Step 5The finished hem
iImage Information

As you can see the picot hem is quite different to a ribbed hem, in the fact that it is perfectly flat without any of the stretchiness. This kind of edge is better when you are making a smart jacket where you want the bottom hem to be absolutely flat and not curl up. Also having the extra few stitches that turn under add weight to keep the edge in place.
It is also ideal when knitting dolls clothes, especially a doll's skirt which you want to stay flat at the bottom and not curl up (and look pretty too!)