Technology has become ubiquitous, it is all around us and is becoming part of us. Together with the rise of the Internet-of-Things (IoT) paradigm and enabling technologies (e.g., Augmented Reality (AR), Cyber-Physical Systems, Artificial Intelligence (AI), blockchain or edge computing), smart wearables and IoT-based garments can potentially have a lot of influence by harmonizing functionality and the delight created by fashion. Thus, smart clothes look for a balance among fashion, engineering, interaction, user experience, cybersecurity, design and science to reinvent technologies that can anticipate needs and desires. Nowadays, the rapid convergence of textile and electronics is enabling the seamless and massive integration of sensors into textiles and the development of conductive yarn. The potential of smart fabrics, which can communicate with smartphones to process biometric information such as heart rate, temperature, breathing, stress, movement, acceleration, or even hormone levels, promises a new era for retail. This article reviews the main requirements for developing smart IoT-enabled garments and shows smart clothing potential impact on business models in the medium-term. Specifically, a global IoT architecture is proposed, the main types and components of smart IoT wearables and garments are presented, their main requirements are analyzed and some of the most recent smart clothing applications are studied. In this way, this article reviews the past and present of smart garments in order to provide guidelines for the future developers of a network where garments will be connected like other IoT objects: the Internet-of-Smart-Clothing.