With the surge of deep learning techniques, the field of person re-identification has witnessed rapid progress in recent years. Deep learning based methods focus on learning a discriminative feature space where data points are clustered compactly according to their corresponding identities. Most existing methods process data points individually or only involves a fraction of samples while building a similarity structure. They ignore dense informative connections among samples more or less. The lack of holistic observation eventually leads to inferior performance. To relieve the issue, we propose to formulate the whole data batch as a similarity graph. Inspired by spectral clustering, a novel module termed Spectral Feature Transformation is developed to facilitate the optimization of group-wise similarities. It adds no burden to the inference and can be applied to various scenarios. As a natural extension, we further derive a lightweight re-ranking method named Local Blurring Re-ranking which makes the underlying clustering structure around the probe set more compact. Empirical studies on four public benchmarks show the superiority of the proposed method.