This is Kusuriuri (the medicine seller) from the anime "Mononoke" (no, not "Princess Mononoke"). I totally recommend watching Mononoke, it's really, really good (but too short T^T)
In the original sketch, Kusuriuri-san had his sword in his left hand. I used hours
trying to draw an exact replica of the sword...but in the end I decided that it didn't fit in with the picture so I left it out
You can see the sketch here
I didn't use any shading in the picture, because they don't seem to use any shading in the anime, either. I used stock photos for the kimono patterns.
Actually, all the details and pretty colors in this pic are only part of my plot of distracting you from the fact that THE DRAWING ITSELF SUCKS SO BAD OMG *EPIC FAIL* XDDD;;;;
Mononoke © Toei Animation