Nuno-felting is a very popular technique these days, especially for wearable items like scarves and wraps. Various fabrics can be used in conjunction with natural and man made fibres. A very fine wool such as cashmere or merino is ideal for nuno-felted scarves. Embellishing with bead and stitch adds to the surface texture, which is often ruched using this technique.
In the words of wikipedia:
Nuno felting is a fabric felting technique developed by Polly Stirling, a fiber artist from New South Wales, Australia, around 1992. The name is derived from the Japanese word “nuno” meaning cloth. The technique bonds loose fibre, usually wool, into a sheer fabric such as silk gauze, creating a lightweight felt.
See pictures below for more details.