As you already noted, conditions were quite bad during this period and some clothes continued to rationed until 1936. However, there was very much a consumer culture under early Stalinism which emphasized, among other things, the social value of wearing fine clothing. This fit into a more general goal of encouraging kulturnost, the creation and spread of mass culture. This culture aimed, in part, to imitate the refinement of better off workers of other countries while retaining a uniquely Soviet character and mindset. People would dress as well or even better than their counterparts in the wealthiest countries, because socialism could create an abundant society where consumption and luxuries were readily available. Thus, the style of dress of the time for trendy urban youths (Stalinism, bringing about such a radical change in society, was for a time "trendy") was the latest factory-made goods - suits, nice collared shirts, shiny boots, dresses of all types, scarves, and even furs for the well-off (Or successful Shock Workers and Stakhanovites).

Peasant in-migrants (Mostly young men and their families) to cities, whose population numbered in the millions, had a difficult time adjusting their outfits to city life. Clothing shortages made it difficult for them to get new outfits, and their peasant outfits were mocked and judged by urbanites. When they assembled in public places women would often wear traditional head coverings and skirts, or brightly-colored dresses which were factory produced but resembled village outfits. But in general when they visited their villages again they wore the most stylish jackets and boots as status symbols.

In the countryside, style changes in the 1920s more heavily reflected generational differences between the old and young as much as class/cultural divides. Peasants traditionally would hand-spin their fabric into traditional skirts and dresses for women and coats and burlap shirt and underclothes for men. Everyone wore traditional sandals, lapti. The new "Bolshevik" fashion reflected the influence of mobilization into the Red Army for men - they dressed in great coats and breeches similar to their military days, along with cavalryman-style caps. Young men (And occasionally girls!) looking to revolt against traditional village culture would dress in haphazard military attire. Girls would try to wear factory-made dresses in the urban style, but the most common form of revolt was to wear makeup and change up their hairstyles to reflect urban fashion.

Collectivization radically changed how peasants could dress themselves. Local tailoring, speculation for fabric, and rural cottage industries were largely destroyed, making factory-produced styles the only option. The starvation caused by collectivization made food production a more urgent priority for families than home-crafting. By the mid-1930s many peasants, not just the youth, had moved to dressing in urban-style outfits, though even into the 1950s people still wore lapti for harvesting and rural dress remained common. Military-style dress became less popular as people wore nice jackets and shirts with starched collars. Consumer culture consciously transplanted Western fashions and styles, attempting to replicate and surpass them even in the countryside.

Sources:

Fitzpatrick, Sheila, Everyday Stalinism: Ordinary Life in Extraordinary Times

Fitzpatrick, Sheila, Stalin's Peasants: Resistance and Survival in the Russian Village After Collectivization

Gronow, Jukka, Caviar with champagne: common luxury and the ideals of the good life in Stalin's Russia

Hoffman, David Lloyd, Peasant Metropolis: Social Identities in Moscow, 1929-1941

Hoffman, David Lloyd, Stalinist Values: The Cultural Norms of Soviet Modernity, 1917-1941

Kotkin, Stephen, Magnetic Mountain: Stalinism as a Civilization