There are quite a few of these lace, linen and embroidery shops.  I guess this sort of thing which is mostly hand made is very expensive in other countries compared to what can be had from mainland China.

Generally the quality of these are fine -- maybe it isn't first rate Belgian lace or anything, but there are some nice things to be had at reasonable prices.  The shops tend to be a bit casual and just have piles of things so you have to hunt around quite a bit to find things you want.