Ashes of Creation is still in early stages of development. It has been confirmed that armor can be obtained both by drop and via crafting. It is also likely that vendors will also have specific armor available. Master crafters will be able to determine stats and RNG will not be utilized for this. Set bonuses are also confirmed but we do not know yet if crafters will be able to make sets or if this will be limited boss or other drops (Tiers).
Armor will generally not be 'bind on equip' but the developers have stated that there may be exceptions. Capes/cloaks will be available in-game. Some additional items may show over a player's armor. This includes costumes that may cover the entire body, and items attached to the belt that have been pre-selected from a player's inventory.
Gear repair from crafted items will require materials and the appropriate player with the correct skill to provide the repair service. Gear will degrade over use. Once the armor item has reached a durability of 0%, the item will no longer be equipped.