One word - Osho slippers! The Koregaon Park area abounds with roadside vendors selling these bamboo-soled delights, in every possible colour, from funky to sedate to gaudy and you can't go wrong with these. A must visit.
All major brands have set shop in Pune on the MG Road, as also at the Pyramid Mall on Senapati Bapat Road. Those looking for things with an ethnic twist, visit Fabindia, near Dhole Patil road for some great cotton clothes and furnishings. The Bombay Store at MG Road stocks 'Indian' paraphernalia, from hand printed bed spreads and quilts to bandhni dupattas. The store is a bit pricey (and largely aimed at foreign tourists), but they do have divine incense sticks.