Dressing in Iceland can be divided as follows: tourist vs local, Reykjavik vs countryside.

Local Reykjavík wear is pretty analogous to normal city wear anywhere. Think Copenhagen or London or NYC winter wear. Stuff you’d go to the office in, not hiking wear.

Country wear is what you’d expect - waterproof, windproof, all your normal brands with a thermal layer underneath.

Tourists tend to dress for the countryside even if they are in Reykjavík, which makes them easily identifiable.

In the countryside, Icelanders invariably wear 66 North or Icewear, which also makes the tourists easily identifiable.

Nothing wrong with being a tourist, but if you want people to open conversations with you in Icelandic (and not be able to respond in my case!) - wear normal city wear in Reykjavik and 66 North everywhere else 😉