If it's a special gift like a wedding - I buy a special hat box or rectangular box at Tuesday Morning, Hobby Lobby or where ever I can find them.
I don't like to use all that quilt fabric to make pillowcases, so I buy a pillowcase and applique on one spare block or make one out of scraps so it matches.
But I do like the idea of the ribbon and yah I would probably wrap it in tissue just to hide it a little more.
They do look festive! Cute idea.