Detail from Alan Moore and Dave Gibbons' Watchmen (1987).
Kavanaugh: What do you think of the term "graphic novel" that has come into use?
Moore: The term "graphic novel" was something that was thought up in the 80s by marketing people...[there are] a couple of things out there that you could just about call a novel...in terms of density, structure, size, scale, seriousness of theme, stuff like that. The problem is that "graphic novel" just came to mean "expensive comic book" and so what you'd get is people like DC Comics or Marvel comics — because "graphic novels" were getting some attention, they'd stick six issues of whatever worthless piece of crap they happened to be publishing lately under a glossy cover and call it The She-Hulk Graphic Novel, you know?
— Barry Kavanaugh & Alan Moore, "The Alan Moore Interview"
In 1978, Will Eisner published A Contract With God and Other Tenement Stories, a collection of short stories centered around a Jewish tenement community in the Bronx in the 1930s. While there were a number of previous long-form works of sequential art that might have been called "graphic novels" — including the wordless woodcut-novels of Frans Masereel and Lynd Ward, as well as "illustrated novels" such as Gil Kane's His Name is...Savage! (1968) and Blackmark (1971) — A Contract With God is considered the first to combine all the traditional elements associated with the modern form of the medium: sequential art, word balloons, literary content, and a cohesive, long-form narrative.
The mid-1980s saw the publication of three milestone works in this newly-designated format. In Maus, comix veteran Art Spiegelman told the story of his family's experiences during the Holocaust through the use of anthropomorphic animals, a stylistic trope that could be traced to the earliest days of the comics medium. Writer/artist Frank Miller's dark reinterpretation of the Batman myth in The Dark Knight Returns (1986) lay the foundations for the character that persist to this day. Finally, writer Alan Moore and artist Dave Gibbons combined profound philosophical themes with sophisticated visual storytelling to create Watchmen, still considered by many to be the greatest superhero story every told.
Detail from the story "Teen Plague" in Charles Burns' Big Baby (1982).
It is difficult to generalize about the new alternatives because they were so diverse. The best way to define them is by contrasting them to the mainstream. First, and most obviously, they were not about superheroes. Instead, they were concerned with a wide spectrum of mature subject matter...topics like radical politics, sex and hardcore horror were viable for the alternatives because the mainstream could not, or were not inclined to, cope with them.
— Roger Sabin, Comics, Comix and Graphic Novels: A History of Comic Art
The development of the graphic novel coincided with the spread of "alternative" or "indie" comics in the 80s and 90s, which emerged from the underground comix scene of the late 60s and early 70s. The indies incorporated a bewildering range of styles, subject matter and creators, but they were all similarly produced and distributed outside the "mainstream" comics publishing infrastructure, which was dominated by Marvel and DC and overwhelmingly concerned with the superhero genre.
Because of the alternative scene's heterogeneous nature, a cursory overview of its titles and creators will necessarily overlook something. However, one anthology that had an outsize influence was Raw. The brainchild of Art Spiegelman and Françoise Mouly, Raw was envisioned as a cross between a glossy art magazine and traditional comic book, featuring avant-gard and experimental work on large-format pages. Spiegelman's Maus was first serialized in Raw, alongside work by comix veterans like R. Crumb and Lynda Barry, as well as new creators like Charles Burns (whose stark black-and-white style recalls the art of the wordless woodcut novels of Frans Masereel and Lynd Ward), Gary Panter and Mark Beyer.
Other noted alternative anthologies included R. Crumb's Weirdo and the British title Deadline, which featured the first appearance of the popular character Tank Girl by Alan Martin and Jamie Hewlett. In 1982, American publisher Fantagraphics began releasing the Hernandez brothers' Love and Rockets; the company would become one of the most respected in the indie publishing scene, with titles including Daniel Clowe's Eightball and Chris Ware's Acme Novelty Library.