Paul and Dorothy Lacy pose for a photo with their business partners in 2005. [Photo provided to chinadaily.com.cn]

In the early days, they invested heavily in market research, pattern collection, and brand building. Now they are quite sanguine about the prospects of the company, whose annual sales are about 1.5 million yuan (roughly $216,000).

In addition to pursuing exquisite quality, they've also integrated modern design elements in the products and sustained Miao traditional embroidery styles. This helps explain why the products are adored by customers, the couple said.