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I think a customization shop would indeed be strange in a medieval world. Buying custom items, OTOH, wouldn't. I'm sure it wasn't extremely rare back then to have customers request a specific color from the tailor or a particular etching from the blacksmith. For a higher fee of course.
Yeah, so players could go to the regular shop and purchase their clothing which has pretty much one color for each style of clothing or armor (like a "Travelers Vest" would come in light brown) or it could have two or three colors if people will buy them (like "Druids Cloaks" could come in brown, black, or dark green).
But then there would be the tailors shop where you could go and ask for an item and specify what color and if you want special markings put on it. Then it's a matter of the tailor showing you different types of materials or dyes and a list of different markings they could put on it. Then, they tally up what those specifications would cost you and if you agree then they can make it for you.
I suppose, you could add another layer of realism and make it so that if enough people start asking for red capes at the tailor then they might start selling some at the regular shop.
Then there is the opportunities for stuff like item synthesis and sub-quests. Such as, purple dye for clothes can only be made from certain herbs found in really dangerous monster-infested places and you need to find some in order to get purple items. Or Dragon Blood can be used to make the special "Fire Red" Dye which not only makes clothing red but makes it resistant to fire as well.