Tailoring is used to create various clothing and armor items from cloth and leather. Use a sewing kit to open the Tailoring Trade Gump. Tinkering, Blacksmithing, Tailoring, and Carpentry can be used in conjunction to make many items.
Gideon's Advice: Tailoring isn't very expensive to raise. It is also quite useful if you're starting out because you can gather wool, flax, or cotton, spin it into thread and then weave it into cloth, and then craft items to sell for gold.
Wodan's Method (optimal):
30 - 40 REAL SKILL = Short Pants
40 - 48 REAL SKILL = Fancy Shirts
48 - 52 REAL SKILL = Fancy Dress
52 - 74.6 SHOWN SKILL = Robes
74.6 - 99.6 SHOWN SKILL = Oil Cloths
99.6 - GM = Studded Leather Gorgets
Total Cost w/ recutting according to Wodan = 15k Cloth + 400 Leather
Experience may vary.