Loads of tourist shops available in old town. Probably overpriced, but Lijiang does not have as many cases of the Westerner price being too much higher than the Chinese price as in many other parts of China.
Burned wood carvings
One of the popular local specialties. quality varies greatly by the individual artist, and prices vary by shops. some shops do custom etchings of your face near photo-realism with lijiang in the background. expect to have your picture taken, then come back in a few hours.
Yak horn combs
Also popular, with some combs also carved from the yak hoof the ones with the rougher edge on the handle.
Art and writing samples
ä¸å·´; dångbä - the naxi have the only living hieroglyphic language in the world, and shops with samples of it, or of the unique naxi style art, are abundant.
Yunnan Coffee
Coffee ground to a fine powder then added to water, although most contain milk and sugar powder already.
Warm Clothing
In the old town warm clothing is quite expensive if you are just looking for something cheap to keep the chill out. the road just outside the town by the waterwheel has very cheap hats, mitts, and even long johns. just turn left at the first intersection.
Small red coconut
Do not buy a small red fruit shaped like a coconut. actually, it is just a coconut painted red and sold for a very high price. this is a scam.