Vanity items

Vanity items are wearable items that can be equipped in Social Slots next to the Armor and Accessories slots in a character's Inventory. Wearing them will change a character's appearance, but will not provide any functionality. Vanity items placed in the armor slots will also cover all armor appearances. Since 1.2, armors can be dyed, and after the 1.2.3 patch, the same was possible for Wings and accessories.

Vanity Sets
http://terraria.gamepedia.com/File:Clothier_Clothes.png