Amazon’s massive growth is showing no sign of slowing down, and now the e-commerce giant has a new industry in its sights: private-label athletic apparel.

Bloomberg reported on Friday that, according to sources familiar with recent developments, the Seattle-based company is already approaching overseas athletic garments manufacturers, including those who supply heavy-hitters such as Gap, Lululemon, Uniqlo and Kohl’s, to begin sourcing high-end activewear for a private-label line.

The vendors, including Taiwan-based Makalot Industrial Co. and Eclat Textile Co. – which currently manufactures apparel for Nike, Lululemon and Under Armour – are as of now producing small quantities for Amazon in trial runs, according to sources. No long-term contracts have been signed yet, and the effort to produce private-label athletic apparel has not been officially promoted by Amazon.

Even so, the athletic wear industry is huge ($44 billion in the U.S. alone, according to NPD Group) and fiercely competitive, and Amazon’s unparalleled e-commerce capabilities means a full-scale entrance would be a significant disruption, some analysts believe. Indeed, after Bloomberg broke the news last week, shares of Lululemon, Nike and Under Armour all initially fell.

The news about Amazon follows a year of sales struggles at activewear companies. Nike said it expects North American sales to decline this quarter, while Under Armour cut its annual sales forecast in August. And while Lululemon reported a 30% increase in online sales as a result of an enhanced ecommerce strategy, it has been forced to shift part of its marketing focus to overseas consumers.

Nonetheless, Laurent Potdevin, CEO of Lululemon, told CNBC he’s not concerned about Amazon’s move into the activewear market.

“I think Amazon is mostly around [sic] commodity product,” said Potdevin. “That’s not our sandbox…The fact that we control our distribution really allows us to have a different positioning.”

For the overseas vendors Amazon is turning to for apparel, forging alliances with e-commerce companies reflects shifting demand from consumers, said Silvia Chiu, an analyst for SinoPac Securities Corp. “Online apparel sales accounted for 19% of all apparel sales in 2016, up from 11% in 2011,” she said. “Online sales are primed for strong growth.”

This isn’t Amazon’s first venture into the world of private-label garments; it currently offers men’s business clothing under its Goodthreads line and the Paris Sunday line of women’s wear. Plus, as early as April of this year, the company successfully won a patent for an on-demand apparel manufacturing system.

Amazon has also recently brought on high-level staff with experience in private-label apparel merchandising. As far back as January 2017, the company hired Kirsten K. Harris as a senior brand manager for Amazon active apparel, according to her LinkedIn profile. Previously, she led product development for Zella, Nordstrom Inc.’s activewear brand for women, as well as for Eddie Bauer and Nike.

As detailed in a recent in-depth report from Counselor, Amazon is expanding in more than just athletic apparel; the company also has a presence in the promotional products industry. It already operates two e-commerce services for logoed merchandise: Amazon Custom and Merch by Amazon.

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