Prof G Markets: What Killed the Apple Car? Shein Eyes a London IPO, and The Granolas

Branding Impact

The branding strategy behind "The Granolas" has captured significant attention in the European market. Scott Galloway describes it as "genius branding," drawing parallels to past successful branding efforts like BRICS and the Magnificent Seven 1. This strategy has not only elevated market perception but also influenced investment flows, with the Granolas accounting for a substantial portion of European stock market gains and M&A activity 2.

I just think it's genius branding. I mean, I got to think that the amount of attention. Remember the BRICS, what was it? Brazil, Russia, India, China. That's great branding because it immediately connoted, these are the growth markets.

--- Scott Galloway

The branding has positioned these companies as key players, similar to how the Magnificent Seven has impacted the US market.

   

Market Dynamics

Comparing the European "Granolas" to the American "Magnificent Seven" reveals distinct differences in market dynamics. Scott Galloway notes that while both groups consist of leading companies, the Granolas are less volatile and focus more on consumer and pharma sectors, unlike the tech-heavy Magnificent Seven 3. This reduced volatility suggests a different investment potential, with the Granolas offering stability over the tech-driven growth seen in the US market.

The piece of data you left out is that the granolas are two times less volatile than the magnificent seven.

--- Scott Galloway

Understanding these differences is crucial for investors looking to diversify their portfolios across global markets.