When your DGD grows up, Ethel, what she will remember is the grandma who did things with her, played with her, taught her to cook, knit and sew, took her to the park and look closely at the plants, birds and insects.
We live 200 miles from our DGC, the other Grandma lives close by and has been a tower of strength, almost a third parent, which has been wonderful as DDiL doesn't have the best of health. We do not try to compete, but we are makers and doers and when DGC come to us we make things together. I recently bought a beautiful victorian hand sewing machine for £20 and introduced DGD to making clothes for her dolls and the next time she comes I plan to help her make a skirt for herself. Cheap charity shop clothes will often provide fabrics cheaper than buying new fabric. DD is particularly good and ferreting around for charity shop bargains.
Do not compete, just be entirely different.