Dynamic Sprite properties

Hello, I'm currently making a multiplayer game where people can change their appearance. I'm talking clothes and facial hair.

How would I go about implementing this? I'm confused as to what a gameObject is in terms of that. Can I create a new layer onto a gameObject like 'clothes' and then based on their selection, change the clothes sprite? How would I then render it into an animation so that it moves with player movement.

I'm not sure how this would be implemented in Unity. Any help would be appreciated.

Thanks.