Check out this "clothing system" test video here.
The first half is from the old version, second half is from the last version.

Icons and interface is not finished of course, but the whole system is working already.
It was a bit complicated, cause we have many different separate items, that you can wear at the same time. So the character is split into +35 zones, that can be occupied by different items (so you can't wear "conflicting" items on top of each other).

Check it out:

VIDEO