Select the Brush tool then set the size of the brush to 2px. In the Paths palette (Window > Paths), right click on the path then select Stroke Path.

Set the opacity to 20%.

On the current layer, choose Layer > Layer Style > Stroke. Set the Stroke settings as shown in the image below. Don’t close the window yet!

Enable the Drop Shadow style with the settings shown below.

Repeat the above technique (Step 14-19) for the two sleeves.

Create a new layer (Ctrl+Shift+N or Layer > New > Layer)

Select the Rectangle tool (U) to make a label.

Choose Layer > Layer Style > Drop Shadow and apply the settings shown below.

Add the logo/text to your label.

Make a selection on the left sleeve like the image below. For better selection, feather the selection (Select > Modify > Feather) by 0.3px.
