In an article in LiveScience you can read all about how religion and society transformed a one time Catholic Saint into a multi billion dollar industry.
Santa Claus the man is actually loosely rooted in fact, though he hasn't always looked the way he does today, having evolved from a gift-giving Catholic saint who lived during the third century.
The Protestant Reformation and the emigration of European traditions to America morphed that pious figure into the red-suited character that is now one of the most famous images in the world, complete with his iconic army of elves and a magical transportation system.