It was popular through the 1950s and early 1960s until the Army decided to get anal about deviation from absolute uniformity and that probably reduced the demand enough to kill the market.
It used to be common for officers to have embroidered rank, sewn ribbons, etc on service dress and dress uniforms. It used to be common to have small military tailor shops (making uniforms, not just sewing on patches); now there's basically just Marlow White. Used to be a wide variety of authorized fabrics and shades - not like today where committees pick crap fabric (like current Army ASU & AGSU shirt fabric).
My dad never wore an off the rack uniform except fatigues. It used to be expected to be well tailored. Of course, the Army didn't change uniforms every week.