with industry-leading entertainment companies, and opened our first West Coast showroom. Despite the worry that there was one less weekend in December, all our retail partners experienced sell-out products.
Retail pricing has become a “State of Emergency,” pitting mass and specialty retailers against each other and their vendors in a way we haven’t seen in many years. What can be done to level the playing field so that everyone has a chance to succeed?
I have always felt that the U.S. is a market of “extreme consumption” with plenty of room for every brand and price point. When retailers try to mirror their competitors, it never works. Every store must clearly define how they add value. Specialty stores should do what they do best and stay special. Customers purposely go to those stores for a unique ‘try me’ experience — a niche that mass retail cannot do. I’d love to see them not try and compete on price but still deliver value.
What are the biggest challenges and opportunities facing the overall industry this year, and how are you approaching them?
Today’s consumers search for extreme value, hot trends, and innovation — always looking for “new.” At RMS, this is our singular mission. It is frustrating to see mass retail lean on the biggest suppliers even when they don’t have sharp prices or fresh products. My biggest challenge is competing with never-ending marketing budgets that get mediocre, overpriced products on store shelves. Retailers who work with RMS experience amazing natural sell-throughs on tomorrow’s hottest trends.
Many initially thought that last year would be the year the toy industry normalized after a few chaotic years, but the results were mixed — What are your overall predictions for the state of the toy industry — and toy/game/collectibles retail — this year?
I have learned that every year, there is something new that we didn’t expect, so we must be prepared for the unexpected and adapt quickly.
As an international company, how is RMS dealing with potential U.S. tariffs or external pressure to diversify its supply chain and manufacturing base?
RMS is positioned better than our competitors if any tariffs hit the toy market, as we offer incredible margins to retailers. With our nimble team and dizzying speed to market, we are changing nothing about how we do business at retail. We offer solutions for retailers worried about tariffs through unbeatable item profitability architecture. Our strategy is to continue to support manufacturing relationships that we have fostered for over 40 years. The true RMS difference is how we adapt and adjust internally with our product development strategies to ensure the lowest possible cost to the shelf. Our lean, agile business model allows us to adapt to any situation and win.
What key moments or product launches can retailers and consumers look forward to from RMS this year?
There are so many! We offer newness in every category every season. Our goal is to “Wow!” our retail partners with the freshest innovation. We repeatedly see our novelty products organically going viral on social, our promotional products pack so much value they sell out completely, and our educational products offer new twists to encourage repeat conversion. Be on the lookout for all of our brands!
Source: https://toybook.com/state-of-the-industry-qa-2025-zack-farber-rms/