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A dictionary defines layette as "a set of clothing for a newborn baby." That's not a terribly helpful definition when considering the wide array of baby clothes that are available.
Places like Wikipedia include many other categories like burp cloths, hooded towels, socks & booties, and even washcloths, so it looks like we're all on about the same page as far as our definition goes, even if no one has come up with a really solid and encompassing definition yet!
Baby clothes are definitely the most central factor of trying to define Layette, but rather than what would often be considered "outerwear" we think it means more "everyday wear." Most people wouldn't consider a fancy dress for a baby girl to be a layette item, nor would we consider a tiny tuxedo or a vest for a baby boy to be a layette item. It's a rather subjective definition, unfortunately, but essentially we think that it means baby clothes in the sense of bodysuits (onesies), sleep n play (gowns and footed sleepers or pajamas), shirts & pants (lap-shoulder shirts & "sweat" style pants), as well as side-snap shirts (hospital shirts), playwear (rompers), and accessories (such as caps and mittens.
So Layette is a sort of basic, but cute, type of baby clothing that's geared toward newborns. That's why you'll hear of layette sets given as baby shower gifts.
This information was supplied by: AllAboutBabyProducts.com