International fast-fashion brand Zara is heading for Australia next year, according to parent Inditex, one of the world's largest retail clothing group based in Spain.

"The company plans to open its first stores in Australia and South Africa in 2011," said chief executive Pablo Isla at the Inditex's annual meeting.

The Australian licence for Zara, which is considered to be the most successful retail fashion brand in the world, is held by Peter Lew, the son of retail mogul Solomon Lew. A spokeswoman for Mr Lew refused to give details.

Zara's arrival is expected to threaten Australia's Witchery and Country Road.

According to retail veteran Michael Lloyd, publisher of Shopping Centre News magazine, Zara is "probably the number one success story in their category, in young ladies' fashion, for at least a decade."

"I would say that in Australia, they will have the same success.

When Zara opened a store in China last year, "it just murdered everything around it," he said.

Although Mr Lloyd does not expect any local labels to go bankrupt, he says "they're going to notice that the turnover Zara gets here used to be theirs".

Zara has nearly 1900 stores in more than 60 countries. Its founder Amancio Ortega recently ranked the 9th richest man in the world by Forbes magazine.

News of Zara's coming followed recent reports that Hennes & Mauritz, another European clothing chain, is eyeing the Australian market as part of its plan to expand into the southern hemisphere.