TravelManKen is correct on both counts. The major markets like "Silk Street", Yue Xiu, Ya Xiu, and WangFuJing do make decent suits. But, they will try to price gouge, especially on the cost of the fabric.

Also, the big markets don't give as much personal attention to each customer. They figure that everyone is a stupid, wealthy tourist that is leaving the next day, so why commit to extra relationship. It's a wealthy tourist revolving door to them.

One other thing to consider (as I mentioned above) is labor practice. The large markets have a big warehouse full of people working hard, but the workers only get paid a few yuan. Most likely, the worker only got about 30-40 yuan of the 1500 yuan that TravelManKen's friend paid.