Chanel woos teens, who are spending 20% less on clothes

Chanel continues its quest to woo the Clearasil set. The luxury company just signed on 18-year-old Emma Watson (Hermione of the "Harry Potter" movies) as its new face of the perfume, Coco Mademoiselle. Watson replaces Keira Knightley, 23, whose contract expires this summer.

Wonder if Chanel heard the news that teen spending on fashion is down 20% this year? Ouch.  Market research company Piper Jaffray reports that while adolescents devote 41% of their consumerism to fashion, it's still on the decline -- thanks to the economy. Plus, parents' annual spending on teen apparel is down to $833, compared with $1,487 in 2007.

Watson has been wearing frothy Chanel frocks to every event -- from "Harry Potter" premieres to TV appearances -- for the past year, so it's no surprise that she will front for the brand. Her two-year contract for Coco pays $6 million, so she can afford to splurge on a few Birkin bags and about 1,200 Playstations -- just like every other teen.

Will 12-year-old Abigail Breslin be the next face of Bottega Veneta?

Photo: Philippe Salaun, Emmawatsonofficial.com