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Several pieces on the Medicine Seller’s outfit, especially the jewelry, bandana, and mouth markings, bear more than a passing resemblance to the traditional clothing worn by women of the Ainu indigenous group of Japan.

For those unaware, the Ainu are an ethnicity that were conquered by the Japanese in the 9th century. The majority of modern-day Ainu reside in the northern province of Hokkaido. The Japanese government finally passed legislature recognizing the Ainu as an indigenous people in April of this year. Watch for them during next years Olympic Opening Ceremony in Tokyo, as the Japanese newspaper the Asahi Shimbun has reported they will participate. 

Traditionally, among other accessories, Ainu women wear embroidered headbands called matanpushi, a necklace that reaches down to the chest called a tamasay (or a shitoki if it has a medallion), and dark mouth tattoos, starting at the upper lip and being gradually made bigger as the woman ages, all items that resemble effects worn by the Medicine Seller. That dark purple marking on his mouth is probably literally a tattoo, since it doesn’t disappear with the rest of his markings when he transforms.

Why the Ainu? It’s hard to say, but it might be a reference to his age. The Medicine Seller is older than any human alive, so he might be accordingly dressed to match a people that have been around since long before modern Japan came into existence. It’s possible he’s Ainu himself, but I don’t find that likely, seeing as how he’s not wearing actual Ainu clothing but rather items that resemble what they wear, i.e. the “shitoki” is actually a mirror, the “matanpushi” is actually a bandana, etc.

A short summary of Mononoke lore. Originally posted this on Twitter, basically the same but I added some stuff after rereading the bagua wikipedia page

Sources:

- On multiple medicine sellers and their swords

- On the Shuuga realm and Shingi