Global retail clothing group Inditex says its popular international fast-fashion brand Zara is heading to Australia next year. Inditex chief executive Pablo Isla made the announcement at the company's annual meeting in Spain. "The company plans to open its first stores in Australia and South Africa in 2011," he said.The Australian licence for Zara is held by Peter Lew, the son of retail mogul Solomon Lew.

News of Zara's arrival comes amid recent reports that another European clothing chain, Hennes & Mauritz, is scouting the Australian market as part of its push into the southern hemisphere. Zara is considered to be the most successful retail fashion brand in the world. Founded by Amancio Ortega - recently ranked by Forbes magazine as the 9th richest man in the world - the chain has nearly 1900 stores in more than 60 countries. It is famous for identifying up to the minute fashion trends - about 10,000 new clothing lines a year - and having them in the stores within two weeks.

A spokeswoman for Lew declined to comment and it is not known whether the label plans to open Zara branded stores in Australia. Retail expert Phil Bonono says Zara's extremely successful business model allows them to provide quality fashion at sharp price points and will give them a leg up in the Australian marketplace.

"There's no question there's a demand for international brands whether it be Zara, Gap or others," he says.

"There's absolutely an appetite and pent up demand for these brands and Zara is a brand that many Aussies would be familiar with from travelling. They will benefit from that."

Regular ASB Contributor, Brian Walker, managing director of the Retail Doctor says we're set to see the expansion of international brands continue. "Consumers want it and the rise of online shopping has made ranges and brands far more accessible now," he says.

"People are generally more alert to what's going on in the world as distinct from what's going on just in Australia."

"On the other hand, these brands are getting smarter at operating in different geographies and hemispheres and can now bring product to markets in different areas. They need expansion to fuel growth and profitability and so they need to expand into international markets."

Phil Bonanno says considering tight retail conditions already, the battle for market share will worsen with international competition: "All retailers large and small are going to have to take a long look in the mirror and a hard look at their business in terms of what their point of difference is. They'll need differentiation to drive growth," he says.

"In fashion and other sectors things aren't growing as fast and there's more players coming in. We're going to continue to have more good operators losing. Not just people who don't know how to run a business," he says. "Being good may not be good enough anymore. That's not just driven by overseas entrants but they are a critical element in the equation."

Source: Fashion and Textile News