Every time I see a wrapped-bead necklace, I'm intrigued. I first saw one a few years ago, then again on Banana Republic's website, then there was a free pattern from Amy Butler (see below), and now tutorials to make them can be found all over the web.
Here are four tutorials I found that approximate the look:
A. A video tutorial shown on Martha Stewart.com using small wooden balls.
B. Amy Butler offers a free "Fabric Necklace" pattern in a .pdf here.
C: This method eliminates the tying action and uses beads on the outside of the fabric too.
D. Two versions, here and here, use several different fabric prints and Styrofoam or wooden balls to construct separate beads that look somewhat similar to a necklace seen in fashion magazines last year.
Photos: The Museum Shop for the Art Institute of Chicago, Marc Jacob for Louis Vuitton.