Lulu is a very pretty and functional lavender (or other fragrance) bag. Measuring only 6" x 4", Lulu can be popped into a drawer or wardrobe as a clothes freshener, added to your yarn stash to prevent moth damage (lavender), or even kept under your pillow o help you sleep. 
The construction is a little different which also means Lulu is fun to knit, with a simple sewn sachet for the dried flowers inside.
Why not pair up with Clarence the hot water bottle cover, and give as a gift this Christmas? You may have to make 2 of each though, as I'm sure you'll want one for yourself ;-)