TWO YEARS AGO, Collins Ward, 34, a principal at a Manhattan-based private-equity firm, was looking for a new charcoal-grey suit. Though his closet was stocked with $2,000-plus ensembles from Armani and Ermenegildo Zegna, Mr. Ward headed downtown to J. Crew, where he purchased a jacket ($425) and trousers ($225) from the brand's Ludlow line.

"I've worn a suit every day to work for 10 years, and I tried a lot of the nicer, more expensive Italian brands," said Mr. Ward. "Frankly, [the Ludlow] is a good price point,...