Latest / Brand Storytelling with Fexingo: Narrative, Mission, and Stories That Sell / How REI Turned Members Into the Story
Transcript
- Lucas: So, Luna, we've covered a lot of brand stories on this show - from Oatly's quirky tone to Patagonia's anti-growth stance. But there's one company that's been doing something quietly radical for decades, and it's not a tech startup or a DTC disruptor. It's REI. Luna: REI, the outdoor gear co-op? I mean, we've all seen their stores, but 'radical' feels like a strong word for a retailer that's been around since the 1930s. Lucas: That's exactly the point. REI is technically a consumer cooperative, not a typical corporation. And in 2026, they doubled down on that model in a way that most brands wouldn't dare. They cut prices on some items and boosted their member dividend to ten percent for the year. That's a direct financial stake for every single customer who pays the thirty-dollar lifetime membership fee. Luna: Ten percent back is huge. I've seen most rewards programs offer maybe two or three percent. How does that work financially? Aren't they just giving away margin? Lucas: Well, they're a co-op, so their 'profit' is distributed back to members. But here's the thing - that's not just a loyalty program. It's the core of their brand story. REI isn't selling you a tent; they're saying 'you're part of the outdoor community, and we share the gains.' It's a narrative of mutual ownership. Luna: So the story isn't 'come buy our gear,' it's 'join us in owning this thing called the outdoors.' That resonates. But how do they make that tangible in their marketing? Lucas: Their most famous move, of course, was the #OptOutside campaign back in 2015. They closed all their stores on Black Friday and told employees and customers to go outside instead. That was a massive gamble, but it became a yearly tradition. In 2026, they still do it, and it's become a rallying cry for the brand. Luna: And it's not just a gimmick, right? I mean, they've tied it to their mission of getting people outside. They even partner with non-profits on those days to clean up trails. Lucas: Exactly. But what's interesting to me is how they've evolved that story. The 'Opt Outside' thing started as a counter-cyclical marketing stunt, but now it's woven into their entire narrative. Their emails, their social, their in-store signage - it's all about 'you belong here, and here's how we prove it.' Luna: So it's not just about the dividend check. It's about feeling like you're part of something bigger. Has that translated into actual business results? Lucas: Their membership numbers have been climbing steadily. As of last year, they surpassed twenty-five million lifetime members. And when you have that many people who've paid a small fee to join, you create a built-in base of advocates. They don't just shop there; they tell their friends, they defend the brand online, they show up to events. Luna: Twenty-five million members - that's like a small country. But I've also seen some criticism that REI's not perfect, like they've had some issues with labor practices. How does that fit into the story? Lucas: That's a fair point, and they've had to address it head-on. Their brand story is about values, so when they stumble, it's a bigger deal. In recent years, they've increased starting wages and improved benefits, but it's a constant challenge. The key is that they can't just say 'we're a co-op, so we're ethical.' They have to live it. Luna: So the story is only as strong as the actions behind it. That's a lesson for any brand, co-op or not. Lucas: Absolutely. And that's what makes REI's narrative so compelling - it's not just talk. They put their money where their mouth is, literally, with that dividend. They could easily be a typical retailer, but they chose a different path, and that choice shapes every piece of communication. Luna: I'm curious about the actual storytelling mechanics. How do they translate this cooperative ethos into, say, an Instagram post or a TV ad? Lucas: Great question. Instead of focusing on product features, they focus on people and places. Their ads often feature real members, not actors, and they show them on actual adventures. There's this one campaign from last year where they followed a family on their first camping trip, and the dad talks about how REI's classes helped them feel confident. It's not about the gear; it's about the transformation. Luna: That's a classic hero's journey, but the hero is the customer, not the product. And REI is just the mentor who provides the tools. Lucas: Exactly. And they've extended that into their physical stores. You walk in, and there's a big wall of member photos from local trails. They host free workshops on everything from bike repair to wilderness first aid. It's a community hub, not just a store. Luna: So the store itself becomes a stage for the story. Every event, every class, every photo on the wall reinforces that 'we're all in this together' narrative. Lucas: And they've even taken that into their digital ecosystem. Their app doesn't just show store locations; it has a trail finder, trip reports, and a place where you can log your adventures. It's a platform for the community, not just a sales channel. Luna: I think a lot of brands talk about building a community, but REI actually gives them a reason to connect. They're not just selling gear; they're facilitating experiences. Lucas: Right. And all of this is rooted in their cooperative structure. Every member is an owner, which means they have a voice in how the company is run. That's a powerful storytelling hook - 'you own this brand.' Luna: I never thought about it that way. It's almost like they've turned their business model into a narrative device. The dividend isn't just a reward; it's the plot twist that makes the story stick. Lucas: And that's something other brands can learn from, even if they're not co-ops. You can create a sense of ownership through loyalty programs, community forums, or even just by genuinely listening to customer feedback. It's about shifting the relationship from transaction to belonging. Luna: That's a nice place to take a breath, because I want to ask you about something that occurred to me while you were talking. If a listener found this conversation genuinely useful, is there a way they can support the show? Lucas: That's great that you brought it up. You know, we keep this podcast ad-free, and that's only because of listeners like you. If today's episode sparked an idea you can use, the best way to keep that going is to buy us a coffee at buy me a coffee dot com slash fexingo. Luna: It really does help us keep doing what we love, and it's a small gesture that goes a long way. But back to REI - I was thinking about how their story has to adapt as they face competition from online-only outdoor retailers. Lucas: That's a good pivot. The online space has changed retail, and REI has had to balance their community focus with e-commerce. They've invested heavily in their website and app, but they still see their stores as the heart of the experience. They call them 'experiential destinations.' Luna: So they're not trying to compete on price or pure convenience; they're offering something that online can't: a place to try gear, get expert advice, and connect with other outdoor enthusiasts. Lucas: Exactly. And that's a strategic choice. They could have gone the way of some other retailers and shrunk their footprint, but they've actually opened a few new stores in key markets. Their bet is that the physical experience reinforces the brand story in a way that digital can't. Luna: It's a bold bet, but it seems to be working. I've seen that they're planning to open their first store in Hawaii next year. That's a big step. Lucas: Yeah, Hawaii is a great fit for their brand. But what's interesting is how they'll adapt their community model to a new market. They'll have to listen to local members and tailor their events and classes to the local outdoor culture. That's the co-op way - it's responsive by design. Luna: So the story is never fully written; it's a living document that evolves with the community. Lucas: That's exactly the right way to put it. And I think that's the lesson for any brand: your story should be a dialogue with your audience, not a monologue. REI's co-op structure forces that dialogue, but even if you're not a co-op, you can build similar mechanisms - surveys, community advisory boards, or just being genuinely open to feedback. Luna: The power of REI's brand isn't just in the clever campaigns or the dividend checks. It's in the fundamental belief that the customer is a partner, not a target. That's a narrative that builds lasting loyalty. Lucas: And in a world where trust is hard to earn, that's a competitive advantage that's really hard to copy. So, the next time you see an REI ad, remember that it's not just selling a jacket - it's inviting you into a story where you're the co-author. Luna: And that's a story worth telling. Thanks for joining us on Fexingo Business, and we'll catch you next time.