Anyone know where I can find wholesalers of gifts and fancy goods in Madrid? Is there one area where I should base myself to search for wholesalers and if so is a good area to stay in?

I can't help you. I could not find any in the city centre but I think there are some on the outskirts of town, but I don't know where.

What's a wholesaler?

A wholesaler is a person/company that carries a line of products and sells them in bulk (a lot of the same products)to a retailer store, market, etc. who, in turn, sells the product to the public. i.e., when you buy a shirt the wholesaler has ordered X number of shirts from the manufacturer and, in turn, has orders for X, Y, Z number of shirts from different stores. By the time you buy the shirt it has been marked up (euro increases on base price) by the the wholesaler and the store where you purchased it.

Make sense?

Significa "mayorista"

Thank you, everybody. I have seen several chinise wholesellers around Tirso de Molina, rastro, etc..
but the best way to find them is with the qdq, a kind of yellow pages ww.qdq.com
looking for mayorista as the activity...