When used with the term "industry", the schmata industry refers to the clothing industry, specifically in new york city, and specifically in reference to the women's clothing industry.
He is the Jewish Santa guy that eats too much Hallah bread, drank schnapps with the three wise men, gave a dreidle to baby Jesus, put up a xmas tree in the Holy Land, put a with a Star of David on top of the tree, and sings "Ho Ho Hora, Ho Ho Hora." So, he said it was OK to enjoy getting presents and that us kids shouldn't feel guilty enjoying all the fun.