We have been going to Gatlinburg's Arts and Crafts Community for several years. Sadly, not all the shops are genuine; some leave their "Made in China" boxes sitting in plain sight. Some of them are the real thing, however, and they are a pleasure to visit.
My favorite shop is Apple Annie's. It is a combination of antiques and home-made crafts. The shop sells braided rugs, soaps, Christmas ornaments, and potpourri among other things.
These soaps are so fragrant that one bar of it makes the whole bathroom smell good.
Apple Annie's always smells like Christmas when you go in. I highly recommend you stopping there the next time you are in the area.
Apple Annie's is located at 337 Glades Road, Gatlinburg.