Cheese - many different regions of Switzerland have their own regional cheese speciality. Of these, the most well-known are Gruyère and Emmentaler (what Americans know as "Swiss cheese"). Be sure to sample the wide variety of cheeses sold in markets, and of course try the cheese fondue! Fondue is basically melted cheese and is used as a dip with other food such as bread. The original mixture consists of half Vacherin cheese and half Gruyère but many different combinations have been developed since.
Swiss Army knives - Switzerland is the official home of the Swiss Army Knife. There are two brands Victorinox and Wenger. Both brands are manufactured by Victorinox. The Wenger business went bankrupt and Victorinox purchased it (2005). Victorinox knives, knife collectors will agree, are far far superior, in terms of design, quality, functionality. The most popular Victorinox knife is the Swiss Champ which has 33 functions and currently costs about CHF78 . Most Tourists will purchase this knife. The "biggest" Victorinox knife is the Swiss Champ 1.6795.XAVT- This has 80 functions and is supplied in a case. This knife costs CHF364. The 1.6795.XAVT may in years to come be a collector's model. Most shops throughout Switzerland stock Victorinox knifes, even some newsagents stock them. They are excellent gifts and souvenirs. The original "Swiss Army Knife" is not red with a white cross (as usually seen by tourists), but gray with a small Swiss flag. The Swiss Army Knife is also produced by Victorinox. Its main particularity is to have the production year engraved on the basis of the biggest blade (and no cork-screw because the Swiss soldier must not drink wine on duty).
Note that Swiss Army Knives must be packed in hold luggage.
Ski and tourist areas will sell the other kinds of touristy items - cowbells, clothing embroidered with white Edelweiss flowers, and Heidi-related stuff. Swiss people love cows in all shapes and sizes, and you can find cow-related goods everywhere, from stuffed toy cows to fake cow-hide jackets. If you have a generous souvenir budget, look for fine traditional handcrafted items such as hand-carved wooden figures in Brienz, and lace and fine linens in St. Gallen. If you have really deep pockets, or just wish you did, be sure to shop on Zurich's famed Bahnhofstrasse, one of the most exclusive shopping streets in the world. If you're looking for hip shops and thrift stores, head for the Niederdorf or the Stauffacher area.