I recently got a convo in my Etsy box from a guy looking for stores in Munich that sell handmade, specifically Etsy handmade products. Below is my answer. I posted it on my Blog about Munich, and also thought I'd post it here, since it is highly relevant, and many of you may recognize yourselves :-)
Hello, Well you aren't bothering me at all, and as a matter of fact I do know of some shops in Munich that sell handmade goods, here a few that come to mind:
The Kreative in München Group
While this is not a shop per se, it is a group of very talented (mostly) Etsy sellers that put on craft fairs (often sponsored by Etsy) around the city relatively often. You can click on their website above or join their Facebook page to keep up to date with their latest sales.
This shop is run by a member of the Etsy Germany Team and just recently opened in Haidhausen and sells products from a variety of talented local makers.
Vier Werkstatten - Muenchen.de listing (in German)
This is a wonderful store on Frauenhoferstr. While not every single item in the store is handmade, most of the work is from talented local artisans including a paper lamp designer and ceramicist. There are also lots of handmade clothing items.
This is a gorgeous pottery studio, also in Haidhausen. It is run by Petra Fischer, a very talented ceramicist. Most days she is in the store herself, and it's nice to go in and just admire the artful way she displays all her items. I wrote a little post about the store on my blog Wahlmüncherin (with pictures) I'm sure there are many more and I am slowly discovering new ones, but I hope this is enough to get you started!
Image from Kreative in München