Been there, and will definitely refer to our friends as we were not that pleased with the Tour Organizer.

The night market near the old town is OK but mainly "trinket" type souvenirs. The Old town itself has many stores and boutiques if you are after something else. Having said that, The best place to buy the colourful lanterns is the night market. (They collapse for packing).

Hoi An Night markets were by far the best markets for family atmosphere and fun. Hanio night markets during the lunar festival were amazing with lights, lanterns, music and thousands of people, all very hectic and high energy and excitement. As a couple we were able to move around easily and safely, would be difficult if travelling with children.

You can buy fake bags, watches and sunglasses at any shops who sell them in the shopping area of Hoi An, which is quite a few. There are no shortage of theses items available.

I didn't see any stalls in the market (primarily food) with those items, however, there are plenty of shops just of the river walk with backpacks and other outdoor clothing items.

Walking is the best option or hire a bicycle no cars are allowed on the surrounding roads.