The easiest way to make fabric Christmas decorations is by buying and using pre-printed fabric panels. The pattern pieces and directions are printed right on the fabric, so all you do is cut and sew. The first pre-printed fabric panels I remember seeing are stockings and ornaments in the 1970s. I tried a google search on the topic and didn’t find any history related postings. So I don’t know if earlier panels exist or not.
I’ve seen panels for ornaments, table top decorations like stuffed Christmas trees, stockings, nativity figures, Christmas themed teddy bears, pillows, quilts, wall hangings and fabric books. I also sell vintage Christmas ornaments and frequently find the fabric ornaments made up, so I know they were popular.