I am just getting into this book, and came up with the following proof, which I thought was simple enough. I am curious what you all would think....
Let $G$ be a monoid. Fix an integer $m \ge 1$. Suppose $n=1$.
Then we have
$$(\Pi_{p=1}^{m} x_p) * (\Pi_{q=1}^{n} x_{q+m})$$
$$ = (x_1 * ... * x_m) * x_{m+1}$$
$$ = \Pi_{p=1}^{m+1} x_p.$$
Suppose $n=k$ for some positive integer $k$. Assume this inductive hypothesis:
$$(\Pi_{p=1}^{m} x_p) * (\Pi_{q=1}^{k} x_{q+m}) = (\Pi_{p=1}^{m+k} x_p)$$
Then we have
$$(\Pi_{p=1}^{m} x_p) * (\Pi_{q=1}^{k+1} x_{q+m})$$
$= (\Pi_{p=1}^{m} x_p) * \bigl((x_{1+m} * ... * x_{k+m}) * x_{k+1+m}\bigr)$ by definition of product
$= \bigl((\Pi_{p=1}^{m} x_p) * (x_{1+m} * ... * x_{k+m})\bigr) * x_{k+1+m}$ by associativity of the law of composition of $G$.
$= \bigl((\Pi_{p=1}^{m} x_p) * (\Pi_{q=1}^{k} x_{q+m})\bigr) * x_{k+1+m}$ by definition of product
$= (\Pi_{p=1}^{m+k} x_p) * x_{k+1+m}$ by our inductive hypothesis
$= \Pi_{p=1}^{k+1+m} x_p$ by our definition of product.
By the principle of mathematical induction, that proves the point for all $n$.