Nice older Räuchermann, smoking man, dressed as a soldier(?) with a pickelhaube and sword. I originally thought miner or firefighter, but neither of those make sense with the accessories he has. This is vintage, but probably still post war made (it gets a bit hard to tell age on traditional type items like this!). It has been used but fairly lightly. Comes with a small bag of mixed scent incense cones (Weihnachtsduft, etc.)
Räuchermännchen are a very old German knick-knack tradition that dates back to around the mid 1800's. They originated in the Erzgebirge, but have spread throughout Germany and are now a staple of German Christmas markets. These were made in the same region where many WHW items were produced. This region was known for many crafts, mostly made from wood. They are essentially a kitschy incense burner, with the smoke coming out his mouth. Never compete with the Germans for cute doo-dads. All of the energy they save on humor goes into this field.