Even though my father made a great living as a physician, I grew up wearing second-hand clothes and stuff my mother bought (seemingly in bulk) on clearance from all sorts of stores. Some stuff was from JC Penny, while other stuff came from Bloomingdales and Dillards. Did I have a problem with it? Nope, unless she tried to make me wear stuff that was clearly out of style or was a shirt/pants combo that made me look like a dork.
These days, my wife and I do very well and could afford to shop at Nordstrom, Bloomindales, Brooks Brothers, etc... for clothes. We don't. For our daughter (who is 2), my wife goes to all the kids consignment/resale shops. Most stuff is brand name with some wearing, but plenty of life left. She outgrows the stuff so fast, it doesn't make sense to buy retail. The only things we do buy retail are quality shoes, but even then only when they're on sale.