Of course I am going to start off with three of the same base (and outlined blob of clothing) so that you guys can see where everything is coming from. Because the thickness of fabric also effects the amount of wrinkles in an article of clothing, please refer to kiddo's tutorial for examples of different amounts of fabric wrinkles.

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Ok. Starting out it is good to highlight the cloth much as if it were MADE of the material you are trying to imitate. Leather is thick, so it has thin overblended highlights. Velvet is furry and very much a gradient, so VERY thin highlights work well with it. Of course normal cloth shades with simple medium-width shading.

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Three things I wanted to point out.
1)Notice the different (and lazy ^^; ) shading on the upper area. Because the velvet absorbs most light, only the barest of highlights are visible. But cloth like leather is thick and reflective, so all major highlights and shades have to be faded into the cloth or in thick blotches. Normal cloth has an inconsistent texture, so use shakey and loose highlights to imitate it.
2)Again, notice how the light spreads out across the different cloths, following the general texture of the fabric. Refer to #1 for the reasons why.
3)Wrinkles are difficult because some fabrics (like leather) generally don't wrinkle much. Velvet wrinkle highlights are usually extremely thin while normal fabric carries them evenly throughout the lighted region. Leather usually doesn't have wrinkles, but for the sake of this tutorial, vague highlights and shading will have to do.

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Intensify previous highlights to create a more dynamic lighting effect, again following the general appearance of the fabric.

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Use extremely dark shading on velvet fabrics, while using only light shading on fabrics like leather which are not flexible. On regular cloth shade normally.
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Two final notes.
4)Notice the difference in the curvature of the light at the waist band of the clothing. This can show both the thickness of the cloth (by its brightness) but the fabric's texture by the smoothness of the highlights and shadows.
5)Also pay attention to the depth and thickness of the shadows. On velvet, the shadows cover most of the cloth because of it's fuzzy texture, but on cloth like leather they are well-blended in, and normal cloth merely has simple shadows like you would imagen on any piece of clothing.
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I hope this tutorial is useful. Sorry that I did such a mediocre job on the actual edits, they were rushed. I will fix them later when I have some time. T.T