The former are driven by insiders to prevent others from copying the insiders' style. The latter are created by outsiders trying to invent alternative styles to the mainstream ( article about fashion).
I cannot tell you exactly what "former" and "latter" mean in this context, because these are words that talk about ideas in the previous sentence. The former is the first one listed in that sentence and the latter is the second. Here is an example.
I have two brothers named Danny and Sam. The former is an Uber driver, the latter is a high school student.
In this example, "the former" is Danny and "the latter" is Sam.
The terms "insiders" and "outsiders" are used when talking about groups of people, especially exclusive groups. Insiders are the members of the group, and outsiders are everyone else. It could be an official group (like a club) or an unofficial group (like the "cool kids").