Sunday Market at Pisac largest in the world.
2 soles on the bus from Cusco or stay at
ollantaytambo.org prettiest of the SV towns
apulodge.com casa-andina.com Private Collection
my favs and visit from there. Do homework carefully
but I found wonderful musician quality flutes for my son
and clothing for my wife there truly an amazing market that goes for miles.

Happy Shopping up to 50% off if you bargain well.

I wonder why you think the Peruvians would import Chinese materials when they have their own factories.

Most of the high end woven or knit alpaca items that are made in factories in Peru, for example.

If you want something handmade by the seller, the smaller markets or direct from a fair trade shop (you can find them in Cusco, Chinchero and Ollantaytambo). You'll also see authentic handcrafted items in high end hotel gift shops or stores in Lima but you'll pay 3 times as much.

Just let your eye be your guide if you are shopping the big markets in Pisac or Aguas Calientes, a lot will be mass produced but still Peruvian.

yes, some may be made in china...but in Pisac they have cheap goods which are not real alpaca and mixed with synthetics and machine made. Of course they have some shops which have better quality items. If you want quality then shop in the Cusco shops but it will be costly. You can also go to Chinchero wear they have a weaving demonstration and quality goods made by hand.

Chinchero is a good bet. Pisac is overpriced and is largely mass produced stuff. There are some small shops around the Plazas in Olly and in Urumbamba and in the market in Urumbamba. We found some nice stuff just wandering the back streets of Olly where people were happy to sell the stuff they were producing either for their own use or for sale by others.
Molinos market in Cusco is vast and you could easily spend a morning there but you do need to check what you are buying carefully as all is not of the best quality but there are bargains to be had. We also bought some very nice handmade Alaca stuff from an old lady we regularly saw on the streets of San Blas.

There is also a really good market in Lima that sells a lot of the same handicrafts at lower prices. I was just there yesterday and found some good things. It's called the Mercado Indio and it's in Miraflores.