The Marienplatz is filled with vendors for Christmas Market selling wursts, sweets, gluewein, and other local delicacies.  Local crafts, linens, Christmas ornaments, and decorations are also available.  Christmas markets can be found throughout the city; another is a few blocks away at the Residenz palace complex.

Munich has at least 20 Christmas markets. The more famous ones are the above mentioned Marienplatz, the Manger Market at Rindermarkt (a few steps away from Marienplatz), the medieval market at Odeonsplatz, Weissenburger Platz , Schwabinger Christkindlmarkt at Münchner Freiheit and off course the Christmas market at the Chinese Tower in Englischer Garden.

Here is a map with the locations of 10 of the bigger Christmas markets in Munich: http://www.inside-munich.com/munich-c...

 All of them are truly an experience and you definitely should visit more than one of them.