You have every right to sell your product. As long as there are no patents on the product you are making, then you can continue to sell. No need to apologize. Hence the world we live is made up of competition...that's what drives the economy. I personally make those blankets as well...don't sell them tough...only make them for family. I think they are adorable blankets and I wish you well in your sales.
Although, remember there will always be naysayers and those upset with your competition...it comes with the business. Just stand by your product and you will do great!