Alpaca sweaters are in! Most "gringo" people tend to buy these.
Come in all kinds of patterns and Quchua colors.
The most utilitarian item to buy in Peru. Useful for almost everything. Carrying babies, groceries, as well as protecting your neck/head,
Peruvian shoes. You have to admit: these things are awesome. Comfy, durable, bright, and funky looking.
You won't be seeing too many of these out on the streets. Go get some! So underground, the hipsters don't even know about how cool they are yet!
Pachamama dolls. Good gift for the kids.
They are also a local symbol of fertility and generally good luck symbols.