With the release of iC7's Morph Creator, it is possible to create not only prop and character morphs but also clothing morphs. This works (within limitations due to the clothing weight painting). I have made a number of successful clothing items with morphs. However, at the moment, it is only possible to apply these morphs (created with Morph Creator) in iC7 using Morph Animator. If the clothing is takes into CC2, there is no evidence of the morphs.
The good news is that while CC2 does not show the morphs (it does show the morph state of any applied morphs but no sliders to adjust the morphs) it does retain them. So even if the clothing is saved in CC2, later added to a different character, once it is taken back to iC7 the morphs can be adjusted using Morph Animator.
However, it would be nice if the morphs could also be represented in CC2 so that users can adjust the clothing morphs in CC2 before taking them to iC7.
Note: I have tried to create a Morph Slider for the clothing morphs by exporting an iAvatar with the morph not applied and with the morph applied. While CC2 saves the iAvatars with or without the morph applied, the Morph Slider functionality does not seem to evaluate the clothing meshes when creating a new Morph Slider. The first clue that CC2 does not support clothing Morph Sliders is that there is no category of clothing when creating a slider (only categories like Body, Head, Eyes, etc). If one does pick a generic category like Body, it is possible to create a Morph Slider but the Morph Slider does not actually do anything. This seems to prove that when the Morph Slider is being generated, the clothing meshes are ignored.
Bug Fix / Suggestion:
Allow the creation of CC2 Morph Sliders for clothing so that morph clothing can be adjusted in both iC7 and CC2.