(see drawing) which makes the tiny picot edge at
the bottom and helps define the folding lines.
In Japan, an azuma bukuro bag is made of fabric and knotted with the pointed ends. It is so practical, it folds flat, can serve as a protection against wind and rain, a small apron, and as far as volume is concerned you'd be amazed just how much goes into an azuma bukuro bag! It is also great to carry knitting stuff, including long needles! They are quick to make out of fabric and make nice gifts.
Japanese Packaging is an art in itself. Here are just a few methods. If you are interested, see this link and this one for reading Japanese Knitting patterns.