Just across Vitoslavitsy Museum entrance there is a small spontaneous market, where one can buy a lot of crafts made from birch tree. It's a specialty of Novgorod region.
Local handicraft outside Kremlin. You can get almost all there is to buy in terms of local handicraft from the Novgorod region and also other handicrft from the rest of Russia. Lots of this stuff are really for bad taste people I think. many of these little things are so ugly hehehe.