Hazel wears a variety of outfits in South of Midnight. Just because the game is set in the American Deep South doesn't mean that fashion has gone out of the window; on the contrary, every few Chapters that go by, Hazel has a change of outfit. These are not random and are rather symbolic, showcasing her growth as an individual as you progress through the storyline.
There are a total of three outfits that Hazel will wear in South of Midnight. As mentioned, they will automatically unlock as you progress through the storyline, as they are tied to it. This means that you cannot pick and choose what Hazel wears at the start of the game. Nevertheless, here's a look at all three outfits, and a rough timeline to understand when she changes from one to another.
Hazel has a total of three outfit changes in South of Midnight
Hazel's first outfit in South of Midnight

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The first outfit can be seen from the start of Chapter 1 (Night Of The Flood). Hazel can be seen wearing a yellow tank top with ripped jeans.
Here's a note from the development team regarding her first outfit:
"We wanted Hazel to feel like a relatable older teenager. Her clothing supports both her relaxed attitude and athletic backstory as well as her traversal gameplay needs. We did a lot of research for her hair style. Braids are not only beautiful and full of creative potential — they also implied that perhaps her mother helped her with her hair."
Hazel's second outfit in South of Midnight

When Hazel meets with her paternal grandmother, Bunny Flood, the latter remarks on the protagonist's appearance, stating that she could use some fresh clothes. After all, Hazel was in Two-Toed Tom's belly in Chapter 5 (Everything That Rises), and the stench must have been awful.
The outfit change happens just before the start of Chapter 7 (A Barman Is Hard To Find). This is also where you will have to fight and defeat Rougarou to proceed along the storyline.
Here's a note from the development team regarding her second outfit:
"After wading through the pig factory and Two-Toed Tom's belly, Hazel is too dirty for such a beautiful house, so Bunny offers her some "presentable" clothes. They aren't Hazel's taste, but she's tired of smelling like gator guts and pig excrement. "
Hazel's third outfit in South of Midnight

The final outfit change happens a little after the start of Chapter 12 (The Crossroads), after Hazel talks to Roux, and is instructed to meet him at Kooshma's Cabaret in Town on the Tapestry.
Here's a note from the development team regarding her third outfit:
"When Hazel enters the Town on the Tapestry, she finds herself in a special new outfit, part of a magical dress code. She now looks like a heightened version of her old self. (The Town on the Tapestry shows people the version of themselves that they most want to see). Patterns on her outfit reflect her growth as a Weaver. "
That is everything you need to know about Hazel's outfits and when the changes occur. If you want to look at the outfits firsthand and other artwork related to the game, you will have to get the Premium Edition of South of Midnight.
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