Not really local craft - a lot of it is from other parts of Morocco - most likely Fez and Marrakech - or China! - but theres a lot of little shops to get some interesting items to commemorate your visit to Morocco and yes you still need to haggle! - but haggle and you could get yourself some good deals.
Ive bought the best priced leather pouffes/cushion covers here than anywhere else - especially difficult was getting good prices like we got here in the souks of Marrakech!
Theres the usual carpet and jewellery shops, a few nice looking carpets caught my eye - but only my eyes though as Ive been there done that enough during my years in Morocco that my collection is ample for the time being! - but if you are yet to get a carpet well here in Asilah could be as good a place as any! If you are headed for Tetouan though there are huge cooperative shops there with an abundance of selection.....
one time when I was here there were excellent huge seashells for sale....
and then there is the art shops, textiles, hats, Tshirts monogrammed with Moroco - and then there is an excellent pattisserie too!
Have a roam and a good look and then a good haggle if you see something you like!
you can buy everything and anything here - and if you dont want to buy its great for looking for an hour or so.
Interesting and colourful textiles and fabrics, excellent music that you can hear before you choose, or maybe buy a teapot for your mint tea - along with ornate tea glasses?, or veges to take back to make a tagine!, or like me shade your head from the sun as many of the other ladies do and buy a colourful Rif mountain hat!
I only paid 20 dirham but even up to 40 dirham for the more intricately covered and decorated hats would be a fair price.
Driving main road south of Asilah towards Lixus and Larache I easily found many locals selling fresh melons by the road in late September. They sometimes stood in the middle of nowhere with tons of yellow or green melons under the piece of cloth which protected them against sun. The melons are surely available in a local fruit market which takes place in the morning daily in the medina of Asilah.
What to buy: There are a few kinds of both yellow and green melons. I bought yellow melon for the first time in my life and it tasted very good.
Since that time yellow melons became my additional food in Morocco. They are easy available in each local fruit market usually at the same price as by the road. I tried different melons but yellow ones and a bit soft (but not very soft) were the best for me.
What to pay: I don't remember the exact price per one melon but they were inexpensive for me = very cheap for a visitor from, say, Western Europe.
What to buy: I was with a guide in Asilah and on the way to the beach on a horse-cart he jumped off at the market and bought some fresh fish and a watermelon. He says the best melons are the ones which sound hollow when tapped and he must be very right as it was the sweetest juciest watermelon i have ever, and will ever taste!