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The Broken Armor is the default armor that you start the game with after and during the events of the Prologue.
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The Black Dye Merchant is located in the northeast section of the Kushi Prefecture of the Toyotama region, in a cave up in the hills just east of Kawamata Village along a dirt road. Take the roads west along the peak to find his home nestled in the back. The White Dye Merchant is located in upper Kashine prefecture of the Izuhara region, found along a mountain called Wanderer's Pass on the map, north of Kashine Forest. There are two unique merchants hiding in the island of Tsushima who have entirely unique armor and bow dyes from any other merchant you will encounter - and can be hard to track down.