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The smart clothing you are asking about is really developed by few research laboratories across the world. For you to better understand what is it and how it works, I will tell you about the achievements of one of those research laboratories that is located in Canada. This lab works on the fiber with electronic components fully integrated in it and absolutely soft, flexible and unnoticeable for people wearing it.
The physicist from Ecole Polytechnique de Montreal, located in Canada, named Maksim Skorobogatiy, is the chief scientist of the project. He says that most research labs just putting microchips inside the clothes without worrying about how it will fit to what people wear. His lab is trying to really integrate all components into the fiber, in fact creating the new type of fiber that would be used to sew new types of clothes.
Despite the fact that such clothing may be quite useful for us in the future (health conditions monitoring, etc.), it can also become the cause of some troubles, like clothes patented by Apple which sometimes called iWear. Such clothes can contain a lot of various sensors and other electronic stuff, thus small GPS tracker placed there will remain unnoticed to you and do its tracking job.
So, the future is really near, as you can see, but it can bring us many things, both nice and scary. If those smart clothes be helpful to you, it will be awesome, but if they try to track your location illegally then you should get rid of smart clothes tracking and let it do only the good things for you as its wearer.