Panasonic ZS1 has a 10.0MP 1/2.5-inch (5.744 x 4.308 mm ) sized CCD sensor . On the other hand, Panasonic ZS8 has a 14.0MP 1/2.3-inch (6.08 x 4.56 mm ) sized CCD sensor and features Venus Engine FHD processor.
Below you can see the ZS1 and ZS8 sensor size comparison.
As seen above, Panasonic ZS8 has a 1.1x Larger sensor area than Panasonic ZS1. Larger sensors give photographer more control on the depth of field and blurry background compared to smaller sensor when shot in same focal length and aperture.