This kind of thing already existed for a long time, but not as a scam. The people selling these products were selling their ability as "tastemakers". They knew about all the various distributors who could provide "artisanal" products from around the world, they took the time to leaf through all the catalogs and find the best knick-knack that they felt would fit with the theme of their stall and do good business in their local market. And then on the day of the market they would chit-chat with the customers about the process.

The funny thing is that what makes the scammer version a scam is that they go through exactly the same process but then try to pass the products off as their own artisinal work, presumably because they think that will net them more money. But in reality most people browsing for tat at a market aren't going to pay more or less for local artisinal versus imported artisinal versus mass produced, they just enjoy the experience of browsing the different stalls and chatting with vendors and feeling like they have connection with their local merchants. So the scam was wholly unnecessary, the vendor didn't need to make up a story, they just needed to be open to chatting with their customer. They're shooting themselves in the foot by lying about their products because if/when they're found out then they lost the trust, which is the actual product they are selling. People who choose local markets over chain stores or online shopping are doing it exactly because they are looking for a more trustworthy experience, so when you take that away you have nothing to sell.