Taiwan apparel manufacturer Eclat Textile, supplier to Nike, Under Armour and Lululemon, is understood to have signed a deal to supply online giant Amazon.

Eclat chairman, Hung Chen-hai, told the Nikkei Review the company will start shipping to a new e-commerce customer at the end of August. It is looking to grow with a focus on e-commerce platforms over the next three to five years.

"For this year, the e-commerce customer will account for roughly 0.5% of our revenue only...but the trend is definitely going up in the next few years," Chen-hai told the publication.

While the new customer was not named, analysts believe it to be Amazon. The online giant has been making waves in the apparel space in recent months, not only selling major brands on its platform but selling under its own labels too.

It also recently launched a "try before you buy, and only pay for what you keep" service – Prime Wardrobe – featuring 1m items, including brands outside of Amazon's private labels, such as Adidas, Calvin Klein, Levi's and Hugo Boss.

Amazon to offer "try before you buy" service

Hung told the Nikkei Review the e-commerce platform will overtake Walmart to become the biggest clothing retailer in three to five years. He added that the margin to supply to the e-commerce customer was higher than for traditional brands.

Eclat is understood to have suffered inventory adjustment problems since last year with levels from most of its brand customers having fallen very low, causing sales to drop in its last fiscal year.

The chairman, however, says orders picked up in the first half of 2017 and that he expects new customers to bring 15% revenue growth in 2018.

The company has the capacity to produce around 7.5m garment pieces per month, up 1.3m units on a year ago thanks to the opening of two new facilities in Vietnam. The country accounts for nearly 70% of Eclat's production.