As the father of one toddler and one on the way, one thing has become painfully apparent: Kids grow out of clothes much faster than they should. As a dad, my own personal fashion scheme consists of buying a few reliable garments at the time, then using then consistently until they can be worn no more. Not so with kids, unfortunately.
One handy resource we have used to get our money's worth out of clothing at large is the old "hand-me-down" scheme. Before we go running off to the department store, figuring out what the best deal is, and so forth, our son's older cousin passes on his brand-name, often seldom-used outerwear. No sense in buying what you can get for free, right?
When it does come time to purchase clothing, however, we go for mid-grade clothing. Here's the big picture: If you choose to buy "cheapo" clothes that will fall apart by next week, that's your business. But, if you want to both save money and have lasting quality clothing (if only for the few weeks they fit), select clothes that are medium in both price and construction. Sure, your kid won't be wearing Tommy or Hollister all the time, but your pocketbook will thank you.
Just a couple of decades ago, the term "Wal-Mart fall apart" was pretty prevalent in reference to clothes from that particular retailer. However, as times and clothier procedures have improved, even clothes from lower-end stores have come up in the world. Granted, they still don't hold up to the quality level of the snooty stores, but really, who wants to pay $50 and up for a tiny shirt that will be outgrown in a matter of months? Reason is the mother of intelligence here.
Buying online is another option. There are children's clothing outlets via internet that offer grossly discounted shirts, pants, dresses, and so forth, but the only drawback there is, as with all online buying, you don't really get to "lay hands on" the item until it arrives.
When the situation comes right down to brass tacks, each parent has to decide what is really best for them and their child. If your life's priority is keeping your child fashion-savvy, then so be it; blow your dollars on big brand names and thick stitches. If, however, your priorities lie in keeping a sane family budget, the options above are certainly to be considered.