MWC26: How KDDI’s omnichannel approach is putting customers first

• KDDI VP for consumer business strategy Toshiro Akiyama, outlines KDDI’s customer-first approach
• Diversification and new technology is helping Japanese telco engage with customers
• Robots, AI and digital payments all playing a central role in KDDI’s approach

Japanese telecom operator KDDI is doubling down on customer experience in order to boost growth, KDDI VP for consumer business strategy Toshiro Akiyama told TelecomTV at MWC26 in Barcelona.

The operator is leveraging next-generation technologies, such as AI, data analytics and robots, to boost the customer experience, both in-store and at home.

KDDI has already announced significant investments in technology and supporting infrastructure, including a ¥100bn ($633m) investment in one of the largest AI datacentres in Osaka, which will go live later this year.

The company is also using generative AI, powered by Azure’s OpenAI service, to find efficiency on its network, and at MWC26 shared plans to launch physical AI – including humanoid robots – in convenience stores later this year – see MWC26: KDDI plots bots retail rollout for autumn.

“We want to be at the front end of technology,” explained Akiyama when he sat down with TelecomTV at the KDDI booth in Barcelona. “The customer experience is the most important.”

He points to some of KDDI’s investments and its approach to diversification as to how the telco is improving its customer experience levels, including the $3.3bn (¥500bn) deal that saw it acquire a 50% stake in Lawson Inc, a major convenience store chain, in February 2024.

KDDI previously held a 2.1% stake in Lawson but partnered with Mitsubishi Corporation to acquire the firm, which operates 14,600 stores across Japan.

The move was part of KDDI’s ‘Real x Digital x Green’ programme, where real equates to the physical locations, digital refers to KDDI’s wireless and data collection and analytics platforms, and green relates to a strategy to make these physical stores more sustainable through the use of green energy and circular economy practices.

“While we have tried to diversify in some areas, the most important thing is about engaging with our customers,” he added. “We do that by taking care of their data and offering different services, such as our payments services and loyalty programmes.”

He added that they take an omnichannel approach that sees customers treated the same online as they would be treated in store. KDDI has previously announced a partnership with conversational AI firm LivePerson, which helped it boost customer satisfaction ratings to 90% – the highest ever for the company.

The omnichannel approach also helps KDDI deal with another challenge in Japan – demographics: With more than 29% of its citizens aged 65 or older, the country has the oldest population in the world.

“We are focused on a few key strands to give back to our customers,” he added. “Number one is infrastructure for new technology – making sure our network can support AI and new devices.

“The second layer is delivering to our end users. That means delivering the right products and offerings, and to do that, we need to know our customers better. We have a lot of data and we are leveraging AI to find the right offers for our customers.

“The third part, which helps us deal with the demographic changes in Japan, involves expanding our business portfolio, such as payment and banking products, payments for utilities, and healthcare.”

KDDI is heavily involved in the digital healthcare transformation in Japan, focusing on drone-based medical deliveries for fast, efficient and reduced-waste logistics. It has also partnered with Qol to develop seamless digital pharmacy services and launched the ‘Pocket Health Care’ app in conjunction with the Apple Watch.

Commenting on KDDI’s plan to deploy humanoid robots in its stores – including its own 2,000-plus stores and the Lawson stores it co-owns with Mitsubishi – Akiyama confirmed that commercial trials, in partnership with Avita, are scheduled for autumn, with plans to deploy the robots – named Hinata, which means ‘place in the sun’ – in retail and convenience stores later this year.

He concluded: “It is about exploring the future ecosystem beyond just being a mobile brand. It is about moving from a telco into a techco and then exploring our distribution, if it is online or in store, and looking at how we are engaging with customers. We then want to package that up in the best possible way to create the best experience for them.”

- James Pearce, Contributing Editor, TelecomTV