Hi, Shanghai such kind of DIY shops both in department stores and small shops along the road, such as Bizhi DIY (beadworks)in the New World Department Store and D Mall (nearby the People's Square), Parkson (at Huaihai Road). For the cheap one, try the Small Good City at the Old City God's Temple. The Rattail could be found there, too.
As for the pillows, it could be purchase at any department stores or large supermarkets, very common in Shanghai.

Check out the HongQiao Pearl Market at the corner of Hongmei Road and YanAn Expressway. On the second floor they have pearls, stones and beads in bulk by the strand. They're going to be cheaper than anyplace downtown. If you try the places in the old city, make sure you have your b***h hat on and bargain like a mad woman,