Groups let you select groups of vertices and constrain them to surfaces, collision objects, or other cloth objects.
At the Group sub-object level, all selected objects that are part of the Cloth simulation are shown with their vertices visible so that you can select them in an efficient fashion.
When you create or select a group at this sub-object level, the Group Parameters rollout becomes available.
The main reason for creating a group is to make it a constraint. A group becomes a constraint when you assign its vertices to behave in a particular way: for example, to follow another object or another piece of cloth. Until you make a group into a constraint, the group is described as unassigned.
You create and manage groups, and constrain them, using the controls on the Group rollout. You can fine-tune the behavior of an individual group using the controls on the Group Parameters rollout.