There's a lot of kitsch in the streets, but with it rare finds as well. For the light traveler, there are embroidered clothing, tie-dyed scarves, Dali batik and jade jewelry. For those who like to lug around large slabs of stone, authentic Dali marble can be found everywhere. This quality marble is usually set into wood furniture, tabletops and table screens. Dali's Gantong tea, Cangshan snow tea and Xiaguantuo tea make good gifts.

Monday is market day in Shaping Village, some 30km north of Dali. Whether you're buying or just browsing, the market is great fun. From 10am to 2pm, it's a shopping frenzy on a hill near the highway. Traders peddle anything from pots to clothes. To get there from Dali, hop onto a minibus organized by the local hotels or cafés, which usually cost RMB 15.

On the eastern shore of Erhai Lake is the Wase Village market the fifth day of each month; rural women in colorful jackets, long tunics and sequined chapeaus pack the market square. Locals arrive on horses and donkeys, and amidst wandering pigs, trade wares ranging from rice and nuts to horses and squawking chickens. Forget proper stalls, most items are displayed out of woven baskets.