All that glitters
In the crowded online jewelry market, Mondera.com has an edge over the competition: it's the brainchild of Fred and Pascal Mouawad, scions of a family of jewelers that dates back four generations. Launched in August 1999, Mondera.com carries over 20,000 diamonds ? the Mouawad family specialty ? and also features gemstones, watches, jewelry, and household gifts, as well as services like live Q&A chat, the 24-Karat Newsletter, and the Mondera.com Learning Center. With backing from @Ventures and Global Investment Partners (a private fund managed by Fred Mouawad), the company garnered $13 million in first-round venture capital financing in September 1999, a large portion of which went towards a high-profile marketing campaign.
Diamonds are a Mouawad's best friend
The Mouawad family is one of the major players in the secretive international jewelry business. Family patriarch Robert Mouawad has bought some of the world's most famous diamonds, including the 70-carat Excelsior I and the 30-carat Cullinan Blue necklace, for the family's collection. Robert's grandfather Daoud founded Mouawad Jewellers in his native Lebanon in 1890, and Daoud's son Fayez moved the family business to Saudi Arabia in 1950. Robert Mouawad expanded the company aggressively in the 1960s and '70s, building eight manufacturing operations around the world. But until his sons Pascal and Fred started Mondera.com, the Mouawads did little business in the U.S., choosing instead to focus on the lucrative international jewelry sector.
Mondera.com offers services comparable to a brick-and-mortar jeweler: a 30-day return policy, certified diamonds, and, perhaps most importantly, advice on selecting the perfect gemstone. The Mouawads hope to use their background in the jewelry industry to leapfrog over the crowded playing field, which includes online retailers like Luxuryfinder.com, Ashford.com, and Miadora.com. Mondera.com also faces stiff competition from well-known retailers like Tiffany & Co., which plans to start offering its goods online by the end of 2000, and New York-based Fortunoff, which already offers a limited array of merchandise over the Internet. In response to the crowded market, Mondera.com is rolling out a new $20 million dollaer advertising campaign. Says co-founder Fred Mouawad, "With our previous campaign we saw sales increase over 700 percent and brand awareness rise four-fold."
