Lijiang has long been an important stop along the legendary Tea-Horse Trading Route which connects Kunming with Tibet and even further into India. The unique location of the city has made it a meeting point for traders and a distribution point for merchandise from different parts of China and abroad.

For several hundred years, Sifang Jie Square has been the major market here. Today, the Square is still the best place for buying exotic local specialties, the most famous being bronze ware.The small streets in the ancient town are also clustered with all kinds of shops and boutiques where you can pick up some interesting nik naks.

Most of the shops here are tourist-oriented and sell nice artcrafts as souvenirs. Mr. Kun's Arthouse, the Brother's Art Space and the Juyiyuan Gallery are particularly interesting. Other famous shops include the Bunong's bells , the Dongba Herbal Medicine Shop and the Grass Root House which is famous for its original pictograph inscribed T-shirts.