Variation root must be a Publishing site in Office 365

I'm trying to create site variations of all site collections in SharePoint 2013 online (Office 365) to accommodate different languages, and I'm getting stuck very early on.  After going to Home -> Site Settings -> Variation Settings and trying to create a variation of the top-level website (i.e. '\'), I get the error

Variation root must be a Publishing site.

Is there something really simple that I'm missing here?  Any ideas?

Currently We are creating site Collection with Custom Template and after activating SharePoint Server Publishing Infrastructure Feature got variation setting and other variation options

• Variations Settings
• Variation labels
• Variation logs

While creating Variation labels its giving error Variation root must be a Publishing site.

Please provide some proper input on this error.

Thanks in Advanced!!!

Thanks!
Vivek Kumar Pandey