Very nice heavy woollen sweaters are for sale at a very low price of around 10 $US !! Also gloves and scarfs in pleasant colour combination. The Dalcahue Market is famous for woollens, wooden crafts and basketry.
You can also find local artistically woven mats and carpets. There are market stalls on the coast road in Castro near the central "palafito" restaurants.
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When visiting the churches of Chiloe we had the chance of going to the artisanat of Dalcahue. The local handicrafts of Chiloé are quite reknown: they mostly offer knit ware - hats, socks, ponchos and the like.
What to buy: I did buy a pair of socks and I tell you: they really do keep my feet warm!!!