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Chanel Sold-Out Dresses Show That Scarcity Counts

When Chanel SAS stocked boutiques in November with its latest range of 4,000-euro ($5,380) dresses and 3,200-euro quilted handbags for winter getaways to places such as St. Barts, the company wasn’t sure how consumers would react.

“We were a bit skeptical about the global environment,” said Bruno Pavlovksy, who heads closely held Chanel’s fashion division. Two months later, “more or less everything is sold out. It was quite a surprise.”