Did you hear about Furoshiki? No? Here’s an explanation from Wikipedia:
Furoshiki (風呂敷, furoshiki) are a type of traditional Japanese wrapping cloth that were frequently used to transport clothes, gifts, or other goods.
There are special cloths, but a normal one would do it. You knot these cloths in different ways to get bags or gift wrappings. The following pic shows some ways to use furoshiki:
Photo from Mammaoca2008
On this site you can find a short tutorial how to knot a bag. In case you start to like this kind of knotting, browse the following links:
Have fun =^_^=