It is a powerful medium of self-expression and social identity yes, deeply rooted in human history where costumes and attire have always signified cultural, social, and economic status.
Drawing from tribal psychology, it fulfills an innate human desire for belonging and individuality, enabling people to communicate their affiliation, status, and personal values through their choice of clothing.
It has always been and will always be part of humanity, even if its industrialization in Capitalistic societies like ours have hidden this fact.
OP's POV is just a bit narrow, that's all.