The terms "Clothing" and "Armour" are used interchangeably in this game, with the latter term generally referring to a full set including accessories such as amulets or earrings.
Playable Fairies will be able to mix and match a set of underwear with a set of clothes on top, along with some accessories. The current planning is somewhat restrictive, in that the goal is to allow the player to accidentally discover lots of good-looking combinations by randomly throwing clothes and accessories on. This will also hopefully allow for decent stat-bonuses without having to deal with a horribly mismatched set of clothes.
An item of "underwear" consists a full set by itself, as does an item of "overwear", one of each can be equipped at a time.
2 sets of accessories can be equipped on top of that, a set being Rings, Bracelets, Anklets, Amulets/Necklaces, Earrings, and possibly others.
There will be an upgrade system in place as well, so that if a player happens to really like the clothing they're wearing, they can keep wearing it to the end of the game by upgrading it as they adventure onward.