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Properly done, it facilitates social interaction between NTs.
This does seem to be the case. Though I am not altogether certain why.
My guesses, and these are only guesses:
-it allows them to visually establish their place in the social hierarchy- in terms of class, sexual attractiveness, and so on
-it allows them to scan the room to be sure they are among members of their own social strata, which perhaps helps put them at ease and gives them a sense of confidence, especially if, even among their own social strata, they are able to present themselves as somehow exemplary
-if they feel they're lacking in some way, they may feel they can cover up their lack with a nice outfit and nice hair and nails or whatever, which again would give them a sense of confidence, especially if they pass muster
As for why some families may choose to do this on a daily basis, my guesses are:
-it allows for a better separation of activities like work vs. home or school vs. home
-the clothes you've been in all day smell like you've been in them all day