AUBURN – When most folks hear the phrase “made in China” they think of sweatshops and exploited workers toiling away in Mao suits for pennies a day.

Paul and Dorothy Lacy offer a different vision.

Founders of China Ethnic Crafts, the Auburn couple just returned from a remote section of the Hunan Province where they work with villagers who make exquisite, hand-embroidered fabric. Working primarily from their mountaintop homes, Miao women use techniques that have been handed down through generations – a tradition that is in danger of dying as young people leave the mountains in search of more exciting lives in the cities.

For the last couple of years, the Lacys have been helping the Miao women convert their unique fabric into items that will sell in America: tote bags, cell phone carriers, checkbook covers, wallets and purses. Profits are funneled back to the Miao women, who use the money to send their children to secondary school. Long term, the Lacys hope the venture is successful enough to entice younger women to stay in their villages, learn the craft and keep the tradition alive.

“Our hope is to build a business to help provide employment for women in the villages – so they can stay in the villages and continue the skills they have,” said Dorothy Lacy.

The Miao skills boggle the mind. First, the women hand-dye silk threads into rich jewel tones. Then they embroider the threads into fantastic geometric patterns. The stitches are tiny; the designs intricate. The women work without templates following instructions that have been handed down for hundreds of years. And they usually sew at the end of their day, after spending many hours tending to rice paddies, livestock and their families.

Harmonious living

The Lacys were charmed by the Miao way of life. A deeply spiritual couple, they admire the Miao who are an ethnic minority that emphasize family and simple living in harmony with their environment.

“I found myself drawn to them, to their culture and gentle nature,” said Dorothy, who has a background in art. She met Paul, who has business experience, through their church in Lisbon. The pair married in 2001.

A year later, they started China Ethnic Crafts. Setting up an international business based on a remote cottage industry proved challenging.

Although the embroidery is beautiful, introducing Western concepts of consistency and quality in finished goods was difficult, said Paul.

“We were shocked at that, that first shipment,” he said. “There were bad zippers, stains. One bag would be perfect, the next a little off. They didn’t understand the market.”

Even the combination of colors needed a little tweaking. The Miao often combined red and pink in the same item, or red and purple – an affront to most Western tastes.

Building their inventory

But over the last couple of years, there’s been a meeting of the minds. The Lacys have made numerous trips to Hunan to coordinate the production and shipment of the items and educate the women about American standards and tastes. The result has been a broadening inventory nestled downstairs in the basement of the Lacys’ modest home on Dee Street.

There, rows of brightly colored tote bags, wallets, lunch bags, bookmarks, Bible covers and purses line shelves. Other items feature lush, embroidered flowers and intricately tie-dyed cloth. The largest tote bag sells for $30; about $6.50 is returned to the Miao after deducting shipping, duties, wholesale and retail costs.

The Lacys are getting ready for a New York City trade show at the end of this week; they’ll also have a booth at the Festival for Cultural Exchange in Portland Aug. 7 and 8.

They have faith that their business will succeed, not just for themselves, but for the people whose handiwork and culture they admire so much.

“We hope this is something that will go on for years,” said Dorothy. “It’s not just a fad.”