My MIL gave LO a pretty dress for her naming (Jewish ceremony) that we had when she was 10 months. I never had a reason for her to wear it because it was so fancy, and it was flowers which fit her garden theme perfectly, so she wore that dress to her birthday party.
I'm not sure what she'll wear for her second. We got the perfect dress in a pile of hand me downs. It's going to be a bow theme and it is pink with white bows on it, brand new with the tag still on it. But when I washed it (and made sure to follow the directions carefully) the bows wilted, you can barely tell they're bows.
I'll probably go to a consignment store to look for a new (well.... used) dress. I don't want to spend a lot of money on a dress she will only wear once.